5 Best Turnaround Stocks to Buy in 2026

Page 5 of 5

1. LATAM Airlines Group S.A. (NYSE:LTM)

On June 3, 2026, JPMorgan analyst Guilherme Mendes initiated coverage of LATAM Airlines Group S.A. (NYSE:LTM) U.S. shares with an Overweight rating and $70 price target. Mendes said JPMorgan prefers Latam over Copa within its Latin America airline coverage, citing the company’s “superior earnings momentum and a lighter balance sheet.” The firm also said the airline space has room to continue gradually re-rating, depending on geopolitical developments and potential stabilization in fuel prices.

On May 12, 2026, Goldman Sachs raised the firm’s price target on LATAM Airlines Group S.A. (NYSE:LTM) to $72.60 from $63.40 previously and maintained a Buy rating on the shares. The update came about a month after Goldman Sachs upgraded Latam Airlines to Buy from Neutral, after assuming coverage of the name. Goldman Sachs said the company has a “solid” financial position and that its higher-income positioning in Latin America should help it withstand current macroeconomic volatility. Goldman Sachs also said Latam Airlines should be able to pass through higher fuel prices to tickets, with potentially lower impact on demand relative to peers.

LATAM Airlines Group S.A. (NYSE:LTM) provides passenger and cargo air transportation services across Latin America, the United States, the Caribbean, Europe, and Oceania.

While we acknowledge the potential of LTM 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 LTM and that has 100x upside potential, check out our report about the cheapest AI stock.

READ NEXT: 15 High Growth Stocks to Buy and Hold for the Next Decade and 12 Strong Buy Stocks to Buy and Hold for the Next 5 Years

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.

Page 5 of 5
1281292 - 11759070 - 1