KB Home Inc.  (NYSE:KBH) builds single-family homes, townhomes, and condos across the southern and western parts of the United States. The company has a $3.8 billion market cap and reported sales over $2.85 billion in the last 12 months. Homebuilders have been under siege for two years now in the face of several headwinds: persistently high mortgage rates, increasing materials costs, tariffs on many of those same materials, and immigration crackdowns cutting into the construction labor force. But now that tariffs have been slashed and the Trump administration seems more focused on a tax cut extension, homebuilders like KB Homes could finally see some relief. 

KBH was the rare homebuilder that survived the 2022 bear market with momentum. The stock shot from $25.51 to a new all-time high above $85 in July 2024, the first time it closed over $85 since before the Great Recession of 2005. But momentum faded last fall, and the stock tumbled from $85 to $50 in just five months. However, this selloff might reveal a very undervalued stock: KBH trades at just 7.2 times forward earnings with a 0.56 Price-to-Sales (P/S) ratio and 0.94 Price-to-Book (P/B) value. The stock also has technical tailwinds thanks to an emerging support level and bullish movement on the MACD, which could indicate the downtrend is shifting upward.

Apparel is another industry suffering outsized pain from tariffs, especially in the footwear department. Companies like Nike and Foot Locker have suffered sustained drawdowns, many of which started long before the harshest tariffs were implemented earlier this year. Shoe Carnival (NASDAQ:SCVL) is a smaller firm than these giants, but they sell Nike, Adidas, Sketchers, Converse, and HEYDUDE-brand shoes at brick-and-mortar family-oriented outlets. 

Danaos Corp (NYSE:DAC) is an international bulk shipper with nearly 70 container ships, operating primarily in Asia and Europe. The company has a $1.6 billion market cap and posted over $1 billion in sales over the last year. Shipping companies were treading water in the sessions following the reciprocal tariff announcement, but rescinding those import fees has sent the stock careening toward new all-time highs.

Danaos reported earnings on May 13, and while the EPS figure was a miss, the company posted a surprise revenue beat, surpassing analysts' expectations by 4.7%. This report spurred researchers at Jeffries to reiterate the stock as a Buy and bump their price target to $105, indicating an upside potential of nearly 24%. The stock trades at just 3.2 times forward earnings, and its 46% profit margins are among the best numbers in the marine shipping industry. Shares are also riding a new support level above the 14-day exponential moving average (EMA), indicating the breakout may have more upward momentum ahead.

Another apparel company on the verge of a potential breakout is G-III Apparel Group (NYSE:GIII), which manufactures licensed brands like DKNY, Tommy Hilfiger, Kenneth Cole, Dockers, and more alongside its own in-house brands and private labels. G-III Apparel has more than $3 billion in annual global sales, and its daily stock chart shows signs of a breakout similar to DAC’s.

Tech is one sector that hasn't been struggling as much as the broader market, but some semiconductor companies are still undervalued, and ASE Technology Holdings (NYSE:ASX) has the signs of a stock ready to break higher. ASE tests and packages semiconductors for U.S., Asian and European firms and provides real estate and lab equipment for plants and warehouses.

ASE shares experienced a 14-day and 21-day EMA cross, which provided bullish momentum and sent the stock above its pre-tariff announcement levels. The stock pulled back recently but is now approaching the 14-day EMA, which has been acting as support over the last few weeks. The stock has a 19.7 P/E ratio but trades at just 11.6 times forward earnings, with annual sales eclipsing $18 billion. The company also expects EPS growth of over 40% this year, which could further fuel this rally.

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