In this article, we will look at the 7 Best Turnaround Stocks to Buy in 2026.
Turnaround stocks are getting more attention as investors look for companies where earnings have already taken a hit, but the recovery is starting to show up in forward estimates. For this list, the focus is on stocks whose earnings declined over the past three years but are now forecasted to grow earnings by at least 20% next year.
Royce Investment Partners says its Small-Cap Opportunity strategy looks at themes including “Turnarounds,” “Undervalued Growth,” and “Interrupted Earnings,” while seeking companies with “attractively cheap valuations” and “a catalyst for growth, such as an earnings rebound or recovery.” Royce also describes one key holding as a “turnaround candidate” where improving fundamentals are not yet reflected in the stock, and another as an “earnings recovery story” with current earnings “well below normalized levels.” Goldman Sachs Asset Management adds that small-cap equities are seeing an “earnings recovery” that marks “a turnaround after a multi-year period of underperformance,” supported by “Solid earnings growth” and “attractive valuations.” In summary, the opportunity is in finding companies where the earnings trough looks visible, and the recovery is on the horizon.
With that in mind, let’s take a look at the 7 Best Turnaround Stocks to Buy in 2026.
Our Methodology
We used the Finviz screener to identify stocks whose earnings declined over the past three years but are now forecasted to grow earnings by at least 20% next year. 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. Insider Monkey’s quarterly newsletter strategy selects 14 small-cap and large-cap stocks every quarter and has returned 599.2% since May 2014, beating its benchmark by 372 percentage points (see more details here).
7. SLB N.V. (NYSE:SLB)
On June 8, 2026, SLB N.V. (NYSE:SLB) announced that its OneSubsea joint venture was awarded a contract by bp (BP) to provide a subsea boosting system for the Thunder Horse project. Mads Hjelmeland, CEO of SLB OneSubsea, said subsea boosting is an “important enabler” for extending production from existing assets, adding that standardized subsea solutions can support faster deployment and improved efficiency.
A day later, SLB N.V. (NYSE:SLB) announced a memorandum of understanding with Qualcomm Technologies to enable edge AI solutions for the energy industry. The collaboration combines Qualcomm Technologies’ low-power edge computing and AI processing capabilities with SLB’s Agora edge AI and IoT solutions for remote and operationally complex environments. The companies said the partnership will focus on AI applications across production operations using SLB’s digital production solutions and energy domain expertise.
On May 19, 2026, BofA analyst Saurabh Pant raised the firm’s price target on SLB N.V. (NYSE:SLB) to $60 from $56 and maintained a Buy rating on the shares. Pant said BofA updated its oilfield services models following Q1 earnings and 10-Q reports, with 2027 and 2028 EBITDA forecasts 10% and 16% above consensus, respectively, on average.
Bernstein also raised the firm’s price target on SLB to $71 from $56.10 and maintained an Outperform rating, citing stronger long-term growth prospects while noting heightened short-term share price volatility from the sector’s re-correlation with oil prices.
SLB N.V. (NYSE:SLB) provides technology for the energy industry worldwide.
6. NIKE, Inc. (NYSE:NKE)
On June 5, 2026, Goldman Sachs maintained a Neutral rating and $52 price target on NIKE, Inc. (NYSE:NKE) after attending the company’s Global Football showcase and sell-side event. The firm said the event highlighted Nike’s World Cup playbook across product innovation, brand storytelling, and marketplace execution. Goldman Sachs also noted that management’s tone was constructive, pointing to early signs of traction from the company’s sport-led offense and building momentum into the World Cup.
On the same day, UBS said it was “incrementally positive” on NIKE, Inc. (NYSE:NKE) following a meeting with management. UBS said the company’s football product event reinforced that the brand’s “creative instincts and sport-centered positioning remain key competitive advantages.” Still, the firm said Nike’s turnaround will take longer than the market expects and that it wants to see “more green shoots” before recommending the shares. UBS maintained a Neutral rating and $54 price target on the stock.
Last month, Wells Fargo downgraded NIKE, Inc. (NYSE:NKE) to Equal Weight from Overweight with a price target of $45, down from $55. Wells Fargo said Nike does not fit with its preference for clothing to outperform over the next few years, citing a broader shift away from athletic apparel and “over-saturation” from excess competition. The firm also said Nike’s global turnaround is taking longer and that international disruption is likely to weigh on near-term results.
NIKE, Inc. (NYSE:NKE) designs, develops, markets, and sells athletic and casual footwear, apparel, equipment, accessories, and services worldwide.
While we acknowledge the potential of NKE 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 NKE and that has 100x upside potential, check out our report about the cheapest AI stock.
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