Top 20 oversold potential stocks with high expected growth in the first quarter report

A batch of oversold, high-quality stocks with strong potential for high earnings growth has been released in the first-quarter results.

Recently, the A-share market has seen a rapid pullback. The Shanghai Composite Index briefly fell below the 3,800-point integer mark, and the STAR Market 50 Index briefly fell below the 1,250-point integer mark.

Looking ahead, a research report from Founder Securities says that in the short term, it is still not possible to rule out the possibility of a “second bottom,” but the long-term factors that support a bull market have not changed. The market is still in a bottoming-out range. For the question of what to buy during the rebound, investors can get prepared early. Similar to 2022, this round has also entered the April earnings reporting window, so upside potential and performance need to be balanced.

The firm recommends arranging portfolios around “cyclicals + growth,” because price-increase lines are an important, clear “signal” of improving sector conditions. In this year’s first quarter, the three price-increase leads are: important strategic resources, the technology supply chain, and the pro-cyclical momentum under traditional peak seasons. It suggests focusing on oversold nonferrous metals and basic chemicals; power equipment and the energy storage chain related to China Energy Engineering; and upstream AI infrastructure such as high-end fiberglass, optical fibers, packaging/testing/and equipment, etc.

Stocks with high earnings-growth potential surge in first-quarter results

The release of the 2026 first-quarter earnings pre-announcements has already begun, and the high-earnings-growth theme rally may be about to kick off. According to Securities Times • Data Choice statistics, as of March 30, more than 20 companies have already disclosed their first-quarter earnings pre-announcements.

FuXiang Pharmaceuticals disclosed its first-quarter earnings pre-announcement on the evening of March 23, expecting attributable net profit of 52 million to 75 million yuan, up 2,222.67% to 3,250.01% year over year. On the next trading day after the earnings pre-announcement was released, the stock hit the “20cm” daily limit-up. After that, it rose for four consecutive days, with the cumulative gain over five days exceeding 37%.

OKCY disclosed its first-quarter earnings pre-announcement after trading on March 27, expecting attributable net profit of 180 million to 220 million yuan, an increase of 172 million to 212 million yuan year over year. The next day after the pre-announcement was released, it once again hit the “20cm” daily limit-up.

Wanbangde’s performance is even more remarkable. The company expects attributable net profit in the first quarter to be 165 million yuan, up 985.40% year over year. Since the pre-announcement was published, the stock has gained more than 78% in total, and its latest share price has reached a new all-time high.

Oversold stocks with potential have been unveiled

Founder Securities says that when entering the April earnings reporting window, it is necessary to balance upside potential and performance.

Therefore, by looking for quality stocks whose recent share-price pullbacks have been relatively large and whose first-quarter earnings are expected to deliver high earnings growth, the probability that they will outperform the market in the future is higher. Based on this, Data Choice compiled a list of oversold, high-quality stocks with high potential for earnings growth. The criteria include:

1. Year-over-year growth in net profit in 2025 of more than 50% (counted in the order of annual reports, earnings quick reports, and earnings pre-announcement midpoints);

2. Ratings from 5 institutions or more, and consensus forecasts that the growth rate of 2026 net profit will exceed 50%;

3. Latest share price has pulled back more than 30% from the highest level over the past year.

After analysis, a total of 20 stocks made the list. These stocks show relatively prominent characteristics of strong performance. Among them, Luxshare Precision’s attributable net profit for 2025 is close to 35.3 billion yuan. In addition, stocks such as Shandong Gold, Tongkun Co., Ltd., MKS Instruments? (先导智能), Shengyi Electronics, and others all have attributable net profit exceeding 1 billion yuan.

From a sector distribution perspective, the listed stocks include those that benefit significantly from the development of the AI industry—Luxshare Precision, Shengyi Electronics, and Shan Yun— as well as nonferrous metals and chemical industry leaders such as Shandong Gold and Tongkun Co., Ltd. There are also companies in the power equipment sector such as MKS Instruments? (先导智能) and Haili Wind Power. Overall, the listed stocks align with the “cyclicals + growth” allocation strategy, and some may also have high potential for first-quarter earnings growth.

In terms of institutional attention, Luxshare Precision has 26 institutional ratings, ranking first. Cinda Securities believes the company is continuously benefiting from the global AI computing-power infrastructure construction cycle. It has clear advantages in server system integration and large-scale manufacturing capabilities. With AI server demand and fast networking equipment demand continuing to rise, the company’s future growth potential remains broad.

In addition, companies such as Joyoung? (若羽臣), Tongkun Co., Ltd., Hygee? (华熙生物), MKS Instruments? (先导智能), etc. all have more than 10 institutional ratings.

Huayuan Securities says that as a leading digital brand management company in China, Ruoyu Chen has successfully built clear competitive advantages across categories such as health products, mother and baby, beauty and personal care, and food and beverages. In the future, as the company continues to incubate its own brands and expands the brand-management matrix, there may be further room to open up growth in earnings.

‍Disclaimer: All information from Data Choice does not constitute investment advice. The stock market involves risks—investments require caution.

Proofread by: Xu Xin