In this article, we will discuss the 5 depressed stocks to buy right now. If you want to read our comprehensive analysis of these companies, go directly to 11 Best Depressed Stocks To Invest In.
5. FedEx Corporation (NYSE:FDX)
Number of Hedge Fund Holders: 49
Share Price (as of January 4): $264.53
Share Price Decline Over The Last Six Months: 9%
FedEx Corporation (NYSE:FDX) is a global delivery and shipping giant and has been named as J.P Morgan’s top pick in the transportation and logistics sector for 2022. The firm’s analyst Brian Ossenbeck has an ‘Overweight’ rating on FedEx Corporation (NYSE:FDX) stock and a price target of $312. FedEx Corporation’s (NYSE:FDX) revenue has grown despite a challenging market, posting $23.50 billion in revenue for Q3 2021, which beat estimates by $1.08 billion. The company’s focus on e-commerce is expected to grow its projected revenue even further.
49 hedge funds reported owning FedEx Corporation (NYSE:FDX) shares at the end of the third quarter, down from 61 in the previous quarter. The company’s EPS for the third quarter was $4.83, exceeding consensus estimates by $0.54.
4. Comcast Corporation (NASDAQ:CMCSA)
Number of Hedge Fund Holders: 75
Share Price (as of January 4): $50.32
Share Price Decline Over The Last Six Months: 14.09%
Comcast Corporation (NASDAQ:CMCSA) is a media and technology company that operates through its segments: Cable Communications, Cable Networks, Broadcast Television, Filmed Entertainment, Theme Parks, and Sky. The company has a strong monopoly in many areas of the communication sector and provides high-speed internet to millions of businesses and consumers in the United States.
At $50.32 per share, Comcast Corporation (NASDAQ:CMCSA) has seen material share price weakness over the last three months, falling 21% off its highs. Comcast Corporation (NASDAQ:CMCSA) is consistently showing strong operating performance and boasts industry-leading margins for its products and services. The company pays a growing dividend yield that is well-covered, and also maintains strong debt metrics.
For the third quarter, earnings per share for Comcast Corporation (NASDAQ:CMCSA) came in at $0.87, which was above estimates by $0.12. The company’s revenue of $30.30 billion for the third quarter was also above estimates by $424.97 million.
75 hedge funds were long Comcast Corporation (NASDAQ:CMCSA) at the close of the third quarter, holding stakes worth $8.5 billion. This is down from 84 hedge funds holding $9.3 billion in the preceding quarter.
3. Upstart Holdings, Inc. (NASDAQ:UPST)
Number of Hedge Fund Holders: 23
Share Price (as of January 4): $134.28
Share Price Decline in 2022 as of Jan. 8: 19%
Upstart Holdings, Inc. (NASDAQ:UPST) provides loan services using cloud-based artificial intelligence, as an alternative to traditional banking systems that use FICO scores to assess applicants. Although shares of the company soared 271.29% in the last year, they have lost around half of their value in the last few months, and this presents an excellent buying opportunity for long-term investors. Upstart Holdings, Inc. (NASDAQ:UPST) enjoys a massive foothold in two largest lending segments: auto and personal lending.
For the third quarter, Upstart Holdings, Inc. (NASDAQ:UPST) posted earnings per share of $0.60, beating estimates by $0.27. It was found in the portfolio of 23 hedge funds at the close of the third quarter, up from 21 a quarter ago, showing that investors are confidently buying the company stock.
On December 9, Morgan Stanley analyst James Faucette initiated coverage of Upstart Holdings, Inc. (NASDAQ:UPST) with a $200 price target and an ‘Equal Weight’ rating, noting that the company has emerged as a premier fintech name.
Vulcan Value Partners, an investment management firm, talked about Upstart Holdings, Inc. (NASDAQ:UPST) in its investor letter for the third quarter. Here’s what the fund said:
“We purchased Upstart Holdings Inc., and it was also a material contributor during the quarter. Upstart is an artificial intelligence (AI) and cloud-based lending platform. Upstart’s customers, banks and institutional investors, are able to make more profitable loans utilizing Upstart’s software. The company uses over 1600 variables in its AI models, and its platform underwrites superior loans with higher approval rates, lower default rates, and lower interest rates for consumers compared to alternative lending sources. As former owners of FICO, we believe Upstart has the potential to be the FICO of the 21st century. The company has a virtuous circle that is constantly strengthening its competitive position. Upstart’s AI based methodology is more accurate than conventional underwriting and FICO scores alone, and it is expanding financial services profitably to the underbanked and the unbanked. In turn, customers allocate more loans to Upstart. Increased loan volume creates more data which improves the AI-based lending platforms’ accuracy, resulting in even more volume flowing to Upstart. We purchased Upstart in our Small Cap portfolio in the fourth quarter of 2020, and since then it has grown into a large cap company with a current market cap of approximately $26 billion. Its value has compounded more rapidly than we ever could have modeled. We are pleased to purchase Upstart in our Large Cap portfolio, and we are pleased with the initial results; however, we are more excited about its long-term prospects.”
2. NVIDIA Corporation (NASDAQ:NVDA)
Number of Hedge Fund Holders: 83
Share Price (as of January 4): $287.28
Share Price Decline in 2022 as of Jan. 8: 9%
NVIDIA Corporation (NASDAQ:NVDA) is poised to enjoy a bright future, being a market leader in computer chips and graphic cards, both of which are key components in the drive towards further digitization and the Metaverse. NVIDIA Corporation (NASDAQ:NVDA) boasts dominance in the AI market and fulfills all conditions to grow its competitive advantage in AI over the years.
Research firm UBS chose NVIDIA Corporation (NASDAQ:NVDA) as one of its top semiconductor stock picks for 2022. The firm’s analyst Timothy Arcuri holds that the company will benefit from more stable revenue sources stemming from its competitive advantages in GPU and software. NVIDIA Corporation (NASDAQ:NVDA) disclosed earnings per share of $1.17, exceeding consensus estimates by $0.06.
Out of the 867 elite hedge funds tracked by Insider Monkey, 83 were long NVIDIA Corporation (NASDAQ:NVDA) at the close of the third quarter, holding positions worth roughly $10 billion. This is down from 86 hedge funds holding stakes in the company a quarter ago.
Investment firm Harding Loevner mentioned many stocks in its Q3 investment letter, and NVIDIA Corporation (NASDAQ:NVDA) was one of them. Here’s what the fund said:
“The proliferation of devices using chips, whether EVs, “things” in lol, or embedded systems more generally, results in the generation of oceans of data potentially needing to be stored, processed, and analyzed. NVIDIA, the leading chip designer wellknown for its graphic processing units and its complementary CUDA software ecosystem, is at the forefront of the effort to provide the analytical platform needed to unlock the full potential of such specialist processors.”
1. KnowBe4, Inc. (NASDAQ:KNBE)
Number of Hedge Fund Holders: 18
Share Price (as of January 4): $21.77
Share Price Decline Over The Last Six Months: 30%
KnowBe4, Inc. (NASDAQ:KNBE) provides security awareness training, and a platform to simulate phishing attacks that educate businesses on how to tackle cybercrime. The company has a scalable model and is a unique play on the under-penetrated market in the cybersecurity segment, which is the human training element. KnowBe4, Inc. (NASDAQ:KNBE) launched its IPO in April 2021 and has since posted strong growth and solid financials. For the third quarter, revenue stood at $64.09 million, which beat analysts’ forecasts by $2.81 million. EPS for Q3 was $0.01, above estimates by $0.01.
In December, KnowBe4, Inc. (NASDAQ:KNBE) completed the acquisition of SecurityAdvisor, in a deal worth $80 million. This will boost the company’s security awareness platform, and provide long-term growth catalysts by working on the human defense layer (HDR) that prevents social engineering cybercrime.
Investors were seen grabbing KnowBe4, Inc. (NASDAQ:KNBE) stock, as 18 hedge funds held stakes in the company at the close of the third quarter, up from 9 in the previous quarter.
On November 4, Goldman Sachs analyst Brian Essex upgraded KnowBe4, Inc. (NASDAQ:KNBE) to ‘Buy’ from ‘Neutral’, upping the price target to $34 from $33, whilst noting that demand will remain strong heading into 2022 as human interaction remains a weak link in a global IT environment plagued by cyber threats to enterprises.
You can also take a look at 10 Best Stocks Under $10 to Buy Right Now and 16 Largest Financial Services Companies.
