- Markets rallied on Monday following comments from President Donald Trump.
- Investors hope the worst of the impact of the war with Iran is over.
- Which S&P 500 stocks on discount should you focus on in case of a sustained rebound?
The fell to 6,472.52 last Friday, its lowest level since late August 2025. It then started the new week with a strong bounce, rising 1.15% on Monday after positive comments from President Donald Trump about the Iran situation.
Over the weekend, Trump had worried markets by warning Iran. But on Monday, he said he had productive talks with Iran, which lifted investor sentiment and pushed stocks higher.
Oil prices also dropped sharply, falling about 10% at one point during the day.
Later, the optimism faded. Iranian officials said there had been no talks with the United States, directly contradicting Trump’s statement.
At the same time, reports suggested that some Asian and Gulf countries were trying to mediate between the two sides. This kept hopes alive for a possible improvement, but the conflict itself continues, with strikes between Iran and nearby Gulf countries still ongoing.
Oil prices moved up again after Iran denied any talks. At the same time, futures for US stock markets suggest a weaker opening on Tuesday.
Even so, many investors still believe the worst may be over and that the S&P 500 may avoid further declines.
In this situation, it may be a good time to look at stocks that have dropped the most in recent weeks, especially within the S&P 500. These could offer attractive opportunities if the market starts a steady recovery.
These 10 battered S&P 500 stocks could soar if the market rebound proves sustainable
We therefore turned to the Investing.com screener to run the following search:
- S&P 500 Stocks
- A decline of more than 15% over 4 weeks
- Upside potential of more than 20% based on Fair Value (synthesis of valuation models)
- Upside potential of over 20% according to analysts
- InvestingPro Health Score above 2.5/5
This rigorous research has allowed us to identify 10 opportunities:
More specifically, some S&P 500 stocks have fallen between 15% and 37% over the past four weeks. Because of this drop, they now look undervalued by about 21% to 62% based on fair value estimates. Analysts also see strong potential in these stocks, with expected gains ranging from around 22% to nearly 80%.
Among these stocks are:
-
is a global company that makes paints, industrial coatings, and protective solutions for industries like automotive, aerospace, and construction. Even in a mixed industrial environment, the company is seeing steady organic growth of around 2% to 3% and generating strong cash. The stock is supported by gains in market share and a focus on returning value to shareholders.
-
is also on the list. The company designs and sells footwear and apparel through well-known brands like UGG and HOKA. It is showing strong growth, with the stock gaining momentum due to international expansion and new products, especially in the running category.
-
makes flavors, fragrances, and ingredients used in food, cosmetics, and healthcare. While reported sales have declined, organic growth remains positive at around 3%, and profitability is improving due to better efficiency. The stock reflects a transition phase, with potential recovery driven by its nutrition and biosciences business.
However, the other seven stocks on this list offer even stronger potential, based on analyst estimates, fair value, or both.
Below are the key ways an InvestingPro subscription can enhance your stock market investing performance:
- ProPicks AI: AI-managed stock picks every month, with several picks that have already taken off this month and in the long term.
- Warren AI: Investing.com’s AI tool provides real-time market insights, advanced chart analysis, and personalized trading data to help traders make quick, data-driven decisions.
- Fair Value: This feature aggregates 17 institutional-grade valuation models to cut through the noise and show you which stocks are overhyped, undervalued, or fairly priced.
-
1,200+ Financial Metrics at Your Fingertips: From debt ratios and profitability to analyst earnings revisions, you’ll have everything professional investors use to analyze stocks in one clean dashboard.
-
Institutional-Grade News & Market Insights: Stay ahead of market moves with exclusive headlines and data-driven analysis.
-
A Distraction-Free Research Experience: No pop-ups. No clutter. No ads. Just streamlined tools built for smart decision-making.
-
Vision AI: InvestingPro’s newest addition. It analyzes any asset’s chart with professional-grade market intelligence, identifying key timeframes, technical patterns, and indicators — then delivers a clear trading playbook with the levels, scenarios, and risks that matter most in under a minute.
Not a Pro member yet?
Disclaimer: This article is written for informational purposes only; it does not constitute a solicitation, offer, advice, counsel or recommendation to invest as such it is not intended to incentivize the purchase of assets in any way. I would like to remind you that any type of asset, is evaluated from multiple perspectives and is highly risky and therefore, any investment decision and the associated risk remains with the investor.