Turnaround
A turnaround is a company working to recover from a period of real decline, falling , a damaged brand, or operational problems, back to healthy performance. It is a specific situation, not just any company having a bad quarter: a turnaround implies the business has meaningfully deteriorated and needs a real change in direction to fix it, rather than simply waiting out a temporary slowdown.
The usual levers behind a turnaround are new leadership, cost cuts, closing or reworking underperforming parts of the business, and refocusing on whatever originally made the company successful. Whether any of that works is not something that can be judged from an announcement alone. A new CEO stating an intention to fix the business is the start of a turnaround attempt, not evidence that it is succeeding.
Turnaround investing carries a specific risk and reward tradeoff. A company mid turnaround often trades at a depressed valuation because the market is pricing in the chance that the recovery fails, which is exactly what can make it cheap if the turnaround succeeds. That same depressed price is also a real signal that plenty of investors are not convinced yet, and a turnaround that stalls or reverses can leave a cheap for a reason rather than undervalued.