10 Best Depressed Stocks To Buy Heading into 2025

2. Sasol Limited (NYSE:SSL)

52 Week Range: $6.2 – $13.83 

Current Share Price: $6.37

Number of Hedge Fund Holders: 11

Analyst Upside Potential: 78.03% 

Sasol Limited (NYSE:SSL) is an international chemical and energy company based in South Africa. The company operates through an energy and chemical division, where the energy division is divided into mining, gas, and fuel segments. On the other hand, within the chemical division, the company manufactures high-performance materials used in various industries.

Sasol Limited’s (NYSE:SSL) H2 2024 revenue declined by 5% year over year to ZAR 275.1 billion ($15.62 billion), largely due to lower chemical prices and volumes sold, as well as inflationary pressures. Moreover, the company also reported a substantial decrease in cash generation and profitability. Adjusted EBITDA fell by 9%, and free cash flow decreased by 60% year-on-year.

However, there were some positive highlights for the company as well, including the mining productivity improving by 3% and Mozambique gas production improving by 6%. Management has also initiated cost reduction measures, resulting in a 1% increase in cash fixed costs, which is below inflation rates. They also achieved a 5% decrease in cash fixed costs through focused initiatives. Moreover, the free cash flow generation improved by 100% between H1 and H2 of fiscal 2024.

Although the stock is trading close to its 52-week lows the analysts expect its price to grow by around 78% during the year, making it one of the best depressed stocks to buy heading into 2025.