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.

However, according to one source, Black Friday sales are expected to be over $11.7 billion in 2025, a year-over-year increase of 8.3%. And this holiday season, American consumers are expected to spend over $1 trillion for the first time.  

That said, consumers still feel the impact of higher prices. Affordability is on the lips of many economists and the executives who work at these retailers. The message is the same. Even high-income consumers are trading down to find value where they can.  

As an investor, this means you should keep it simple when it comes to Black Friday stocks. That is, buy the names that have proven they can attract consumers no matter what happens in the broader economy. Here are three names to consider.  

Costco: The High Valuation is a Feature Not a Bug 

Costco Wholesale Corp. (NASDAQ: COST) is one of the most consistent performers in the retail space. A key reason for this is the company’s subscription model. That revenue goes almost entirely to the company’s bottom line, and the company has a retention rate of over 90%.  

However, after hitting the psychologically significant $1,000 per share mark twice in 2025, COST stock is in a downtrend as many investors question its premium valuation.  

They shouldn’t. 

Costco’s high valuation is a feature, not a bug, because investors are paying for a level of consistency and predictability that few retailers can match. In addition to its subscription model that gives Costco a built-in customer base that reliably drives traffic and spending, the company has strong private-label penetration and disciplined pricing, which keep shoppers loyal even when consumer spending softens. 

The company continues to open new warehouses in underserved domestic markets and high-growth international regions, which provides steady, measurable volume growth. Finally, Costco’s financial stewardship strengthens the premium case. The company maintains a conservative balance sheet, regularly issues special dividends, and delivers consistent earnings growth.  

In short, investors pay more because Costco reliably delivers more. 

Amazon: It’s Time for the Company’s “Other” Business to Shine 

Amazon.com Inc. (NASDAQ: AMZN) is one of the most important technology stocks in the artificial intelligence (AI) revolution. The company’s Amazon Web Services (AWS) division is a primary driver of the company’s growth. It’s also the reason the company can commit billions of dollars to the buildout of AI data centers. 

But the holiday season is a good reminder that Amazon’s legacy e-commerce business is doing just fine. In fact, the company that essentially invented the category looks ready to shine again in 2025.  

E-commerce may no longer be Amazon’s fastest-growing segment, but it remains a powerful engine of profitability and cash flow. The company has streamlined its fulfillment network, cut delivery times, and expanded same-day capabilities, all of which are boosting order volume heading into 2025.  

Advertising revenue tied to its retail ecosystem is accelerating as well, adding a high-margin tailwind that complements AWS. With consumers expected to stay value-focused, Amazon’s scale, logistics advantage, and Prime ecosystem should help the company capture additional share. AWS may fuel the AI future, but Amazon’s “other” business is quietly strengthening the foundation beneath it. 

Bath & Body Works: The Numbers Don’t Lie, It’s a Buy 

Bath & Body Works Inc. (NYSE: BBWI) may seem like a surprising choice among Black Friday stocks to buy. BBWI stock is down over 55% in 2025 based on tepid revenue and earnings. The company has a loyal customer base, but loyalty hasn’t been enough to attract customers in a tough market.  

But the numbers don’t lie. The fourth quarter is historically the company’s strongest quarter in terms of both revenue and earnings. That’s not reflected in the company’s stock price or in its valuation. At around 5x forward earnings, the stock is trading at nearly a 40% discount to its historic average. 

BBWI stock may not be a buy-and-hold stock. But it looks like an excellent choice for investors looking for swing trading opportunities.  

Let These Black Friday Stocks Start Your New Year Right 

The last month of the year is a time when institutional investors rebalance their portfolios and look ahead to a new year. These are just the kind of opportunities they look for.  

These Black Friday stocks are proven winners of seasonal strength, and in the case of Costco and Amazon, they have multiple levers to pull to deliver long-term shareholder value.