In this article, we will look at the 12 Best Falling Stocks to Invest In Now.
This year has so far been quite eventful for those who track the US equities market. The S&P 500 touched the all-time high of 7,002.28 on January 28, but plunged 9.8% to a low of 6,316.91 on March 30. An NBC News analysis noted that this correction came primarily on the back of the US-Israel war on Iran that erupted in late February and sent energy prices surging.
The broad market index recouped some of the losses, climbing by 0.8% on April 14 and smashing past the January 28 record peak. To Ed Yardeni of Yardeni Research, this was a signal that the market was pricing in an end to the war. “As far as the stock market is concerned, the war is over until further notice,” NBC News quoted Yardeni on April 15. He added that: “It has also been another momentum-led rebound, similar to last year’s explosive rally that started on April 9, when President Donald Trump postponed his Liberation Day tariffs.”
A March 27 analysis by Goldman Sachs Research strategist Christian Mueller-Glissmann noted that the world’s broader financial asset pool had declined roughly 5% since the Middle East conflict began. He added that short-term bond yields spiked alongside falling stocks. In that light, Mueller-Glissmann warned that “there is going to be some lasting damage,” and added that Goldman’s economists had “downgraded their growth and upgraded their inflation forecasts pretty much around the world.”
Incidentally, the turbulence the market has endured so far this year is almost a replica of the volatile stretch experienced during the thick of President Trump’s tariff war last year. The S&P 500 briefly entered bear market territory when it plunged more than 20% from its mid-February record high after President Trump’s sweeping “Liberation Day” tariff announcement on April 2. Later, a 90-day tariff pause stabilized markets, and the index closed 2025 with an approximate 16% full-year gain. This recovery masked the extreme intra-year volatility that rattled investors.
If anything, it now appears that falling and turbulent markets is a recurring feature of the US equities market. With that in mind, this analysis identifies 13 stocks that Wall Street analysts consider strong options in this environment.
Our Methodology
To make this list, we used Finviz to identify stocks that have lost 20% or more over the past 12 months as of April 22, 2026. Then, we picked stocks that had the highest number of hedge fund investors in Q4 2025, based on 13F filings in Insider Monkey’s database. We then ranked these falling stocks by their average analyst share-price target upside, also as of April 22, and selected the top names. This list is presented in ascending order based on upside.
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 498.7% since May 2014, beating its benchmark by 303 percentage points (see more details here).
Best Falling Stocks to Invest In Now
12. Salesforce, Inc. (NYSE:CRM)
Stock Upside: 34.68%
1-Year Loss: 23.12%
Number of Hedge Fund Holders: 115
Salesforce, Inc. (NYSE:CRM) is one of the best falling stocks to invest in now. On April 17, Truist Securities analyst Terry Tillman reiterated a Buy rating and $280 price target on Salesforce, Inc. after attending the company’s TDX developer conference in San Francisco. TDX is an annual event where Salesforce showcases new tools and directions for developers, admins, and enterprise builders.
Tillman said that during the event, he went beyond the keynotes and held direct conversations with five Salesforce customers and a product specialist focused on Salesforce Flow. Salesforce Flow is a no-code automation tool that connects and moves data across Salesforce and external systems without requiring engineering skills.
The analyst noted that one of the key topics in those conversations was Agentforce. This is Salesforce’s flagship artificial intelligence platform that lets businesses deploy autonomous AI agents capable of handling tasks like customer service, sales support, and process automation independently. Customers told Tillman that Agentforce pricing remains a friction point. This is in reference to the fact that Salesforce has revised Agentforce’s pricing model multiple times since launch. These constant changes have made it hard for enterprise buyers to predict costs, Tillman noted.
Despite this, the analyst sees the pricing friction as a near-term problem that Salesforce can fix. He believes that refining the pricing model alongside continued work to scale AI agents could remove the buying hesitation that is currently slowing Agentforce adoption. Once resolved, adoption could accelerate markedly through the rest of 2026.
On a more positive note, competing AI coding tools are not displacing Salesforce from enterprise workflows, noted Tillman. He also pointed out that Salesforce Flow is earning solid marks from users.
Salesforce, Inc. is a cloud-based enterprise software provider. It specializes in customer relationship management solutions. The company offers platforms like Sales Cloud, Service Cloud, Marketing Cloud, and Data Cloud, which help organizations manage customer interactions, automate workflows, and analyze data.
11. DraftKings Inc. (NASDAQ:DKNG)
Stock Upside: 34.84%
1-Year Loss: 31.31%
Number of Hedge Fund Holders: 72
DraftKings Inc. (NASDAQ:DKNG) is one of the best falling stocks to invest in now. On April 16, DraftKings Inc. said it intends to launch its online sportsbook and casino products in Alberta, Canada. The company is waiting for licensure and regulatory approval from the Alberta Gaming, Liquor and Cannabis Commission, or AGLC.
If approved, DraftKings plans to go live on July 13, 2026. This is the date the AGLC has set as the universal launch day for Alberta’s new regulated private iGaming market, which means all approved operators will open their doors to players on the same day.
A successful launch will make Alberta DraftKings’ second province in Canada and its 34th jurisdiction across North America. This will continue a steady geographic expansion that the company has been executing across the continent, management said in the press release.
Commenting on the development, Greg Karamitis, the company’s Executive VP and General Manager of Sports, said: “We’re excited about the opportunity to expand DraftKings’ footprint in Canada and bring our online sportsbook and casino experiences to customers in Alberta.” He added that this launch is timed with the World Cup, which will be hosted in North America from June 11 to July 19. “It’s a particularly exciting moment for sports fans in the province to engage with our platform,” Karamitis stated.
Eligible Alberta residents can already pre-register for DraftKings Sportsbook and Casino ahead of the expected launch.
DraftKings Inc. is a digital sports entertainment and gaming company. It operates online sports betting, iGaming, and daily fantasy sports platforms, and generates revenue through user wagers, gaming margins, and related services.
10. Fidelity National Information Services, Inc. (NYSE:FIS)
Stock Upside: 36.30%
1-Year Loss: 39.72%
Number of Hedge Fund Holders: 57
Fidelity National Information Services, Inc. (NYSE:FIS) is one of the best falling stocks to invest in now. On March 24, Fidelity National Information Services, Inc. launched FIS CD Prediction Clearing, a new post-trade clearing solution designed specifically for regulated prediction markets.
Fidelity said the product addresses a critical gap in market infrastructure, which is the speed, volume, and around-the-clock nature of prediction market trading. The existing legacy systems were built for conventional, batch-based processing cycles, which makes them inadequate in the current environment, the company noted.
The company said FIS CD Prediction Clearing is built on the foundation of its existing FIS CD Books and Records Manager platform. It is fully integrated into the company’s broader Cleared Derivatives suite, Fidelity detailed. This means clients do not adopt a standalone tool but rather an upgrade within an ecosystem they already use.
Fidelity stated that the new platform uses a cloud-native architecture that supports both middle and back-office functions. It also scales with transaction volume and reduces infrastructure costs. The company added that the solution’s primary users are futures commission merchants, or FCMs, who are the intermediaries that handle customer trading in derivatives markets.
According to Andrés Choussy, head of the company’s Capital Markets segment, FIS CD Prediction Clearing “gives existing and new FCMs entering these [prediction] markets the technology to handle millions of transactions a day with real-time risk updates.” He added that they are leveraging over three decades of cleared derivatives expertise to bridge the gap between “these fast-moving regulated new markets and the financial infrastructure they require.”
Fidelity National Information Services, Inc. is a financial technology company. It provides payment processing, banking software, and capital markets solutions to financial institutions, merchants, and businesses worldwide. Its offerings include core banking platforms, digital payment systems, and transaction processing services.
9. Workday, Inc. (NASDAQ:WDAY)
Stock Upside: 39.36%
1-Year Loss: 41.55%
Number of Hedge Fund Holders: 70
Workday, Inc. (NASDAQ:WDAY) is one of the best falling stocks to invest in now. On April 16, Workday, Inc. and employee recognition software firm Achievers jointly announced the availability of Workday Recognition. Workday Recognition is an artificial-intelligence-powered employee recognition and rewards solution, which is provided by Achievers, and embedded directly into Workday’s Human Capital Management (HCM) platform.
This tool ensures that recognition activity happens natively within Workday, the company said. It means that employees can recognize peers and redeem rewards all in one place. On the other hand, HR teams no longer need to juggle separate systems for HR management and employee engagement, Workday stated.
Workday added that the solution uses AI to analyze peer-to-peer recognition patterns. This is important, said Workday, because it helps HR leaders identify top contributors, surface in-demand skills across the workforce, and build a continuous, real-time record of employee contributions. The resultant insights feed directly into performance management decisions.
The company detailed that the integration of Workday Recognition into the HCM platform was informed by research from the Achievers Workforce Institute. It found that employees who receive recognition weekly are 2.6 times more likely to be productive and six times more likely to stay with their company long-term. The integrated platform supports a global rewards catalog in local currencies across 190 countries, which, per Workday, makes it viable for large multinational employers operating across diverse markets.
Workday, Inc. is a provider of cloud-based enterprise software focused on human capital management, financial management, and planning solutions. Its platform enables organizations to manage payroll, workforce planning, accounting, and analytics.
8. Intuit Inc. (NASDAQ:INTU)
Stock Upside: 43.26%
1-Year Loss: 30.62%
Number of Hedge Fund Holders: 91
Intuit Inc. (NASDAQ:INTU) is one of the best falling stocks to invest in now. On April 9, Intuit Inc. announced it had completed the Federal Reserve’s certification and readiness program for the FedNow Service. This means the company is now formally part of the US central bank’s instant payments network.
The FedNow Service is the Fed’s instant payments infrastructure, through which participating institutions can send and receive funds within seconds, at any time of day, any day of the year. This is a massive upgrade over traditional automated clearing house, or ACH payments, which can take one to three business days to settle.
However, Intuit clarified that the certification does not make it a bank. Rather, it allows the company to partner with financial institutions to send instant payment transactions on behalf of its customers. This flexible participation model lets Intuit embed real-time payments directly into its software without holding the funds itself, the company said.
Intuit stated that the capability will roll out across all of its platforms, including QuickBooks, TurboTax, Credit Karma, Mailchimp, and Intuit Enterprise Suite. The company added that the capability will enable instantly payable invoices, let employers pay workers the moment a job is done, and eliminate payment processing delays.
James Barrese, SVP of Fintech at Intuit, noted that connecting to the FedNow network will allow the company to build “toward a world where money moves in real time across Intuit’s entire ecosystem.” As a result, customers will not just get their money faster, they will gain more confidence in every financial decision, Barrese added.
Intuit Inc. provides financial management and tax preparation software for consumers, small businesses, and accounting professionals. Its core products include TurboTax, QuickBooks, Credit Karma, and Mailchimp, which support tax filing, bookkeeping, personal finance, and marketing automation.
7. SAP SE (NYSE:SAP)
Stock Upside: 46.23%
1-Year Loss: 30.10%
Number of Hedge Fund Holders: 36
SAP SE (NYSE:SAP) is one of the best falling stocks to invest in now. On April 22, HSBC analyst Abhishek Shukla upgraded SAP SE from Hold to Buy and trimmed the price target to €182 from €187.
The analyst argued that SAP’s steep valuation decline has created a compelling buying opportunity. He pointed to the fact that SAP’s shares are trading at just 19.8 times its next-twelve-months earnings, which is a level that is 41% below the stock’s own 18-month average. This suggests that the market has already priced in a significant amount of bad news, the analyst noted.
Shukla did, however, point out that close peer Oracle Fusion cloud ERP saw its constant currency revenue growth slow from 17% to 14% in the quarter ended February 2026. This is a signal that enterprise cloud demand may be softening more broadly, Shukla noted. On top of that, said Shukla, SAP’s new deal flow in March 2026 may have been weak, partly due to business uncertainty tied to the Middle East conflict.
Those concerns feed into why HSBC’s own earnings estimates for SAP sit well below Wall Street consensus. The firm’s non-GAAP EPS forecasts for 2026-2030 are 4% to 18% below the market’s expectations. This is largely because HSBC believes analysts are overestimating how quickly SAP can shift its customers from traditional on-premise licenses to cloud subscriptions. When completed, this transition typically generates two to three times more revenue per customer for SAP, noted Shukla.
SAP SE is a multinational enterprise software company that provides solutions for enterprise resource planning, supply chain management, procurement, and customer experience. Its offerings include the SAP S/4HANA and SAP Business Technology Platform.
6. Fair Isaac Corporation (NYSE:FICO)
Stock Upside: 52.26%
1-Year Loss: 44.65%
Number of Hedge Fund Holders: 81
Fair Isaac Corporation (NYSE:FICO) is one of the best falling stocks to invest in now. On April 16, Mizuho analyst Sean Kennedy initiated coverage on Fair Isaac Corporation with an Outperform rating and a $1,416 price target. Kennedy argued that the market has overreacted to concerns about the company losing ground to a competitor.
The analyst is of the opinion that the market is overestimating how much damage VantageScore, Fair Isaac’s competitor, can actually do. He pointed out that Fair Isaac’s market dominance is not just the result of regulatory requirements but is also deeply embedded in how lenders build their credit systems, how investors assess risk in mortgage-backed securities, and decades of predictive track record that both sides of a loan transaction trust. That kind of entrenchment is difficult to displace, Kennedy stated.
Kennedy noted that beyond the competitive threat, the Mortgage Direct License Program further reinforces Fair Isaac’s position. This program allows Fair Isaac to sell directly to mortgage lenders instead of licensing its scores through the credit bureaus. As a result, the company is able to capture more of the economics from each credit check. This explains why Kennedy sees this program as a meaningful competitive strengthener for Fair Isaac.
The analyst said that Fair Isaac is in a great position to benefit if interest rates fall. If this happens, mortgage refinancing activity would pick up sharply, and since every new mortgage application requires a credit score pull, that would directly increase Fair Isaac’s volume and revenue, Kennedy noted. In his view, therefore, the stock is also a rate-sensitive trade.
Fair Isaac Corporation is an analytics software company. It develops decision management solutions and credit scoring services for financial institutions, insurers, and businesses. It is best known for the FICO Score, a widely used measure of consumer credit risk.
5. Sea Limited (NYSE:SE)
Stock Upside: 55.48%
1-Year Loss: 26.74%
Number of Hedge Fund Holders: 113
Sea Limited (NYSE:SE) is one of the best falling stocks to invest in now. On April 20, Sea Limited established an Artificial Intelligence Centre of Excellence, or AI CoE, in Singapore. The company said the Digital Industry Singapore, or DISG, which is a joint government office involving the Economic Development Board, Enterprise Singapore, and the Infocomm Media Development Authority, backed this initiative.
Sea has organized the AI CoE around foundational AI, which involves advancing the company’s in-house foundation model development and evaluation frameworks. The goal is to stay at the frontier of AI research. The second focus area is scalable deployment. This involves translating research breakthroughs into production-ready solutions that can be deployed at scale to improve user experience and business efficiency. The other focus area is AI-native talent and new operating models. Here, the initiative will focus on cultivating a new generation of AI-native employees and experimenting with AI-enabled ways of working.
Sea said that over the next three years, it expects the AI CoE to generate demand for at least 100 R&D and innovation roles in Singapore. The roles span AI research, engineering, and product development.
The company added that a key focus of the center will be deepening its stable of in-house AI models. This includes Compass Max v3.5, which is a 245 billion parameter Large Language Model, or LLM, that Sea built specifically for Southeast Asian languages and e-commerce contexts. The model is already live across Shopee’s platform.
Sea Limited is a digital platform company. It operates across e-commerce, digital entertainment, and financial services in Southeast Asia and Latin America. Its key businesses include Shopee, an online marketplace; Garena, a digital gaming platform; and SeaMoney, which provides digital payments and financial services.
4. Strategy Inc. (NASDAQ:MSTR)
Stock Upside: 55.52%
1-Year Loss: 52.20%
Number of Hedge Fund Holders: 41
Strategy Inc. (NASDAQ:MSTR) is one of the best falling stocks to invest in now. On April 21, Cantor Fitzgerald analyst Ramsey El-Assal raised his price target on Strategy Inc. to $212 from $192, keeping an Overweight rating on the stock.
El-Assal said that investor attention is increasingly shifting toward how Strategy is evolving as a bitcoin holding vehicle ahead of its Q1 FY2026 earnings on May 2. For context, Strategy has transformed itself into essentially a bitcoin acquisition machine. The company has raised capital through stock sales, preferred equity, and debt to continuously buy and hold bitcoin on its balance sheet. Its share price therefore moves closely with bitcoin’s price and the market’s appetite for indirect bitcoin exposure.
The analyst noted that during Strategy’s Q4 earnings call, the dominant concern was bitcoin’s long-term vulnerability to quantum computing. However, more recently, the focus has moved to whether the company can manage its growing interest burden following a sharp increase in issuance of STRC, its preferred stock instrument used to raise capital.
Still on the quantum computing risk, El-Assal noted that he is seeing early but meaningful progress on proposals to make bitcoin quantum-resistant. Though, he acknowledged that substantial work remains before the protocol actually gets there.
Strategy Inc., formerly known as MicroStrategy Incorporated, is a provider of enterprise analytics and business intelligence software. It offers platforms that help organizations analyze data and support decision-making. Additionally, the company has adopted a bitcoin treasury strategy, which means it holds significant amounts of bitcoin as a primary reserve asset.
3. Zscaler, Inc. (NASDAQ:ZS)
Stock Upside: 55.79%
1-Year Loss: 28.96%
Number of Hedge Fund Holders: 56
Zscaler, Inc. (NASDAQ:ZS) is one of the best falling stocks to invest in now. On April 22, Morgan Stanley analyst Meta Marshall downgraded Zscaler, Inc. from Overweight to Equalweight and cut the price target to $155 from $200.
The analyst said Zscaler’s platform expansion story is not playing out as expected and that there are no meaningful positive catalysts on the horizon. Incidentally, Morgan Stanley had upgraded the stock on the thesis that Zscaler could grow beyond its core business. The firm also believed the company would cement itself as a third major cybersecurity platform vendor, alongside industry giants like Palo Alto Networks and CrowdStrike. The plan had three pillars, including expanding through the Red Canary acquisition, building out data security capabilities, and growing Zscaler Digital Experience, or ZDX.
Of those three, only ZDX has shown real momentum, noted Marshall. He stated that the product crossed $100 million in annual recurring revenue, and bookings grew 80% year over year. However, Red Canary, the acquisition that was supposed to bolster Zscaler’s threat detection capabilities and broaden its platform reach, has not gained the traction Morgan Stanley expected. The analyst said integration into Zscaler’s core Zero Trust Exchange platform is still a work in progress, and the market impact has been underwhelming so far.
Also, the analyst noted that Zscaler operates in the Secure Access Service Edge market, which is a fast-growing but increasingly crowded space that combines network security and wide-area networking into a single cloud-delivered service. As more vendors pile in, pricing pressure intensifies and winning new business becomes more difficult. Morgan Stanley now expects Zscaler’s two main products, ZIA and ZPA, to settle into mid-teens growth rates. This is a substantial step down from the hypergrowth that originally attracted investor enthusiasm, Marshall said.
Zscaler, Inc. is a cloud-based cybersecurity company. It provides zero-trust security solutions designed to protect users, devices, and applications across enterprise networks. Its platform delivers secure internet access, private application access, and threat protection through a fully cloud-native architecture.
2. Flutter Entertainment Plc (NYSE:FLUT)
Stock Upside: 56.69%
1-Year Loss: 51.89%
Number of Hedge Fund Holders: 79
Flutter Entertainment Plc (NYSE:FLUT) is one of the best falling stocks to invest in now. On April 9, Stifel analyst Christopher Bavitz cut his price target on Flutter Entertainment Plc to $189 from $216 while keeping a Buy rating on the stock.
The analyst said his firm, Stifel, had reassessed expectations ahead of Flutter’s Q1 2026 earnings report. This was largely because of ongoing weakness in the company’s US online sports betting business following a guidance reset that disappointed the market earlier in the year. Bavitz noted that Flutter had already rattled investors in February when it issued fiscal year 2026 guidance that came in well below Wall Street expectations.
The core focus heading into the earnings print, according to Stifel, is the US handle share exit-rate. This is essentially what portion of total bets placed in the country Flutter is capturing. The other focus area is whether early signs suggest the company’s adjusted promotional strategy is starting to work. Flutter had been spending aggressively to attract and keep bettors, but that approach hurt margins without sustaining the intended growth, noted Bavitz.
On this front, Stifel’s analysis of state-level betting data indicates that the rate at which customers stop using the platform likely peaked in December and January. This position aligns with what Flutter’s own management had indicated. The analyst added that handle share trends also improved sequentially heading into Q2, when Flutter plans to launch a new sports betting loyalty program designed to reduce churn and rebuild engagement.
Stifel estimates Flutter’s online casino net gaming revenue grew 20% year over year in Q1, which is slightly ahead of the company’s own high-teens growth guidance for the full fiscal year. That stronger casino performance is helping absorb the drag from softer sports betting volumes, said Bavitz.
Flutter Entertainment plc (NYSE:FLUT) is an international sports betting and gaming operator. Its portfolio of brands includes FanDuel, Paddy Power, Betfair, and PokerStars. The company offers online sports betting, iGaming, and poker services across multiple regulated markets.
1. Axon Enterprise, Inc. (NASDAQ:AXON)
Stock Upside: 72.87%
1-Year Loss: 27.11%
Number of Hedge Fund Holders: 68
Axon Enterprise, Inc. (NASDAQ:AXON) is one of the best falling stocks to invest in now. On April 7, Axon Enterprise, Inc. unveiled three new AI-powered tools during its annual Axon Week 2026 user conference. The tools are Axon Vision, an expanded Axon Assistant, and Axon 911. The company said the goal is to cut through what it calls the “data tax” crushing modern public safety agencies.
According to Axon, in the US alone, more than 240 million 911 calls are placed every year. These are increasingly including video, images, and telemetry, and that body-worn and static cameras generate millions of hours of footage simultaneously. In other words, critical context is constantly scattered across disconnected systems.
To that end, the company is positioning the three new tools as part of the solution. Axon Vision applies AI to live CCTV camera feeds to automatically recognize critical activity as it happens. This allows operators to verify incidents using nearby cameras and decide on the appropriate response rather than manually reviewing hours of footage.
For Axon Assistant, which was originally limited to body-worn cameras, the tool is now expanding across the entire Axon ecosystem. It gives officers secure, FBI CJIS-compliant access to data from Axon Evidence and the Axon mobile app in the field. This means officers can pull operational intelligence in real time without compromising data security or chain of custody requirements.
The Axon 911 tool is a cloud-based emergency call infrastructure built on Axon’s acquisitions of Prepared and Carbyne. Axon said this tool brings 911 center operations into the AI era by feeding emergency response data directly into field workflows so that responders arrive on scene with critical context already in hand.
According to Axon, these tools taken together work as a unified intelligence layer rather than separate point solutions. Users can connect TASER devices, body cameras, drones, in-car cameras, digital evidence management, and 911 data into a single, coherent picture of an unfolding incident.
Axon Enterprise, Inc. provides public safety technology solutions. It offers conducted energy devices, such as TASER devices, body cameras, and cloud-based digital evidence management software to law enforcement agencies and enterprises.
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