- Market volatility has risen sharply in recent weeks.
- Some hard-hit stocks have begun to rebound.
- Discover 8 undervalued opportunities that have recently been punished and could see sharp rebounds.
After several weeks of heightened volatility driven by geopolitical tensions, price swings and shifting expectations around AI investment, many US stocks have come under heavy selling pressure. Yet some of the hardest-hit names are beginning to show early signs of recovery.
Semiconductor stocks have borne the brunt of the selloff, with the sector suffering its weakest monthly performance in more than a decade as investors questioned whether record AI spending can be sustained. The weakness later spread to Big Tech, with Alphabet’s higher capital expenditure guidance triggering a broad pullback in Amazon, Meta and Microsoft before quarterly earnings helped restore confidence.
Meanwhile, the Federal Reserve left interest rates unchanged on Wednesday, maintaining a cautious stance as policymakers continued to monitor inflation risks and elevated oil prices.
Against this backdrop, investors may find opportunities among stocks that have fallen sharply over the past month but have started to rebound in recent sessions. Such moves can signal that selling pressure is easing and that the market may have become overly pessimistic relative to a company’s underlying fundamentals.
A short-term rebound alone is not enough to confirm a lasting recovery, however. To improve the odds, it makes sense to pair this technical signal with fundamental measures such as valuation and analyst expectations, focusing on stocks that appear oversold yet offer meaningful upside based on financial models and Wall Street estimates.
These US Stocks Could Be Emerging From Recent Selloffs
We therefore turned to the Investing.com screener to search for U.S. stocks that meet the following criteria:
- Market capitalization greater than $2 billion
- A drop of more than 15% over the past month
- Positive change over the past week
- Upside potential of more than 25% based on InvestingPro’s Fair Value
- Upside potential of more than 25% based on the average analyst price target
This research has allowed us to identify 8 stocks:
Specifically, these US stocks show upside potential ranging from 25.2% to 54.9% based on Fair Value and from 31.8% to 178.7% based on the analyst consensus.
Among these stocks are:
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has emerged as one of the fastest-growing AI infrastructure companies, with revenue surging nearly 280% in its latest quarter, driven by an 841% year-over-year jump in AI cloud revenue. The company also returned to positive adjusted EBITDA, highlighting improving operating leverage. Despite these results, the stock fell almost 22% over the past month as investors questioned the near-term profitability of AI cloud providers, before recovering 5.7% over the past week. InvestingPro’s Fair Value estimate implies roughly 26% upside, while Wall Street analysts remain overwhelmingly bullish with even higher price targets ahead of the company’s expected earnings release on August 12. The main risk is valuation: the shares trade at more than 200 times earnings, leaving little room for disappointment while GAAP profitability remains some way off.
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delivered record quarterly revenue in mid-July, with sales rising 31% year over year as higher aluminium prices and restarted smelting capacity boosted results. However, adjusted EPS of $2.12 missed consensus estimates of $2.31, and the stock has fallen more than 18% over the past month amid concerns over the debt burden associated with its planned acquisition of South32’s aluminium assets. Shares have since begun to stabilise, gaining modestly over the past week. InvestingPro’s Fair Value points to more than 25% upside, while the average analyst price target suggests gains of around 34%. Although opinions have become more divided following the acquisition announcement, the recent pullback may offer an attractive entry point for investors willing to look beyond the near-term uncertainty.
However, many other stocks on this list have more attractive profiles, particularly in terms of valuation based on models.
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Disclaimer: This article is written for informational purposes only. It is not intended to encourage the purchase of any assets and does not constitute an offer, solicitation, recommendation, or advice to invest. I would like to remind you that all assets are evaluated from multiple perspectives and are highly risky; therefore, any investment decision and the associated risk are the sole responsibility of the investor. Additionally, we do not provide any investment advisory services.

