Screening favored financially healthy companies trading well below fair value and analyst targets.
The Trade Desk and Gartner stand out despite sharp declines and resilient underlying fundamentals.
Wall Street delivered a strong first half of 2026. The S&P 500 gained 9.6%, while the Nasdaq Composite advanced 12.8%, fueled by continued enthusiasm for artificial intelligence. The Russell 2000 outperformed both, rising nearly 22% for its best first-half performance since 1991.
Beneath the headline gains, however, performance has been far from uniform. Semiconductor and data storage companies accounted for much of the rally, with several stocks more than doubling in value over the past six months. As a result, valuations across much of the sector have become increasingly stretched.
According to InvestingPro Fair Value estimates, the 10 US semiconductor companies with market capitalizations above $50 billion that have posted the strongest gains since the start of the year are now all trading above their estimated intrinsic value.
Recent one-month performance also suggests that the correction may already be underway for some of these semiconductor stocks.
At the same time, other areas of the market have been left behind, in some cases despite solid fundamentals. Several large software companies have sold off after earnings, while attractive opportunities have also emerged outside the technology sector.
With that in mind, we screened large-cap US stocks that have suffered the steepest declines since the start of the year to identify potential rebound candidates for the second half of 2026.
A sharp decline alone, however, does not make a stock a bargain. Any potential opportunity must also be supported by attractive valuations and strong business fundamentals, helping distinguish temporarily out-of-favor companies from those facing more persistent challenges.
That is why we used the Investing.com screener to combine several complementary filters: InvestingPro Fair Value, which incorporates multiple recognized valuation models, analyst consensus upside potential, the InvestingPro Financial Health Score, and the Piotroski Score, which evaluate a company’s financial strength and underlying fundamentals.
These US stocks, which have been battered this year, combine quality with strong rebound potential
Here are the specific search criteria we used:
Market capitalization greater than $5 billion
A decline of more than 40% since the start of the year
Upside potential of more than 20% based on InvestingPro Fair Value
Upside potential of more than 20% based on the average analyst price target
InvestingPro Financial Health Score greater than 2.5/5
Piotroski score of at least 6
This research has allowed us to identify 9 stocks:
Specifically, these US stocks have declined between 40.4% and 48.6% since the start of the year, yet InvestingPro Fair Value estimates suggest they remain undervalued by 24.4% to 63.2%. Analysts also see upside potential ranging from 23.1% to 85.7%, pointing to significant rebound potential if fundamentals improve.
Among these stocks are:
: The Trade Desk (TTD) has been one of the hardest-hit technology stocks of 2026, with its share price falling sharply from last year’s highs. Despite the selloff, the digital advertising platform continued to post double-digit revenue growth in the first quarter, while maintaining strong profitability and issuing solid guidance for the current quarter. Investor sentiment has been weighed down by competitive pressures and concerns over agency relationships rather than a collapse in the underlying business.
: Gartner (IT) has also experienced a steep decline this year as slower contract growth and weakness in its consulting business pressured the stock. Even so, the company exceeded earnings expectations, generated strong free cash flow, and raised its full-year adjusted EPS guidance. The disconnect between improving fundamentals and the share-price decline has made Gartner a stock worth watching for investors seeking potential recovery candidates.
However, many other stocks on this list offer more attractive profiles, whether in terms of yield, valuation, or both.
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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.
