In recent market developments, investors may have overly hastened their departure from select stocks, hinting at potential rebounds. Market performance on Thursday saw stocks dip further amid a sharp decline the previous day, likely influenced by anticipation of the long weekend due to a market holiday. April has been tumultuous for U.S. equities, largely impacted by President Donald Trump’s introduction and subsequent adjustments of “reciprocal tariffs”. Initially, a broad 10% tariff on imports and a significant 100% tariff on Chinese goods were introduced. However, following recent revisions, smartphones, computers, and chips were exempted. This fluctuating trade policy has kept investors and global trade partners in a state of uncertainty, speculating on upcoming policy changes.
The tariff changes have been particularly concerning for the investment community, with the S&P 500 experiencing nearly a 10% drop in 2025. Despite the current sell-off and flight to safer assets, indications suggest this trend might be overly exaggerated for certain stocks. According to a CNBC Pro analysis using LSEG data, the notion of oversold stocks is gaining traction. They applied the 14-day relative strength index (RSI) to identify these stocks. An RSI under 30 suggests overselling, with possibilities of a rebound, while an RSI over 70 implies overbuying and potential weakening.
One standout on the list is Global Payments, a stock that has experienced a 38% decline in 2025, including an 18% fall just this week. However, with a 14-day RSI of 27.5, the stock is seen as oversold. Analysts from LSEG have a consensus buy rating for Global Payments, and forecasts suggest a 72% potential increase over the next year. Notably, the company announced a significant move on Thursday, with plans to acquire Worldpay for $22.7 billion, while divesting its Issuer Solutions business.
Another stock highlighted by the analysis is AbbVie, a pharmaceutical giant witnessing a 19% slump over the past month. The healthcare sector warmed up last week after President Trump announced a 90-day pause on certain tariffs, including those affecting imported drugs. AbbVie currently holds a 14-day RSI of 28.6, further suggesting a potential recovery. Analysts citing LSEG data maintain a buy rating for AbbVie, projecting about a 24% upside in the stock’s future performance.
In the midst of these market fluctuations, CNBC Pro offers a unique opportunity for investors seeking expert insights. The inaugural CNBC Pro LIVE event will be held at the New York Stock Exchange on Thursday, June 12. Subscribers will have the chance to engage with renowned experts like Carter Worth, Dan Niles, and Dan Ives through interactive clinics, and Tom Lee will also host a special edition of Pro Talks. This exclusive event includes networking opportunities with CNBC experts and fellow subscribers, all taking place on the iconic trading floor. Tickets are limited, making it an exclusive opportunity for investors eager to navigate these uncertain markets more effectively.
With the dynamic landscape of digital finance, understanding and navigating these market trends demand keen insight and proactive strategies. The allure of potentially rebounding stocks like Global Payments and AbbVie accentuates the importance of staying informed and adjusted to the ever-evolving financial environment.
Original Source: https://www.cnbc.com/2025/04/17/these-stocks-could-be-primed-for-strong-gains-even-amid-tariff-volatility.html
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Publish Date: 2025-04-17 21:50:00
