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.
8. O’Reilly Automotive, Inc. (NASDAQ:ORLY)
On May 8, 2026, Mizuho raised the firm’s price target on O’Reilly Automotive, Inc. (NASDAQ:ORLY) 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. (NASDAQ:ORLY) 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. (NASDAQ:ORLY) 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. (NASDAQ:ORLY) 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. (NASDAQ:ORLY) 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. (NYSE:RSG) 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. (NYSE:RSG) 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. (NYSE:RSG) 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. (NYSE:LOW) 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. (NYSE:LOW) 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. (NYSE:LOW) operates as a home improvement retailer in the United States and Canada.
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