Analysis of Tax-Loss Selling Impact and Bounce-Back Potential for Underperforming Stocks (Dec 2025)

This analysis stems from the Barrons article [2] published on December 22, 2025, which discusses stocks impacted by tax-loss selling— the practice of selling underperforming assets to reduce tax burdens— and their potential rebound. Contextually, the S&P 500 was up approximately 17% YTD as of the article’s publication [1], yet many individual stocks underperformed. For example, TTD (The Trade Desk) declined 24.05% in November-December 2025, ARE (Alexandria Real Estate) dropped 14.60%, AMZN (Amazon) fell 10.46%, and INTC (Intel) declined 9.36% [0]. Sector-wise, utilities (+1.49%) outperformed while energy (-1.63%) lagged on December 22, 2025 [0]. The Barrons article references an Evercore screen to identify stocks that could bounce back, likely drawing investor attention to these names.

1. Contrast between broad market gains (S&P 500 up ~17% YTD [1]) and individual stock underperformance creates conditions ripe for tax-loss selling, as investors harvest losses from specific assets despite overall portfolio gains.
2. Historically, stocks sold for tax-loss purposes often rebound in the following month (known as the “January effect”) as selling pressure eases and capital is reallocated.
3. The Barrons article may temporarily mitigate selling pressure on the identified stocks by highlighting their potential rebound, shifting short-term investor sentiment.

• Potential January 2026 rebound for stocks where underperformance was driven by temporary tax-loss selling rather than poor fundamentals.
• Evercore’s screening methodology may identify stocks with strong underlying valuations that are currently undervalued due to seasonal selling pressure.

1. Fundamental Weakness
   : Some underperforming stocks may have declined due to poor company performance, not just tax-loss selling, reducing their rebound potential.
2. Market Sentiment
   : A bearish turn in the broader market in January 2026 could mute the seasonal January effect.
3. Company-Specific Events
   : Regulatory changes or negative company news could override seasonal rebound trends for individual stocks.

The December 2025 Barrons article identifies 12 stocks that dropped due to tax-loss selling and have potential to bounce back, based on an Evercore screen. Contextual data shows the S&P 500 was up ~17% YTD, but individual stocks like TTD, ARE, AMZN, and INTC underperformed significantly in late 2025 [0]. Decision-makers should verify the exact list of stocks from the full Barrons article, research the fundamentals of individual stocks to confirm declines were due to tax-loss selling, and monitor January 2026 trading volume and price movements for these stocks, alongside broader market and sector trends.

[0] Ginlix Analytical Database
[1] CNBC - “It’s too late for some last-minute tax moves — but these can be tackled with days to go in 2025” (2025-12-24)
[2] Barrons - “12 Stocks That Dropped After Tax-Loss Selling—and Can Bounce Back” (2025-12-22)
[3] MarketWatch - “Reasons to be optimistic about the S&P 500’s worst-performing stocks” (2025-12-02)