Fundstrat Head of Research Tom Lee has mentioned washed-out stocks many a times this year, after the painful drawdown of 2025 created fresh attractive investment opportunities.
A washed-out or sold-out stock is a stock that has gone beyond oversold, to the point where there seems to be “no more stock left to sell.”
Lee explicitly views washed-out stocks as different from being merely oversold. The term oversold is typically used in reference to a stock that has fallen sharply due to short-term negative sentiment, often interpreted by investors as a contrarian signal.
Large-cap names:
These are based on the following four criteria.
- Current market cap greater than $15 billion.
- Down more than 30% at least a week before Feb. 18.
- Didn’t make new 52-week low between April 1-April 8.
- Current price down more than 25% from 52-week high.
Here’s the full list.
- Warner Bros Discovery (WBD 4.18% )
- Lululemon Athletica (LULU -0.12% )
- Tesla (TSLA -2.07% )
- DraftKings (DKNG 1.91% )
- Dollar General (DG 0.17% )
- Dollar Tree (DLTR -2.03% )
- Brown-Forman (BF/B)
- Constellation Brands (STZ -0.33% )
- Rocket (RKT 1.97% )
- Coinbase (COIN -1.10% )
- Robinhood (HOOD -1.70% )
- Humana (HUM N/A% )
- United Airlines (UAL 2.19% )
- Leidos Holdings (LDOS 0.17% )
- Atlassian (TEAM 1.87% )
- Hubspot (HUBS -0.21% )
- Microstrategy (MSTR 4.90% )
- Salesforce (CRM -2.23% )
- Cloudflare (NET -2.82% )
- Super Micro Computer (SMCI 1.94% )
- Edison International (EIX 1.14% )
- Vistra (VST -0.50% )
Small-and mid-cap names:
These are based on the following five criteria.
- Current market cap less than $15 billion.
- Down more than 30% at least a week before Feb. 18.
- Didn’t make new closing low between April 1-April 8.
- Current price down more than 25% from 52-week high.
- Short-interest Day-to-Cover Ratio less than 2.
Here’s the full list:
- Trump Media & Technology (DJT -0.74% )
- Roku (ROKU -1.67% )
- Amer Sports (AS 8.78% )
- Lucid (LCID 0.09% )
- Rivian Automotive (RIVN 0.87% )
- Lkq (LKQ 0.27% )
- Crocs (CROX 0.54% )
- Norwegian Cruise Line (NCLH 1.77% )
- Walgreens Boots Alliance (WBA)
- Celsius (CELH 1.20% )
- Sofi Technologies (SOFI -3.48% )
- Marketaxess (MKTX -0.29% )
- Columbia Banking System (COLB 0.19% )
- Grail (GRAL -4.10% )
- Inspire Medical Systems (INSP -1.53% )
- Perrigo (PRGO -1.25% )
- Concentrix (CNXC -2.99% )
- Dayforce (DAY 0.22% )
- Southwest Airlines (LUV 0.35% )
- Lyft (LYFT 0.56% )
- Confluent (CFLT N/A% )
- Dynatrace (DT 2.68% )
- Elastic (ESTC 1.28% )
- Procore Technologies (PCOR 0.63% )
- Lumentum (LITE 2.88% )
- Astera Labs (ALAB -0.63% )
- Aes (AES -1.44% )
You can learn more about who inspired this list on our FSI Academy page here.