Have you ever watched a stock you owned plunge deep into the red, only to wonder if it would ever climb back out? It happens to the best of us—and sometimes, the comeback is nothing short of spectacular.
This year, 2025, delivered exactly that kind of drama for several big names in the S&P 500. After getting hammered in 2024, a handful staged massive rebounds, turning deep losses into eye-popping gains. And now, as we stand on the cusp of 2026, Wall Street analysts are weighing in on whether the party continues or if some of these recoveries are running out of steam.
In my view, these turnaround stories are some of the most fascinating in investing. They remind us that markets can be unforgiving one year and incredibly rewarding the next. Let’s dive into a few standout examples and see what the pros are saying about their prospects ahead.
Biggest Comeback Players of 2025
The broader market certainly helped. An ongoing surge in artificial intelligence spending propelled tech-heavy indexes higher, with the Nasdaq posting solid double-digit returns. But for stocks that had fallen out of favor the prior year, the rebound felt even sweeter.
To spot the true turnarounds, consider names that dropped at least 10% in 2024 yet roared back with gains of 20% or more this year. A few rose to the top of that list—and they’ve caught analysts’ attention for different reasons.
Advanced Micro Devices: Riding the AI Wave Higher
Perhaps no story captures the AI-fueled recovery better than Advanced Micro Devices. After sliding roughly 18% in 2024 amid concerns over competition and spending cycles, the chipmaker flipped the script completely.
Shares have soared close to 80% year-to-date in 2025. That’s the kind of move that turns heads and refills portfolios. The driving force? Strong demand for its data center GPUs and a growing foothold in the artificial intelligence compute market.
Analysts remain largely optimistic. The consensus price target points to another 33% upside from recent levels. That’s not pocket change for a company already worth hundreds of billions.
Despite appropriate concerns, we believe AI compute spending will prove durable and the company has cemented itself as a winner. Given the recent pullback and what we see as excess scrutiny versus peers, we see an attractive entry point.
– Analyst Joshua Buchalter, TD Cowen
One particularly bullish call came earlier this month when a major firm named it a top pick for 2026, slapping a target that implies around 35% further gains. The reasoning boils down to sustained enterprise spending on AI infrastructure and the company’s competitive positioning.
Of course, risks linger. Chip cycles can turn quickly, and the leader in the space isn’t going anywhere. Still, if AI adoption keeps accelerating—and most signs suggest it will—this name could have legs well into the new year.
In my experience following tech cycles, the second mover often gets overlooked until it starts stealing meaningful share. That’s exactly what seems to be unfolding here. Investors who missed the initial leg up might find the current valuation more reasonable after any near-term dips.
CVS Health: A Surprising Healthcare Rebound
Shift over to healthcare, and you’ll find an even more dramatic reversal. CVS Health endured a brutal 2024, with shares tumbling more than 40% on margin pressures, reimbursement challenges, and leadership changes.
Fast forward to 2025, and the pharmacy giant has clawed back with a gain approaching 80%. That’s right—nearly wiping out the entire prior year’s loss in a single calendar year.
What’s behind the resurgence? Better-than-feared cost controls, improving pharmacy reimbursement trends, and renewed confidence in the integrated care model. Management’s investor day presentation earlier in December appears to have sealed the deal for many on the Street.
Analysts now see roughly 19% additional upside based on average targets. One standout call from a leading bank pegs the potential at 26%, citing raised guidance and a path toward mid-teens earnings growth over the coming years.
We remain positive heading into 2026, with the company providing raised guidance while laying out expectations for adjusted EPS growth at a mid-teens CAGR through 2028. We also see a healthy runway for growth.
– Analyst Lisa Gill, JPMorgan
The optimism centers on normalizing client retention in the pharmacy benefit manager segment and a shift toward more sustainable pricing models. After years of aggressive bidding wars that squeezed margins, the industry may finally be maturing.
Personally, I’ve always thought healthcare services names trade at unwarranted discounts during periods of uncertainty. When execution improves—even modestly—the multiple expansion can be powerful. CVS seems to be in that sweet spot right now.
That said, regulatory scrutiny and ongoing cost pressures aren’t going away overnight. Patient investors willing to look through short-term noise could be rewarded, though.
- Stronger reimbursement environment supporting margins
- Guidance implying accelerating earnings growth
- Potential for multiple re-rating as execution improves
- Integrated model offering defensive qualities in uncertain economy
Albemarle: A Commodity Comeback with Mixed Views
Not every turnaround enjoys unanimous support. Take Albemarle, the lithium producer. Shares cratered 40% in 2024 as electric vehicle demand slowed and new supply flooded the market, crushing prices.
2025 brought a sharp reversal—up over 70%—as inventory destocking progressed and energy storage demand picked up. Yet analysts are notably more divided heading into the next year.
The consensus price target actually sits about 15% below current levels, suggesting potential downside. That would erase a chunk of this year’s impressive gains.
However, sentiment appears to be shifting. Recent upgrades from major firms highlight tightening supply-demand dynamics expected in 2026.
We see a combination of higher energy storage demand and years of slower western capacity additions now pushing lithium markets into deficit in 2026. We expect prices to move up through the year.
– Analyst Joshua Spector, UBS
One upgraded target implies nearly 30% upside, a stark contrast to earlier more pessimistic views. The bull case rests on continued EV adoption, grid-scale battery buildout, and limited new supply coming online quickly.
Commodity stocks are always tricky. Prices can swing wildly based on macro factors far beyond any single company’s control. Albemarle’s fortunes will likely hinge on whether global lithium demand reaccelerates as forecasted.
If you’re the type who enjoys cyclical bets, this could offer asymmetric reward. But timing these turns is notoriously difficult—I’ve seen plenty of investors get burned waiting for the next leg.
What These Stories Tell Us About 2026
Stepping back, these rebound candidates highlight a few broader themes likely to shape markets in the coming year.
First, artificial intelligence isn’t going anywhere. Capital spending on data centers and compute power should remain robust, benefiting semiconductor players positioned to capture share.
Second, healthcare services could see continued recovery as cost pressures ease and utilization normalizes. Defensive characteristics make these names appealing if economic growth slows.
Third, clean energy and electrification themes persist despite near-term volatility in commodity pricing. Long-term demand drivers remain intact for materials like lithium.
- Look for evidence of fundamental improvement, not just price momentum
- Pay attention to shifting analyst sentiment—upgrades often precede moves
- Consider valuation relative to growth prospects and peers
- Diversify across sectors to avoid concentration risk
- Stay patient; true turnarounds rarely happen in straight lines
Perhaps the most interesting aspect is how quickly narratives can change. A stock written off as broken one year becomes a momentum darling the next. That’s the beauty—and frustration—of markets.
As we head into 2026, keeping an open mind about beaten-down names with improving fundamentals could uncover opportunity. But always do your homework. Consensus targets are just opinions, and markets love proving the crowd wrong.
Whatever path these particular stocks take, their 2025 journeys serve as a reminder: sometimes the biggest gains come from the places you’d least expect—right after the darkest moments.
At the end of the day, successful investing often comes down to recognizing when fear has gone too far and greed hasn’t yet taken over. These turnaround stories embody that delicate balance perfectly.
Whether you’re adding to positions or just watching from the sidelines, 2026 promises to bring fresh chapters to these ongoing sagas. And who knows—maybe the best moves are still ahead.
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