- On Monday, September 21, the Nasdaq hit a new all-time high for the first time since June.
- The index is being driven by a handful of tech megacaps that are now overvalued.
- Can we find opportunities among Nasdaq stocks that have been overlooked in recent months?
The hit a new all-time high on Monday, September 21, closing up 2.26% at 27,122.09 points. It was the index’s first record close since June and its biggest single-day gain since August 4. Over the past week, the Nasdaq rose 4.39%.
The rally was driven by several favorable factors. A more than 4% drop in U.S. crude oil prices eased inflation concerns that had weighed on markets last week following the Fed’s first rate hike in three years. Treasury yields also declined, while hopes for diplomatic progress around the UN General Assembly provided an additional boost to sentiment.
Technology stocks, however, were the main driver of the rally. The success of Muse, the AI agent developed by , reignited expectations for continued demand for advanced processors. Meta shares jumped more than 11%, while gained 12% and rose about 10%, pushing AMD’s market capitalization above $1 trillion. The S&P 500 gained 1.49% to 7,764.70 points, while the Dow Jones rose 0.71%.
A rally heavily concentrated in stocks that have become extremely expensive
However, the rally has been far from uniform. The index is being driven largely by its biggest technology companies, some of which are now trading at elevated valuations. According to InvestingPro’s Fair Value metric, which combines several recognized valuation models, AMD is overvalued by more than 33%, Intel by 44%, and Meta by 11%.
While these market leaders remain in the spotlight, other Nasdaq stocks have fallen sharply in recent weeks, in some cases despite stable fundamentals. With the index at record highs, investors could increasingly look beyond the market’s biggest winners toward stocks that have been overlooked during the rally.
These overlooked Nasdaq stocks show strong potential for a rebound
We therefore turned to the Investing.com screener to identify Nasdaq Composite stocks that meet the following criteria:
- Market capitalization greater than $1 billion
- A decline of more than 15% over the past month
- Stocks covered by at least 10 analysts
- InvestingPro Financial Health Score above 2.5/5
- Upside potential of more than 25% based on InvestingPro’s Fair Value
- Upside potential of more than 25% based on analysts’ average price target
This research has allowed us to identify 9 stocks:
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In detail, it’s worth noting that these Nasdaq stocks, which have fallen by -15.3% to -36.6% over the past month, show upside potential of +26.2% to +68.8% based on Fair Value and +26.3% to +166.2% according to the analyst consensus.
Specifically, these Nasdaq stocks have fallen 15.3% to 36.6% over the past month, while InvestingPro’s Fair Value indicates upside potential of 26.2% to 68.8%. Analyst price targets imply potential gains ranging from 26.3% to 166.2%.
Among these stocks are:
- (FRPT), the U.S. specialist in fresh, refrigerated dog and cat food sold through supermarkets and online channels. The stock has fallen 16.9% over the past month amid intensifying competition from Hill’s and The Farmer’s Dog, as well as insider selling by the CEO, despite solid second-quarter results. EPS came in at $0.39 versus expectations of $0.22, while revenue rose 15.5% to $305.6 million. The company also raised its full-year guidance. The decline has widened the valuation gap, with InvestingPro’s Fair Value indicating 26.9% upside and the average analyst price target implying 37.1% potential upside. The next earnings report is expected in early November, with quarterly EPS forecast at around $0.38.
- (WYNN) operates high-end casino and hotel resorts in Las Vegas, Boston, and Macau, which accounts for the bulk of its revenue. The stock has fallen 18.5% over the past month to a 52-week low, pressured by disappointing visitor numbers in Macau in September, geopolitical tensions in the Middle East, and a $900 million bond issue carrying a 6.875% interest rate, adding to a debt load of nearly $10.7 billion. However, second-quarter results exceeded expectations, with adjusted EPS of $1.24 versus the $1.16 consensus. The Wynn Al Marjan Island project in the United Arab Emirates is also scheduled to open in September 2027. InvestingPro’s Fair Value indicates 26.2% upside, while the analyst consensus is “Buy” with an average price target implying 61.6% upside. The next earnings report is expected on November 5.
However, all the other stocks on the list currently offer greater valuation upside.
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Disclaimer: This article is written for informational purposes only. It is not intended to encourage the purchase of any assets and does not constitute an offer, solicitation, recommendation, or advice to invest. I would like to remind you that all assets are evaluated from multiple perspectives and are highly risky; therefore, any investment decision and the associated risk are the sole responsibility of the investor. Additionally, we do not provide any investment advisory services.


















































