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. 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. 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. 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. 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. 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. designs, develops, markets, and sells athletic and casual footwear, apparel, equipment, accessories, and services worldwide.
5. Humana Inc. (NYSE:HUM)
On June 8, 2026, Mizuho raised the firm’s price target on Humana Inc. (NYSE:HUM) to $390 from $335 and maintained an Outperform rating on the shares. The firm said the managed care sector is entering a “more stable and predictable” policy environment, with the magnitude and frequency of policy-related surprises likely to moderate from the elevated levels of the past three years. Mizuho said that the backdrop should allow investors to focus on company fundamentals, pricing recovery, and the sector’s embedded earnings power.
On June 3, 2026, Bernstein analyst Lance Wilkes raised the firm’s price target on Humana Inc. to $425 from $288 and maintained an Outperform rating on the shares. Wilkes said Humana offers attractive EPS upside, with CAGR EPS growth of around 50% driven by Medicare Advantage sector margin recovery beginning this year and Humana-specific Stars recovery in 2028/2029. On June 1, 2026, Humana reaffirmed its FY26 adjusted EPS guidance of “at least $9.00.”
On May 20, 2026, Deutsche Bank upgraded Humana Inc. to Buy from Hold with a price target of $441, up from $235. The firm cited a stabilizing managed care market and said it expects Humana’s Medicare star ratings to recover.
Earlier, Humana reported Q1 adjusted EPS of $10.31, compared with the consensus of $10.20. CEO Jim Rechtin said the company had a solid start to the year and continues to make progress on customer experience and care.
Humana Inc. provides medical and specialty insurance products in the United States through its Insurance and CenterWell segments.
4. Halliburton Company (NYSE:HAL)
On June 9, 2026, Halliburton Company (NYSE:HAL) entered into a multi-year agreement with Pampa Energia to support the digital transformation of its operations in Vaca Muerta. Halliburton said the agreement supports Pampa Energia’s strategy to “scale efficiently, strengthen decision-making, and deliver consistent execution within subsurface and operations teams.” Under the agreement, Halliburton will work with Pampa Energia to deploy a digital transformation program covering digital orchestration, high-resolution reservoir modeling, logistics optimization, and energy efficiency management.
On June 3, 2026, Citi raised the firm’s price target on Halliburton Company to $52 from $47 and maintained a Buy rating on the shares. Citi updated its models in the oil and gas equipment and services group.
Last month, Barclays upgraded Halliburton Company to Overweight from Equal Weight with a price target of $55, up from $37. Barclays said the energy services sector faces its best setup in 20 years and upgraded its industry view to Positive from Neutral. The firm said that once the “supply shock” ends, oil prices should be structurally higher, with upstream spending accelerating in 2027 and 2028, potentially driving an earnings revision cycle and re-rating for the group.
Halliburton Company provides products and services to the energy industry worldwide.
3. Molina Healthcare, Inc. (NYSE:MOH)
On June 8, 2026, Mizuho raised the firm’s price target on Molina Healthcare, Inc. (NYSE:MOH) to $215 from $200 and maintained an Outperform rating on the shares. The firm said the managed care sector is entering a “more stable and predictable” policy environment, with the magnitude and frequency of policy-related surprises likely to moderate from the elevated levels of the past three years. Mizuho said the backdrop should allow investors to focus on company fundamentals, pricing recovery, and the sector’s embedded earnings power.
On the same day, JPMorgan raised the firm’s price target on Molina Healthcare, Inc. to $191 from $169 and maintained a Neutral rating on the shares. JPMorgan updated its healthcare service models.
Last month, Molina Healthcare, Inc. said in investor day slides that “strong premium growth of 14% to ~$48 billion in 2027 is driven by embedded future revenue.” The company also targeted a 2029 total premium of about $64B.
Molina Healthcare, Inc. provides managed healthcare services through Medicaid and Medicare programs and state insurance marketplaces in the United States.
2. THOR Industries, Inc. (NYSE:THO)
On June 4, 2026, Loop Capital raised the firm’s price target on THOR Industries, Inc. (NYSE:THO) to $96 from $90 and maintained a Buy rating on the shares. The firm noted that shares traded higher even though the company missed fiscal Q3 consensus earnings expectations and cut its FY26 EPS guidance. Loop said management tied the guidance cut to prolonged industry pressures from macroeconomic and geopolitical headwinds.
On the same day, BofA lowered the firm’s price target on THOR Industries, Inc. to $96 from $120 and maintained a Buy rating on the shares. BofA said the recreational vehicle market remains depressed, with double-digit retail sales declines in each month of 2026, and that Thor’s fiscal Q3 results reflected that backdrop. The firm lowered its estimates following the guidance cut, but said market share and margins could begin to improve in FY27 after recent product line refreshes.
On June 3, 2026, THOR Industries, Inc. reported fiscal Q3 EPS of $1.86, compared with consensus of $1.94, and revenue of $2.78B, compared with consensus of $2.65B. CEO Bob Martin said geopolitical events had a bigger-than-expected impact on the RV selling season, with North American Towable volumes pressured by weaker consumer sentiment and higher material costs from tariff and inflationary pressures. Martin also said the North American Motorized and European segments showed resilience, with fiscal Q3 Motorized net sales up 7.7% and European net sales up 3.6% on a constant currency basis from the prior-year period.
THOR Industries, Inc. designs, manufactures, and sells recreational vehicles and related parts and accessories in the United States, Europe, Canada, and internationally.
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. 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. provides passenger and cargo air transportation services across Latin America, the United States, the Caribbean, Europe, and Oceania.
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