These Underperforming Stocks in 2025 Could Be Popular Picks in Early 2026
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Dec 05 2025
0mins
Source: Benzinga
Market Rotation Insight: Goldman Sachs highlights a recurring trend where underperforming stocks from the previous year, termed "laggards," often outperform the S&P 500 in the first quarter of the new year, based on 23 years of market data.
2025 Laggards Performance: The current laggards for 2025 are showing significant underperformance, with an average decline of 19% and a 36% drop relative to the S&P 500, indicating a larger pool of beaten-down stocks than usual.
Potential Recovery Stocks: Goldman Sachs has identified several stocks, including Fortinet, Pool Corp., and Hormel Foods, that are considered mispriced and could lead a rally in early 2026, despite most analysts being neutral or bearish on them.
Caution on Predictions: While the laggard-to-leader strategy has historically shown promise, it is not guaranteed, and investors should remain cautious as January 2026 approaches, as it may bring unexpected movements from previously overlooked stocks.
Trade with 70% Backtested Accuracy
Stop guessing "Should I Buy ARES?" and start using high-conviction signals backed by rigorous historical data.
Sign up today to access powerful investing tools and make smarter, data-driven decisions.
Analyst Views on ARES
Wall Street analysts forecast ARES stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for ARES is 196.55 USD with a low forecast of 175.00 USD and a high forecast of 222.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
11 Analyst Rating
9 Buy
2 Hold
0 Sell
Strong Buy
Current: 149.380
Low
175.00
Averages
196.55
High
222.00
Current: 149.380
Low
175.00
Averages
196.55
High
222.00
About ARES
Ares Management Corporation is an alternative investment manager offering clients complementary primary and secondary investment solutions across various asset classes. Its segments include Credit Group, Private Equity Group, Real Assets Group, Secondaries Group, and Other. The Credit Group segment manages credit strategies across the liquid and illiquid spectrum, including liquid credit, alternative credit, direct lending and APAC credit. The Private Equity Group segment categorizes its investment strategies as corporate private equity, special opportunities and APAC private equity. The Real Assets Group segment manages comprehensive equity and debt strategies across real estate and infrastructure investments. The Secondaries Group segment invests in secondary markets across a range of alternative asset class strategies, including private equity, real estate, infrastructure and credit. It has operations across North America, South America, Europe, Asia Pacific and the Middle East.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Makarora Completes $2.1 Billion Acquisition of Plymouth Industrial REIT
- Acquisition Completed: Makarora Management LP, together with Ares Alternative Credit funds, has completed the acquisition of Plymouth Industrial REIT, Inc. for approximately $2.1 billion, marking a significant expansion in the real estate investment sector.
- Shareholder Cash Return: Under the terms of the transaction, Plymouth shareholders will receive $22.00 per share in cash, providing a substantial return that enhances investor confidence in the deal.
- Advisors Involved: KeyBanc Capital Markets and J.P. Morgan acted as financial advisors for Plymouth, while Moelis & Company served as the lead financial advisor for Makarora, ensuring a smooth transaction process.
- Market Impact: The acquisition results in Plymouth no longer being listed on any public securities exchange, reflecting Makarora's strategic decision to consolidate and optimize its investment portfolio, which is expected to enhance its competitive position in the market.
Continue Reading
Ares Management CEO to Present at Financial Services Conference
- Conference Schedule: Ares Management Co-Founder and CEO Michael Arougheti is set to present at the Bank of America Securities 2026 Financial Services Conference on February 10, 2026, at 8:50 AM, highlighting the company's leadership in the financial services sector.
- Live Webcast: The presentation will be available via a live audio webcast on the company's website, ensuring investors can access crucial information in real-time, with a replay offered shortly after the event to enhance information accessibility.
- Asset Management Scale: As of September 30, 2025, Ares Management Corporation boasts over $595 billion in assets under management across credit, real estate, private equity, and infrastructure, showcasing its robust position in the global investment management landscape.
- Strategic Goals: Ares Management is committed to supporting business growth through flexible capital, creating value for investors, and achieving consistent attractive returns throughout market cycles, reflecting its dedication to long-term stakeholder objectives.
Continue Reading