NEW YORK (TheStreet) -- Following the election of Donald Trump as president of the U.S., markets surged higher. The Dow Jones Industrial Average eclipsed the 19,000-point mark, a record high for the index. However, CNBC's Mike Santoli examined some of the battered-down sectors that are not participating in the rally, and said some could be poised for a turnaround.
"I have been doing some extreme bargain hunting on the premise that when stocks are down tremendously, there is actually some spring-loaded effect," Santoli said on CNBC's "Power Lunch" this afternoon.
His criteria in examining a possible comeback situation are securities that have fallen by 50% to 90%, preferably over a two-year period.
"That is how you set the stage, hopefully, for some kind of mean-reversion trade which would be a big comeback in the coming year or two," Santoli noted.
Coal stocks illustrate the comeback narrative, Santoli pointed out. Coal stocks were lower by 80% over the past four years, but have doubled this year.
Another sector potentially poised for a turnaround is specialty pharmaceuticals.
Santoli said pharmaceuticals are "a very controversial group in the aftermath of the Valeant (VRX) disaster and a lot of policy noise and scrutiny of drug prices." He added, "It looks like that might set the stage for some types of comebacks if you get any clarity there."
ETFs tracking the Italian, Turkish, and Russian markets have also bounced back, Santoli said, as have broadcasters of traditional television stations such as Tribute Media (TRCO) .