1. Warner Bros. Discovery (WBD)
Currently, WBD is experiencing lower-than-usual trading and is restructuring its business by creating two separate divisions, Streaming & Studios and Linear Networks. As streaming services gain more subscribers and debt decreases, analysts predict an impressive 38% increase. This restructuring could result in strong earnings until 2026.
2. Peloton Interactive (PTON)
In an effort to generate recurring revenue, Peloton is moving away from selling hardware and focusing on subscriptions. Apple Fitness+'s new leadership reveals strategic insight. The upside is expected to be 24% for subscribers and cost efficiencies, according to analysts.
3. BrightSpring Health Services (BTSG)
The revenue of a home-health and pharmacy company has been growing at '26% YoY' in Q1 this year. 2025). Expected strong earnings growth in 2026 due to ongoing acquisitions and divestitures of non-core units. Analysts estimate 21% earnings growth.
✅ How can these stocks be expected to yield significant returns by 2026?
- Currently undervalued in relation to their potential growth.
- The catalysts for each are evident in the way they are initiated: WBD, PTON, and BTSG.
- By mid-term, analysts predict that earnings will either increase by double digits or recover.
📊 Market Outlook Through 2026
Companies such as Morgan Stanley anticipate a flattening of worldwide markets, and the S&P 500 is projected to reach approximately 7200 by mid-2026, driven by earnings revisions, AI adoption, tax incentives, or interest rate reductions. Industries and finance are the primary beneficiaries.
In India, L&T is gaining ground by demonstrating robust infrastructure growth through fiscal 2026, as evidenced by strong order inflows and rising analyst price targets (4,070) However? No such companies.
Global financial stocks are also expected to increase by 7 to 15% in their earnings and are positioned for breakouts.