Investors hunting for long-term value often find the best opportunities in unloved or overlooked stocks. As we look toward 2026, these 10 contrarian picks offer compelling turnaround potential.
While some face near-term headwinds, their strong fundamentals, industry positioning, and hidden catalysts could make them big winners in the coming year.
Deep Value, Real Rebounds
Let’s start with agrochemical stock FMC Corporation (NYSE:), which is down a jaw-dropping -73% this year, but sporting a +46.6% Fair Value Upside and a “FAIR” Financial Health Score of 1.92. The contrarian thesis? Cost controls, new market strategies, and a sales rebound in Latin America could ignite a recovery, even as Wall Street remains skeptical.
Source: InvestingPro
Caesars Entertainment (NASDAQ:) is a classic recovery play: -28.5% return this year, but a +47% Fair Value Upside and health score of 2.18 (“FAIR”). Yes, leverage is sky-high, but strong cash generation, cost controls, and digital expansion position the casino giant for a possible rally as consumer sentiment stabilizes.
Source: InvestingPro
Over at Rivian Automotive (NASDAQ:), a battered EV stock is making a comeback with +34.5% year-to-date return and “GOOD” health (2.54). Robust revenue growth (+78.3% last quarter) and improving operational controls could surprise doubters, especially if EV sentiment rebounds in 2026.
Household Names, Hidden Angles
Clorox (NYSE:) is still near its 52-week low after a -38.5% drubbing, but with +15% upside and a “GOOD” 2.59 health score, there’s room for optimism. The brand’s pricing power, innovation pipeline, and consistent dividend—currently yielding 4.97%—are underappreciated as the market punishes household staples.
Source: InvestingPro
Brown Forman (NYSE:), owner of iconic spirits brands such as Jack Daniel’s, has been left out of the party with a -20.4% return, but its +20.9% upside and solid 2.65 health score suggest the market is underestimating both resilience and premiumization trends in spirits.
Source: InvestingPro
Comcast (NASDAQ:) trades at a steep discount with a massive +47.5% Fair Value Upside and a “GOOD” 2.97 health score. One of the cheapest S&P 500 stocks at ~6x 2026 earnings with a ~4.5% yield. Potential media/parks spin-off could unlock value, and the turnaround potential is real if management executes.
Source: InvestingPro
Big Brands with Bounce Potential
Walt Disney (NYSE:) is stuck in the penalty box with a +0.2% return, yet a +16.8% Fair Value Upside and a “GREAT” 3.04 Health Score suggest markets are missing the streaming and experiences growth story. Analyst targets imply double-digit upside as Disney leans into IP, digital, and cruise expansion. If Bob Iger’s cost cuts pay off, Disney could roar back.
Source: InvestingPro
LPL Financial (NASDAQ:), up +12.7% this year, isn’t a dirt-cheap value but offers +4.5% upside and an impressive 2.64 health score. Its growth engine? Advisor platform dominance, strategic acquisitions, and the prospect of inclusion.
Exxon Mobil (NYSE:) offers a rare value/growth hybrid: 1-year total return of +6.6%, +11% Fair Value Upside, and a solid 2.68 Health Score. It’s overlooked for its defensive yield (3.59%), PXD synergy potential, and optionality in low-carbon and LNG markets.
Source: InvestingPro
Palo Alto Networks (NASDAQ:), with its tech sector headwinds, still boasts a “GREAT” 2.98 Health Score and consistent double-digit revenue growth. While its -2.6% Fair Value Upside suggests it’s near fair value, the company’s platform expansion and AI-driven security strategy could trigger the next leg up.
The Takeaway
When everyone else is running from risk, these 10 stocks deserve a deeper look from contrarians with patience. 2026 could be the year the market comes back to these unloved assets, rewarding those who got in early.
As always, careful analysis and alignment with personal financial goals are recommended before making investment decisions. Be sure to check out InvestingPro to stay in sync with the market trend and what it means for your trading.
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Disclosure: This is not financial advice. Always conduct your own research.
At the time of writing, I am long on the S&P 500, and the Nasdaq 100 via the SPDR® S&P 500 ETF, and the Invesco QQQ Trust ETF. I am also long on the Technology Select Sector SPDR ETF. I regularly rebalance my portfolio of individual stocks and ETFs based on ongoing risk assessment of both the macroeconomic environment and companies’ financials.
The views discussed in this article are solely the opinion of the author and should not be taken as investment advice.
Follow Jesse Cohen on X/Twitter @JesseCohenInv for more stock market analysis and insight.
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