In this article, we will take a detailed look at the 16 Best 52-Week Low Stocks To Buy Now According to Short Sellers.
The US stock market reached new all-time highs in late February 2025, as inflation remained near the 2% target while a potential end in the Ukraine conflict sparked some optimism for the long term. Besides the creation of multi-billion-dollar demand for potential rebuilding efforts of the country, including agriculture, residential, and infrastructure, the return of American business to Ukraine and Russia is a big win for most corporations, many of which could experience up to double-digit uplift in revenue and earnings growth due to up to 200 million customer market. More importantly, this outlook is favorable for energy security, stimulates volumes, and might push energy prices lower, which in turn allows for higher profitability.
Despite the aforementioned tailwinds, the US stock market gains are still largely driven by the Magnificent 8 companies, which trade at record-high valuations and have contributed to an unprecedented rise in the stock market concentration. These companies are anticipated to have tremendous growth opportunities arising from AI and data center megatrends, on top of existing rapidly growing niches like cloud computing, media streaming, SaaS, and others. Only time will tell whether the current valuations are fair; what is certain is that many industries have been struggling since 2022, as inflationary pressures followed by high interest rates and an increasingly tough labor market dominated by layoffs and scarcity of entry-level positions have put tremendous pressure on US consumers. The high financing costs have led to diminishing Capex appetite in many industries, leading to struggle in several market segments – perfectly illustrated by underperforming consumer discretionary and industrial sectors since 2022.
On top of harsh macro conditions in the last 3 years, the new “Trump 2.0” regime and his administration can be a threat for the healthcare sector. Trump is a notorious critic of the health insurance business and might create headwinds for it through attempts of deregulation and efforts to cut the government financing of healthcare programs. As a result, the healthcare sector relative to the overall market is at record lows comparable to the 2008 depression. All in all, despite apparent optimism in the market, there are pockets of underperformance and many companies trading near their 52-week low, which may present compelling opportunities to acquire good companies at attractive prices.
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Our Methodology
We screened 30-40 stocks with at least $1 billion in market cap that are near their 52-week lows. Then we sorted them by open short interest as a percentage of outstanding shares and included the top 16 with the lowest open short interest in the article. Our belief is that a low open short interest implies a lack of bearish views on the business from leading hedge funds, which represents a bullish signal from a contrarian perspective.
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 363.5% since May 2014, beating its benchmark by 208 percentage points (see more details here).
16. Parsons Corporation (NYSE:PSN)
Short Interest as % of Shares Outstanding: 4.39%
Parsons Corporation (NYSE:PSN) is a technology-driven defense, intelligence, and critical infrastructure solutions provider serving government and commercial clients worldwide. With a strong focus on cybersecurity, space, missile defense, and smart infrastructure, PSN leverages advanced engineering and software capabilities to address complex security and modernization challenges. The company’s expertise in AI, data analytics, and digital transformation positions it as a key player in national security and infrastructure resilience.
After a strong rally in mid-2024, Parsons Corporation (NYSE:PSN)’s stock price is down 45% since November and reached a new 52-week low. The new administration’s philosophy of cutting public spending and the liquidation of such organizations as USAID has led to several large project cancellations for PSN, which were previously under the radar and labeled as “secret”. Despite peak market fears that further cancellations will follow and that the “Trump 2.0” regime will be a headwind for government contractors, Parsons Corporation (NYSE:PSN) delivered record results across major financial metrics in 2024, achieving organic revenue growth of 22% and adjusted EBITDA growth of 30%. The company reported record contract awards of $7 billion, increasing 17% over 2023, with strong win rates of 71%. During the recent Q4 2024 earnings call, management guided toward solid 5% organic growth next year and disclosed several multi-million-dollar project awards in hot niches like cybersecurity. All in all, the relatively low short interest of 4.39% implies that short sellers still don’t have a compelling bear thesis for the long term, which may be a bullish signal from a contrarian perspective.
15. MarketAxess Holdings Inc. (NASDAQ:MKTX)
Short Interest as % of Shares Outstanding: 3.97%
MarketAxess Holdings Inc. (NASDAQ:MKTX) is a leading electronic trading platform operator specializing in fixed-income securities, particularly corporate bonds. The company revolutionized bond trading by enhancing liquidity, transparency, and efficiency through its proprietary technology and data-driven solutions. MKTX serves institutional investors globally, offering automated trade execution, credit market data, and portfolio analytics. With the increasing adoption of electronic trading in fixed-income markets, the company continues to expand its product offerings and leverage AI and data analytics to strengthen its competitive position in the evolving financial landscape.
MarketAxess Holdings Inc. (NASDAQ:MKTX) has had a tough Q4 2024 as the stock price is down 35% from the October peak. The company sees high levels of volatility in the rates market which is further aggravated by the consolidation of two major banking trading desks, which creates a headwind for fee distribution. On top of that, MKTX’s income was pressured by mark-to-market losses from its US Treasury portfolio as the new Trump administration has pushed yields higher due to concerns that tariffs will fuel inflation in the following years. The aforementioned headwinds are certainly temporary, while the company is taking the right steps to solidify its position for the long-term – it is undergoing a significant technology transformation, focused on delivering innovative trading solutions and data-driven analytics to its clients. As disclosed at a recent financial services conference, management is seeing strong growth opportunities in emerging markets and is working to carefully monetize its unique data assets to drive increased electronic trading volumes and revenues. Despite some near-term headwinds from portfolio trading, MKTX is well-positioned to capitalize on the continued electronification of fixed-income markets in the years ahead.
14. TriNet Group Inc. (NYSE:TNET)
Short Interest as % of Shares Outstanding: 3.65%
TriNet Group Inc. (NYSE:TNET) is a leading provider of comprehensive human resources solutions for small and medium-sized businesses. Specializing in payroll, benefits, risk management, and compliance, TNET operates as a professional employer organization, enabling clients to streamline HR functions while focusing on core business growth. The company’s technology-driven platform, combined with industry-specific expertise, helps businesses navigate complex regulatory landscapes and attract top talent with competitive benefits.
Unlike the previous companies, TriNet Group Inc. (NYSE:TNET) has underperformed for the entire calendar 2024, as the tough macro conditions and peak uncertainty in the economy have constrained the hiring activity at American businesses, which directly impacts the need for HR-related services. On top of that, TNET was hit with higher healthcare and pharmacy utilization headwinds, as well as increasing insurance cost trends. Nevertheless, the company is optimistic about the market opportunity ahead, with the election uncertainty behind them and a renewed focus on strategic priorities, including investing in its sales force, managing expenses prudently, and returning capital to shareholders while maintaining a strong balance sheet. The new US administration may prove itself as a tailwind for long-term hiring, due to efforts to bring manufacturing back to the US soil which could drive a hiring spree at some point in the future. Short sellers can’t deny the optimistic long-term landscape for TriNet Group Inc. (NYSE:TNET), as the short interest stands at only 3.65%.
13. CACI International Inc (NYSE:CACI)
Short Interest as % of Shares Outstanding: 3.59%
CACI International Inc (NYSE:CACI) is a leading provider of technology and mission support solutions for the US government, specializing in defense, intelligence, and national security. The company delivers advanced capabilities in cybersecurity, data analytics, AI, and electronic warfare to help federal agencies address complex challenges. With a strong track record of innovation and strategic acquisitions, CACI plays a critical role in modernizing government operations and strengthening national defense. Its focus on emerging technologies and mission-critical expertise positions it as a key partner in safeguarding US interests in an evolving global security landscape.
CACI International Inc (NYSE:CACI) is another government contractor that was hit by the election results, despite a strong first half of 2024 – the company’s expansion of the overseas business became constrained by the new administration’s efforts to reduce spending, including on projects with foreign countries. Consequently, the expansion abroad was labeled as “risky” by the management, and some margin expansion headwinds were also acknowledged as a result. Despite elevated fears in the market regarding all government contractors, short sellers appear to recognize the strong position of CACI and limited bearish thesis points. The company’s capabilities resonate well with many of the announced priorities of the new administration, such as expertise in securing the national borders, expertise in modernizing IT systems to decrease G&A costs in the public sector, and expertise in monitoring value-based outcomes at clients. Furthermore, unlike other competitors, CACI hasn’t experienced any major cancellations or project disruptions, which is reassuring that the company’s target niches align well with “Trump 2.0” priorities.
12. Booz Allen Hamilton Holding Corporation (NYSE:BAH)
Short Interest as % of Shares Outstanding: 3.41%
Booz Allen Hamilton Holding Corporation (NYSE:BAH) is a leading management and technology consulting firm specializing in analytics, digital solutions, cybersecurity, and AI for government and commercial clients. With deep expertise in defense, intelligence, and civil sectors, BAH helps organizations navigate complex challenges through strategic advisory services and cutting-edge technology solutions. The company plays a crucial role in modernizing federal agencies, enhancing national security, and driving digital transformation.
Booz Allen Hamilton Holding Corporation (NYSE:BAH) is down more than 35% since election day as the company is experiencing some short-term disruption and uncertainty in the procurement environment due to the presidential transition, with some agencies taking time to assess and align priorities with new agendas. This has led to a slowdown in procurement and contract activities, particularly in civilian agencies. BAH maintained a roughly flat client staff headcount for Q4, deviating from its usual growth pattern. Despite these short-term headwinds, management has recently guided towards a strong 2025 with expected double-digit growth in both revenue and EBITDA, implying no slowdown in the long-term growth trajectory. Furthermore, they acknowledge that the new administration’s agenda relies on the ability to apply advanced technologies to disrupt outdated processes and protect the technological supremacy of the country, and Booz Allen Hamilton Holding Corporation (NYSE:BAH), through its VoLT framework, possesses the right expertise to assist with those goals.
11. SPS Commerce Inc. (NASDAQ:SPSC)
Short Interest as % of Shares Outstanding: 3.18%
SPS Commerce Inc. (NASDAQ:SPSC) is a leading provider of cloud-based supply chain management solutions, specializing in electronic data interchange and retail network optimization. The company enables retailers, suppliers, and logistics providers to streamline operations, enhance collaboration, and improve visibility across their supply chains. With a robust SaaS platform and a growing global customer base, SPSC helps businesses automate transactions, reduce inefficiencies, and adapt to the evolving retail landscape.
After a decent calendar in 2024, SPS Commerce Inc. (NASDAQ:SPSC) has had a weak start to the year, with the stock price down 21% year-to-date as the company announced slowing growth of its analytics product sales in Q4. The company acknowledged that the analytics product is more susceptible to customer buying behavior and uncertainty in the retail macro environment. Additionally, the acquisition of Carbon6 is expected to lead to a decrease in wallet share by about $1,000 due to the lower price point of its products, particularly those related to third-party Amazon sellers. Nevertheless, the acquisition of Carbon6 is projected to extend the network’s reach and position SPS Commerce Inc. (NASDAQ:SPSC) with clear leadership in revenue recovery solutions, supporting supplier communities of the two largest global retailers. Management estimates its addressable market to be $11.1 billion globally, including $6.5 billion in the US, representing significant growth potential going forward. With only 3.18% short interest, the short sellers likely recognize that the outlook on the future of the company is still strong.
10. Maximus Inc. (NYSE:MMS)
Short Interest as % of Shares Outstanding: 2.95%
Maximus Inc. (NYSE:MMS) is a leading government services provider specializing in business process outsourcing and technology solutions for federal, state, and local agencies. The company supports a wide range of public programs, including healthcare, workforce development, and citizen services, helping governments improve efficiency and service delivery. With expertise in digital transformation, data analytics, and customer engagement, the company enhances program accessibility and operational effectiveness.
Maximus Inc. (NYSE:MMS) is just another government contractor that reached a new 52-week low after the November presidential election as the fears of a potential reduction in the number of civil servants in government are looming – this would impact the contracting and procurement services of the company. Management acknowledged the future uncertainty by issuing wide guidance for the long-term EBITDA margin, the lower end of which implies a contraction from the current level due to intensifying political risks. The latest Q1 2025 brought in the first negative surprises – the US Services margin came in lower than expected and some of the company’s clients are already reportedly being cautious and reluctant with large contracts. Despite the aforementioned headwinds, the company has attractive growth opportunities related to digital transformation projects that are likely to be maintained and even supported by the new administration. This has been proven by the company securing a recent victory, collaborating with an agency within the Department of Defense to enhance its AI capabilities. Maximus Inc. (NYSE:MMS) still maintains a solid double-digit organic revenue growth amid this uncertain market, which likely leads to reluctance from bears to short the company.
9. Landstar System Inc. (NASDAQ:LSTR)
Short Interest as % of Shares Outstanding: 2.48%
Landstar System Inc. (NASDAQ:LSTR) is a leading asset-light freight transportation and logistics company specializing in third-party capacity management. Operating through a network of independent agents and owner-operators, the company provides flexible and scalable freight solutions across North America. It offers truckload, less-than-truckload, intermodal, and specialized transportation services, catering to diverse industries, including manufacturing, retail, and government.
Landstar System Inc. (NASDAQ:LSTR) has been underperforming through the entire calendar 2024, as the post-pandemic high inflation and high interest rate environment has been gradually constraining the commerce and industrial activity, which are the main drivers of logistics & freight demand. The company’s logistics segment has experienced double-digit declines throughout the last 4 quarters, with both loadings and revenue per load being pressured. Furthermore, the company faced softness during the last quarter due to severe winter weather and Southern California fires. Still, the low short interest in the company likely points towards a potential bottom in stock price, as the aforementioned headwinds are being lapped in the next months, all while the priorities of the new “Trump 2.0” regime appear favorable for the entire transportation sector – the onshoring of manufacturing, prioritization of large infrastructure projects as well as a favorable environment for legacy energy business are all attractive tailwinds for LSTR, which should stimulate volumes for the next 4 years. Also, the strength in the balance sheet positions the company well to navigate any short-term macro weakness.
8. H.B. Fuller Company (NYSE:FUL)
Short Interest as % of Shares Outstanding: 2.36%
H.B. Fuller Company (NYSE:FUL) is a global leader in adhesives, sealants, and specialty chemical solutions, serving industries such as packaging, construction, automotive, and electronics. With a strong focus on innovation and sustainability, the company develops high-performance bonding solutions that enhance product durability and efficiency. FUL’s global reach, deep technical expertise, and commitment to research and development enable it to address evolving customer needs and industry trends.
After a strong 1H 2024, the performance of H.B. Fuller Company (NYSE:FUL) in the subsequent months has been sluggish, due to a slowdown in demand and an overall constrained environment in all geographies and product categories. The company’s solar business saw volumes down in all global regions due to the overcapacity of solar panels. In Q4 2024, the company announced the first decline in pricing in certain categories. Also, the market reacted negatively to the announcement of the divestiture of the flooring business due to an inability to achieve the desired profitability. While the aforementioned developments might be interpreted as a lack of execution from the company itself, it is undeniable that management is already taking the right steps to navigate the difficult environment – they have already begun executing additional pricing actions and cost controls. Also, FUL announced a plan to significantly reduce its global manufacturing footprint, streamline the North American logistics and delivery operations, and strategically improve inventory management – this multiyear plan will reduce the number of manufacturing facilities from 82 to a target of 55 by 2030, which should substantially improve the company’s profitability and cash generation capacity. All in all, H.B. Fuller Company (NYSE:FUL) reaching a new 52-week low while the right strategic steps are taken can be an opportunity for bulls, especially considering the bears’ reluctance to short this stock.
7. Selective Insurance Group Inc. (NASDAQ:SIGI)
Short Interest as % of Shares Outstanding: 2.33%
Selective Insurance Group Inc. (NASDAQ:SIGI) is a leading regional property and casualty insurance provider, specializing in commercial, personal, and excess & surplus lines. The company operates through a network of independent agents, offering tailored insurance solutions with a focus on risk management and superior customer service. With a disciplined underwriting approach and strong financial stability, SIGI balances profitability with growth.
Selective Insurance Group Inc. (NASDAQ:SIGI) has been underperforming for the last 12 months, as the company announced declining retention and a weakening combined ratio. The performance was further negatively affected by inflationary pressures and losses from large-scale storms. During a difficult macro environment, smaller companies are the most affected ones, and SIGI certainly can’t operate at the same level of excellence and recession resistance as leaders like PGR. Arguments in favor of SIGI are that it has been a long-term outperformer of the overall market in secular bull markets, which confirms its ability to execute. Management announced that it remains comfortable with the quality of the underwriting portfolio and rate increases will be the main priority over the following years – as inflationary pressure subsides, SIGI is well-positioned to recover its profitability with subsequent rate increases. It appears that the bears’ reluctance to short SIGI confirms the short-term nature of the headwinds faced by the company.
6. The Trade Desk Inc. (NASDAQ:TTD)
Short Interest as % of Shares Outstanding: 2.30%
The Trade Desk Inc. (NASDAQ:TTD) is a leading provider of cloud-based programmatic advertising technology, enabling advertisers and agencies to manage digital ad campaigns across multiple channels, including display, video, audio, and connected TV. Its AI-driven platform empowers marketers with real-time data, audience insights, and automated bidding tools to optimize ad performance and maximize return on investment.
Despite a decent calendar 2024, the stock price performance was hit by a disappointing announcement of Q4 results in February 2025 – the company’s results fell short of management guidance for the first time in 33 quarters. The Trade Desk Inc. (NASDAQ:TTD) stumbled due to a series of small execution missteps such as a slower rollout of the Kokai platform, internal execution issues, client-facing teams becoming complicated with overlap between agency and brand teams as well as an overall complex organizational structure which had become too complex. It is reassuring, however, that the management team recognizes its own faults and is already taking precise steps to reinvent itself. Management has implemented significant organizational changes, including the largest reorganization in company history, streamlining client-facing teams, and dividing engineering into nearly 100 scrum teams for more effective shipping and collaboration. The company plans to move 100% of clients to the Kokai platform during this calendar year and is increasing resource allocation on brands, with joint business plans growing 50% faster than the rest of the business. The Trade Desk Inc. (NASDAQ:TTD) is a long-term outperformer of the broader market, which explains the reluctance of short sellers to bet against the company; having a long-term winner trading at a 52-week is a bullish signal from a contrarian perspective.
5. Tetra Tech Inc. (NASDAQ:TTEK)
Short Interest as % of Shares Outstanding: 1.78%
Tetra Tech Inc. (NASDAQ:TTEK) is a leading global consulting and engineering firm specializing in water, environment, infrastructure, and sustainable solutions. The company provides high-end consulting, data analytics, and engineering services to government and commercial clients, addressing complex challenges in resource management, climate resilience, and energy transition. With a strong focus on innovation and sustainability, TTEK leverages advanced technologies, including AI and digital modeling, to optimize project outcomes.
The share price of Tetra Tech Inc. (NASDAQ:TTEK) has been down more than 40% since early November as the company was hit by several large projects related to USAID being put on hold, with an almost certain probability that they will be ultimately canceled. The USAID work, which included water, energy, and economic programs worldwide, was typically for multiyear commitments and represented a significant portion of revenues. Current market fears are elevated as the company could be affected by further cuts in government spending, both within the US and abroad, especially considering the cost-reimbursable nature of the contracts. On the positive side, once the USAID and other at-risk programs are flushed out during the subsequent quarters, TTEK will be left with a strong and high-growth core business. Tetra Tech Inc. (NASDAQ:TTEK)’s services across the board continue to be in very high demand for things such as providing clean, secure water supplies, ensuring a healthy environment, or designing and putting in place resilient infrastructure such that it will not be impacted in the future regarding disasters or any other items. It is of no surprise that TTEK exhibits very low short interest even during peak market fears.
4. KBR Inc. (NYSE:KBR)
Short Interest as % of Shares Outstanding: 1.56%
KBR Inc. (NYSE:KBR) is a global engineering, technology, and professional services company specializing in government solutions, energy transition, and advanced technology-driven consulting. The company provides mission-critical support to defense and space agencies, delivers sustainable energy solutions, and develops cutting-edge process technologies for industrial applications. With expertise in digital transformation, cybersecurity, and AI-driven analytics, KBR helps clients enhance operational efficiency and resilience.
Similarly to other large engineering and consulting firms working with the US Government, KBR Inc. (NYSE:KBR) has underperformed since election day due to widespread fear that the “Trump 2.0” regime will be a headwind for many public contracts in engineering, technology, and other auxiliary services. The company’s stock price is down 30% since November, despite no financial results being reported since then. Short sellers are still reluctant to bet against the company as KBR is well-positioned to capitalize on the priorities of the new administration, with a strong presence in national security, space exploration, and energy markets. The company is also pursuing strategic initiatives, such as its circular plastics recycling technology and the transformation of government contracting through its HomeSafe program, which could drive future growth. KBR Inc. (NYSE:KBR)’s strategic optionality to separate its businesses further highlights the company’s focus on optimizing its operations and creating value for shareholders.
3. Blackbaud Inc. (NASDAQ:BLKB)
Short Interest as % of Shares Outstanding: 1.39%
Blackbaud Inc. (NASDAQ:BLKB) is a leading provider of cloud-based software solutions designed for nonprofits, educational institutions, healthcare organizations, and social enterprises. Its platform enables organizations to manage fundraising, financial operations, grantmaking, and donor engagement with data-driven insights and automation. With a strong focus on social good and digital transformation, BLKB integrates AI, analytics, and cybersecurity to enhance operational efficiency and impact.
Blackbaud Inc. (NASDAQ:BLKB) currently faces some headwinds from its EVERFI product and some modest softness in bookings near term as they have transitioned sales efforts from migrations to focus on net new logos and cross-sells. This has resulted in the midpoint of the 2025 revenue guidance range being approximately 2 percentage points lower than the 2024 growth rate. However, odds are that the aforementioned headwinds are short-lived, as management acknowledges that there has been no significant impact on the company from regulatory or political changes, as BLKB has weathered many such changes over its 40+ year history. To support its long-term growth, the company is investing in innovation, with 6 waves of new product capabilities including AI and analytics embedded in its solutions. The company is moving customers to 3-year contracts with annual price increases, which confirms superior execution and strong relationships with major clients. The company’s ability to grow revenue and EBITDA margin speaks to the power of its 5-point operating plan, which positively impacted EPS and FCF. With that in mind, Blackbaud Inc. (NASDAQ:BLKB) maintains one of the lowest short interests in our universe, which is a bullish signal from a contrarian perspective.
2. L3Harris Technologies Inc. (NYSE:LHX)
Short Interest as % of Shares Outstanding: 1.33%
L3Harris Technologies Inc. (NYSE:LHX) is a leading defense and aerospace technology company specializing in communication systems, electronic warfare, space systems, and mission-critical solutions. Serving the US Department of Defense, allied governments, and commercial customers, LHX delivers advanced technologies that enhance situational awareness, command and control, and national security. The company’s focus on innovation, including AI-driven defense solutions and next-generation space capabilities, positions it as a key player in modern warfare and global defense strategies.
The stock price of L3Harris Technologies Inc. (NYSE:LHX) is down 25% since the November elections as the markets likely expect declining geopolitical turmoil under the “Trump 2.0” regime, which would translate into less warfare and military spending, including the company’s notorious counter-UAS systems. The fears were further amplified by active peace negotiations between the US and Russian officials in Saudi Arabia, which might result in an armistice in the near future, as well as hints and talks of the US army potentially ending its coverage of certain NATO territories. On top of that, the company itself reported the risk of some potential project cancellations in the space business, which is likely linked to the cautious stance of the new US administration regarding public spending. Despite these challenges, it is certain that the US will not completely mute its military spending, and L3Harris Technologies Inc. (NYSE:LHX) remains a leader in its niche – management remains optimistic in areas like missile tracking, missile defense, and space-based capabilities, where it has strong past performance and existing assets in orbit. Furthermore, the company believes it is well-positioned to capitalize on the Iron Dome for America initiative, which aligns with its capabilities. With that in mind, it is of no surprise that short sellers are reluctant to bet against the company’s future – short interest stands at only 1.33% at a time when the stock price reached a new 52-week low.
1. FTI Consulting Inc. (NYSE:FCN)
Short Interest as % of Shares Outstanding: 1.09%
FTI Consulting Inc. (NYSE:FCN) is a global business advisory firm specializing in corporate finance, economic consulting, forensic investigations, litigation support, and strategic communications. Serving corporations, law firms, and government agencies, FCN helps clients navigate complex financial, legal, and reputational challenges. With deep industry expertise and data-driven insights, the firm provides solutions for crisis management, regulatory compliance, and business transformation.
FTI Consulting Inc. (NYSE:FCN) started to report problems in Q3 2024, as it experienced its first quarter-over-quarter revenue decline in recent periods, with revenue pressures stemming from both market-related challenges, particularly in Asia businesses, and internal factors such as delays in assignments in North American business and simultaneous conclusion of large client engagements in the strategy business. The outlook further deteriorated in 4Q due to a major challenge with several senior departures in the US competition part of the Compass Lexecon subsidiary, with expectations that additional less tenured people may also depart, creating substantial headwinds for 2025. This evolution has led to muted guidance for 2025. Despite significant challenges, the company is seeing steady demand for restructuring and expects a pickup in M&A, transformation, and strategy-related businesses. Management also assumes a pickup in demand for disputes and investigations-related businesses in FLC. Historically, FTI Consulting Inc. (NYSE:FCN) has massively outperformed the market in the last 5 years and it is of no surprise that hedge funds are reluctant to short this company despite the ongoing difficulties – short interest is only 1.09% of total shares outstanding. With the stock price down 30% since the October peak, this may be an attractive opportunity for bulls from a contrarian perspective.
Overall FTI Consulting Inc. (NYSE:FCN) ranks first on our list of the best 52-week low stocks to buy according to short sellers. While we acknowledge the potential of FCN 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 FCN 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 Complete List of 59 AI Companies Under $2 Billion in Market Cap.
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