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5 Best Depressed Stocks to Buy in 2026

In this article, we will list the 5 Best Depressed Stocks to Buy in 2026. Please visit 10 Best Depressed Stocks to Buy in 2026 if you would like to see the extended list and the methodology behind it.

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. (NYSE:COR) 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. (NYSE:COR) 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. (NYSE:COR) 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. (NYSE:VST) 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. (NYSE:VST) 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 (NASDAQ:TRI) 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 (NASDAQ:TRI) 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 (NYSE:RBLX) 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 (NYSE:RBLX) 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 (NYSE:RBLX) 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 (NYSE:MCD) 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 (NYSE:MCD) 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 (NYSE:MCD) owns, operates, and franchises McDonald’s restaurants globally.

While we acknowledge the potential of MCD to grow, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than MCD and that has 100x upside potential, check out our report about the cheapest AI stock.

READ NEXT: 10 AI Stocks with Potential to Rise 1000 Percent and 9 Best American Semiconductor Stocks to Buy According to Analysts

Disclosure: None. Insider Monkey focuses on uncovering the best investment ideas of hedge funds and insiders. Please subscribe to our free daily e-newsletter to get the latest investment ideas from hedge funds’ investor letters by entering your email address below.

The $250 Trillion AI Hype is Real. A few years from now, you’ll probably wish you’d bought this stock.

Dr. Inan Dogan

Dr. Ian Dogan

Co-Founder and Research Director at Insider Monkey

When Jeff Bezos said that one breakthrough technology would shape Amazon’s destiny, even Wall Street’s biggest analysts were caught off guard.

Fast forward a year and Amazon’s new CEO Andy Jassy described generative AI as a “once-in-a-lifetime” technology that is already being used across Amazon to reinvent customer experiences.

At the 8th Future Investment Initiative conference, Elon Musk predicted that by 2040 there would be at least 10 billion humanoid robots, with each priced between $20,000 and $25,000.

Do the math. According to Musk, this technology could be worth $250 trillion by 2040.

Put another way, that’s roughly equal to:

  • 175 Teslas
  • 107 Amazons
  • 140 Metas
  • 84 Googles
  • 65 Microsofts
  • And 55 Nvidias

And here’s the wild part — this $250 trillion wave isn’t tied to one company, but to an entire ecosystem of AI innovators set to reshape the global economy.

It’s a leap so massive, it could reshape how businesses, governments, and consumers operate worldwide.

Even if that $250 trillion figure sounds ambitious, major firms like PwC and McKinsey still see AI unlocking multi-trillion-dollar potential.

How could anything be worth that much?

The answer lies in a breakthrough so powerful it’s redefining how humanity works, learns, and creates.

And this breakthrough has already set off a frenzy among hedge funds and Wall Street’s top investors.

What most investors don’t realize is that one under-owned company holds the key to this $250 trillion revolution.

In fact, Verge argues this company’s supercheap AI technology should concern rivals.

Before I reveal the details, let’s talk about how some of the richest people on the planet are positioning themselves.

  • Bill Gates sees artificial intelligence as the “biggest technological advance in my lifetime,” more transformative than the internet or personal computer, capable of improving healthcare, education, and addressing climate change.
  • Larry Ellison — through Oracle, is spending billions on Nvidia chips and partnering with Cohere to embed generative AI across Oracle’s cloud and apps.
  • Warren Buffett — not known for tech hype — says this breakthrough could have a ‘hugely beneficial social impact.

When billionaires from Silicon Valley to Wall Street line up behind the same idea — you know it’s worth paying attention to.

Even as we admire what Tesla, Nvidia, Alphabet, and Microsoft have built, we believe an even greater opportunity lies elsewhere…

But the real story isn’t Nvidia — it’s a much smaller company quietly improving the critical technology that makes this entire revolution possible.

And judging by what I’m hearing from both Silicon Valley insiders and Wall Street veterans…

This prediction might not be bold at all:

A few years from now, you’ll wish you’d owned this stock.

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Buy This $3 Stock Now Before the 400% Surge Begins

Dr. Inan Dogan

Dr. Ian Dogan

Co-Founder and Research Director at Insider Monkey

My name is Inan Dogan. I’m the co-founder and Research Director of Insider Monkey. I have an important message for you today.

Since March 2017, my stock picks have returned 16.5% annually. Today, I’ve found an opportunity even bigger than my British American Tobacco call.

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We looked under the cover and realized they were wrong.

We alerted our subscribers, and BTI returned 90% in just 16 months.

Now if you had invested just $10,000 in BTI in June 2024, you’d be sitting on $19,000 in October 2025.

Today, we have identified a nearly identical pattern in a digital-first giant trading at $3.

While the market panics over a surface-level revenue decline, our PhD-led research shows management has actually surgically cut $100 million in waste to focus on high-margin growth.

This pattern is a hallmark of our 16.5% annual return track record. The current opportunity offers a 400% upside potential—dwarfing even our 90% BTI return.

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