J.P. Morgan Says These 2 Beaten-Down IPO Stocks Could Rebound

July 19, 2026 - 19:24

Geopolitical tensions in the Middle East have escalated in recent days, reviving concerns about oil prices, inflation, and the global economic outlook. Although the uncertainty has added another source of volatility, the S&P 500 remains within 2% of its all-time high, suggesting investors expect the broader economic impact to remain contained.

Against this backdrop, J.P. Morgan analysts have identified two beaten-down IPO stocks that they believe could stage a rebound. The first is a tech company that went public during the peak of the 2021 frenzy but has since lost more than half its value. Despite the steep decline, the bank sees a strong balance sheet and improving fundamentals that could drive a recovery. The second pick is a consumer-focused firm that has struggled with supply chain issues and shifting demand. J.P. Morgan argues that recent cost-cutting measures and a clearer path to profitability make it an attractive risk-reward bet at current levels.

Both stocks trade well below their offering prices, but the bank's analysts say the selloff has been overdone. They point to improving revenue trends and strategic pivots as reasons for optimism. Of course, IPO stocks remain inherently volatile, and macroeconomic headwinds could delay any turnaround. Still, for investors willing to take a contrarian stance, these names offer a potential upside if the broader market holds steady.