Ritholtz Wealth Management has identified three stocks within the S&P 500's worst-performing sectors that could offer upside if investors begin rotating out of recent market leaders.
The firm's selection comes as the first half of 2026 has proven particularly difficult for a specific cohort of large-cap equities, with MarketWatch recently highlighting the severe underperformance of the index's bottom 20 stocks.
The recommendation targets sectors that have faced significant headwinds, including transportation, which has experienced heightened volatility this year.
Developments surrounding major players like Avis, alongside shifting trade dynamics, have created a challenging environment for the sector.
Ritholtz Wealth Management's Josh Brown and Sean Russo argue that these depressed valuations may present an entry point for investors betting on a broader market rotation.
The strategy relies on the premise that capital will eventually flow from overbought growth names into value and cyclical laggards.