In this article, we will discuss the 10 Best Beaten Down Stocks to Buy According to Analysts.
JPMorgan released a market update where it highlighted the US Fed’s recent decision to keep the rates unchanged. Also, the US Fed decreased the growth forecasts and increased the near-term inflation expectations. The futures markets are pricing 2 interest rate cuts this year and a ~50% chance of the third cut. Jose Torres, Senior Economist at Interactive Brokers, believes that stocks are being impacted as slowdown worries continue to pressure the outlook for broader corporate earnings growth. According to him, investors continue to pile up shares in the defensive consumer staple, utilities, and healthcare segments and the real estate and energy areas.
What Lies Ahead as Q1 2025 Approaches its End?
Reuters reported that analysts have been turning more cautious about the US corporate earnings for Q1 2025, as Trump’s policies continue to threaten to trigger a global trade war that can impact the broader economic growth. Reuters, while quoting Tajinder Dhillon (senior research analyst at LSEG), noted that S&P 500 forecasts for Q1 2025 have declined by 4.5 percentage points since January 1. Notably, this has been the largest downward revision since Q4 2023.
The earnings growth for the S&P 500 companies is expected at 7.7% YoY, marking the lowest since Q3 2023 as well as a significant decline from 17.1% in Q4 2024. The worries related to the import tariffs and retaliation by US trade partners, together with the government cutbacks, can push the broader economy into recession have witnessed an increase over the past few weeks, reported Reuters.
READ ALSO: 7 Best Stocks to Buy For Long-Term and 8 Cheap Jim Cramer Stocks to Invest In.
What’s Next for the S&P 500?
CNBC, while quoting Scott Wren (senior global market strategist at the Wells Fargo Investment Institute), stated that numerous uncertainties can negatively impact the broader stock market, such as tariffs as well as a potential rebound in inflation. Furthermore, an increase in bond yields can also pose a headwind, as per Wren. Notably, increased yields can impact the demand for US stocks.
That being said, a favorable backdrop of healthy economic growth and consumer spending, together with relatively low unemployment, can help the S&P 500 to deliver ~12% in 2025. As per Wren, this would be marginally higher than the long-term historical average. The strategist thinks that the investors are required to be optimistic.
Amidst these trends, let us now have a look at the 10 Best Beaten Down Stocks to Buy According to Analysts.
A financial planner carefully scrutinizing company’s investment portfolio.
Our Methodology
To list the 10 Best Beaten Down Stocks to Buy According to Analysts, we used a screener and shortlisted the stocks that are trading close to their respective 52-week lows and that analysts see significant upside to. Next, the stocks were arranged in ascending order of their average upside potential, as of March 21. We also mentioned the hedge fund sentiment around each stock, as of Q4 2024.
Why are we interested in the 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 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here).
10 Best Beaten Down Stocks to Buy According to Analysts
10. Sealed Air Corporation (NYSE:SEE)
Stock Price as of March 21: $29.10
Average Upside Potential: ~32.3%
52-week Low: $28.67
Number of Hedge Fund Holders: 40
Sealed Air Corporation (NYSE:SEE) offers packaging solutions. Truist Securities reiterated a “Buy” rating on the company’s stock, maintaining a price objective of $44.00. The analysts mentioned the company’s strong performance in the Food division, and expect a significant positive change in the Protective division. Sealed Air Corporation (NYSE:SEE)’s emphasis on its turnaround efforts, mainly in the Protective segment, seems to be gaining traction, which supports Truist Securities’ confidence in the company’s prospects. This, together with the growth in the Food sector, can fuel its performance.
Sealed Air Corporation (NYSE:SEE)’s emphasis on value-added products and automation-friendly solutions can support in maintaining or expanding its presence in critical markets. By addressing the customer needs for efficiency and sustainability, the company can establish new growth vectors. Sealed Air Corporation (NYSE:SEE) remains focused on maximizing the potential of each business based on their respective end markets and portfolios. It continues to accelerate the momentum in Food by expanding further into higher growth end-markets with the case ready and fluids solutions, while continuing to stabilize Protective.
Heartland Advisors, an investment management company, released its Q4 2024 investor letter. Here is what the fund said:
“Investors seem to be chasing momentum in Industrials, as evidenced by passive flows into sector ETFs, while showing little interest in packaging stocks, a subsector of materials. Throughout the year, we have been paying particularly close attention to possible opportunities within packaging in anticipation of renewed interest.
One leading producer, Sealed Air Corporation (NYSE:SEE), a global packager, caught our attention. After thorough research, we determined SEE was mispriced by Wall Street, selling substantially below its intrinsic worth and less than half the market’s price/earnings ratio.”
9. Omnicom Group Inc. (NYSE:OMC)
Stock Price as of March 21: $81.14
Average Upside Potential: ~34.1%
52-week Low: $78.69
Number of Hedge Fund Holders: 36
Omnicom Group Inc. (NYSE:OMC) provides advertising, marketing, and corporate communications services. The company and Interpublic announced that each company’s respective stockholders approved the former’s previously announced acquisition of Interpublic, with the companies remaining on track to complete the transaction in H2 2025. The combined company is expected to bring together the industry’s deepest bench of marketing talent, together with the broadest and most innovative services and products, fueled by the most advanced sales and marketing platform. Furthermore, Omnicom Group Inc. (NYSE:OMC)’s improved execution in recent years was the key driver of its strong performance.
The improved execution offers a healthy foundation for future growth as it allows Omnicom Group Inc. (NYSE:OMC) to capitalize on market opportunities more effectively as well as mitigate industry challenges with agility. Overall, the marketing and communications industry continues to experience rapid changes due to technological advancements, evolving client needs, and changes in consumer behavior. Omnicom Group Inc. (NYSE:OMC)’s ability to navigate such changes can help it achieve long-term growth. The company’s healthy organic growth and management’s confident outlook exhibit that it is well-placed to capitalize on emerging opportunities. As a result of the acquisition of Interpublic, Omnicom Group Inc. (NYSE:OMC) sees strong upside potential via expected revenue and cost synergies that can fuel growth.
8. ICON Public Limited Company (NASDAQ:ICLR)
Stock Price as of March 21: $184.8
Average Upside Potential: ~35.3%
52-week Low: $174.9
Number of Hedge Fund Holders: 46
ICON Public Limited Company (NASDAQ:ICLR) is a clinical research organization that is engaged in providing outsourced development and commercialization services. RBC Capital Markets has initiated coverage on the company’s stock, assigning an “Outperform” rating and setting a price objective of $263.00. The analysis hints at ICON Public Limited Company (NASDAQ:ICLR)’s significant role in supporting biopharmaceutical clients to expedite the drug market introduction via usage of its specialized data and technology capabilities, together with extensive global service offerings across the drug development process.
Michael Ryskin, an analyst from Bank of America Securities, maintained a “Buy” rating on the company’s stock. The analyst’s rating is backed by ICON Public Limited Company (NASDAQ:ICLR)’s robust competitive position and the relatively short-term nature of the headwinds it witnesses. Furthermore, the company’s strategic actions, including the stock buyback of $400 million in Q4 2024, reinforce the confidence in ICON Public Limited Company (NASDAQ:ICLR)’s long-term prospects, says Ryskin. The company’s cash management was robust in Q4 2024, resulting in the full-year FCF being in line with its targeted $1.1 billion.
Baron Funds, an investment management company, released its Q4 2024 investor letter. Here is what the fund said:
“ICON Public Limited Company (NASDAQ:ICLR) is a leading contract research organization (CRO) that provides outsourced services to the biopharmaceutical industry. Shares fell on weak quarterly results and lowered 2024 guidance. Like other CROs, ICON is facing headwinds due to tighter management of R&D spend by pharmaceuticals, less biotechnology funding availability, a greater number of project delays and cancellations, and an industry shift in preferred business models from full to functional outsourcing. While we expect these headwinds will persist into at least the first half of 2025, we believe pharmaceutical R&D spend will continue to grow and global providers like ICON are well positioned to expand and gain share over time, returning to double-digit EPS growth. With the stock near all-time low valuations, we are holding.”
7. Jamf Holding Corp. (NASDAQ:JAMF)
Stock Price as of March 21: $13.17
Average Upside Potential: ~35.5%
52-week Low: $12.9
Number of Hedge Fund Holders: 25
Jamf Holding Corp. (NASDAQ:JAMF) offers management and security solutions for Apple platforms. Koji Ikeda from Bank of America Securities reiterated a “Hold” rating on the company’s stock with a price objective of $18.00. The analyst’s rating is backed by a combination of factors impacting its financial outlook. Despite the challenges, the company continues to aim for a rule-of-40 profile by 2026 end, which happens to be a positive long-term target. William Blair analyst Jake Roberge reiterated the bullish stance on Jamf Holding Corp. (NASDAQ:JAMF)’s stock, providing a “Buy” rating. The rating is backed by a combination of factors, despite the company’s mixed fourth-quarter results.
The analyst noted positive developments in Jamf Holding Corp. (NASDAQ:JAMF)’s market positioning, mainly in the broader mobile device sector, where the company witnessed strong adoption throughout industries including travel, manufacturing, and education. Amidst the challenging macro environment, the recovery signs in the tech and education sectors offer additional optimism for the company’s growth potential. Jamf Holding Corp. (NASDAQ:JAMF)’s emphasis on commercial security solutions offers a strong opportunity for cross-sell revenue growth. With cybersecurity concerns escalating throughout the industries, the company’s existing customer base offers a healthy market for additional security offerings.
6. Crane NXT, Co. (NYSE:CXT)
Stock Price as of March 21: $52.97
Average Upside Potential: ~40%
52-week Low: $52.02
Number of Hedge Fund Holders: 27
Crane NXT, Co. (NYSE:CXT) operates as an industrial technology company offering technology solutions to secure, detect, and authenticate customers’ important assets. Analysts at DA Davidson reiterated a “Buy” rating on the company’s stock, with a price objective of $100.00. They remain optimistic regarding its potential for strong earnings growth, thanks to its healthy balance sheet and FCF. Also, Baird analysts upped Crane NXT, Co. (NYSE:CXT)’s price target to $85.00 from $76.00, maintaining an “Outperform” rating. Notably, both firms highlighted the potential for the company’s M&A activities to fuel future growth.
Crane NXT, Co. (NYSE:CXT) reached a record-high backlog in Crane Currency during 2024, and in CPI, it delivered mid-single-digit growth excluding gaming. The company has significantly increased its leadership in the authentication market, with OpSec integration progressing as anticipated and the acquisition of De La Rue Authentication Solutions on track to close in Q2. Crane NXT, Co. (NYSE:CXT) announced that it has completed the acquisition of the Smart Packaging assets of TruTag Technologies. The addition of this technology to the company’s product portfolio expands its capabilities and further enhances its ability to offer differentiated and innovative technology solutions.
Conestoga Capital Advisors, an asset management company, released its Q4 2024 investor letter. Here is what the fund said:
“Crane NXT, Co. (NYSE:CXT) is a leading provider of trusted technology solutions to secure, detect, and authenticate its customers assets. Crane NXT’s roots go back to 1801 when Zenas Crane founded the Crane Paper Company in Dalton, MA. CXT has numerous technologies and segments that revolve around security and detection. CXT works with over 50 central banks to provide security for their currency and has been the US’s sole supplier of currency paper since 1879. CXT also secures and authenticates consumer goods, passports, and digital content. CXT provides technology and hardware solutions to authenticate payment transactions. Altogether, we believe CXT is a 5- 7% organic revenue growth company with margin expansion that yields double-digit EBTIDA growth.”
5. Rogers Communications Inc. (NYSE:RCI)
Stock Price as of March 21: $27.29
Average Upside Potential: ~40.8%
52-week Low: $26.57
Number of Hedge Fund Holders: 17
Rogers Communications Inc. (NYSE:RCI) operates as a communications and media company in Canada. Fitch Ratings has mentioned the company’s healthy business profile, improved scale, and business diversification after its Shaw Communications Inc. acquisition, lauding its ability to generate strong FCF. Rogers Communications Inc. (NYSE:RCI)’s acquisition of Shaw improved its competitive position by enhancing scale, improving the business mix diversification, and enabling significant synergy realization. For 2025, the company expects single-digit total service revenue and adjusted EBITDA growth, strong FCF, and continued network investments and expansion throughout all the regions in Canada.
Rogers Communications Inc. (NYSE:RCI)’s Q4 2024 caps its third straight year of providing industry-leading financial and operating performance. The company topped $20 billion in annual revenue in 2024 as Canadians chose Rogers Wireless and Internet than any other carrier in Canada. During Q4 2024, the company’s total revenue and total service revenue rose by 3% and 2%, respectively, fueled by revenue growth in its Wireless and Media businesses and by stabilized revenue in the Cable business. Furthermore, Rogers Communications Inc. (NYSE:RCI) continues to see its network leadership progressing as it substantially completed its 5G network build along the Highway of Tears in BC.
4. Minerals Technologies Inc. (NYSE:MTX)
Stock Price as of March 21: $65.13
Average Upside Potential: ~48.7%
52-week Low: $64.30
Number of Hedge Fund Holders: 24
Minerals Technologies Inc. (NYSE:MTX) is engaged in developing, producing, and marketing various mineral, mineral-based, and related systems and services. It has outlined its strategic initiatives, demonstrating a transition towards consumer markets and a healthy cash flow generation. While the broader industrial sector has been witnessing some challenges, Minerals Technologies Inc. (NYSE:MTX) remains optimistic regarding long-term growth prospects and financial stability. The company expects industrial recovery in the steel and foundry sectors by Q2 2025, while the environmental and infrastructure segment is expected to improve by 2025. Minerals Technologies Inc. (NYSE:MTX) has made strong progress on its growth strategies through the introduction of new products and technologies and the expansion in strategic regions.
Furthermore, the company has strengthened positions throughout its product lines. Truist analyst Peter Osterland initiated coverage of Minerals Technologies Inc. (NYSE:MTX)’s stock with a “Buy” rating and a price objective of $103. The firm opines that the company’s differentiated mineral reserves, engineering capabilities, and technical know-how, together with strong market positions in core products, exhibit a competitive moat. Minerals Technologies Inc. (NYSE:MTX) happens to be a very strong cash flow generator that offers a lot of optionality regarding shareholder returns and growth. Notably, for FY 2024, its cash flow from operations came in at $236 million, while FCF was $147 million.
3. ASGN Incorporated (NYSE:ASGN)
Stock Price as of March 21: $63.66
Average Upside Potential: ~56.1%
52-week Low: $63.05
Number of Hedge Fund Holders: 24
ASGN Incorporated (NYSE:ASGN) provides information technology (IT) services and solutions in the technology, digital, and creative fields for commercial and government sectors. BMO Capital analyst Jeffrey Silber has maintained a bullish stance on the company’s stock, providing a “Buy” rating. The analyst’s rating is backed by strong performance in consulting, which demonstrated accelerated growth and a positive turn in bookings, even though there were weaknesses in other segments such as federal government revenues and IT spending. ASGN Incorporated (NYSE:ASGN)’s adjusted EPS exceeded expectations, driven mainly by healthy margins, showcasing operational efficiency, says the analyst.
Notably, in FY 2024, the company’s earnings per diluted share came in at $3.83. Furthermore, the strategic acquisition of TopBloc can enhance ASGN Incorporated (NYSE:ASGN)’s consulting capabilities, mainly in the Workday space, and provide opportunities related to cross-selling in the federal sector. The analyst believes that the long-term prospects seem to be promising because of its leadership in IT staffing and federal contracting. Also, there is potential for multiple expansion as it pivots towards consulting. Elsewhere, Canaccord Genuity analyst Joseph Vafi maintained a “Buy” rating on ASGN Incorporated (NYSE:ASGN)’s stock and the associated price target is $115.00. This analyst believes that the acquisition of TopBloc is a strategic move that strengthens its position in the ERP space.
2. Rogers Corporation (NYSE:ROG)
Stock Price as of March 21: $72.24
Average Upside Potential: ~56.9%
52-week Low: $71.63
Number of Hedge Fund Holders: 13
Rogers Corporation (NYSE:ROG) is engaged in designing, developing, manufacturing, and selling engineered materials and components. In 2025, the company continues to focus on securing new design wins, improving its cost structure, and maintaining a healthy balance sheet. The company is executing its commercial, innovation, and manufacturing footprint priorities and remains confident that such actions will position Rogers Corporation (NYSE:ROG) to win when market conditions begin to improve.
Despite the macro and market challenges impacting full-year sales, the company’s focused efforts to deliver operations and procurement cost savings, optimize yields, and drive throughput improvements supported in mitigating the effect of the lower sales on gross margins. Such actions, along with effective expense and working capital management, enabled Rogers Corporation (NYSE:ROG) to garner a healthy cash flow and execute its capital allocation priorities. With respect to these priorities, the company believes that capital expenditures for capacity will aid market growth, while it continues to make investments in R&D, sales, and other capabilities. Rogers Corporation (NYSE:ROG) is targeting M&A opportunities with complementary technologies and strong financial profiles. It is focused on driving operational excellence to ensure efficient and cost-effective service for customers.
1. Novo Nordisk A/S (NYSE:NVO)
Stock Price as of March 21: $76.86
Average Upside Potential: ~62.9%
52-week Low: $71.63
Number of Hedge Fund Holders: 64
Novo Nordisk A/S (NYSE:NVO) is engaged in the research and development, manufacture, and distribution of pharmaceutical products. The company completed the acquisition of the 3 Catalent sites, and during FY 2024, it progressed its R&D pipeline, including obesity projects like CagriSema and amycretin. In 2025, Novo Nordisk A/S (NYSE:NVO) remains focused on commercial execution, the progression of its early and late-stage R&D pipeline, and the expansion of the production capacity. The company also plans to drive operational efficiencies throughout the value chain to enable investments in future growth assets. It believes that investments throughout the full manufacturing value chain are expected to increase patient reach towards 2030.
Novo Nordisk A/S (NYSE:NVO) remains optimistic about the closing of the acquisition of 3 fill-finish sites. This acquisition is expected to help expand capacity further and will help it reach more patients with current and future treatments. Furthermore, the acquisition can enable faster expansion of manufacturing capacity at scale while offering future optionality and flexibility. Overall, it will gradually increase Novo Nordisk A/S (NYSE:NVO)’s fill-finish capacity from 2026 and onward.
ClearBridge Investments, an investment management company, released its Q4 2024 investor letter. Here is what the fund said:
“Similarly, we used a temporary price dislocation caused by disappointing clinical trial results to purchase shares of Novo Nordisk A/S (NYSE:NVO), a Danish-based leader in diabetes and obesity treatments. Novo’s Wegovy semaglutide drug was first to market among the new generation of obesity drugs; however, the company has lost market share to portfolio holding Eli Lilly due to delays in scaling up production volumes and superior weight loss results demonstrated by Lilly’s trizepatide drugs. While the initial market reaction to Novo’s more enhanced CagriSema weight loss treatment was negative, we believe this is a more potent formulation that can better compete with Lilly’s suite. With Novo poised to have a better product portfolio and improved supply position, we find the company’s valuation very attractive given the large secular growth trends behind the diabesity market.”
While we acknowledge the potential of NVO as an investment, our conviction lies in the belief that some deeply undervalued AI stocks hold greater promise for delivering higher returns, and doing so within a shorter time frame. If you are looking for a deeply undervalued AI stock that is more promising than NVO but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires.
Disclosure: None. Insider Monkey focuses on uncovering the best investment ideas of hedge funds and investors. Please subscribe to our daily free newsletter to get the latest investment ideas from hedge funds’ investor letters by entering your email address below.
