In this piece, we will take a look at the ten best all-time low stocks to buy right now.
With November coming to a close, while markets are focused on the future of artificial intelligence and the degree of profitability that AI firms can extract from their multi-billion dollar investments, other factors are also driving investors’ decision-making. The non-AI factors dominating markets include inflation, economic growth, and the Federal Reserve’s interest rate reduction cycle.
In fact, even though AI has driven the narrative for markets in 2023 and 2024, before it, macroeconomic concerns were the primary factors behind investor decision-making. The US economy grappled with historic inflation following the lax monetary policy during the coronavirus pandemic. To tamp down inflation, the Federal Reserve hiked rates to two-decade-high levels.
Now, the macro narrative on Wall Street is driven by how fast the Fed will reduce interest rates. Higher rates and a tight economy have broad implications for stocks. They drive cyclical sectors to low levels and prop up others such as financials and defensives. Additionally, tighter discretionary spending means that high-growth sectors like electric vehicles suffer. High interest rates also constrain sectors such as real estate, while a sluggish economy leads to others such as industrial also lagging major stock indexes.
However, when discussing all-time low stocks, one has to keep in mind that their share price often drops not only because of broader sector and market-level trends but also because of microeconomic and firm-specific factors. To understand how microeconomic factors are nearly indispensable factors in driving these trends, consider the shares of one of the most well-known dating applications in the US and worldwide. This stock ranked fourth on our list of the best oversold tech stocks to buy as of late October. Its shares are down 40% year-to-date after having slightly recovered from the 54.14% drop at the time of our coverage.
Its stock tanked to an all-time low price of $5.71 the day after the firm released its second-quarter earnings report. Dating applications are a classic example of firms dependent on discretionary spending. For this firm, its earnings report saw Q2 revenue of $268.6 million miss analyst estimates of $273 million. While earnings-per-share of $0.22 did beat analyst estimates of $0.15, they merely reflected cost cutting. The broader slowdown in the dating application market, as evidenced by rival firm Tinder’s shares dropping by 17.8% in November after its third-quarter earnings is evidence of macroeconomic factors that push stocks toward all-time lows.
However, for the stock under discussion, micro and firm-specific factors also played a role in the stock touching the all-time low level. The accompanying fiscal year revenue growth guidance in the second-quarter earnings is what was responsible for the historic 29% post-earnings share price drop. The firm guided full-year revenue growth to range between 1% and 2%, which was far lower than analyst estimates of 8.4% and the previous guidance of 8% to 11%. Consequently, investors reacted and priced out the over-stretched growth estimates from the share price.
These growth estimates were based on firm-specific factors, which as we’ve pointed out above, are key to push any stock to new lows. This strategy has seen it revamp its dating application and seek to bolster revenue by focusing on the Premium Plus segment. However, the ill-fated earnings report saw it announce the decision to “slow down certain monetization efforts like Premium Plus.” As per management, the decision stemmed from a need to re-balance “subscription tiers and merchandising in favor of mechanisms that reward positive peer behaviors and support better ecosystem health.” Naturally, a flip in much-touted growth initiatives at a time when revenue missed guidance and the industry had slowed down did not impress investors and they punished the stock in response.
Another stock that touched all-time lows in 2024 is the well-known firm that owns CNN and other media assets. Formed after WarnerMedia’s spin-off and subsequent merger with Discovery, the shares touched $6.71 in August for their lowest reading following the merger in 2022. As was the case with the dating application’s stock, macro and micro factors had a role to play. The firm’s second-quarter earnings saw it report a whopping $10 billion loss and miss analyst revenue estimates of $10.07 by posting $9.71 in revenue.
However, while the earnings report wasn’t stellar, the true reason behind the drop was the television network division. The firm’s earnings report saw it write down its media asset value by an unbelievable $9.1 billion which indicated to investors that it had overpaid for them at the time of its merger. Naturally, Wall Street wasn’t impressed and the stock tumbled to a 15-year low if we analyze pre-merger share price performance as well.
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Our Methodology
To make our list of the best all-time low stocks to buy, we made a list of 40 stocks with a market capitalization greater than $300 million that were trading at ranges 0% to 10% above their all-time low price. These stocks were ranked by the number of hedge fund investors that had bought the shares during Q3 2024, and those with the highest number of investors were chosen.
Why are we interested in stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 275% since May 2014, beating its benchmark by 150 percentage points. (see more details here).
10. BioAge Labs, Inc. (NASDAQ:BIOA)
Number of Hedge Fund Holders In Q3 2024: 17
BioAge Labs, Inc. (NASDAQ:BIOA) is a pre-revenue biotechnology company headquartered in Richmond, California. The firm is seeking to capitalize on the weight loss drug market, with its leading product being azelaprag. BioAge Labs, Inc. (NASDAQ:BIOA) aims to use azelaprag to work with Eli Lilly’s Tirzapetide to help patients seeking to lose weight. This drug is currently in phase two trials, and BioAge Labs, Inc. (NASDAQ:BIOA) expects to release data in the third quarter of 2025. Consequently, the stock is quite risky, as any delay in data release will translate poorly for the shares. BioAge Labs, Inc. (NASDAQ:BIOA)’s inability to generate revenue places all of its eggs in one basket, but the firm benefits from its partnership with Lilly which has helped design azelaprag’s trial plans.
9. ABIVAX Société Anonyme (NASDAQ:ABVX)
Number of Hedge Fund Holders In Q3 2024: 17
ABIVAX Société Anonyme (NASDAQ:ABVX) is another pre-revenue stage biotechnology firm. It is based in France and aims to treat ulcerative colitis by manipulating the human body’s immune system response. ABIVAX Société Anonyme (NASDAQ:ABVX)’s hypothesis depends entirely on its leading drug candidate for colitis called obefazimod. Fortunately for those bullish on the stock, obefazimod is currently in Phase 2 trials which removes a lot of uncertainty from its future. October was an important month for ABIVAX Société Anonyme (NASDAQ:ABVX)’s drug as the firm announced interim efficacy results of the drug and enrolled the first participant in a trial for Crohn’s disease. The efficacy results showed disease remission and sent ABIVAX Société Anonyme (NASDAQ:ABVX)’s European shares up by 3.1%.
8. Ardent Health Partners, Inc. (NYSE:ARDT)
Number of Hedge Fund Holders In Q3 2024: 18
Ardent Health Partners, Inc. (NYSE:ARDT) is a large specialty hospital operator based in Tennessee. It operates facilities such as surgical hospitals and rehabilitation centers. Due to the specialty and high-cost nature of the services that some of its facilities offer, Ardent Health Partners, Inc. (NYSE:ARDT) is exposed to a large extent to Medicaid and other payments. As a result, its hypothesis depends on US government policies on healthcare, and given President-elect Donald Trump’s campaign promises of cuts in healthcare spending, the fact that Ardent Health Partners, Inc. (NYSE:ARDT)’s stock is trading close to all-time lows is unsurprising. However, the firm’s sizable presence in key US urban markets coupled with the fact that an aging population will increase the rate of chronic diseases creates favorable long-term catalysts for Ardent Health Partners, Inc. (NYSE:ARDT).
7. Leslie’s, Inc. (NASDAQ:LESL)
Number of Hedge Fund Holders In Q3 2024: 25
Leslie’s, Inc. (NASDAQ:LESL) is a highly cyclical firm that sells swimming pool, spa maintenance, fitness, and other items. As a result, its fate is dependent on the health of consumer spending in the US. While the recent high interest rate and inflation environment has created turmoil for Leslie’s, Inc. (NASDAQ:LESL), data for the third quarter shows that spending has slightly picked up. Leslie’s, Inc. (NASDAQ:LESL)’s fiscal fourth quarter revenue dropped by 8.3% while its first quarter of fiscal 2025 guidance also fell short of analyst estimates as management warned that lower spending particularly for big-ticket items is hurting the firm. However, data shows that during its ongoing quarter, Leslie’s, Inc. (NASDAQ:LESL)’s sales dropped by a maximum of 3% which was lower than the previous quarter’s 8.3% drop.
Ariel Fund mentioned Leslie’s, Inc. (NASDAQ:LESL) in its Q3 2024 investor letter. Here is what the fund said:
“By comparison, U.S. direct-to-consumer pool and spa care services company, Leslie’s, Inc. (NASDAQ:LESL) was the greatest detractor from returns over the period. The company pre-announced disappointing operating results and significantly reduced full-year guidance. Soft consumer demand driven by weather-related headwinds and increased price sensitivity on large discretionary purchases weighed on the top-line. Product margins also remain under pressure as the company struggles to unwind its higher-cost inventory. In response, LESL hired a new CEO, Jason McDonell, and our channel checks suggest his background in retail and consumer products is well-suited to drive a performance recovery. Although we have been deeply disappointed with this investment, we are encouraged by the leadership change as well as improving trends on the back of warmer and drier weather conditions. At today’s valuation, LESL appears to have more upside than downside and the company’s loyal client base, vertically integrated supply chain, scale advantage and seamless customer experience serve as important differentiators.”
6. The Western Union Company (NYSE:WU)
Number of Hedge Fund Holders In Q3 2024: 27
The Western Union Company (NYSE:WU) is one of the oldest and biggest money transfer firms in the world. As of H1 2024, all of the firm’s revenue came from either money transfer or consumer services. Within these two businesses, money transfer accounted for the bulk of sales, as it generated 90% of The Western Union Company (NYSE:WU)’s revenue. The reliance on money transfer services means that the firm is dependent on economic health to a large extent for its well-being. Additionally, growing global scrutiny of money transfers also means that The Western Union Company (NYSE:WU) has to navigate a tightrope when it comes to regulations. While the US economy has maintained its strong growth trajectory, the fact that 62% of The Western Union Company (NYSE:WU)’s revenue is ex-North America means that the firm has to wait for the global economy to regain strength before it can generate tailwinds.
The Western Union Company (NYSE:WU)’s management commented on global trends during the Q3 2024 earnings call. Here is what they said:
“In the last several months, there have been a number of political events that have disrupted the typical migration flows in the region with recent elections in Panama, the Dominican Republic, Venezuela and Mexico. In some instances, residents may have delayed their migration to vote or stayed to see the outcome of an election in their home country. And in other instances, newly elected officials have attempted to stem migration. For example, in Panama, the new President has attempted to close the migration route from Colombia into Panama through the Darien Gap significantly reducing the number of migrants entering Panama. We believe these macro events have created a short-term impact on our Latin American business, which is roughly 10% of Consumer Money Transfer revenue.
However, as you can see from our broader results, we benefit from our globally diversified business and the portfolio effect it affords us. While Latin America slowed in the quarter, regions like Europe, the Middle East, ex-Iraq and APAC, which together account for 50% of CMT revenue all improved, with revenue growth rates in all three regions improving by 500 to 1,000 basis points relative to the second quarter. Operating in 200 countries and territories means there are frequently both positives and negatives within our portfolio. We believe the benefit of being a truly global at-scale player will enable us to manage these kinds of disruptions better than many of our smaller competitors. Now shifting to our digital business. As we discussed at our 2022 Investor Day, returning our digital business to double-digit revenue growth is a key priority for our organization and is essential to driving top line revenue growth for the overall company.”
5. Relay Therapeutics, Inc. (NASDAQ:RLAY)
Number of Hedge Fund Holders In Q3 2024: 30
Relay Therapeutics, Inc. (NASDAQ:RLAY) is a Massachusetts-based pre-revenue stage biotechnology company. The firm focuses on developing treatments primarily used to treat cancer and tumors. Since Relay Therapeutics, Inc. (NASDAQ:RLAY) has yet to generate revenue, its hypothesis is dependent on its under-trial drugs. On this front, the firm’s leading drug candidate is its breast cancer drug called RLY-2608. Relay Therapeutics, Inc. (NASDAQ:RLAY) benefits from the fact that a treatment developed by Roche which uses a similar mechanism to RLY-2608 to treat cancer has procured FDA’s approval. While the approval increases competition for Relay Therapeutics, Inc. (NASDAQ:RLAY), it also increases the possibility of a successful product launch to help the firm generate revenue. Consequently, the stock’s performance depends on Relay Therapeutics, Inc. (NASDAQ:RLAY)’s ability to provide a superior alternative to Roche and AstraZeneca’s products on metrics such as tolerability.
4. PACS Group, Inc. (NYSE:PACS)
Number of Hedge Fund Holders In Q3 2024: 32
PACS Group, Inc. (NYSE:PACS) is a large American assisted living and nursing facilities operator. As is the case with other healthcare facility operators, the firm’s hypothesis is dependent to a large extent on Medicare and Medicaid payments. As of H1 2024, 75% of PACS Group, Inc. (NYSE:PACS)’s revenue came from these two services. Consequently, the firm is dependent on US government health spending, and given the uncertainty surrounding public spending following the results of the November elections, investors seem to be waiting on the sidelines. However, PACS Group, Inc. (NYSE:PACS) appears to be priming itself for long-term growth by investing through mergers and adding new facilities to its network. This sets the firm up well for growth in the aging population in America.
3. Royalty Pharma plc (NASDAQ:RPRX)
Number of Hedge Fund Holders In Q3 2024: 33
Royalty Pharma plc (NASDAQ:RPRX) is a drug royalty company that earns license payments. The firm’s royalty revenue, which accounted for 95% of its H1 2024 sales depends primarily on six franchises. Out of these, its cystic fibrosis franchise makes up 39% of Royalty Pharma plc (NASDAQ:RPRX)’s financial royalty revenue. However, the firm benefits from its portfolio diversification, which includes drugs such as Imbruvica which are commercialized by big-ticket names such as AbbVie and Janssen Biotech. Since it depends on royalties to generate revenue, Royalty Pharma plc (NASDAQ:RPRX) has to ensure that it continues to invest in new drugs before the patents for its existing products expire. On this front, fortunately for the firm, its leading cystic fibrosis royalty is expected to expire by 2039 at the earliest, while its Xtandi royalties are expected to expire at the earliest in 2028.
2. Tripadvisor, Inc. (NASDAQ:TRIP)
Number of Hedge Fund Holders In Q3 2024: 34
Tripadvisor, Inc. (NASDAQ:TRIP) is one of the major players in the global online travel advisory industry. Its stock has had a tumultuous year so far after the firm first planned a sale and then withdrew. The withdrawal tanked Tripadvisor, Inc. (NASDAQ:TRIP)’s shares by 39% in May, and this turmoil has come on the back of weak financial performance. The firm’s Brand Tripadvisor revenue dropped by 12% in Q3, on the back of a soft hotels segment. Tripadvisor, Inc. (NASDAQ:TRIP)’s hypothesis depends on the firm’s current strategy to shift away from its hotels business and growth in its Fork business. This business is dependent on advanced predictive analytics and technologies to streamline the business and consumer experience on Tripadvisor, Inc. (NASDAQ:TRIP)’s platform.
Another key aspect of Tripadvisor, Inc. (NASDAQ:TRIP)’s performance is the macroeconomic environment. Here’s what management shared during the Q3 2024 earnings call:
“As always, we’re monitoring what’s happening on a macro level, although its future impact is difficult to predict. We continue to see healthy search data and strong consumer intent to travel and book experiences with overall stability in booking windows and average length of stay. We’ve observed some bifurcation of intent between higher and lower income travelers, but regardless of the fluctuations we may see periodically, I remain confident in the durability of growth in leisure travel. This is a sector that has continued to adapt, change and grow over the long term. Across Tripadvisor Group, we are well positioned for enhanced growth as we continue to build trust with travelers, innovate our offerings. And as the experiences category continues to emerge as an increasingly central and durable part of the travel budget.”
1. Lineage, Inc. (NASDAQ:LINE)
Number of Hedge Fund Holders In Q3 2024: 35
Lineage, Inc. (NASDAQ:LINE) is a specialty real estate investment trust that caters to the food and beverage industry. Consequently, the firm’s hypothesis depends on consumer spending in the economy. This makes it unsurprising that Lineage, Inc. (NASDAQ:LINE)’s shares are down 22.5% year-to-date as a slowdown in consumer spending has led to an inventory minimization in the food industry. This means that Lineage, Inc. (NASDAQ:LINE) earns less from its properties as food companies wait for spending to pick up before stocking in anticipation. The tough market has forced management into a defensive mode, as Lineage, Inc. (NASDAQ:LINE) now expects to grow its single-store net operating income in mid-single digits through cost control. On a broader note, the firm’s considerable size as evidenced by a presence in 19 countries and a 33% market share positions it well for any economic recovery.
Lineage, Inc. (NASDAQ:LINE)’s management shared their economic outlook during the Q3 2024 earnings call. Here is what they said:
“Notably, we continue to successfully navigate market headwinds driven by customer inventory rationalization, high interest rates and pressures from inflation limiting consumer demand as food prices remain elevated.
We have seen limited seasonal lift as occupancy levels remain steady, but below last year. In select markets, we are seeing some competitive pressures as speculative development and new supplies come online. Despite these industry headwinds, we are well positioned to win given our number one market position, technology investments, long term relationships with over 13,000 customers, leadership and automation, network effects, our global farm-to-fork service offerings and our strong balance sheet. To that end, we believe we remain the acquirer of choice in the industry, ideally poised to take advantage of market opportunities. As demonstrated in the quarter, we controlled the controllables and we’re able to deliver strong financial performance, further demonstrating our ability to perform well in various economic environments.”
LINE is an all-time low stock that hedge funds haven’t shunned. While we acknowledge the potential of LINE as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns and doing so within a shorter timeframe. If you are looking for an AI stock that is more promising than LINE but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
READ NEXT: 8 Best Wide Moat Stocks to Buy Now and 30 Most Important AI Stocks According to BlackRock.
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