As investors turn the page on a rough August, CNBC Pro found stocks that are set for comeback if the market regains its footing. Investors are in the last week of what has been a difficult month for stocks. The Nasdaq Composite is on pace for its worst month since December, while the S & P 500 is headed for its weakest performance since February. However, stocks have recently started showing some signs of life. On Tuesday, the Nasdaq advanced more than 1% and closed higher for a third straight trading day. Investors started buying up tech stocks after their recent pullback. “The fresh setback seen last week in the S & P 500 was not only contained above our target of support at 4328/02 – the 38.2% retracement of the March/July rally and late June low – but also held the uptrend from March,” Credit Suisse’ David Sneddon wrote Wednesday. CNBC Pro surfaced some stocks that could be due for a comeback. These names are beloved by Wall Street and rallied to start the year, but sold off in a big way in August. Here are the criteria we used: Up more than 20% YTD through July Down more than 10% in August Beta above 1.25 Consensus analyst upside of more than 10% These are the names that came up. A slew of travel and entertainment names surfaced on the list. American Airlines Group , Caesars Entertainment and Norwegian Cruise Line Holdings all jumped more than 30%, 40% and 80%, respectively, to start the year. In August, they all notched double-digit declines. However, the names are all poised for a comeback. For example, Norwegian Cruise Line, which was down 23% this month, is expected to rise 18% from here, according to consensus estimates on FactSet. Expedia Group , MGM Resorts International and Wynn Resorts were other travel stocks that surfaced on the list. Microchip Technology also made the cut. The semiconductor stock rose 33% through July, but fell 12% in August. It’s expected to rise 19%, according to FactSet. In July, Bank of America analyst Vivek Arya named Microchip Technology one of his top auto semiconductor picks. He said, “We stay bullish on auto semis – the other high-quality bull market in semis (in addition to AI) – that is often underappreciated in its potential to drive consistent double-digit sales growth.” Ralph Lauren was also on the list. The apparel retailer rose by 24% through July, but dropped 11% in August. However, it’s well-liked on Wall Street with a beta of 1.3. It’s expected to rise roughly 17% from here, according to FactSet. In fact, UBS analyst Jay Sole earlier this month named the buy-rated Ralph Lauren one of the retail names he prefers. — CNBC’s Michael Bloom contributed to this report.
