Could UPS Be a Turnaround Stock in 2026?
Whether markets trade up, down, or sideways, there's one strategy that stands out as worth investigating. This strategy is looking for companies that are operating well but whose stock price has performed poorly, on the theory that the stock will eventually "revert to the mean" and bounce back up.
One of the best-known strategies looking for out-of-favor stocks is the "Dogs of the Dow," which invests in high-yielding dividend stocks in the Dow Jones Industrial Average. (A falling stock price drives up yield.)
As The Motley Fool notes: "The idea behind this strategy is that investors can profit from the relative strength of Dow stocks and the opportunity to buy undervalued components using dividend yield as a proxy for valuation. The underlying thesis is that these 'dogs' are often down for short-term reasons, and the market's overreaction has created an opportunity for contrarian investors."
Source Fool.com
