5 Best Depressed Stocks To Invest In

1. Meta Platforms Inc. (NASDAQ:FB)

Number of Hedge Fund Holdings: 200

Share Price (as of August 15): $195.77

YTD Declines (as of August 15): 46.58%

Meta Platforms Inc. (NASDAQ:FB) had to report a declining revenue for the first time ever in the second quarter of 2022. Diluted earnings-per-share declined from $3.61 in Q2 2021 to $2.46 in Q2 2022, a decline of 33.0% year-over-year. Investors have been pushed into bullish and bearish camps, with strong arguments from both perspectives. However, of the 55 analysts that viewed Meta Platforms Inc. (NASDAQ:FB) since May 2022, 32 have maintained a Strong Buy rating on the stock. According to analysts, the business model of the company has remained rather intact, and there is also a reasonable probability for the vision of the Metaverse to work out. Analysts contend that as long as Meta Platforms Inc. (NASDAQ:FB) can grow even slightly in the next few years, the stock is greatly undervalued.

On July 28, RBC Capital analyst Brad Erickson lowered the firm’s price target on Meta Platforms Inc. (NASDAQ:FB) from $200 to $190, maintaining an Outperform rating on the shares. Erickson, in his research note, said that the Q2 2022 results, although disappointing, were largely in line with his estimations, but its Q3 2022 guidance came in 10% below sell-side consensus. However, according to the analyst, Meta Platforms Inc. (NASDAQ:FB) has great long-term growth potential as management has started to ramp monetization, stem the Tiktok market share loss, improve targeting, and investors have started to invest in Meta Platforms Inc. (NASDAQ:FB).

Here is what Boyar Value Group had to say about Meta Platforms Inc. (NASDAQ:FB) in their Q4 2021 investor letter:

“Corporate executives can have many different reasons for selling shares (anticipation of tax law changes, philanthropy, diversification, and much more), but the sheer number of billionaire founders who sold shares in 2021 should raise eyebrows and might well be signaling a market top. Bloomberg’s Ben Steverman and Scott Carpenter report not only that Mark Zuckerberg of Meta Platforms Inc. (NASDAQ:FB) (formerly known as Facebook) sold shares in his company almost every day last year but also that the founders of Google sold ~$3.5 billion worth of stock (the first time either Sergey Brin or Larry Page has sold shares since 2017).”

Investor interest around the stock has decreased in the first quarter of 2022, with 200 hedge funds long the stock in Q1 2022, compared to 224 a quarter ago. Despite this, Meta Platforms (NASDAQ:FB) remains the best depressed stock to invest in.

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