Barclays sees buying opportunity in these stocks, including one that could roughly double

The recent market volatility has presented an opportunity to buy some beaten up names, according to Barclays. One of those stocks, Five9, could see 98% upside, according to the firm’s price target. To be sure, the market has been topsy-turvy, with all indexes snapping their three-week losing streaks last week. The S & P 500 is still down more than 13% for the year. To find the stocks it believes are a “compelling tactical opportunity,” Barclays looked for companies that were hit particularly hard by the recent sell-off. The firm screened for large-cap names ($5 billion and over) that its analysts rated overweight. In addition, the stocks had a 14-day RSI (or relative strength index) below 35, as of Sept. 7. The relative strength index measures a stock’s price momentum. Generally, a reading of 30 or below suggests a stock is oversold, while a reading of 70 and over indicates that the asset is overbought. More than half of the stock picks are in the information technology sector. Here are six companies that made the list. Five9, a cloud-software provider for contact centers, has the most upside, according to Barclays. Its 14-day RSI is 29.2, which indicates the stock is oversold. Yet Five9 had second-quarter revenue that grew 32% year over year, reaching a record $189.4 million — beating expectations. “Given the mission criticality of contact centers and a massive yet barely penetrated TAM, as well as our leading platform, go-to-market machine and proven execution, we remain confident in delivering durable and profitable growth,” Five9 CEO Rowan Trollope said in a statement announcing earnings. The stock is down about 32% year to date. Splunk and FedEx followed, with both names potentially seeing 59% gains, according to Barclays’ price targets. Splunk has a 14-day RSI of 31.7, while FedEx has 28.2. Last week, Citi downgraded FedEx to neutral from buy, citing near-term challenges, while JPMorgan reiterated its overweight call on the stock. However, JPMorgan was cautious heading into earnings, set to be released later this month, writing in a note, “The stock has underperformed the S & P 500 and XLI [the Industrial Select Sector SPDR fund] since the investor day which lacked details on how much of the profit improvement goals were tied to cost reductions in FedEx’s control.” Nvidia, which has plunged more than 50% so far this year, also made the list. The stock has 39% upside, as well as a 14-day RSI reading of 30.5, according to Barclays’ price target. Ark Invest’s Cathie Wood recently doubled down on the chipmaker, adding 226,717 of the beleaguered stock to ARK Autonomous Technology & Robotics ETF and 39,008 shares to ARK Next Generation Internet ETF. In late August, Nvidia said it could face a $400 million hit to its revenue in China. Daiwa Capital Markets also downgraded the stock to neutral from outperform earlier this month. Another tech name, Salesforce , is down about 35% year to date, but has 32% upside, according to Barclays. Its 14-day RSI is 29.3, indicating the stock is oversold. The enterprise software maker recently trimmed its full-year expectations for earnings and revenue for fiscal 2023. — CNBC’s Michael Bloom contributed reporting.