Wall Street has been debating whether the market has truly bottomed or if it's simply a bear market rally. Analysts from Goldman Sachs and Citi aren't optimistic, telling CNBC that the rally may not last. "We're not out of the woods yet," Caesar Maasry, head of emerging markets cross-asset strategy at Goldman Sachs said.

U.S. stocks rallied in July. Citi's Bitterly says to expect more volatility. She says there are opportunities in some "quality" tech areas, such as cybersecurity. "It is not a recessionary environment," she said, referring to recent data.

Investors can buy such stocks if they drop to about 10% below what they are currently trading at. At that entry point, investors could enjoy high single-digit or low double-digit yields. "These opportunities do not exist in low volatility markets," Bitterly said.

Growth stocks, such as tech, have lost favor among investors for much of this year as they rotated into value stocks on macro risks. However, growth shares have bounced back during the recent rally. Quality companies can be defined as having stable performance, strong balance sheets, modest debt, and resilient profitability.

Citi says investors should have a focus on beaten-up names as it expects a "fragile risk rally" It said these oversold names can enable investors to ride out the volatility. Meta, Disney, Amazon, Target and Autodesk are among them.
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