Wells Fargo Identifies Rebound Opportunities in Beaten-Down Stocks Amid Narrow Market Rally

The S&P 500's 20% rally since April 8 masks a concerning lack of breadth, with tech stocks leading the charge while over half of the index's components remain below their 200-day moving averages. This uneven recovery creates pockets of opportunity for selective investors willing to look beyond the headline numbers.

Wells Fargo analysts highlight two particularly compelling rebound candidates, both trading more than 30% below their 12-month highs. Sweetgreen, the tech-enabled healthy fast-food chain, represents one such opportunity with its modern approach to digital ordering and locally-sourced ingredients.

The current market dichotomy presents a classic value investor's playground—while momentum chasers crowd into tech names, fundamental analysts can uncover discounted quality assets. As Wells Fargo's picks demonstrate, the most promising turnarounds often emerge from sectors temporarily out of favor with the broader market.