Don’t be duped by doomsayers, JPMorgan says — the S&P 500 will rebound to 4,900. Here are 3 stocks it’s using to bet on a bounce

Looking at the S&P 500 right now, you might be convinced the stock market is destined for doom in 2022.

The benchmark index rose nearly 27% last year. This year, it’s already down 20%. Plenty of stocks are deep into correction territory.

Yet JPMorgan’s global head of equity macro research, Dubravko Lakos, sees a major rebound on the horizon.

“People are basically positioned for a recession. Our base case is that this is not going to be a recession in the next 12 months,” Lakos told CNBC last month. “And we think from that angle the portfolios are wrong footed.”

Lakos reiterated a year-end price target of 4,900 for the S&P 500. Since the index sits at 3,820 today, his target implies a potential upside of around 28%.

If you’re aligned with Lakos and are looking ahead to a potential reversal, here’s three stocks JPMorgan finds particularly attractive right now.

Don’t miss

Smartsheet (SMAR)

This work-management platform helps companies implement, organize and automate their processes. Smartsheet says its application is used by more than 80% of Fortune 500 companies.

And business is growing. In the fiscal quarter ended April 30, revenue surged 44% year over year to $168.3 million, driven by a 44% increase in subscription revenue.

Notably, Smartsheet’s dollar-based net retention rate was a solid 133%.

But the stock is far from being a hot commodity. Year to date, shares are down a painful 55%. That could give contrarian investors something to think about.

Last month, JPMorgan analyst Pinjalim Bora reiterated an “overweight” rating on Smartsheet. While Bora also lowered his price target from $80 to $58, the new target is still 69% above where the stock sits today.

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