These 3 Stocks Are Prime Bounceback Candidates

Barchart · 2d ago

The market produced turbulent but ultimately above-average gains through the first half of the year. At 2026's midway point, the S&P 500 had delivered a total return (price plus dividends) of 10%, which is right in line with the long-term mean for the index's full-year annual returns—from here, anything on top of that is gravy.

Naturally, the index's best stocks had performed much, much better. Dell Technologies (DELL) popped by 245%. One of our best growth stock picks, Micron (MU), was up more than 300%. And SanDisk had beaten every last component with wild gain of almost 860%.

Good for them, but not every stock joined in on the fun. In fact, almost a third of the S&P 500 sat in the red through July 1. However, some of those names could be poised for a renaissance before the year is through.

Today, I'm going to look at some of the best stocks for a comeback bid through the rest of 2026. They didn't give Wall Street much to cheer during the first half of the year, but equity researchers believe the remaining few months (and beyond) could deliver much more to celebrate.

Disclaimer: This article does not constitute individualized investment advice. Individual securities, funds, and/or other investments appear for your consideration and not as personalized investment recommendations. Act at your own discretion.

Methodology

I started with stocks that had declined by 10% or more through the first six months of 2026. That represents at least 20 percentage points of underperformance against the S&P 500. But I didn't limit the list to just the large-cap index—I broadened the scope to the S&P Composite 1500, which includes small-, mid-, and large-cap stocks.

From there, I looked for stocks that analysts surveyed by S&P Global Market Intelligence believe have at least 20% upside from their midyear price, as determined by their consensus 12-month price targets.

Lastly, I ranked these stocks based on their consensus analyst ratings from S&P Global Market Intelligence. The consensus rating is the average of all known analyst ratings of the stock, boiled down to a numerical system where …

1-1.5 = Strong Buy
1.5-2.5 = Buy
2.5-3.5 = Hold
3.5-4.5 = Sell
4.5-5 = Strong Sell

In short: The lower the number, the better the overall consensus view on the stock. All stocks here are rated at least 1.5 or below, meaning they're all considered Strong Buys right now.

Here are three of my favorite stocks to buy for a rebound in 2026.

#1: Microsoft

Sector: Information technology
Market capitalization: $3.7 trillion
2026 first-half return: -23%
Consensus analyst rating: 1.36 (Strong Buy)
Consensus 12-month price upside from 6/30/26 close: 54%

About Microsoft (MSFT): Microsoft is one of the most dominant names in technology and among the largest tech stocks on the planet. The average person knows Microsoft for its iconic Windows and Office productivity software for personal computers, as well as its Xbox gaming console and related software. But Microsoft also is a major player in cloud computing, via its still-growing Azure cloud services, and an emerging titan in artificial intelligence—a position it further cemented in 2025 with the announcement of a strategic partnership with Anthropic (as well as a chipmaker I'll get to next). It's also an aggressive dividend grower.

Analyst Ratings: 52 Buys, 3 Holds, 0 Sells

Why the Analysts Still Believe: "Microsoft continues to pursue long-term growth through its artificial intelligence (AI) and cloud investments. CEO Satya Nadella sees GenAI as a rare change to a fundamental computing paradigm, and Microsoft is moving aggressively to exploit the opportunities opened by GenAI, as demand currently outstrips the supply of its cloud services. Although not immune to macroeconomic challenges (such as declines in the PC original equipment manufacturers (OEM) market and in digital advertising), Microsoft has about as diversified and strong a set of assets as any company in the technology arena—and may even be seen as a safe haven for investors in uncertain times. The company is one of a few names with a complete, integrated commercial product set aimed at enterprise efficiency, cloud transformation, collaboration, and business intelligence. It also has a large and loyal customer base, a substantial cash cushion, and a rock-solid balance sheet. Market concerns over GenAI investments have dogged MSFT shares over the last year, though these concerns are belied by the company’s strong revenue and margin performance." — Argus Research analyst Joseph Bonner (Buy)

#2: Waystar Holding

Sector: Healthcare
Market capitalization: $5.2 billion
2026 first-half return: -37%
Consensus analyst rating: 1.29 (Strong Buy)
Consensus 12-month price upside from 6/30/26 close: 62%

About Waystar Holding (WAY): Waystar Holding provides a cloud-based software solution for healthcare payments. Its platform offers financial clearance, patient financial care, claim and payer payment management, denials prevention and recovery, clinical integrity and revenue capture, and analytics and reporting solutions. These solutions serve a variety of healthcare providers, including hospitals, healthcare systems, hospice care, internal medicine, radiology, laboratories, ambulance operators, and more.

Analyst Ratings: 23 Buys, 1 Hold, 0 Sells

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Why the Analysts Still Believe: "We remain buyers of the stock and continue to view WAY as a core long-term [healthcare IT] holding. In our view, the company remains positioned to capitalize on the AI-enabled transformation of revenue cycle management via stronger pricing, an expanding [total addressable market], and increased value-add for clients. We also believe that Waystar remains a category leader in end-to-end RCM software (which clients desire over point solutions), leveraging its competitive position and scale advantages to enhance the platform with innovations that drive client value. Moreover, we believe innovation momentum is driving an uptick in pipeline activity, size, and bookings performance, highlighted by a continuation of strong win rates and an uptick in larger deal sizes." — William Blair analysts Ryan Daniels and Jared Haase (Outperform)

#3: Boot Barn Holdings

Sector: Consumer discretionary
Market capitalization: $4.1 billion
2026 first-half return: -10%
Consensus analyst rating: 1.25 (Strong Buy)
Consensus 12-month price upside from 6/30/26 close: 35%

About Boot Barn Holdings (BOOT): Boot Barn operates more than 500 of its specialty retail stores. It's a "lifestyle" chain that sells Western and work-related footwear, apparel, and accessories, such as shirts, cowboy hats, belts (and belt buckles!), rugged footwear, overalls, safety-toe boots, flame-resistant and high-visibility clothing, gifts, and home merchandise. Just some of its brands include Levi's, Laredo, Wrangler, Carhartt, Stetson, Timberland Pro, Wolverine, and Durango.

Analyst Ratings: 15 Buys, 1 Hold, 0 Sells

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Why the Analysts Still Believe: "Boot Barn is the dominant retailer in two niche and underserved categories—westernwear and workwear. We believe BOOT is an underappreciated growth story and see potential for BOOT to add 400 stores over the next five years, and this should drive a ~13.5% [earnings per share compound average growth rate through fiscal year 2030]. Plus, we believe BOOT will navigate ongoing tariff environment uncertainty and cost inflation pressures from elevated oil prices better than many of its "mom & pop" rivals will, which could accelerate share gains for BOOT and its exclusive brands, in our view. ... [After a recent meeting with management, UBS says] the main comp drivers appear to be transactions, AUR, digital growth, and category strength in work boots and denim. Management said that historically comps have tended to be transaction driven, while AUR usually contributes around 1.5–2% annually, with this year expected closer to 2–3%." — UBS analyst Jay Sole (Buy)

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