5 Best Beaten Down Stocks to Buy Now

2. Warner Bros. Discovery, Inc. (NASDAQ:WBD)

Number of Hedge Fund Holders: 61

YTD Stock Price Performance: -45%

Warner Bros. Discovery, Inc. (NASDAQ:WBD) is a New York-based media conglomerate that came into being in April 2022 following the spin-off of WarnerMedia by AT&T Inc. (NYSE:T) and its merger with Discovery Inc.

On December 7, Jessica Reif at Bank of America termed Warner Bros. Discovery, Inc. (NASDAQ:WBD) as the provider of the best value in the media industry. She assigned the stock a Buy rating with a target price of $21. The analyst noted that Warner Bros. Discovery, Inc. (NASDAQ:WBD) had executed significant changes on operational and strategic levels, and this will result in annual synergies of over $2 billion from 2023. The analyst thinks Warner Bros. Discovery, Inc.’s (NASDAQ:WBD) ability to monetize has improved across various divisions. The company is in the middle of restructuring to streamline its operations further.

Here’s what Distillate Capital Partners LLC said about Warner Bros. Discovery, Inc. (NASDAQ:WBD) in its Q1 2022 investor letter:

“Warner Bros. Discovery was the next largest position added to the portfolio and came after a nearly-50% price decline in the quarter. Consequently, the stock offers a mid-teens free cash flow yield and is expected to earn nearly half of its enterprise value in free cash over the next three years.”