Every January, a curious phenomenon ripples through Wall Street. Stocks that were hammered in the final months of the prior year—often sold aggressively for tax-loss harvesting—tend to stage early-year rebounds as selling pressure subsides and bargain hunters move in. It's called the January Effect, and as trading resumes on January 2, the setup for 2026 looks particularly compelling.

With the S&P 500 having posted a third consecutive year of double-digit gains, much of the market enters 2026 at lofty valuations. But beneath the surface, a cohort of high-growth software and technology companies spent 2025 in the penalty box, punished for valuation concerns, growth deceleration, or simply being out of favor with momentum-chasing investors.

Now, some of these oversold names are attracting attention from analysts who see the makings of a classic January bounce. Here are four stocks that could benefit from the seasonal pattern—and that have fundamental stories to support a sustained recovery.

nCino (NCNO): The Bank Software Turnaround

nCino, the cloud banking platform provider, entered 2026 trading more than 40% below its 2024 highs despite posting consistent revenue growth and expanding its customer base among financial institutions. The company's software helps banks modernize their lending operations, deposit account opening, and regulatory compliance—a value proposition that becomes increasingly attractive as banks seek efficiency gains in a challenging rate environment.

Wall Street analysts see the stock as deeply undervalued relative to its growth trajectory. The company's recent fiscal quarter showed subscription revenue growth of 15% and improved profitability metrics, yet the stock has languished amid broader concerns about the banking sector.

"nCino's fundamentals have continued to improve even as the stock price has deteriorated," noted one technology analyst. "That's exactly the kind of disconnect the January Effect tends to correct."

Global-e Online (GLBE): Cross-Border Commerce Catalyst

Global-e Online, which enables merchants to sell across international borders by handling currency conversion, customs, and localized checkout experiences, was one of 2025's most surprising underperformers. Despite reporting accelerating revenue growth and improved gross margins, the stock fell victim to the broader rotation away from e-commerce plays.

The company's platform is used by major retailers including Marc Jacobs, Victoria's Secret, and Marks & Spencer, and its total addressable market continues to expand as more brands seek international growth. Management has guided for continued revenue acceleration in 2026, yet the stock trades at a significant discount to its historical valuation multiples.

For investors betting on continued growth in cross-border e-commerce—a market expected to reach $7.9 trillion by 2030—Global-e represents a rare opportunity to buy a market leader at a beaten-down price.

GitLab (GTLB): DevSecOps at a Discount

GitLab, the DevSecOps platform that competes with Microsoft's GitHub, saw its stock decline more than 30% from its 2025 peaks despite reporting revenue growth above 25% and steadily improving free cash flow margins. The company's all-in-one approach to software development, security, and operations has won converts among enterprise customers seeking to consolidate their development toolchains.

The stock's decline appears driven more by multiple compression across the software sector than by any fundamental weakness at the company. GitLab's dollar-based net retention rate remains above 120%, indicating that existing customers continue to expand their usage—a key indicator of platform stickiness.

With AI-assisted coding becoming increasingly central to software development workflows, GitLab's integration of AI capabilities throughout its platform positions it to benefit from what many analysts see as a secular shift in how software gets built.

Samsara (IOT): Industrial IoT's Hidden Gem

Samsara, which provides connected operations solutions for industries including transportation, logistics, and construction, has quietly built a $1 billion annual recurring revenue business while its stock has largely been ignored by growth investors focused on AI plays.

The company's sensors and software help fleet operators track vehicles, monitor driver safety, and optimize routes—capabilities that directly impact the bottom line for asset-heavy businesses. Customer wins continue to accelerate, and the company recently raised its full-year guidance, yet the stock remains down significantly from its all-time highs.

Analysts point to Samsara's combination of high revenue growth, improving margins, and massive remaining market opportunity as reasons the stock could be due for a re-rating. The industrial Internet of Things market is expected to reach $1.1 trillion by 2030, and Samsara has established itself as a clear leader in the connected fleet segment.

The Caveats to Keep in Mind

While the January Effect has a long historical track record, it's not a guarantee. Academic research suggests the pattern has weakened in recent decades as more investors have become aware of it—the classic problem of a market inefficiency getting arbitraged away once it becomes widely known.

Additionally, stock-specific factors can easily overwhelm seasonal patterns. A company that disappoints on earnings, loses a major customer, or faces unexpected competitive pressure won't rally just because the calendar says January.

Still, for investors with a longer time horizon who have been waiting for attractive entry points into high-quality growth companies, the early days of 2026 could present an opportunity. The stocks that were sold most aggressively for tax purposes often include fundamentally sound businesses that simply fell out of favor—and those are exactly the kinds of names the January Effect tends to reward.