Despite Tariff Volatility, These Stocks Could See Strong Gains

Investors may have acted too hastily in pulling away from certain stocks, suggesting that a rebound could be on the horizon for some of them.

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On Friday, the U.S. stock market saw another decline, extending the losses from the previous day. This pullback came just before a long holiday weekend, with investors showing caution ahead of the market closure. April has proven volatile for U.S. equities, largely due to the ongoing uncertainty stemming from President Donald Trump’s announcement of new “reciprocal” tariffs.

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Although the president softened the blow by temporarily suspending some of the tariffs last week and went further on Sunday by exempting key technology imports — including smartphones, computer components, and chips — the market remains unsettled. A general 10% tariff on most countries is still active, alongside a much steeper levy, exceeding 100%, on Chinese imports.

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This shifting approach to trade policy has created unease for both global allies and investors alike. With every new development, the market is left guessing what Trump’s next trade decision might be. The unpredictability has been a source of frustration for many investors, and it has taken a toll: the S&P 500 is down close to 10% so far in 2025.

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Still, some believe the current wave of selling — and the associated rush to safe assets — may have gone too far. In fact, CNBC Pro conducted a screen using LSEG (London Stock Exchange Group) data to identify potentially oversold stocks, using a key momentum indicator: the 14-day Relative Strength Index (RSI). This metric gauges whether a stock has been overbought or oversold.

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An RSI below 30 suggests that a stock could be oversold, potentially setting the stage for a rebound. On the other hand, an RSI above 70 often signals a stock may be overbought and vulnerable to a pullback.

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One of the standout names from the RSI screen is Global Payments, a financial technology company that has seen a steep decline this year. Its stock has plummeted nearly 38% in 2025 alone, including an 18% drop just this week. However, its 14-day RSI has fallen to 27.5, placing it firmly in oversold territory. This technical indicator implies that Global Payments shares might be ready for a turnaround after their recent slide.

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Wall Street analysts, according to LSEG’s survey, remain optimistic about the company’s prospects. They collectively maintain a “buy” rating on the stock, with the average price target suggesting a potential upside of over 72% in the next 12 months.

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Adding to investor interest, Global Payments announced a major acquisition on Thursday. The company revealed it would purchase Worldpay in a deal valued at $22.7 billion. At the same time, it plans to divest its Issuer Solutions unit. This strategic move could help reposition the company and potentially reignite investor confidence after the stock’s sharp decline.

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Another company highlighted in the RSI analysis is AbbVie, the pharmaceutical giant based in Illinois. Its stock has been under heavy selling pressure as well, falling 19% in just the past month. The broader health care sector had been struggling amid tariff concerns, but received some relief last week when Trump announced a temporary 90-day pause on certain tariffs, including those on imported pharmaceuticals.

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AbbVie’s 14-day RSI stands at 28.6, another signal that the stock may be oversold. LSEG analysts continue to hold a consensus “buy” rating on the stock, with average price targets forecasting a roughly 24% upside from current levels.

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These technical readings — combined with analyst sentiment and recent developments — suggest that some of the hardest-hit names may be approaching a turning point. While broader market volatility remains a risk, particularly with the ongoing uncertainty around U.S. trade policy, individual stocks like Global Payments and AbbVie might represent opportunity for investors willing to look beyond the current turbulence.

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In sum, while Wall Street continues to brace for more swings as geopolitical and policy headlines dominate investor sentiment, select stocks showing extreme oversold conditions could be poised to bounce back. This setup, based on historical patterns tied to the RSI, points to the potential for gains once selling pressure subsides and fundamental narratives reassert themselves.

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