CAC 40: Overlooked Stocks Poised for 2026 Rebound

The CAC 40 closed out 2025 on a high note, with the index climbing over 10% throughout the year. This performance culminated in the index inscribing a new all-time record, driven by a handful of mega-cap stocks that dominated market returns.

However, this headline figure masks a more complex reality. The market rally was characterized by its narrow breadth. While the index soared, significant parts of the French corporate landscape struggled to gain traction. This indicates that the market euphoria was concentrated, leaving many established companies undervalued as the year concluded.

The core of the analysis focuses on the pans entiers de la cote—entire sections of the listed companies—that were excluded from the 2025 rally. These companies represent diverse sectors of the economy that failed to capture investor enthusiasm despite the broader market optimism.

The divergence suggests that market sentiment was highly selective. Investors focused heavily on specific growth narratives, leaving other sectors to trade at lower valuations. The following areas were notably absent from the euphoria:

• Traditional industrial sectors
• Domestic-focused service providers
• Companies with lower growth profiles

These overlooked segments now represent the primary area of interest for the upcoming year.

The stage is set for a potential rotation in 2026. After a year where the CAC 40 was driven by a select group of stocks, market dynamics suggest that capital may flow into the undervalued areas that were previously ignored.

The thesis for a rebound rests on the relative valuation gap. Stocks that did not participate in the 2025 surge are trading at more attractive price points compared to the index leaders. If market sentiment broadens in 2026, these assets are well-positioned to recover lost ground and contribute to the index's performance in a way they did not in the previous year.

The record-breaking year of 2025 for the CAC 40 was defined as much by who was left out as by who led the charge. The 10% gain was impressive, but the silence from the rest of the market speaks volumes about current valuations.

As we move through 2026, the focus shifts from chasing the winners of the past year to identifying value in the stocks that were neglected. The potential for a rebound in these undervalued sectors offers a compelling narrative for the year ahead, suggesting that the market's euphoria may finally spread to the broader index constituents.