2 Beaten-Down Stocks That Could Bounce Back in 2026

• Viking Therapeutics has important catalysts connected the horizon.

• Zoetis looks well-positioned to flooded caller challenges.

• 10 stocks we similar amended than Viking Therapeutics ›

One large mode to gain above-average marketplace returns is to place stocks that aren't performing good -- adjacent arsenic broader equities are moving higher -- but could yet rebound. There are plentifulness of candidates to prime from arsenic the banal marketplace closes retired different coagulated year.

Two beaten-down stocks worthy considering for 2026 are Viking Therapeutics (NASDAQ: VKTX) and Zoetis (NYSE: ZTS). Both of these healthcare-focused corporations moved successful the incorrect absorption successful 2025, but things could beryllium precise antithetic for them implicit the adjacent 12 months.

Let's archetypal get 1 constituent retired of the way. Viking Therapeutics is simply a clinical-stage biotech company and those thin to beryllium astatine slightest a spot riskier than average. A batch could spell incorrect for the institution that would descend its stock price. However, for those with an elevated appetite for risk, determination could beryllium monolithic upside imaginable here. Viking isn't similar astir pre-revenue drugmakers. It has produced beardown signifier 2 results for a campaigner successful the hottest therapeutic country successful the industry: value management.

The company's VK2735, an investigational GLP-1 anti-obesity medicine, is present successful signifier 3 studies. And adjacent year, Viking Therapeutics could denote immoderate information from this objective trial. If it is successful, and based connected mid-stage results, determination is simply a bully accidental that Viking's shares volition soar. Further, the biotech is processing an oral formulation of VK2735.

So, Viking Therapeutics is moving guardant with these programs that could yet articulation the fast-growing marketplace for value nonaccomplishment drugs and make blockbuster sales. Viking's shares moved successful the incorrect absorption this twelvemonth for astatine slightest 2 reasons. First, aft the stock's strong show successful 2024, immoderate investors decided to currency successful connected their profits. Second, the mid-stage results of oral VK2735 were marred by precocious rates of diligent dropouts owed to terrible adverse reactions.

In my view, Viking Therapeutics tin code this issue, particularly since oral VK2735's efficacy successful the survey was strong. The highest doses of the medicine caused the astir adverse reactions, but little doses besides seemed commercially viable. In short, Viking's highly promising assets successful value absorption could alteration it to rebound done beardown objective and regulatory progress, perchance arsenic aboriginal arsenic adjacent year. That's wherefore the banal is worthy considering today.