However, some stocks in the index are clearly “lagging behind.”
What are the best opportunities among S&P 500 stocks that haven’t yet benefited from the rally?
At the time of writing, futures are pointing to a higher opening for the this Tuesday after the long Memorial Day weekend.
The US stock index could therefore reach fresh record highs, supported by growing diplomatic optimism around the Iran-US conflict.
After making encouraging comments over the weekend, President Donald Trump said on Monday on Truth Social that negotiations with Iran were progressing positively.
At the same time, reports said an Iranian delegation traveled to Doha to hold talks with Qatari officials regarding discussions around the Strait of Hormuz. Markets are increasingly hoping for an agreement that could help reopen the key shipping route, which handles around 20% of global oil supply.
This positive mood has been building for some time. By the close of trading last Friday, the S&P 500 had gained 4.3% over the past month and 8.17% over the past three months, reflecting growing investor relief as tensions linked to the conflict that started in early 2026 gradually eased.
7 S&P 500 stocks that haven’t benefited from the rally could see explosive catch-up gains
However, the rally in the S&P 500 does not reflect the same strength across all stocks. Much of the recent gains have been driven by large technology companies, many of which are now trading at very high valuations.
The “Magnificent Seven” group is currently valued at around 29 times expected earnings for the next 12 months, compared with roughly 22 times for the broader S&P 500. Some analysts also point out that, apart from Nvidia, major tech companies are expected to deliver slower earnings growth in 2026 than the rest of the index. This would mark the first time this has happened since the AI-driven rally began.
In this environment, several S&P 500 companies that have lagged behind the broader market because of sector-specific challenges or weak earnings reports could potentially see strong rebounds in the coming weeks.
At the same time, simply buying stocks that have recently fallen may not be enough. Investors also need to consider factors such as valuation, financial strength, and overall business quality before identifying attractive opportunities.
To identify relevant “bargain” opportunities, we turned to the Investing.com screener to search for S&P 500 stocks that meet the following criteria:
A drop of more than 10% over the past month
Upside potential of more than 25% according to InvestingPro Fair Value, which synthesizes several recognized valuation models
Upside potential of more than 25% according to analyst consensus
Financial health score above 2.5/5
Piotroski score of at least 6
This research has allowed us to identify 7 opportunities:
More specifically, these S&P 500 stocks, which declined sharply even as the broader index recovered, are currently trading at discounts ranging from 27% to 61.3% based on InvestingPro Fair Value estimates. Analysts also see upside potential between 30.8% and 61.1% for these companies.
Among these stocks are:
Newmont Goldcorp Corp (), the world’s largest producer, remains a major way for investors to gain exposure to gold during periods of geopolitical uncertainty. Despite strong Q1 2026 results, with EPS of $2.90 beating expectations of $2.24 and revenue reaching $7.31 billion, the stock has recently declined.
Align Technology Inc (), the company behind Invisalign clear aligners, remains a global leader in orthodontic technology. Despite reporting stronger-than-expected Q1 2026 results, including record revenue of $1.04 billion, improving operating margins, and a new $200 million share buyback program, the stock has continued to lag behind the S&P 500 over the past year.
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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.
