The stocks coming back into Wall Street's favor might not be your best bets right now.
A few previously sidelined groups that fell hard during the market's March downturn have made meaningful strides in the last month, outperforming the S&P 500's 10% gain:
"There is a lot of mean reversion going on right now," Mark Tepper, president and CEO of Strategic Wealth Partners, told CNBC's "Trading Nation" on Wednesday. "It would not be the time to be selling your winners to rotate into these different areas."
When it comes to small caps, declining revenues and rising debt-service payments make for a "dangerous recipe" for the already cost-constrained group, Tepper said. Financials are also on shaky ground as insurers face covering the damage done to businesses during recent protests and regional banks risk seeing a drop in commercial real estate, he said.
"Would you want to sell a company like Microsoft to buy those? I sure don't," he said.
His advice? "I would definitely still be sticking with U.S. stocks," Tepper said. "We are overweight both health care and tech, so, those would be the sectors I'd be looking to add to positions that are winners. I'm more interested right now in not the sectors that are suddenly becoming the winners. I'm interested in the sectors that have been the winners since mid-February when the crisis started that are now lagging a little bit."
Mark Newton, president and founder of Newton Advisors, saw some more room to run for two of the unloved groups.
"The dollar starting to roll over has positively affected EEM," he said in the same "Trading Nation" interview, referencing a chart of the ETF.
"We've seen prices move back over prior lows that we made back in 2018-2019, so, that is an intermediate-term bullish signal that should actually lead emerging markets to outperform further," Newton said. "I do expect the dollar can weaken even more, and so that is a good sign for emerging markets."
EEM closed more than 2% higher on Wednesday.
The Russell 2000 small-cap index is "also starting to show signs of rebounding, Newton said. The IWM ended trading nearly 2.5% higher on Wednesday.
"Both the Russell and the mid-cap sector really moved down to new lows over the last 10 years versus the S&P," Newton said. "It's been a huge period of underperformance over the last year. And so this little bounce is certainly much needed by the market."
"It certainly helps to create a healthier rally over the next couple months," Newton said of the recent bounce. "But I would argue these are part of longer-term downtrends both in small caps and in mid-caps, and it is going to be right, likely, to sell into these come late summer, early fall."
In other words, while the bounce might look like it's here to stay, it probably won't last long, according to Newton's analysis.
"Short term, I do think it's possible financials, emerging markets, small caps, mid caps can continue to rally and, really, minor dips should be bought, but in the bigger picture, I do suspect that this is an oversold bounce in these groups, and it will be right to sell into these come fall," Newton said.
The XLF closed almost 4% higher on Wednesday.
Disclosure: Strategic Wealth Partners is overweight the health care and technology sectors.
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