In this article, we will take a detailed look at the 15 Best Falling Stocks To Buy Now. For a quick overview of such stocks, read our article 5 Best Falling Stocks To Buy Now.
The Wall Street is headed to end 2023 on a strongly positive note as the Fed’s indication of coming rate cuts have infused a latest rally which isn’t abating despite several Fed officials saying the optimism might be overdone. Several analyst firms are also giving bullish outlooks for the next year. Goldman Sachs even took its previous 2024 S&P 500 target back and came up with a new one on the back of the renewed optimism in the markets. Goldman Sachs’ equities strategy team headed by David Kostin now expects the S&P 500 to hit 5,100 by the end of 2024, much higher than its previous forecast of 4,700.
Goldman Sachs analysts believe rate cuts and economic growth could bode well for small-cap stocks which have hitherto been tarnished due to recession fears as investors flocked to safer, large-cap stocks. One of the key takeaways of Goldman Sachs’ new stance was the firm’s expectation that the first rate cut of 2024 could come in March. This was unexpected since most of the analysts are expecting the Fed to start cutting rates in the second half of the year.
But Goldman Sachs’ optimism is shared by many notable analyst firms and financial services firms. For example, Bank of America now expects 100 basis points of interest rate cuts in 2024. BofA also expects the first rate cut to happen in March. BofA believes the US economy could “enjoy” a decline in inflation as well as growth at the same time.
Photo by Ruben Sukatendel on Unsplash
“Howie, buy low. Sell high”
Legendary value investor and billionaire Howard Marks, while talking to Goldman Sachs in 2022, talked about how emotions often get the best of us and when markets begin to decline how everyone panics. Marks’ words highlight the importance of having a long-term approach in investing and how practicing patience and resilience could set you apart from average investors:
“If you think about the norm, what happens? Things are going well. The economy is performing well. Companies are reporting good earnings. Stock prices are rising. Everybody’s optimistic. And the longer this goes on, people become more and more and more positive until they buy here. And when they run out of money, then things turn around. Then, eventually, the economy weakens, then the corporate profits aren’t so good and stock– prices start going down and people start losing hope. And as this continues, they get more and more depressed and more panicky. And they start fearing further losses until they sell out down here. In other words, they tend to buy more here and sell more here, which is the opposite of what we all should do. My mother said, “Howie, buy low. Sell high.” And so, emotion is our enemy. Emotion tends to get us todo the wrong thing at the wrong time. And we have to resist that.
And one thing I point out is that the influences that affect the crowd and make it do what I just described, those influences are universal. And I feel them too. And you feel them too. And everyone in here. We read the same newspapers. The news is the same for all of us. In order to outperform, by definition, you have to depart from the crowd. You have to hold a different position. And you have to have resolve to do it. And, you know, it can’t be easy. You know? I had one of my colleagues came to me in ’98. Talking about ancient history. Long term capital. I just [UNINTEL] down and we had the ruble default and the Southeast Asian crisis, and there were a lot of things going wrong. And one of the guys who considers himself to be very […] comes to me and he says, “This is it. I think it’s all over. I think the financial system is going to melt down. I think–.” And he explains to me all these things. And I say, “Great. Thank you for sharing that with me. Now go back to your desk and do your job.” I said, “A battlefield hero is not somebody who’s unafraid. It’s somebody who’s afraid, but he does it away.” I mean, if you’re in scary circumstances, to be unafraid, you kind of have to be a nut. But the key is can you be afraid and do your job anyway?”
Methodology
As a new bull run starts for US equities, now might be the right time to see which stocks hedge funds were buying on the dip. For this article we first used a stock screener to identify stocks that hit 52-week lows or levels near to their 52-week lows over the past few weeks. From these stocks we selected 15 stocks with the highest number of hedge fund investors. Unlike Meta Platforms Inc (NASDAQ:META), NVIDIA Corp (NASDAQ:NVDA) and Amazon.com Inc (NASDAQ:AMZN), which skyrocketed this year, the stocks mentioned in the list got hammered in 2023.
15. Cazoo Group Ltd (NYSE:CZOO)
Number of Hedge Fund Investors: 5
Cazoo Group Ltd (NYSE:CZOO) recently said its approved a consolidation of Cazoo Group Ltd’s (NYSE:CZOO) issued and unissued share capital, par value $0.002 per share, at a ratio of 1-for-100, as well as an increase in share capital.
The stock is down by about 96% year to date.
A total of 5 hedge funds tracked by Insider Monkey had stakes in Cazoo Group Ltd (NYSE:CZOO).
14. NioCorp Developments Ltd (NASDAQ:NB)
Number of Hedge Fund Investors: 7
A total of 7 hedge funds tracked by Insider Monkey had stakes in NioCorp Developments Ltd (NASDAQ:NB). The stock is down by about 60% year to date through December 17.
Earlier this month NioCorp Developments Ltd (NASDAQ:NB) said it plans to complete a non-brokered private placement of 336,185 units at a price of $3.08 per unit.
13. Celularity Inc (NASDAQ:CELU)
Number of Hedge Fund Investors: 8
Clinical-stage biotechnology company Celularity Inc (NASDAQ:CELU) ranks 13th in our list of the best falling stocks to buy according to hedge funds. In October Celularity Inc’s (NASDAQ:CELU) CEO Robert Hariri bought about $3 million worth of Celularity Inc (NASDAQ:CELU) shares as part of a shares repurchase agreement with Sorrento Therapeutics (OTCPK:SRNEQ).
A total of 8 hedge funds out of the 910 funds tracked by Insider Monkey had stakes in Celularity Inc (NASDAQ:CELU).
12. Quipt Home Medical Corp (NASDAQ:QIPT)
Number of Hedge Fund Investors: 8
Quipt Home Medical Corp (NASDAQ:QIPT) shares have lost about 6% over the past one year. Quipt Home Medical Corp (NASDAQ:QIPT) in September said it bought a business with operations in Mississippi, Texas and Louisiana reporting unaudited annual revenues of about $9 million with anticipated Adjusted EBITDA of $2 million post integration.
Out of the 910 hedge funds tracked by Insider Monkey, 8 funds had stakes in Quipt Home Medical Corp (NASDAQ:QIPT).
11. Caesarstone Ltd (NASDAQ:CSTE)
Number of Hedge Fund Investors: 8
Caesarstone Ltd (NASDAQ:CSTE) makes quartz surfaces used for kitchen countertops. The stock has lost about 30% over the past one year.
A total of 8 hedge funds tracked by Insider Monkey had stakes in Caesarstone Ltd (NASDAQ:CSTE). The most significant stake in Caesarstone Ltd (NASDAQ:CSTE) is owned by Ali Motamed’s Invenomic Capital Management which owns a $1.6 million stake in Caesarstone Ltd (NASDAQ:CSTE).
10. Altisource Portfolio Solutions S.A. (NASDAQ:ASPS)
Number of Hedge Fund Investors: 9
Altisource Portfolio Solutions S.A. (NASDAQ:ASPS) ranks 10th in our list of the best falling stocks to buy now. The stock has lost a whopping 67% over the past 12 months.
In October Altisource Portfolio Solutions S.A. (NASDAQ:ASPS) posted third quarter results. Adjusted EPS in the quarter came in at -$0.44, missing estimates by $0.10. Revenue fell 5.7% year over year to $36.21 million, missing estimates by $3.17 million.
9. GH Research PLC (NASDAQ:GHRS)
Number of Hedge Fund Investors: 10
GH Research PLC (NASDAQ:GHRS) is down by about 40% over the past one year. The clinical-stage biopharmaceutical company GH Research PLC (NASDAQ:GHRS) is working on various treatments for psychiatric and neurological disorders
A total of 10 funds in Insider Monkey’s database reported having stakes in GH Research PLC (NASDAQ:GHRS).
8. Katapult Holdings Inc (NASDAQ:KPLT)
Number of Hedge Fund Investors: 10
Katapult Holdings Inc (NASDAQ:KPLT) provides fintech solutions for the ecommerce industry. The stock has lost about 56% over the past one year.
A total of 10 hedge funds had stakes in Katapult Holdings Inc (NASDAQ:KPLT) as of the end of the third quarter of 2023.
KPLT is a small company that is seeing a limited interest from hedge funds, unlike major names like Meta Platforms Inc (NASDAQ:META), NVIDIA Corp (NASDAQ:NVDA) and Amazon.com Inc (NASDAQ:AMZN) which are highly popular among smart money investors.
7. Vincerx Pharma Inc (NASDAQ:VINC)
Number of Hedge Fund Investors: 13
Vincerx Pharma Inc (NASDAQ:VINC) is a clinical-stage biopharma company that is working to develop therapies for unmet medical needs for the treatment of cancer in the United States. The stock has lost about 33% year to date.
In November Vincerx Pharma Inc (NASDAQ:VINC) posted third quarter results. GAAP EPS in the period came in at -$0.46. Vincerx Pharma Inc (NASDAQ:VINC) had about $20.8 million in cash, cash equivalents and marketable securities as of September 30, 2023, as compared to approximately $52.5 million as of December 31, 2022.
A total of 13 hedge funds tracked by Insider Monkey had stakes in Vincerx Pharma Inc (NASDAQ:VINC).
6. Aadi Bioscience Inc (NASDAQ:AADI)
Number of Hedge Fund Investors: 15
Aadi Bioscience Inc (NASDAQ:AADI) shares got pummeled earlier this month after it reported disappointing results for its registrational study for its drug candidate nab-sirolimus in the treatment of patients with solid tumors harboring pathogenic inactivating alterations of the TSCI or TSC2 genes.
Aadi Bioscience Inc (NASDAQ:AADI) said results from an interim analysis of the study showed a 26% overall response rate, or ORR, among patients in the TSC1 arm of the study. The TSC2 arm had an 11% ORR.
Aadi Bioscience Inc (NASDAQ:AADI) said the study is expected to be completed by the end of 2024, with a final data readout in early 2025.
As of the end of the September quarter, 15 hedge funds in Insider Monkey’s database had stakes in Aadi Bioscience Inc (NASDAQ:AADI). Unlike Meta Platforms Inc (NASDAQ:META), NVIDIA Corp (NASDAQ:NVDA) and Amazon.com Inc (NASDAQ:AMZN), AADI shares got hammered in 2023.
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Disclosure. None. 15 Best Falling Stocks To Buy Now was initially published on Insider Monkey.