By Ian Salisbury
A key part of tax-loss selling season is nearly over. That means some beaten-down stocks that have endured a double-whammy of selling pressure could soon bounce back.
As year end approaches in a bull market, investors often sell underwater stocks, aiming to realize a capital loss, which they can use to offset gains, heading off a potential tax bill. While it happens throughout the fourth quarter, mutual funds often concentrate their selling in October, since many have an Oct. 31 fiscal year.
For struggling stocks, tax loss season can make a bad year worse. Extra selling pressure tends to amplify price declines as large investors unload shares. The silver lining: price can pop once temporary selling subsides.
Since 1990, stocks in the worst-performing quintile of the Russell 3000 during the first 10 months of year tended to bounce back in November, returning 2.7% on average, according to a note Monday by Evercore ISI. To put that in context, the average monthly return across the Russell 3000 is only about 1%, according to Dow Jones Markets Data.
To find out which stocks might benefit next month, Evercore ISI screened for Russell 3000 stocks that were in the lowest 25th percentile of performance in 2025; had current share prices that were also in the lowest 25th percentile, relative to their average 2025 share prices; and which looked attractively valued, based on Evercore's analysis.
To help you find ones that might also be solid long-term investments, we've narrowed the list ones that the firm rates "outperform."
Tax-loss target stocks that could pop in November:
Accenture / ACN
Market cap: $157 billion
Ytd. Return: -26%
Stock price: $254
Adobe / ADBE
Market cap: $151 billion
Ytd. Return: -23%
Stock price: $341
Comcast / CMCSA
Market cap: $108 billion
Ytd. Return: -20%
Stock price: $29
Constellation Brands / STZ
Market cap: $23 billion
Ytd. Return: -39%
Stock price: $133
Alexandria Real Estate / ARE
Market cap: $11 billion
Ytd. Return: -36%
Stock price: $60
Baxter International / BAX
Market cap: $12 billion
Ytd. Return: -20%
Stock price: $23
Akamai Technologies / AKAM
Market cap: $11 billion
Ytd. Return: -22%
Stock price: $74
BioMarin Pharmaceutical / BMRN
Market cap: $10 billion
Ytd. Return: -19%
Stock price: $53
Algin Technology / ALGN
Market cap: $9.7 billion
Ytd. Return: -36%
Stock price: $134
Molson Coors Beverage / TAP
Market cap: $8.5 billion
Ytd. Return: -21%
Stock price: $44
Birkenstock Holding / BIRK
Market cap: $7.7 billion
Ytd. Return: -28%
Stock price: $41
Ryman Hospitality Properties / RHP
Market cap: $5.5 billion
Ytd. Return: -13%
Stock price: $88
Alaska Air Group / ALK
Market cap: $5 billion
Ytd. Return: -34%
Stock price: $42
Write to Ian Salisbury at ian.salisbury@barrons.com
This content was created by Barron's, which is operated by Dow Jones & Co. Barron's is published independently from Dow Jones Newswires and The Wall Street Journal.
(END) Dow Jones Newswires
October 29, 2025 15:40 ET (19:40 GMT)
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