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. (NASDAQ:DASH) 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. (NASDAQ:DASH) 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. (NASDAQ:MELI) 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. (NASDAQ:MELI) 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. (NASDAQ:MELI) operates online commerce platforms across Brazil, Mexico, Argentina, and other international markets.
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