5 Stocks That Are Ready To Rebound

It's been a raucous rally ever since the Trump tariffs were canceled a week after the inaptly-named Liberation Day press conference. But now, with Q2 earnings rolling out, we're seeing some stocks get left behind after poor numbers or guidance projections.

Even decent numbers are getting punished. Take Advanced Micro Devices Inc. (NASDAQ:AMD) as an example, whose stock sank over 6% the day after it beat top and bottom line projections. If you're a company with high expectations, you can't just narrowly surpass expectations – you need to crush them.

But things look very different for stocks with low expectations. Not every company has participated in the Q2 rally, and some stocks are reaching key technical levels that indicate a potential rebound.

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One of the most trusted technical indicators is the Relative Strength Index (RSI), a momentum oscillator that helps find reversals and continuation patterns. The standard timeframe is 14 days, and the RSI uses closing prices over that period to measure the strength of the current trend. If the RSI breaks above 70, it triggers an Overbought signal, which indicates a potential reversal in upward momentum. On the downside, a reading under 30 triggers an Oversold signal, hinting at a reversal to the upside. Today, we'll look at five stocks hitting this Oversold threshold that could be on the verge of reversing a downtrend.

Lyft Inc.

Lyft (NASDAQ:LYFT) triggered an Oversold reading before posting earnings on August 6, and appears likely to trigger it again despite a mostly upbeat report. The company reported EPS of $0.10, beating the consensus expectation of $0.04. Over 234.8 million rides were booked in Q2, which is the highest figure on record for Lyft. But, it also represented 14% year-over-year (YOY) growth, marking the slowest quarter of gross bookings growth in the last two years.

However, revenue is still hitting records, and slowing growth can be expected when you're eclipsing 234 million rides in a quarter. Lyft is also reaping benefits from strategic partnerships with DoorDash, Chase, United Airlines, Mastercard, and Hilton – over 25% of gross bookings now come from partners.

The RSI triggered an Oversold reading in the first week of August, but it also hit this level back in the summer of 2025. In that instance, shares nearly doubled in just a few months until the RSI found itself at the other end of the spectrum, over 70. If Lyft can continue expanding bookings and revenue, the stock could repeat its 2025 performance.

International Business Machines Corp.

IBM (NYSE:IBM) hasn't exactly been left behind during the latest rally, but its stock has pulled back a bit in the last few weeks following a record rally. The stock reached a new all-time high of $294.78 on June 30 but has since dropped 15% despite a glowing Q2 earnings report on July 23. IBM beat top and bottom line estimates with YOY revenue growth of 8%, and boosted full-year guidance to $66.83 billion.

Like Lyft, IBM sold off following the report, but this is likely profit-taking after the stock had gained over 40% in the last 12 months. The RSI is flashing an Oversold signal with the stock sitting firm at the 200-day moving average, which has previously been a level of strong support. Once the profit taking subsides, IBM's long-term trend remains firmly intact, and buyers will likely have a good entry point for new positions.

Dana Inc. 

Dana Inc. (NYSE:DAN) is an original equipment manufacturer (OEM) for vehicles and machines, providing propulsion equipment and energy solutions for trucks, SUVs, vans, and passenger cars. Like many equipment manufacturers, Dana was hit hard by the Trump tariff announcements in April, but has since recovered most of those losses. The company just released earnings earlier this week, and expectations were largely met.

The RSI has been a catalyst for this in previous rallies, as the stock posted significant gains following Oversold signals in November and April. The stock is once again in Oversold territory, so look out for another rally if Q2 earnings deliver.

OppFi Inc.

OppFi (NYSE:OPFI) is a small fintech company with a market capitalization under $1 billion and annual sales of only $525 million. But, we aren't looking for massive companies producing record revenue; we're looking for oversold stocks ready to reverse, and OPFI shares are offering plenty of evidence that the next move is to the upside.

The company gained 13% following its August 6 earnings release, as revenue reached a new record of over $142 million and EPS figures beat projections by 50% ($0.45 EPS vs. $0.30 expected). The RSI tripped the Oversold alarm right before the report, which happened to coincide with a bounce of support at the 200-day moving average. OPFI has impressive growth metrics and a chart to back it up, so a momentum reversal to the upside here is a strong possibility.

Kaiser Aluminum Corp. 

Kaiser Aluminum (NASDAQ:KALU) manufactures and sells prefabricated aluminum and steel products to a global base of customers, which could help explain part of its slump as President Trump continues to make steel and aluminum tariffs increasingly prohibitive. Despite beating EPS and revenue estimates, the stock dropped more than 20% in the days following its Q2 earnings release on July 23. A reduction in free cash flow guidance was the major red flag in the report, but the EBITDA outlook was improved, and the company maintained margins of 19% in the first half of 2025. 

A Golden Cross formation in late June had investors thinking about outsized gains, but the Q2 earnings release tempered those expectations. However, the stock has receded to the 200-day moving average, sparking an Oversold sign from the RSI, which could trigger a technical reversal. The earnings release also hinted at long-term gains following short-term pain, allowing investors to quickly turn bullish if trade war fears subside and sales continue to grow.

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