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Today's Featured Article Why Wall Street Is Backing These 3 Comeback StocksWritten by Nathan Reiff. Published 10/28/2025. 
Key Points - Stocks staging a comeback rally can reward investors willing to take a risk with significant gains.
- Analysts have flagged companies including The Trade Desk, Summit Therapeutics, and Sprouts Farmers Market as having sizable upside potential after earlier declines.
- These companies face external challenges of various kinds, but offer compelling product lineups or pipelines and fundamentals.
A company's comeback can present a significant opportunity for investors. When a stock has lost a sizable portion of its value recently, many investors prefer to be cautious unless there's a clear signal that the firm's fortunes could turn. If the anticipated rally does materialize, investors who bought during the dip may see the largest gains. Wall Street analysts have identified three companies below—The Trade Desk Inc. (NASDAQ: TTD), Summit Therapeutics PLC (NASDAQ: SMMT), and Sprouts Farmers Market Inc. (NASDAQ: SFM)—each representing a different industry and sector—that could be poised for such a comeback. Shares of all three have been down in recent months, but investors with a tolerance for risk may find compelling cases for each. External Threats Impact The Trade Desk, But Platform Relaunch Could Boost Interest Years before it became a household name, Shopify showed an early momentum pattern that experienced traders used to catch a 120% move — and that same repeatable signal has just appeared on a new small-cap ticker that hasn't hit the mainstream yet. Our free Momentum Trading Report breaks down how to spot these stealth setups and reveals which names are flashing right now. Get early access to the free Momentum Trading Report here Ad tech giant The Trade Desk is down more than 54% year-to-date (YTD) after missing its EPS estimate for the latest quarter by $0.24. The firm faces increasing competition from large tech rivals not traditionally focused on advertising, including Amazon.com Inc. (NASDAQ: AMZN), which recently offered potential advertising customers free use of its demand-side platform (DSP) to test against competitors' products. That move directly threatens TTD after the firm lost its exclusive partnership with Walmart Inc. (NYSE: WMT) over the summer. There are, however, reasons for cautious optimism. Despite a recent slowdown, the company reported 19% year-over-year (YOY) revenue growth in the latest quarter, and TTD remains one of the leading ad tech firms despite rising competition. Some of the revenue deceleration stems from user pushback on its Kokai platform, but the company announced a broad set of enhancements in September that could renew interest. One notable feature, Deal Desk—launched earlier this year—addresses a gap by providing deal optimization and pacing tools. Analysts are somewhat mixed on TTD shares, but a majority (21 of 37) rate the stock a Buy. TTD's consensus price target sits above $84, nearly 58% higher than its current trading price. Summit's Pipeline Is Promising, But Cash Position Is a Risk Clinical-stage biotech firm Summit Therapeutics is best known for ridinilazole, a candidate for treating Clostridioides difficile infections. The company is not yet profitable and posted wider-than-expected losses per share in its third quarter of 2025. Summit's biggest hurdle may be its cash runway: it ended the quarter with under $239 million in cash while operating expenses have been increasing and depleting reserves. Summit executives have discussed potential equity financing or an at-the-market offering to fund its trials. Such moves would provide cash but dilute existing shareholders, a prospect that has pressured SMMT shares down nearly 20% over the past six months. Still, the company has a promising pipeline if it can address cash-flow concerns. Summit plans to submit a biologics license application for Ivonescimab, a potential treatment for certain types of lung cancer, this quarter. The expansion of the drug's phase III trial is another positive sign for future marketability. Twelve of 18 analysts rate SMMT shares as a Buy, and the consensus price target of $31.14 implies nearly 60% upside. Strong Fundamentals Could Help Sprouts to Trend Higher Organic specialty grocer Sprouts Farmers Market has seen shares fall by almost 20% this year amid inflationary pressures and softer consumer sentiment. Still, the company's most recent earnings were encouraging: Sprouts beat both top- and bottom-line expectations, with sales up 17% year-over-year, led by strong e-commerce growth. Management subsequently raised full-year sales and other forecasts. The company has also returned cash to shareholders, deploying more than $400 million in operating cash flow as of mid-year, including $292 million in share repurchases. Sprouts' focus on higher-income customers and affluent regions may help insulate it from rising grocery prices and tariff concerns. Analysts appear supportive: 10 of 15 rate SFM as a Buy, and the stock shows about 51% upside potential.
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