China’s “Black Monday” triggered record losses for U.S. stocks as well as all other major markets across the world. Concerns about the state of the world’s second largest economy and heavy losses for its equity markets have sparked a selloff which has erased yearly gains for several major indexes.

Given China’s current state of affairs and the lack of investor confidence in its markets, such concerns are expected to linger going forward. Given the circumstances, stocks which have survived the strongest selloff in recent times may be good additions to your portfolio.

China’s Black Monday

The Shanghai Composite Exchange plunged, losing 8.5% on Monday. China’s main stock index moved into the red for the year, while it plunged almost 38% from its peak in mid-June. Meanwhile, China’s small-cap stocks also took a beating, with the smaller Shenzhen Composite plummeting 7.7% yesterday. The Hang Seng China Enterprises Index slumped 5.8%, hitting its lowest point in nearly 18 months.

On Friday, the benchmark was inching below the crucial 3,500 mark, before recovering during the last few minutes of the day. Dismal economic data showed that the government’s efforts to prop up the economy were having little or no impact as of now.

Preliminary PMI estimates from Markit Economics and Caixin Media fell to 47.1, a 77-month low. The decline in manufacturing activity came in despite Beijing’s move to devalue its currency to boost its export oriented companies.

U.S. Market Rout

Markets had suffered significantly on Friday with the Dow entering correction territory. Additionally, the blue-chip index and the S&P 500 posted their biggest weekly declines since Sep 2011. The Nasdaq recorded its steepest weekly drop since Aug 2011. This was primarily attributable to concerns over the state of China’s economy.

Losses spilled over into Monday with the Dow plunging by more than 1,000 points during the first six minutes of trading. The index finished in negative territory, losing 3.6% and settled at its lowest level since Feb 2014. All 30 Dow components ended in the red.

Meanwhile, the S&P 500 dropped more than 10% on Monday from its peak achieved on May 21, losing 3.9%. A drop of 10% or higher than the peak achieved that year, generally indicates a correction. Moreover, the index ended at its lowest level on Monday since Oct 2014. Almost all the 500 members of the index settled in negative territory. The S&P 500 along with the blue-chip index posted their biggest one-day percentage declines on Monday since Aug 2011.

Additionally, the Nasdaq declined heavily, by 3.8%. Decliners clearly outpaced advancing stocks on the NYSE. For 95% stocks that declined, 5% advanced.

Inevitable Correction or Overreaction?

One group of market watchers believe that the market correction was likely given the impact that China has on global markets. With its impressive growth numbers and large potential market, it is certainly an important factor when it comes to estimating the global economic environment.

But several others believe that this is an overreaction. In recent times, the U.S. economy has staged a steady recovery. Despite the Fed’s cautious outlook on the economy, further corrections of such a magnitude are unlikely in the days ahead. At most, decisions like a rate hike in September are unlikely to take place. Stocks may return to their winning ways sooner than expected.

Monday’s Survivors

Despite the slim chance of further declines taking place, stocks have suffered heavily in the last two trading sessions. Below we present four stocks with favorable Zacks Rank that survived Monday’s rout, ending in the green. Other encouraging metrics, such as valuation, indicate that they would make for relatively safe investment options. 

Skyworks Solutions Inc. (SWKS - Analyst Report) designs, manufactures, and markets a broad range of high performance analog and mixed signal semiconductors that enable wireless connectivity.

Skyworks Solutions gained 1.8% on Monday. The company holds a Zacks Rank #1 (Strong Buy) and the projected earnings growth for the current year is 72.3%, higher than the industry growth rate of 32.9%.The forward price-to-earnings ratio (P/E) for the current financial year (F1) is 16.45.

United Online, Inc. (UNTD - Snapshot Report) offers products and consumer services via the Internet.

United Online gained 1.1% on Monday. Apart from a Zacks Rank #2 (Buy), the company has significantly high expected earnings growth for the current year It has a P/E (F1) of 18.03x.

National Commerce Corp. (NCOM - Snapshot Report) is a bank holding company which offers a variety of financial services through its single subsidiary National Bank of Commerce.

National Commerce Corporation gained 0.8% on Monday. The company holds a Zacks Rank #2 (Buy) and has expected earnings growth of 12.5% for the current year. It has a P/E (F1) of 22.07x, lower than the industry average of 33.10.

Hospira Inc. (HSP - Analyst Report) is a global leader in the development, manufacturing and marketing of injectable pharmaceuticals and integrated infusion therapy and medication management products.

Hospira gained 0.4% on Monday. These gains are primarily attributable to Pfizer Inc. (PFE - Analyst Report) receiving approval from the U.S. Federal Trade Commission to buy Hospira for $16 billion.

Apart from a Zacks Rank #2 (Buy), the company has expected earnings growth of 25.4% for the current year, clearly outpacing the industry growth rate of 5.7%. It has a relatively high P/E (F1) of 27.56x.