15 Best Beaten Down Stocks to Invest In

11) OrthoPediatrics Corp. (NASDAQ:KIDS)

% Decline on a YTD Basis: ~30.3%

Number of Hedge Fund Holders: 11

OrthoPediatrics Corp. (NASDAQ:KIDS) is a medical device company, which is engaged in designing, developing, and marketing anatomically appropriate implants, instruments, and specialized braces for children with orthopedic conditions in the US and internationally.

One of the critical challenges OrthoPediatrics Corp. (NASDAQ:KIDS) has been facing is the expectation of a slight delay in US launches of the EOS product portfolio due to FDA discussions. In its Q3 2024 earnings call, the company highlighted that it has been in direct discussions with the FDA regarding the approval pathway for eLLi and VerteGlide. OrthoPediatrics Corp. (NASDAQ:KIDS) has received feedback that a 510(k) pathway might not be the likely approval pathway. However, it has already been engaged with the FDA to ensure that it meets all the data collection requirements to secure approval.

However, OrthoPediatrics Corp. (NASDAQ:KIDS)’s specialized focus on pediatric orthopedics is expected to drive significant growth as it provides the company with a significant advantage in a largely underserved market. Its growing network of clinics is expected to serve as a platform for gathering valuable data and insights into pediatric orthopedic care. OrthoPediatrics Corp. (NASDAQ:KIDS) can use this information to refine existing products, develop new solutions, and potentially create barriers to entry for competitors.

The company’s expansion plans are supported by its target to open clinics in an additional 18 new markets by the end of 2027, bringing the total market presence to 71. This clinic rollout strategy should drive further growth and market penetration.