Core Insights - The article discusses the potential for certain undervalued stocks to rebound in 2026, particularly those that underperformed in 2025, suggesting a historical trend where the bottom quartile of performance in one year can lead to top quartile results in the following year [3][4]. Group 1: Market Trends - Historical patterns indicate that stocks like Fiserv, The Trade Desk, and Deckers Outdoor Corporation could transition from laggards in 2025 to outperformers in 2026, driven by macroeconomic factors such as rate cuts and increased election ad spending [7]. - The article highlights that many AI stocks are currently overvalued, while cyclical stocks appear undervalued, creating a favorable environment for potential rebounds in these sectors [8]. Group 2: Company-Specific Insights - Fiserv Inc. (NASDAQ: FISV) has seen a significant decline of 67% in 2025, trading at levels last seen in 2017, despite stable fundamentals with flat to slightly lower year-over-year revenue and earnings [5]. - The decline in Fiserv's stock is attributed to a market rotation away from payment networks towards financial stocks focused on AI, cryptocurrency, and buy now pay later solutions [6]. - Fiserv's recovery potential is linked to anticipated aggressive rate cuts, which historically boost payment volume and transaction growth; the stock is considered fundamentally undervalued with a forward P/E ratio of approximately 6.4x and projected earnings growth of 16.9% over the next 12 months [9].
2026 Comeback Picks: 3 S&P Laggards Poised to Break Out