New York — While major indices track toward another year of strong gains, a cluster of notable stocks has been left deeply behind, posting steep annual losses. As investors look ahead to 2026, analysts on CNBC's "Trading Nation" highlighted two battered names—Block and Las Vegas Sands—as potential candidates for a rebound, citing oversold conditions and shifting fundamental tailwinds.

Nancy Tengler, CEO of Laffer Tengler Investments, made the case for fintech firm Block (formerly Square), whose shares have tumbled 23% this year. "This is a company that is in the perfect space for disruption," Tengler noted, acknowledging recent hurdles such as regulatory scrutiny on its "Buy Now, Pay Later" business and a post-stimulus slowdown in payments volume.

Identifying a Strategic Pivot and Catalysts

Tengler argues the headwinds are now turning. She points to Block's strategic e-commerce partnership with TikTok and its completed acquisition of Afterpay as key catalysts that could fuel a recovery. This positions the company to potentially capitalize on evolving digital payment trends—a critical strategic pivot if it wishes to rejoin the market's high-stakes race. 

Quint Tatro, president of Joule Financial, focused on Las Vegas Sands, down more than 35%. The casino giant has suffered a "double whammy" from pandemic-related travel restrictions and its heavy exposure to China, where nearly half its revenue derives from Macao. "This stock has really been in the trash heap," Tatro said, but he sees it as a beaten-up, cheap play on the eventual return of travel and gaming.

Navigating a Complex Competitive Ecosystem

Both picks represent bets on a turnaround within challenging competitive ecosystems. For Block, the challenge is to outmaneuver larger financial rivals and regulatory pressures. For Las Vegas Sands, the path to recovery hinges on a sustained reopening in China and a resurgence in high-stakes tourism—a difficult strategic maneuver given ongoing geopolitical and economic uncertainties.

The analysts' disclosures underscore their conviction: their firms hold positions in SQ and LVS, respectively. Their outlooks suggest that for disciplined investors, the current "naughty list" of underperformers may contain selective opportunities for those willing to bet on a fundamental inflection in the new year.