Market watchers have been reluctant to call the bottom on the sell-off in global stocks this year, but some assets are now looking oversold — and could be ripe for a bounce. The stock market has tumbled into a bear market in the first half of this year amid fears that an overly aggressive rate hiking cycle will cause an economic downturn in the U.S. and beyond. But there is some good news in store for investors, with research showing that a small relief bounce could be long overdue , regardless of the fundamental picture. Which stocks would these be? To identify the names, CNBC Pro used FactSet data to screen for MSCI World stocks that look ripe for a rebound. These stocks are trading at the greatest discount to their average price of the last 200 days. This metric is known as the 200-day moving average — a key indicator used by traders and market analysts to determine long-term market trends. The list is then further narrowed by screening for stocks that are more volatile than the index. The remaining names have a 3-year historical beta greater than 1. “Beta” is a measurement of a stock’s volatility ; a beta greater than 1 means that the stock moves in greater increments than the market itself in daily trading — which implies a higher probability of a bigger move relative to the wider market during the rebound. They are also buy-rated by the majority of analysts, with average potential upside of at least 10% over the next 12 months, according to FactSet data. Stocks that made the screen Nearly a third of the 54 stocks that made the screen were financial stocks. The list includes two private equity giants — Blackstone and KKR & Co . Both stocks are trading at more than 20% from their 200-day averages. They are also among several firms that submitted bids for troubled Japanese conglomerate Toshiba in a deal could reach $22 billion at the top end of the range, according to a report by Reuters. Several U.S. financial services firms also made the screen, including Wells Fargo , Charles Schwab , SVB Financial , Apollo Global Management and Carlyle Group . Charles Schwab and SVB Financial had also previously turned up on CNBC Pro’s screen of banks which did well during the Fed’s rate hike cycle of 1994, when the central bank nearly doubled its main policy rate to 6% in seven rapid-fire hikes. Both firms are also expected to grow their net interest income this year and could see upside to their share prices, according to FactSet data. A raft of semiconductor stocks, unsurprisingly, made the list. After years of market-beating returns, semiconductor stocks have taken a drubbing this year. The iShares Semiconductor ETF , or SOXX, which tracks the performance of semiconductors, is down more than 30% year to date. Taiwan’s Nan Ya Printed Circuit Board and investor favorite Nvidia are trading at 40% and 32% from their 200-day averages, but analysts have given the stocks average potential upside of 54.3% and 40.5%, respectively. Advanced Micro Devices , ASML and Qualcomm are all trading at discounts of more than 20% to their 200-day averages. Two automakers also made the screen. Electric vehicle giant Tesla is trading at 22.6% from its 200-day average but analysts have given the stock potential upside of 39.6%. The Texas-based automaker’s stock price has been hit by, among other things, looming job cuts, uncertainty over CEO Elon Musk’s Twitter deal, and his latest comments about new factories in Germany and Texas losing “billions of dollars right now.” Automaker Stellantis also made the list, with the stock trading at a 22.1% discount to its 200-day average. A host of materials stocks also turned up on CNBC Pro’s screen. They include Swiss specialty chemicals firm Sika , French manufacturer Compagnie de Saint-Gobain , Arizona-based mining giant Freeport-McMoRan and Indian mining firm Vedanta . Other stocks that made the list include MGM Resorts , advertising technology firm Trade Desk and entertainment ticket sales company Live Nation Entertainment .
