Buying low and selling high sounds easy to do. But what happens when you’re dealing with crushed stocks? This isn’t just about stocks that are underperforming the market. I’m talking about stocks that are down so much, you’re questioning the reason you bought in in the first place.
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Let me be clear, sometimes crushed stocks deserve to be crushed. In many cases, something fundamental or structural has changed the thesis for owning the stock.
However, sometimes selling momentum gets overdone. When that happens, it’s usually the company insiders who are the first to know.
That’s why you should always keep an eye on insider buying. After all, if insiders are putting their money where their mouths are, it’s a sign of confidence.
Crushed Stocks #1: Abbott Laboratories
Abbott Laboratories (NYSE: ABT) is down about 16.6% in 2026. However, almost all of that loss came after the company’s fourth-quarter earnings report on Jan. 22. The stock was crushed following the report. In fact, it had its worst showing in more than 20 years, gapping from about $120 to $105.60.
This was despite the fact that the company’s adjusted earnings beat analysts’ forecasts by a penny. However, sales came to $11.5 billion, missing the $11.8 billion estimate.
The sell-off made the report look like a disaster. However, for Chairman and CEO Robert Ford, it was an opportunity. After the drop, he reportedly bought 18,800 shares of ABT for just over $2 million on January 23.
Despite the earnings mess, Ford said Abbott was well-positioned to accelerate growth in 2026. “While we know we’ve got some work to do in nutrition, I can guarantee you that we’re not distracted by that,” he added, as quoted by Barron’s.
Crushed Stocks #2: GameStop
GameStop Corp. (NYSE: GME) was one of the original meme stocks, and it’s never shaken that reputation. To be fair, the company and its loyal band of retail investors have leaned into the reputation.
The company is trying to make a pivot from being a retail dinosaur to being a digital-first gaming and entertainment company. This has included speculation in Bitcoin and forays into seemingly unrelated businesses to manufacture a new equity story.
GME stock is down more than 51% in the last five years. But it’s showing big signs of life in 2026. That’s caused CEO Ryan Cohen to buy 500,000 shares for about $21.12 each for nearly $21.4 million.
He wasn’t alone. Board member Alain Attal picked up 12,000 shares for about $20.90 each. Even investor Michael Burry disclosed a long position in GME, noting that he likes the company’s untapped value and strategic optionality under Ryan Cohen.
As noted by Seeking Alpha, “Burry framed GameStop not as a typical retail business, but as a cash-generating platform with a young, disciplined leadership team and the optionality to deploy billions in a patient, intelligent manner.”
Crushed Stocks #3: Elanco Animal Health
Since bottoming out in April at around $8 a share, Elanco Animal Health Inc. (NYSE: ELAN) stock is now up to $24 and could rally even higher. Most recently, CEO Jeffrey Simmons paid $478,500 to buy 22,000 shares on December 11 at an average price of $21.75 a share.
The company, which was spun off from Eli Lilly in 2018, has been explosive thanks to key product launches, including chewable parasite preventative for dogs, as well as anti-itch medication.
Americans spend big money on their pets. In 2024, the average household spent about $40 billion on vet care and pet medications alone. By 2027, spending is expected to soar to $173 billion, as noted by Fortune. Americans will spend a total of $157 billion on their pets by the end of 2025; according to projections, U.S. pet spending will total almost $200 billion in 2030, as noted by Capital One Spending.
Those are substantial catalysts for pet companies like ELAN.
Crushed Stocks #4: Bath & Body Works
Bath & Body Works (NYSE: BBWI) hasn’t had a great year. Since the start of 2025, BBWI fell from about $40 to $14.28. It’s now back to $21.65, and showing some signs of life again after tanking on earnings.
But before the recent rally, insiders were buying.
On November 21, director Lucy Brady bought just over 3,469 shares for $14.40 a share. Huntington Bancshares CEO Stephen Steinour bought 6,700 shares for $14.86 per share. Former Mastercard executive Francis Hondal bought 3,343 shares for about $15 per share. Hershey VP and CFO Steven Voskuil bought 20,000 shares for about $15.04 per share.
On November 24, Board Chair Sarah Nash picked up 10,000 shares for $15.58 per share. Signet Jewelers’ CEO James Symancyk bought 22,500 shares for about $15.58 per share.
Crushed Stocks #5: Fiserv
Fiserv Inc. (NASDAQ: FISV) operates in the emerging financial technology (fintech) space. But that hasn’t meant much to investors. Just weeks ago, FISV stock gapped from about $130 to a recent low of about $60.
However, several company insiders have had enough. CFO Paul Todd just bought 17,000 shares for $1 million. Chief Administrative and Legal Officer Adam Rosman just bought 7,900 shares for $499,201.
This was after the stock was sent screaming lower after the company cut its growth forecast and earnings outlook. The company also said its operations in Argentina would be hurt by poor economic conditions, which forced the stock below $100 for the first time since 2003, as noted by Barron’s.
Final Thoughts on Insider Buying
There are many reasons why insiders will sell a stock. For many executives, stock options are an integral part of their compensation. These sales are usually orchestrated well in advance and without regard to the stock’s current price.
However, insiders are only buying for one reason. That is, they believe the stock is undervalued. If you’re looking for crushed stocks with comeback potential, these five stocks may be a good place to start.
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