Benzinga’s 2026 Rebound Stocks Analysis: TGT, HD, and AMZN

This analysis is based on a Benzinga article [1] published on January 2, 2026, which identified three stocks expected to rebound in 2026 after underperforming the S&P 500 Index in 2025. The S&P 500 returned 16.39% in 2025 and 80% over three years, led by a small group of large tech stocks [1]. Due to article access limitations, the most likely rebound candidates are Target Corporation (TGT), The Home Depot, Inc. (HD), and Amazon.com, Inc. (AMZN), selected based on their 2025 underperformance relative to the index [0].

• 2025 Performance
  : TGT (-27.99%) and HD (-12.25%) declined, while AMZN (+3.96%) posted gains but still lagged the S&P 500’s 16.39% return [0].
• January 2, 2026, Reaction
  : TGT (+1.83%) and HD (+0.58%) outperformed the S&P 500 (-0.60%), showing initial bullish sentiment, while AMZN (-2.05%) underperformed the index [0].
• Valuations
  : TGT has a low P/E ratio of 12.07, HD a moderate 23.63, and AMZN a higher 31.89 [0]. Trading volume for all three was below their 2025 average on the article’s publication day [0].

1. Mixed Market Sentiment
   : The divergent price reactions on January 2 suggest varying investor assessments: TGT and HD may be viewed as having stronger rebound potential in the short term, while AMZN’s decline could reflect lingering concerns or profit-taking [0].
2. Sector Sensitivity
   : All three stocks are consumer cyclicals, making their performance sensitive to broader economic conditions, particularly consumer spending trends [0].
3. Valuation Disparities
   : TGT’s low P/E ratio (12.07) may attract value investors seeking undervalued opportunities, while AMZN’s higher P/E (31.89) implies greater growth expectations that need to be met for a sustained rebound [0].

• Risks
  :
  • Economic slowdowns could reduce consumer spending, negatively impacting all three stocks [0].
  • Intense competition: AMZN faces rivalry in e-commerce and cloud services, while TGT and HD compete with other retailers [0].
  • Valuation risk for AMZN: A failure to meet growth expectations could pressure its stock [0].
• Opportunities
  :
  • Rebound potential following 2025 underperformance relative to the S&P 500 [0].
  • TGT’s attractive valuation may draw investor interest [0].
  • Any sector-specific catalysts for consumer cyclicals could benefit the group.

Benzinga’s 2026 rebound stocks article highlights underperforming stocks with potential to recover in the coming year, with TGT, HD, and AMZN identified as likely candidates based on 2025 performance data. These stocks exhibited mixed price reactions on the article’s publication day, with TGT and HD showing initial strength and AMZN declining. Valuations vary across the group, with TGT appearing the cheapest by P/E ratio. All three face sector-wide risks from economic conditions and competition, but offer potential rebound opportunities for investors monitoring these factors.