Buy the Dip on 3 Overlooked Names With Major Potential

Key Points

• Volatility and economic uncertainty may allow investors to grab compelling stocks at a discount.
• Qifu Technology, Expand Energy, and FTAI Aviation are three names to consider.
• Two of these companies are coming off of recent earnings reports with multiple reasons to be optimistic, a third is in the process of a major rebranding initiative.

The S&P 500 has risen steadily since a tumble in early April alongside the Trump administration's major tariff announcement. But returns of more than 8% year-to-date (YTD) after a sharp decline at the start of the second quarter may obscure broad uncertainty in the market.

Investors saw this in late July as the benchmark index briefly shuddered in response to the latest Fed decision to maintain interest rates amid sticky inflation and pressure from the president.

While the threat of volatility may cause investor skittishness, those with a larger appetite for risk can also find some significant bargains by looking for shares of companies that have fallen in recent periods. Timing the market is always a difficult prospect that involves a fair amount of gambling, but each of the companies below has compelling reasons to expect a potential price increase in the future.

Profit Surge and Expanding Bank Partnerships Amid Rebranding

Qifu Technology Inc. NASDAQ: QFIN is the company behind the Chinese credit-tech platform 360 Jietiao, which matches customers with funding sources and services, among other offerings. QFIN shares have reached as high as $48 this year but plunged in late July to around 70% of that figure.

It's an exciting time for Qifu, share price volatility aside. The firm is in the midst of a major rebranding and strategic shift that will see it re-emerge as Qfin Holdings. The company has also achieved several consecutive quarters of strong year-over-year (YOY) profit growth, including a non-GAAP net income increase of 59.9% in the latest quarter. This was likely driven in large part by the company's 15.8% YOY loan facilitation and origination volume improvement for that period.

Qifu has a promising new set of partnerships with mid-to-large municipal banks in China—in recent months, the firm has established three such new partnerships, driving loan volume growth of 144% YOY for the company's technology solutions business.

Of course, ongoing trade battles between the United States and China are a potential threat and present a source of uncertainty. Still, the company's profitability and risk management success should help it remain resilient despite external threats. Qifu doesn't have significant analyst attention, but all three firms evaluating QFIN shares have assigned them a Buy rating.

Major Revenue Performance as Natural Gas Demand Grows

Formerly known as Chesapeake, Expand Energy Corp. NASDAQ: EXE is a natural gas producer. Natural gas is well-positioned to benefit from increasing energy demands, particularly in the fast-growing AI and data center spaces. Further, Expand is likely to win out from regulatory changes that will discourage renewables such as wind and solar in the United States in the coming years.

Despite a recent mixed earnings report in which Expand massively beat analyst predictions for revenue, $3.7 billion reported against an expected $2.1 billion, while also missing EPS estimates by 4 cents per share, the company's combination of strong production, solid reserves, and analyst optimism could drive growth. Shares of EXE experienced a slight bump in the days following the earnings release, but they remained up only 3% YTD after reaching a one-year high in June.

With near-unanimous support from analysts, 20 Buy ratings and just one Hold, and a consensus price target suggesting shares could rise by about 25% from current levels, Expand is an energy stock worth watching.

Component Production, Revenue Gains, and a Flip to Profits

Occupying a niche portion of the aviation industry, FTAI Aviation Ltd. NASDAQ: FTAI is known for leasing aircraft and engines and for its repair and other services.

The firm's shares jumped by an astonishing 27% on a single day of trading following an earnings report in which FTAI flipped to profit from losses a year earlier.

The company's major EPS beat of 24 cents per share is likely due in large part to its strong aerospace product performance and increased module production.

The company has managed to increase revenue by more than 52% in the last year while trimming costs, and guidance suggests double-digit growth could continue into the current quarter as well.

It's no surprise that all 13 analyst ratings are Buys, and despite the recent rally, the company is not projected to have 19% upside potential of FTAI shares .