Down More Than 30%: 2 Beaten-Down Stocks Analysts Say Are Set to Rebound

Investors often fall into two camps: those who chase stocks already moving higher, driven by momentum and fear of missing out, and those who look for opportunity in beaten-down names. It’s this second group that focuses on stocks that have fallen out of favor, searching for cases where the selloff may have gone too far.

That approach can pay off, but it comes with an important caveat. A lower share price, on its own, is not a reason to buy, and more often than not, it reflects real underlying issues that have yet to play out. At the same time, markets do not always get it right. In some cases, declines overshoot reality, leaving fundamentally solid companies trading at discounted levels and opening the door for solid returns if sentiment begins to shift.

The idea of buying low and selling high only works when the “low” is driven by sentiment rather than deterioration in the business. This is exactly the type of setup Wall Street analysts look for – stocks that have pulled back sharply but continue to show solid fundamentals and a credible path forward.

Against this backdrop, we used the TipRanks database to pinpoint two names that fit this profile. Both have seen meaningful declines, down more than 30% this year, yet analysts believe their long-term outlook remains intact, leaving room for a potential rebound. Let’s take a closer look at what the Street is saying.

Globant SA (GLOB)

The first beaten-down stock on today’s list is Globant, a digitally native tech services firm founded in 2003. The company has a truly global footprint, with over 28,000 people employed in more than 30 countries. Globant’s clients include such major names as Google, Adidas, and Santander, and the company has received industry recognition as a leader in its field.

Globant’s field is varied. The company provides a wide range of AI services, as well as enterprise software packages and digital studio services, all designed to boost its customers’ capabilities. Globant’s AI Pods mark the first monthly-based subscription model for access to AI-enhanced engineering tools, optimized to promote user innovation and creativity. By running on a monthly subscription, like music streaming services, Globant AI Pods permit lower cost and faster delivery without tying users to hours-based or fixed-scope pricing.

Globant has been making use of AI tech for years now, and its tools and platforms are available across a large cross-section of industries, including energy, finance, healthcare, retail, sports, banking, and insurance – to name just a few. The company also makes use of AI in its own back-office operations. Globant prides itself on keeping at the leading edge of the industry and has been a strong adopter of agentic AI technologies and tools.

We should note, however, that the company’s stock has been falling since early last year. In the past 12 months, the stock is down over 64%; for the year-to-date, the decline stands at 35%. The IT sector, and software particularly, have come under pressure as AI tech has spread – and as the new generative and agentic AIs have made it possible for users to do themselves tasks that were previously purchased from specialty companies like Globant. This situation has led Globant to reduce its revenue guidance over the past year.

At the same time, even though Globant has reduced its guidance, it has also been beating the downward revisions. In the last financial release, covering 4Q25, the company’s top line of $612.5 million, down 4.7% year-over-year, was $7 million better than had been expected. And the company’s $1.54 non-GAAP EPS came in as expected.

Wedbush analyst Steven Wahrhaftig acknowledges the share price losses and disappointing metrics, but also points out Globant’s strengths.

He writes, “The company has seen a sharp decline in its stock following a sharp decline in profitable growth and revenue guidance readjustments which created uncertainty around the company’s ability to reaccelerate growth into next year. We believe this presents a compelling risk/reward setup into 2026 as the company capitalizes on demand for AI services to reverse current growth deceleration trends. While the company has seen a significant sentiment shift in FY25 following the significant guidance cut… due to macroeconomic factors, including the US tariff policy uncertainty, we believe management was being deliberately conservative to navigate the volatile and uncertain macro environment and was able to reach its 2% y/y growth target by the end of FY25,” Wahrhaftig opined.

The ‘compelling risk/reward’ noted by the analyst supports his Outperform (i.e., Buy) rating, while his $61 price target implies a 44% upside potential in the next 12 months. (To watch Wahrhaftig’s track record, click here)

The 13 recent analyst reviews here split to 6 Buys and 7 Holds, for a Moderate Buy consensus rating. The shares are selling for $42.40, and the average target price, $63.17, suggests a one-year gain of 49%. (See GLOB stock forecast)

Red Violet (RDVT)

Next up, Red Violet, Inc., is a tech firm working in the fields of big data analytics and identity intelligence. Red Violet offers a high-end proprietary tech platform, CORE, that is flexible and scalable, and was purpose-designed to give users a fortified, layered, and fully auditable digital work environment based on the highest industry compliance standards. Red Violet’s CORE platform is cloud-native, and using it, the company’s clients can manage risk, recover debt, spot abuse and fraud, and keep up with relevant legislative compliance – all while locating, identifying, and acquiring customers.

Red Violet’s services are available through two working brands: IDI, which focuses on analytics and information solutions in the field of risk management, and FOREWARN, which is an app-based solution created to give users instant knowledge before they engage face-to-face with their own customers. The common denominator here is the smart use of information. Red Violet believes that data, properly used, is intelligence, and that intelligence is invaluable. But data proliferates, and its sheer mass makes effective use difficult; Red Violet’s tools give its customers solutions for the effective application of data to decision-making.

Once again, however, we’re looking at a tech company that is feeling pressure from the generally unfavorable software situation this year. RDVT shares have fallen by 34% in 2026, as the industry struggles with competition from gen AI tools.

But the picture may not be all doom and gloom. In 4Q25, the record quarterly revenue of $23.4 million was up 20% year-over-year, and it beat the forecast by $1.4 million. The company realized 21 cents per share in non-GAAP earnings, 7 cents per share ahead of the pre-release estimates.

For analyst Josh Nichols, covering Red Violet from B. Riley, the strengths outweigh the weaknesses here. He notes that Red Violet has a better niche than most SaaS firms, and says of the company: “We believe the AI disruption anxiety overlooks RDVT’s positioning as a data infrastructure toll road for identity verification rather than an application-layer SaaS provider. Management emphasized on the 4Q call that AI adoption is likely a catalyst for greater platform utilization, particularly as AI agents automate workflows and increase transaction volumes… We believe our 2026/27E estimates are achievable if not beatable, given the ramp of recent enterprise wins, including a large payroll processor and a state toll authority… Our conviction in the business is unchanged, and we believe the current dislocation provides one of the best entry points since we initiated coverage.”

Nichols goes on to put a Buy rating on RDVT shares, along with a $65 price target that indicates room for a one-year gain of 74%. (To watch Nichols’ track record, click here.)

While there are only 2 recent analyst reviews here, both are Buys, making the consensus view a Moderate Buy. The stock is selling for $37.44, and its $63.50 average target price implies an upside of 70% on the one-year horizon. (See RDVT stock forecast.)

Disclaimer: The opinions expressed in this article are solely those of the featured analyst. The content is intended to be used for informational purposes only. It is very important to do your own analysis before making any investment.