Wall Street analysts are highlighting these stock turnaround stories

Wall Street analysts are identifying specific stocks as compelling turnaround opportunities, even as the broader market reaches record highs driven by trade optimism and a rebound from an April selloff. Despite recent declines largely due to tariff concerns, Stellantis (-21% YTD) is being upgraded by Jefferies on new leadership and strategic re-positioning, while Capri Holding (-12% YTD) is seen by Wells Fargo as having multiple paths to recovery through potential asset sales and brand enhancements. Wolverine World Wide (-16% YTD, +42% 12-month) is also highlighted by Baird for its strong fundamentals and manageable tariff exposure, with analysts broadly bullish on its growth prospects.

Analysis

Wall Street analysts are flagging idiosyncratic turnaround opportunities in specific stocks that have underperformed the record-setting broader market. Despite a 21% year-to-date decline in its share price attributed to tariff pressures, Stellantis (STLA) has been upgraded to 'buy' by Jefferies, citing a new CEO, strategic partnerships in China, and a belief that many operational issues are 'self-inflicted and fixable.' The stock's valuation appears compelling at 4x 2026 estimated un-recovered earnings, though a majority of analysts polled by FactSet maintain a 'hold' rating, their consensus target still implies over 14% upside. Similarly, Capri Holdings (CPRI) is down 12% in 2025, but Wells Fargo sees its sell-off as 'overdone,' identifying multiple recovery catalysts including potential asset sales, management changes, and fundamental brand improvements, with a price target suggesting over 41% upside. Wolverine World Wide (WWW) is also presented as a compelling case; while down 16% year-to-date, it has gained 42% over the past 12 months. Baird highlights strong Q1 results, manageable tariff exposure, and momentum in its Merrell and Saucony brands—which constitute 57% of 2024 revenue—as evidence that bearish sentiment, reflected in high short interest, is excessive. Notably, 90% of analysts surveyed by FactSet are bullish on WWW, anticipating a stronger-than-expected second-quarter result.

Key Decisions for Investors

• Investors should consider the identified turnaround narratives in Stellantis, Capri, and Wolverine, where specific company-driven catalysts may outweigh macro headwinds from tariffs.
• For Stellantis and Capri, the significant upside projected by individual analysts contrasts with a more cautious 'hold' consensus, suggesting a potential opportunity for investors with a higher risk tolerance who subscribe to the specific turnaround theses.
• Given the overwhelmingly bullish analyst consensus (90% buy/overweight) and high short interest in Wolverine World Wide, investors may find a compelling long opportunity ahead of its August earnings report, which is expected to beat estimates.
• Monitor upcoming earnings reports closely for tangible evidence supporting these turnaround stories, particularly execution under Stellantis's new CEO and gross margin performance at Wolverine, which are key pillars of the bullish analyst views.