These are the most oversold stocks in the S&P 500 due for a bounce

Certain stocks have become so oversold during this brutal bear market that they are long overdue to bounce. With stocks on Tuesday snapping back a bit after weeks of big losses, CNBC Pro set to find the stocks most overdue for a rebound. We looked for the shares trading the farthest from their average price of the last 200 days, a common measure of long-term trend. We then screened that subset for shares with a beta greater than 1, meaning they move in greater increments than the market itself on a daily basis. The screen used data from FactSet. Here are the 10 stocks that came back: Netflix tops the list with its shares trading a whopping 61% from their 200-day average. The one-time market darling has fallen on hard times due to slowing subscriber growth and increasing competition. These fundamental issues may not go away anytime soon, but the stock could be due for a bounce. Along with broken stocks, the list also includes some travel-related shares with a big economic overhang. Shares of Caesars , Royal Caribbean and Carnival bounced back at the start of 2021 as investors bet on the reopening of the economy. But the shares rolled over again as the pandemic lingered and rising inflation squeezed their profit margins and the wallets of their customers. To be sure, these names are most likely just good for a possible short-term trade. With big macroeconomic risks still looming, these companies’ flawed fundamentals are not likely to be corrected anytime soon. But that doesn’t mean the shares can’t bounce a bit from their lows after overshooting too much to the downside.

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