History Suggests These 3 Stocks Are Due for a Major Rebound

Investors tend to move in groups, like lemmings. Sometimes that pushes stocks to unsustainable heights. Other times, it leaves good companies with deeply unloved stocks.

Bubbles are a huge risk, but down-and-out stocks can be a huge opportunity for long-term investors if you do your research. That's why you should dig into Pfizer (NYSE: PFE), General Mills (NYSE: GIS), and United Parcel Service (NYSE: UPS) today. Here's why each one could be due for a major rebound.

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Pfizer remains a well-run drug company

Pfizer's stock is down roughly 50% from its 2021 high. That peak was partly driven by the company's COVID vaccine, as investors overestimated long-term demand. However, the company is facing other headwinds, as well. For example, it has fallen behind in the GLP-1 weight-loss space, and the drugmaker has several patent expirations coming up.

There are reasons to be worried. However, with a $150 billion market cap, Pfizer remains a large and well-respected pharmaceutical giant. It continues to work on GLP-1 candidates, and it has oncology and migraine drugs in the works, as well. The big issue is really that patent expirations happen on a pre-set timeline, but drug discovery and development do not. Nothing Pfizer is dealing with is abnormal, and given enough time, it is likely to come through this difficult period. When it does, the stock should rebound, rewarding investors willing to think long term.

Food maker General Mills is doing normal maintenance

General Mills' stock is down 60% from its 2023 high. The downturn has been driven by several concerns. Inflation has put pressure on the food maker's margins, weight-loss drugs have changed consumer buying preferences, and economic concerns have led to tighter food budgets. General Mills entered fiscal 2026 warning that it would be an investment year. It has been, noting that organic sales were down 3% through the first three quarters of the year.

In the short-term, General Mills is doing poorly. However, it isn't unusual for a food company to have to rework its brand portfolio to better align with current consumer trends. It takes a little time, but good companies get back on track. General Mills has long focused on owning industry-leading brands and can stand up to any peer in distribution, marketing, and advertising. With an over 125-year history, it is highly likely that the company's investment year leads to improved results in the future. Buying while the stock is unloved could get you in before a major rebound.

United Parcel Service is right-sizing its business

United Parcel Service's stock has fallen more than 50% from its 2022 high. That high was partly driven by the COVID pandemic and the resulting increase in shipping due to social distancing. When the world reopened, shipping declined, and UPS embarked on a business overhaul. The goal has been to cut costs, refocus on its most profitable customers, and upgrade the company's infrastructure. From a big-picture perspective, costs rose, at least temporarily, while revenues were falling. The company's earnings reports have been pretty dismal to read.

However, there are early signs of success, as the revenue per piece in the United States has been moving higher despite falling overall revenues. That's basically the goal, as UPS attempts to become a more profitable company that is less reliant on high volume, but low profit margin, customers. The industrial company believes the second half of 2026 will be the inflection point, so buying now while Wall Street is still deeply negative could get investors in before the big business rebound starts.

High yields go along with these turnaround opportunities

The chance to get in early on some rebounding stocks is nice, but that's not the only story here. Pfizer's dividend yield is an attractive 6.5%, General Mills' yield is 7%, and UPS' is 6.6%. So you will be well paid while you wait for these turnaround stories to play out.

Reuben Gregg Brewer has positions in General Mills. The Motley Fool has positions in and recommends Pfizer and United Parcel Service. The Motley Fool has a disclosure policy.