In this article, we will look at the 10 Best Depressed Stocks to Buy in 2026.
Depressed stocks are getting another look as investors search for names where the selloff may have gone further than the underlying damage to the business. That does not mean every heavily sold-down stock is suddenly attractive. Some are down for good reasons, including weak demand, balance-sheet stress, or fading competitive positions. The more interesting setup is when broad volatility, poor sentiment, or a temporary earnings reset pushes a still-viable business to a price that no longer reflects its medium-term prospects. Fidelity captures this by saying “Market pullbacks can provide windows of opportunity” to buy at “temporarily marked-down prices,” especially for investors willing to look through short-term volatility.
That is also where valuation discipline matters. Franklin Templeton warns that “A low next-twelve-month (NTM) price-to-earnings (P/E) ratio is not, in itself, evidence of value,” and defines true value as a “misalignment between price and medium- to long-term fundamentals.” In summary, a depressed stock only becomes interesting when the market is underestimating its “forward earnings power, cash generation, or asset value.” ClearBridge makes a similar point from a 2026 market perspective, describing pullbacks as “a good opportunity to deploy capital” and pointing to “using volatility as an opportunity to deploy capital,” especially where there are “stronger earnings revisions” and “more reasonable valuations.”
With that in mind, let’s take a look at the 10 Best Depressed Stocks to Buy in 2026.
Our Methodology
We used the Finviz screener to identify stocks trading near 52-week lows. We then limited our final selection to companies that have recently reported noteworthy developments likely to impact investor sentiment. These stocks are also popular among analysts and elite hedge funds.
Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 498.7% since May 2014, beating its benchmark by 303 percentage points (see more details here).
10. DoorDash, Inc. (NASDAQ:DASH)
On May 12, 2026, Rothschild & Co Redburn raised the firm’s price target on DoorDash, Inc. (NASDAQ:DASH) to $350 from $300 while maintaining a Buy rating on the shares. The firm said DoorDash’s long-term growth opportunity is increasingly tied to deeper penetration within its existing U.S. restaurant base rather than expansion into new verticals. Rothschild & Co Redburn added that the company’s push into in-store restaurant technology could unlock a market opportunity larger than retail delivery, with structurally higher margins and stronger competitive positioning. The firm expects a nationwide rollout of DoorDash’s in-store restaurant technology platform in 2026.
Meanwhile, Goldman Sachs lowered the firm’s price target on DoorDash, Inc. to $280 from $286 while maintaining a Buy rating on the shares. The firm said Q1 results highlighted continued platform growth across key verticals, ongoing technology stack improvements, and solid advertising trends across both small businesses and large advertisers. Goldman Sachs also noted that DoorDash expects 2026 EBITDA growth to slightly outpace GOV growth excluding Deliveroo.
DoorDash, Inc. operates a commerce platform connecting merchants, consumers, and delivery drivers across the United States and international markets.
9. MercadoLibre, Inc. (NASDAQ:MELI)
On May 13, 2026, Goldman Sachs lowered the firm’s price target on MercadoLibre, Inc. (NASDAQ:MELI) to $2,100 from $2,440 previously while maintaining a Buy rating on the shares.
Morgan Stanley also lowered the firm’s price target on MercadoLibre, Inc. to $2,450 from $2,600 and maintained an Overweight rating. The firm said it once again underestimated the scale of MercadoLibre’s investments, though gross merchandise volume, credit growth, and platform capabilities also exceeded expectations. Morgan Stanley added that 2026 is shaping up to be a weaker year for EBIT, but still sees significant revenue growth and future margin recovery potential.
Similarly, Barclays lowered the firm’s price target on MercadoLibre, Inc. to $2,300 from $2,500 while maintaining an Overweight rating following the company’s earnings report. The firm said another margin markdown led it to adopt a more conservative view on the pace of margin recovery.
MercadoLibre, Inc. operates online commerce platforms across Brazil, Mexico, Argentina, and other international markets.
8. O’Reilly Automotive, Inc. (NASDAQ:ORLY)
On May 8, 2026, Mizuho raised the firm’s price target on O’Reilly Automotive, Inc. to $110 from $105 previously while maintaining an Outperform rating on the shares.
Roth Capital also raised the firm’s price target on O’Reilly Automotive, Inc. to $109 from $108 and maintained a Buy rating on the shares. The firm said it remains constructive on the stock following the company’s Q1 outperformance and raised guidance. Roth added that same-store sales exceeded expectations, supported by strong trends in both the professional and DIY segments.
Similarly, Morgan Stanley analyst Simeon Gutman raised the firm’s price target on O’Reilly Automotive, Inc. to $112 from $108 while maintaining an Overweight rating. The firm said the limited amount of Q1 comparable sales upside reflected in updated guidance suggests FY26 expectations remain conservatively positioned.
On April 30, 2026, O’Reilly Automotive, Inc. reported Q1 EPS of 72c, versus the consensus estimate of 69c. Revenue totaled $4.56B, versus the consensus estimate of $4.46B. CEO Brad Beckham said the company delivered a strong start to 2026, highlighted by an 8.1% increase in comparable store sales and 16% growth in diluted EPS. Beckham added that both professional and DIY businesses exceeded expectations, with double-digit growth in the professional segment and mid-single-digit growth in DIY. The company also pointed to disciplined expense management and stable industry demand as factors supporting operating profit growth and continued market share expansion opportunities in 2026.
O’Reilly Automotive, Inc. operates as a retailer and supplier of automotive aftermarket parts, tools, supplies, equipment, and accessories across the United States, Puerto Rico, Mexico, and Canada.
7. Republic Services, Inc. (NYSE:RSG)
On May 12, 2026, Citi analyst Bryan Burgmeier lowered the firm’s price target on Republic Services, Inc. (NYSE:RSG) to $247 from $253 while maintaining a Buy rating on the shares following the company’s Q1 report.
CIBC analyst Kevin Chiang also lowered the firm’s price target on Republic Services, Inc. to $249 from $251 and maintained an Outperformer rating on the shares. The firm said Republic Services delivered solid Q1 results despite headwinds tied to weather, fuel surcharge impacts, and difficult comparisons against non-recurring special project volumes from the prior year.
On May 7, 2026, Republic Services, Inc. reported Q1 EPS of $1.70, versus the consensus estimate of $1.64. Revenue totaled $4.11B, versus the consensus estimate of $4.1B. President and CEO Jon Vander Ark said the company delivered a strong start to the year and remains well-positioned to achieve its full-year objectives. Vander Ark added that disciplined pricing actions and effective cost management helped drive earnings growth and 50 basis points of adjusted EBITDA margin expansion during the quarter. The company said it remains focused on executing its strategy and investing in growth initiatives to support long-term value creation.
Republic Services, Inc. provides environmental services across the United States and Canada.
6. Lowe’s Companies, Inc. (NYSE:LOW)
On May 14, 2026, Truist analyst Scot Ciccarelli lowered the firm’s price target on Lowe’s Companies, Inc. (NYSE:LOW) to $280 from $293 while maintaining a Buy rating on the shares as part of a broader Q1 preview for select consumer companies. The firm said it updated its model based on recent Truist Card Data and discussions with management teams.
Meanwhile, Citi upgraded Lowe’s Companies, Inc. to Buy from Neutral with an unchanged price target of $285. The firm said recent share pullbacks created an attractive entry point among cyclical retailers and expects Lowe’s to exceed Q1 consensus estimates while continuing to outperform the broader home improvement industry. Citi also noted that Lowe’s higher exposure to smaller home improvement projects positions it well in the current market environment.
Earlier in May, BofA reinstated coverage of Lowe’s Companies, Inc. with a Neutral rating and a $260 price target. The firm previously held a Buy rating on the shares but now views the risk-reward profile as more balanced given constrained earnings growth and limited catalysts amid subdued housing activity.
Lowe’s Companies, Inc. operates as a home improvement retailer in the United States and Canada.
5. Cencora, Inc. (NYSE:COR)
On May 11, 2026, Wells Fargo analyst Stephen Baxter lowered the firm’s price target on Cencora, Inc. (NYSE:COR) to $331 from $429 while maintaining an Overweight rating on the shares. The firm said the magnitude of the slowdown in U.S. healthcare earnings growth was disappointing, though Wells Fargo noted that Cencora’s core growth trends remained generally in line with peers Cardinal Health and McKesson. The firm added that if core growth remains at current levels, the valuation gap versus peers could narrow.
On May 7, 2026, Citi also lowered the firm’s price target on Cencora, Inc. to $355 from $405 while maintaining a Buy rating on the shares. The firm described the company’s fiscal Q2 U.S. healthcare results as disappointing.
On May 6, 2026, Cencora, Inc. reported Q2 adjusted EPS of $4.75, versus the consensus estimate of $4.73. Revenue totaled $78.4B, versus the consensus estimate of $81.04B. President and CEO Robert P. Mauch said the company delivered solid quarterly results as teams continued executing to support customer needs. Mauch added that Cencora’s FY26 guidance reflects the underlying strength of the business and its focus on long-term value creation. The company also said it made progress on debt reduction during the quarter and expects to resume opportunistic share repurchases in the second half of the fiscal year.
Cencora, Inc. sources and distributes pharmaceutical products in the United States and internationally.
4. Vistra Corp. (NYSE:VST)
On May 12, 2026, JPMorgan raised the firm’s price target on Vistra Corp. (NYSE:VST) to $93 from $89 previously while maintaining an Overweight rating on the shares.
On May 7, 2026, Vistra Corp. reported Q1 revenue of $5.64B, versus the consensus estimate of $5.24B. The company also reported Q1 ongoing operations adjusted EBITDA of $1.49B. President and CEO Jim Burke said Vistra began 2026 with several strategic developments, including plans to acquire the 5,500-MW Cogentrix natural gas generation portfolio and the signing of long-term power purchase agreements with Meta Platforms tied to its PJM nuclear facilities.
Burke added that Vistra’s generation fleet performed well during a period of volatile winter weather, including Winter Storm Fern, while the retail business navigated one of the mildest first quarters in Texas history. The company also pointed to Fitch’s recent upgrade of its corporate credit rating to investment grade as further evidence of progress in strengthening its balance sheet and improving visibility into long-term earnings power.
Vistra Corp. operates as an integrated retail electricity and power generation company in the United States.
3. Thomson Reuters Corporation (NASDAQ:TRI)
On May 13, 2026, Sterne Kessler and Thomson Reuters Corporation (NASDAQ:TRI) announced a co-development partnership that resulted in the launch of the first attorney-built AI workflow within CoCounsel Legal. The new Patent Claim Eligibility Analyzer is designed to help patent litigators navigate Section 101 patent eligibility analysis, an area widely viewed as one of the most complex and precedent-driven aspects of patent litigation. The companies said the AI tool mirrors how courts approach Section 101 analysis by quickly reviewing patent claims, identifying relevant precedents, and explaining why those cases matter. The Patent Claim Eligibility Analyzer is intended to provide attorneys with a faster and more consistent starting point for evaluating patent eligibility issues.
On May 6, 2026, Scotiabank lowered the firm’s price target on Thomson Reuters to $138 from $156 while maintaining an Outperform rating on the shares. The firm said Thomson Reuters delivered Q1 results ahead of consensus expectations, with Big 3 organic revenue growth of 9% and no sequential deceleration. However, Scotiabank noted that investor concerns surrounding potential AI-driven disruption across the data services and software industry continue to pressure the stock and contribute to multiple compressions across the peer group.
On May 5, 2026, Thomson Reuters Corporation reported Q1 adjusted EPS of $1.23, versus the consensus estimate of $1.21. Revenue totaled $2.09B, versus the consensus estimate of $2.04B. President and CEO Steve Hasker said the company’s momentum reflects continued demand for its AI-driven products across legal, tax, audit, and compliance markets. Hasker added that Thomson Reuters’ AI offerings are built around authoritative content and domain expertise, describing the company’s approach as “fiduciary-grade AI.”
Thomson Reuters Corporation operates as a content and technology company serving customers across the Americas, Europe, the Middle East, Africa, and the Asia Pacific.
2. Roblox Corporation (NYSE:RBLX)
On May 5, 2026, Roth Capital lowered the firm’s price target on Roblox Corporation (NYSE:RBLX) to $65 from $84 while maintaining a Buy rating on the shares. The firm said the factors behind Roblox’s reduced 2026 guidance appear temporary and believes several ongoing initiatives could support a meaningful reacceleration in growth in 2027. Roth added that declines in daily active users tied to age-verification and safety-related friction were greater than expected but should ultimately be manageable, alongside recent issues with discovery recommendations.
B. Riley also lowered the firm’s price target on Roblox Corporation to $80 from $100 while maintaining a Buy rating. The firm said Q1 results included weaker guidance and a notable bookings downgrade tied to lower DAUs following the rollout of age verification requirements, which contributed to sharp stock underperformance and increased near-term volatility. However, B. Riley said long-term engagement trends and platform fundamentals remain intact.
Similarly, Canaccord analyst Jason Tilchen lowered the firm’s price target on Roblox Corporation to $80 from $140 and maintained a Buy rating on the shares. The firm described Q1 results as mixed, with user growth coming in below consensus expectations while bookings were broadly in line and profitability exceeded guidance. Canaccord added that the company had anticipated some impact from age verification requirements, though the resulting pressure on engagement and new user acquisition was greater than expected.
Roblox Corporation operates an immersive platform for connection and communication across international markets.
1. McDonald’s Corporation (NYSE:MCD)
On May 11, 2026, JPMorgan lowered the firm’s price target on McDonald’s Corporation (NYSE:MCD) to $305 from $325 while maintaining an Overweight rating on the shares following the company’s Q1 report. The firm reduced its same-store sales estimates to reflect the current operating environment but said improving performance at existing restaurants outweighs earlier investor focus on capital-intensive new unit growth.
KeyBanc analyst Eric Gonzalez also lowered the firm’s price target on McDonald’s Corporation to $330 from $345 and maintained an Overweight rating. The firm said Q1 results largely came in as expected, with U.S. and International Operated Markets comparable sales slightly ahead of investor expectations. KeyBanc added that softer April trends are likely temporary due in part to difficult year-over-year comparisons, though macro uncertainty remains a key focus.
Similarly, Wells Fargo lowered the firm’s price target on McDonald’s Corporation to $320 from $355 while maintaining an Overweight rating on the shares. The firm described Q1 as solid but said the update offered limited catalysts to improve sentiment amid softer April comparable sales, macro concerns, and competitive underperformance relative to Burger King.
McDonald’s Corporation owns, operates, and franchises McDonald’s restaurants globally.
READ NEXT: 10 AI Stocks with Potential to Rise 1000 Percent and 9 Best American Semiconductor Stocks to Buy According to Analysts
Hedge Fund Resource Center