The iShares Semiconductor ETF (SOXX) is down nearly 40% year-to-date, significantly underperforming the major averages. One of the standout performers of 2021, the sector has seen a sharp reversal of fortunes this year. Stocks that made the screen A raft of semiconductor stocks made the screen. Jim Coulter, founding partner and executive chairman of private equity firm TPG, told CNBC that he believes earnings season will mark the "second chapter" of the market downturn, as inflation courses through supply chains and hit results across many sectors. Corporate earnings have come into sharp focus ahead of the second quarter earnings season, with market watchers anticipating further stock pullbacks as companies report lower earnings and guidance. The list is then further narrowed by screening for stocks that are expected to grow their earnings per share by at least 20% this year. These stocks recorded share price declines of more than 20% in the first six months of the year but remain buy-rated by the majority of analysts, with average potential upside of at least 20% based on consensus price targets, according to FactSet data. How we screen To identify these stocks, CNBC Pro used FactSet data to screen for MSCI World stocks that were beaten down in the first half of the year, but which analysts think are ripe for a rebound. Despite this, analysts remain bullish on selective global stocks - and these could provide opportunities for investors. Either way, market watchers are expecting continued volatility ahead as recession fears mount and earnings come under pressure. As the second half gets underway, Ned Davis Research has said a "long overdue" small relief bounce could be on the cards. But the first half of 2022 has turned out to be something of a nightmare for many investors The MSCI World had its worst start to the year on record, while the S & P 500 ended the first six months with its worst performance since 1970. Few would have anticipated the steep losses in stock markets this year, after such a solid 2021.
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