Why Wall Street Is Backing These 3 Comeback Stocks
A company's comeback story can mean a significant opportunity for investors to win returns in the financial world. Of course, when a stock has shed a sizable portion of its value in recent memory, many investors prefer to exercise caution unless there is a clear signal that the firm's fortunes could turn around. If the anticipated rally does materialize, though, investors who purchased shares during the dip may see the largest gains.
Wall Street analysts have predicted that the three companies below—The Trade Desk Inc. (NASDAQ: TTD), Summit Therapeutics PLC (NASDAQ: SMMT), and Sprouts Farmers Market Inc. (NASDAQ: SFM), each representing a unique industry and sector—could be poised for just such a comeback. Shares of all of these companies have been down in the last several months, but keen investors may find that they each present a compelling case for those with a fair degree of tolerance for risk.
External Threats Impact The Trade Desk, But Platform Relaunch Could Boost Interest
Ad tech giant The Trade Desk is down more than 54% year-to-date (YTD) as the company missed its EPS estimate for the latest quarter by 24 cents. The firm faces increasing competition from tech rivals, not primarily in advertising, including Amazon.com Inc. (NASDAQ: AMZN), which recently offered potential advertising customers free use of its demand-side platform (DSP) to test against its rivals' products. This directly threatens TTD after the firm lost its exclusive partnership with Walmart Inc. (NYSE: WMT) over the summer.
But there are also reasons investors might be optimistic about The Trade Desk going forward. Despite slowing recently, the company's revenue growth of 19% year-over-year (YOY) for the latest quarter is still robust—TTD remains one of the very top ad tech firms, despite the rise of rivals.
Some of the revenue slowdown is due to user pushback on its Kokai platform, but the firm announced a broad range of enhancements in September that could help to renew interest. One feature in particular, Deal Desk—launched earlier in the year—fills an important gap as a deal optimization and pacing tool.
Analysts are somewhat mixed on TTD shares, but a majority (21 out of 37) call the stock a Buy. TTD has a consensus price target of more than $84, nearly 58% above where it currently trades.
Summit's Pipeline Is Promising, But Cash Position Is a Risk
Clinical-stage biotech firm Summit Therapeutics is known for a major candidate, ridinilazole, for the treatment of Clostridioides difficile infections. The company is not yet profitable and indeed posted wider-than-expected losses per share in its third quarter of 2025. Summit's biggest hurdle may be its cash runway: it ended the latest quarter with under $239 million in cash, as well as rising operating expenses that are eating away at reserves quickly.
Summit executives have suggested a potential equity financing or at-the-market event that could help to finance its latest trials. However, this would dilute current shareholders, who have responded by sending SMMT shares downward by close to 20% in the last six months.
Still, the company has a promising pipeline if Summit can address its cash flow issues. Summit plans to submit a biologics license application related to Ivonescimab, a potential treatment for certain types of lung cancer, this quarter. The drug candidate's phase III trial is set to expand, a positive sign for potential marketability later on.
Twelve out of 18 analysts see SMMT shares as a Buy, and the company has upside potential of nearly 60% based on a consensus price target of $31.14.
Strong Fundamentals Could Help Sprouts to Trend Higher
Organic specialty grocer Sprouts Farmers Market has seen shares fall by almost 20% this year amid inflation and consumer sentiment concerns. However, the company's latest earnings are promising—it notched both top and bottom-line beats as sales grew by 17% YOY, led by strong e-commerce sales growth. Management raised sales and other forecasts for the full year at that time.
The company has also provided incentives to shareholders by putting its operating cash flow of more than $400 million as of mid-year to use, including through $292 million of share repurchases.
Sprouts' focus on wealthy customers and regions may help to insulate it from rising grocery prices and tariff concerns. Analysts seem to think so, as 10 out of 15 see SFM stock as a Buy, with about 51% in upside potential.
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