5 Best Falling Stocks to Buy Now

In this article, we will discuss the 5 best falling stocks to buy now. If you want to explore similar stocks, you can read 12 Best Falling Stocks to Buy Now.

5. General Motors Company (NYSE:GM)

Year-To-Date Decline as of November 25: 33.86%

Number of Hedge Fund Holders: 74

General Motors Company (NYSE:GM) is among the largest automakers in the world a long history and a strong brand. The company is focused on improving its core business and is making significant investments in new technologies, including electric and autonomous vehicles. General Motors Company (NYSE:GM) has been taking a beating in 2022 and is down 33.86% for the year, as of November 25. However, the company has long-term growth potential and is well-positioned to benefit from the shift to electric vehicles and the growth of the Chinese market.

General Motors Company (NYSE:GM) is a financially strong company that is currently trading at bargain levels. The company has free cash flows of $1.13 billion and is trading at a PE multiple of 6x, as of November 25. The stock is ranked among the best falling stocks to buy now.

On October 26, JPMorgan analyst Ryan Brinkman raised his price target on General Motors Company (NYSE:GM) to $59 from $58 and maintained an Overweight rating on the shares.

At the end of Q3 2022, 74 hedge funds were long General Motors Company (NYSE:GM) and held stakes worth $3.32 billion in the company. Of those, Berkshire Hathaway was the top investor in the company and held a position worth $1.60 billion.

Here is what Diamond Hill Capital had to say about General Motors Company (NYSE:GM) in its third-quarter 2022 investor letter:

“Most recently, we initiated a position in General Motors Company (NYSE:GM), one of the largest automakers in the United States. Over the past several years, GM has taken steps necessary to focus the company on the most profitable segments and move into position to compete in an electrified and autonomous world. With the recent rise in interest rates there was a meaningful selloff in the auto industry, which presented us an attractive entry point to a name we know well.”

4. NVIDIA Corporation (NASDAQ:NVDA)

Year-To-Date Decline as of November 25: 45.98%

Number of Hedge Fund Holders: 89

NVIDIA Corporation (NASDAQ:NVDA) has declined significantly in 2022 and is down 46% for the year, as of November 25. However, the company has a strong market share and brand presence in the GPU market, and its products are used in a wide range of gaming and professional applications. The company has a history of delivering strong financial results, and its stock has been a strong performer, especially in recent years. The company is well-positioned for continued growth due to its exposure to lucrative high-growth markets such as data centers, AI, and gaming.

On November 17, Needham analyst Rajvindra Gill raised his price target on Nvidia Corporation (NASDAQ:NVDA) to $200 from $155 and maintained a Buy rating on the shares. This November Jefferies analyst Mark Lipacis maintained a Buy rating and his $225 price target on NVIDIA Corporation (NASDAQ:NVDA).

At the end of Q3 2022, 89 hedge funds were long NVIDIA Corporation (NASDAQ:NVDA) and held stakes worth $4.29 billion in the company. This is compared to 84 positions in the previous quarter with stakes worth $3.31 billion. The hedge fund sentiment for the stock is positive. As of September 30, Fisher Asset Management is the top investor in the company and has disclosed a position worth $1.46 billion.

Here is what ClearBridge Investments had to say about NVIDIA Corporation (NASDAQ:NVDA) in its third-quarter 2022 investor letter:

“Likewise, graphics chip maker NVIDIA Corporation (NASDAQ:NVDA) (-19.9%) has struggled through the post-COVID-19 recovery but maintains dominant positions in key secular growth markets of AI and gaming. The company has significantly underperformed the index and semiconductor peers recently due to a gaming inventory correction, a decline in aggregate cryptocurrency demand and reduction in crypto mining intensity as well as concerns around the sustainability of data center sales.

We tactically trimmed our position early in 2022 due to concerns around these cycle dynamics but remain confident in the company’s long-term prospects.”

3. Adobe Inc. (NASDAQ:ADBE)

Year-To-Date Decline as of November 25: 40.77%

Number of Hedge Fund Holders: 93

Adobe Inc. (NASDAQ:ADBE) is the global leader in creative software solutions, with a portfolio that includes industry-leading Creative Cloud applications such as Photoshop, Illustrator, and InDesign. The company also offers powerful marketing and analytics solutions, including its Marketo and Adobe Analytics platforms. The company has a strong track record of delivering innovative and impactful solutions that help its customers create and optimize their content and campaigns. The company has a proven business model, with a high customer retention rate and a growing recurring revenue stream. Adobe Inc. (NASDAQ:ADBE) is well-positioned for continued growth, as the global market for creative and marketing software solutions is expected to continue to grow at a healthy clip. The company is also investing in new growth areas such as virtual reality and artificial intelligence.  Adobe Inc. (NASDAQ:ADBE) has dipped by over 40% in 2022 as of November 25.

This October, Piper Sandler analyst Brent Bracelin revised his price target on Adobe Inc. (NASDAQ:ADBE) to $345 from $358 and reiterated an Overweight rating on the shares. On November 19, Jefferies analyst Brent Thill revised his price target on Adobe Inc. (NASDAQ:ADBE) to $420 from $440 and maintained a Buy rating on the shares.

At the end of Q3 2022, 93 hedge funds were bullish on Adobe Inc. (NASDAQ:ADBE) and held stakes worth $6.74 billion in the company. Of those, Fisher Asset Management was the most prominent investor in the company and held stakes worth $1.41 billion.

Here is what Aristotle Capital had to say about Adobe Inc. (NASDAQ:ADBE) in its third-quarter 2022 investor letter:

“Adobe Inc. (NASDAQ:ADBE), the content creation and publishing software provider, was the largest detractor for the quarter. So far in 2022, Adobe has achieved record revenues with strength in all its businesses, as the acceleration toward digital has continued to drive content creation across industries. During the quarter, however, the company’s shares declined after announcing its plans to acquire Figma, a web‐first collaborative interface design platform, for $20 billion. What at first glance may seem like a steep price, Figma’s web‐based, multi‐player platform could accelerate the delivery of Adobe’s Creative Cloud technologies on the web, increasing Adobe’s reach and total addressable market. Management expects the deal to close in 2023 and the transaction to be accretive by the end of the third year of integration. As is the case with any significant acquisition, we will take our time to understand this deal’s rationale and follow management’s ability to take Figma to “new heights.” This has been the case with previous acquisitions, including Marketo and Magento (although each at a much smaller purchase price). In general, we admire management teams that are able to recognize the evolving needs of their clients and are unafraid of “competing with themselves” by developing new offerings. We will continue to study this acquisition and better understand the desire of content creators to collaborate over the web.”

2. The Walt Disney Company (NYSE:DIS)

Year-To-Date Decline as of November 25: 36.93%

Number of Hedge Fund Holders: 112

The Walt Disney Company (NYSE:DIS) is one of the largest global entertainment companies, with operations in media networks, parks and resorts, studio entertainment, and consumer products & interactive media. The company has a strong track record of creating successful businesses. The company has a strong cash position and according to its balance sheet, The Walt Disney Company (NYSE:DIS) has free cash flows of $1.06 billion. As of November 25, The Walt Disney Company (NYSE:DIS) is down roughly 37% year to date.

On November 21, MoffettNathanson analyst Michael Nathanson upgraded The Walt Disney Company (NYSE:DIS) to Outperform from Market Perform and reiterated his $120 price target.

At the close of Q3 2022, 112 hedge funds were long The Walt Disney Company (NYSE:DIS) and disclosed stakes of $3.89 billion in the company. This is compared to 109 positions in the previous quarter with stakes worth $3.19 billion. The hedge fund sentiment for the stock is positive. As of September 30, Fisher Asset Management is the top shareholder in the company and has a position worth $484.9 million.

Here is what Third Point specifically said about The Walt Disney Company (NYSE:DIS) in its third-quarter 2022 investor letter:

“As disclosed in our Q2 letter, we reinitiated a significant position in The Walt Disney Company (NYSE:DIS) when the company retested its Covid lows earlier this year. At the current price, Disney is trading for little more than the stand-alone value of its Parks business and a mere 15x ’24 “street” consensus. The company remains early in its Direct to Consumer (“DTC”) transition with a leading market position, and yet the current stock price ascribes negligible value to the streaming business. We believe this is due to questions around the terminal economics of streaming, given large losses being generated today at Disney (>$1 billion dollars last quarter) and stagnating margins at peers such as Netflix. On the last earnings call, management highlighted three items that could lead to an inflection in DTC profitability over the next 12 months: a 38% price increase for Disney+ in the US; moderating growth in cash content expense; and an advertising tier for Disney+ launching in two months that can drive additional ARPU given high demand for the Disney brand amongst advertisers.

While the company has guided to Disney+ achieving breakeven sometime within the fiscal year ending September 2024, the valuation suggests the market remains skeptical. Disney only trades at ~14x the $7 in earnings generated prior to the Fox acquisition, which implies investors don’t expect earnings to meaningfully exceed this figure in the coming years. Hence, the first value driver we highlighted in our last letter is the opportunity for management to optimize Disney’s cost base to drive earnings growth. We believe Disney has ample means to rationalize costs across its operating platform and deliver targeted content for home viewing that does not entail the same cost structure of exclusive theatrical releases…” (Click here to view the full text)

1. Meta Platforms, Inc. (NASDAQ:META)

Year-To-Date Decline as of November 25: 67.09%

Number of Hedge Fund Holders: 177

Meta Platforms, Inc. (NASDAQ:META) is one of the hottest Silicon Valley companies and operates some of the most popular social networking platforms in the world. The company has a strong management team, a large user base, and is a leader in the tech space. Though the stock has tanked by 67% year to date, as of November 25, Meta Platforms, Inc. (NASDAQ:META) dominates the tech space and has the potential to become even more dominant in the years to come. As of November 25, the stock is trading at a PE multiple of 10x and is presenting an attractive entry point for long-term investors.

This November, Itau BBA analyst Thiago Kapulskis raised his price target on Meta Platforms, Inc. (NASDAQ:META) to $120 from $102 and reiterated an Outperform rating on the shares. On November 15, Morgan Stanley analyst Brian Nowak updated his price target on Meta Platforms, Inc. (NASDAQ:META) to $100 from $105 and maintained an Equal Weight rating on the shares.

At the end of the third quarter of 2022, 177 hedge funds were eager on Meta Platforms, Inc. (NASDAQ:META) and held stakes worth $14.15 billion. Of those, Fisher Asset Management was the most prominent shareholder in the company and held a position worth $1.60 billion.

Here is what ClearBridge Investments had to say about Meta Platforms, Inc. (NASDAQ:META) in its third-quarter 2022 investor letter:

“We initiated a new position in Meta Platforms, Inc. (NASDAQ:META), in the communication services sector, which operates the Facebook and Instagram social media platforms and is a leading digital advertising provider. We have been carefully watching the company over the last few quarters and believe headwinds from lower monetizing in Facebook and Instagram Reels and pressures from consumer privacy measures are poised to lessen. We believe the company has begun to fully acclimate to this new environment, will achieve greater effectiveness in Reels monetization and find ways to adapt to new privacy standards which will rebound advertising efficiency. Combined with a greater focus on cost control, we believe these initiatives will help contribute to further margin expansion and leave the company well-positioned moving forward.”

You can also take a look at 11 Best Covid Stocks To Invest In and 10 Growth Stocks with Upside Potential.