This article presents an overview of 5 Best Depressed Stocks To Buy in 2024. For a detailed overview of such stocks read our article, 12 Best Depressed Stocks To Buy in 2024.
5. Biogen Inc (NASDAQ:BIIB)
Number of Hedge Fund Investors: 51
Biogen Inc (NASDAQ:BIIB) shares are down 27% over the past one year. Barron’s recently pointed out that BIIB is one of the stocks with significant upside potential, as its average price target set by Wall Street is $299.21, while its current price stands at $201.
4. Liberty Broadband Corp Series C (NASDAQ:LBRDA)
Number of Hedge Fund Investors: 53
Liberty Broadband Corp Series C (NASDAQ:LBRDA) shares are down about 35% over the past one year. As of the end of the fourth quarter of 2023, 53 hedge funds had stakes in Liberty Broadband Corp Series C (NASDAQ:LBRDA).
Meridian Hedged Equity Fund stated the following regarding Liberty Broadband Corporation (NASDAQ:LBRDA) in its fourth quarter 2023 investor letter:
“Liberty Broadband Corporation (NASDAQ:LBRDA) is a holding company that owns interests in several cable businesses, primarily in the United States. Most of Liberty Broadband’s value (about 90%) comes from its large stake in Charter Communications, a broadband provider with 32 million customers across 41 states. Charter’s stock underperformed after missing subscriber growth expectations. Management signaled a likelihood of continued softness through the remainder of 2023. The company also announced $1 billion of additional capital expenditures, which was unwelcome news for many investors. Liberty Broadband has historically traded at a discount to its net asset value, which continues today. We estimate that the business trades as much as 30% below fair value and presents an opportunity to own a quality asset at a sizeable discount. Our long position in Liberty Broadband remained based on the consistent discount to net asset value and Charter’s underlying strengths, even as Charter manages through current industry dynamics.”
3. Gilead Sciences, Inc. (NASDAQ:GILD)
Number of Hedge Fund Investors: 55
Despite having lost about 16% over the past one year, Gilead Sciences, Inc. (NASDAQ:GILD) remains one of the most famous stocks among hedge funds. Insider Monkey’s database shows that 55 hedge funds had stakes in Gilead Sciences, Inc. (NASDAQ:GILD) as of the end of 2023.
In its fourth quarter 2023 investor letter, ClearBridge Dividend Strategy stated the following regarding Gilead Sciences, Inc. (NASDAQ:GILD):
“In the second half of 2023 — as we were selling low-growth, high-multiple stocks and taking advantage of oversold conditions in infrastructure, real estate and utilities — we also found opportunities in overlooked areas of health care. After adding Gilead Sciences, Inc. (NASDAQ:GILD) in the third quarter, we bought AstraZeneca in the fourth quarter. Each of these stocks present distinct investment cases, but both are reasonably valued and have limited patent expiry or pipeline risk. Gilead’s strength comes from its dominant franchise in HIV. It offers lower growth, but it yields nearly 4% and trades at 11x earnings. AstraZeneca possesses a diversified portfolio of pharmaceuticals, which should deliver double-digit earnings growth, yet it trades at just 16x earnings. These stocks were underwritten individually, but collectively we like the idea of increasing our exposure to defensive and growing health care names at below-market multiples.”
2. Starbucks Corp. (NASDAQ:SBUX)
Number of Hedge Fund Investors: 59
Wells Fargo recently reiterated an Overweight rating on Wells Fargo with a $105 price target, as Starbucks Corp. (NASDAQ:SBUX) expects menu innovation, higher prices, along with some other factors, to boost the stock in the second half of 2024.
A total of 59 funds tracked by Insider Monkey had stakes in the coffee giant Starbucks Corp. (NASDAQ:SBUX) as of the end of 2023.
RiverPark Advisors made the following comment about Starbucks Corporation (NASDAQ:SBUX) in its Q3 2023 investor letter:
“Starbucks Corporation (NASDAQ:SBUX): SBUX is the premier roaster, marketer and retailer of specialty coffee in the world, operating in 83 markets. Through its more than 36,000 global stores (roughly 50% operated and 50% licensed) the company offers handcrafted coffee, tea and other beverages and a variety of food items. SBUX also sells a variety of packaged coffee and tea products and licenses its trademarks through other channels such as grocery and foodservice through a Global Coffee Alliance with Nestlé. In addition to its flagship Starbucks Coffee brand, the company sells goods and services under the brands Teavana, Seattle’s Best Coffee, Ethos, Starbucks Reserve and Princi.
SBUX’s recently appointed CEO (March 2023), Narasimhan Laxman, reiterated the company’s long-term plans for 10-12% revenue growth and 15-20% EPS growth while reporting fiscal 3Q23 earnings. Revenue will be driven by a combination of factors including unit growth, higher food “attach” rates (more food sold per cup of coffee), equipment innovation to speed throughput, and delivery expansion. In addition to the leverage of higher revenue across the company’s fixed asset base, SBUX sees margin expansion from supply chain management opportunities and procurement efficiencies. We initiated a small position in August.”
1. Charter Communications Inc. (NASDAQ:CHTR)
Number of Hedge Fund Investors: 69
Charter Communications Inc. (NASDAQ:CHTR) shares are down 23% over the past one year. Last month, Bernstein increased its rating for the stock to Outperform from Market Perform, with a price target of $370.
Bernstein analysts think Charter Communications Inc.’s (NASDAQ:CHTR) valuation is now attractive and they see a recovery throughout 2024 and 2025.
Bernstein’s revised outlook for Charter Communications Inc. (NASDAQ:CHTR) includes a cautious yet optimistic stance.
Here is what Weitz Conservative Allocation Fund has to say about Charter Communications, Inc. (NASDAQ:CHTR) in its Q3 2023 investor letter:
We swapped the Fund’s Liberty Broadband Corporation (NASDAQ:LBRDK) shares back to Charter Communications, Inc. (NASDAQ:CHTR) (Charter is by far Liberty Broadband’s largest asset), and the combined position was the most notable quarterly contributor. Investor sentiment around broadband’s competitive position became less negative, and the stocks rebounded nicely from what we considered oversold levels.
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