Burry Goes Contrarian: Betting Big on Beaten Stocks
Michael Burry, founder of Scion Asset Management and a key figure in The Big Short, has taken a contrarian approach to investing. While many on Wall Street are pouring money into AI stocks, Burry is betting on three beaten-down names: UNH calls at 18.88%, REGN calls at 18.16%, and LULU calls at 16.43%. He believes these companies will experience a significant rebound.
The fundamentals of UnitedHealth Group (NYSE:UNH) support Burry's thesis. The company has already started to see margin recovery, with adjusted EPS coming in at $6.38 on revenue of $112.03B in Q2 2026. Regeneron Pharmaceuticals (NASDAQ:REGN) has also been a standout, with non-GAAP EPS of $14.29 and Dupixent sales reaching $6 billion globally.
Lululemon Athletica (NASDAQ:LULU), however, is the most surprising choice. The company's Q2 fiscal 2027 report showed declining revenue and comparable sales, but Burry sees value in Lululemon's substantial cash reserves and historically high returns on capital.