7 Worst Beaten Down Stocks to Invest In

5. Acadia Healthcare Company, Inc. (NASDAQ:ACHC)

Current share price: $63.41

52 Week Range: $53.22 – $87.77

Year to date Gain as of October 1: -18.94%

Number of Hedge Fund Holders: 35

Acadia Healthcare Company, Inc. (NASDAQ:ACHC) is a healthcare company that provides behavioural healthcare services. It also develops and operates acute inpatient psychiatric facilities, speciality treatment facilities comprising residential recovery facilities and eating disorder facilities.

The stock has been under pressure, plunging close to its 52-week lows following reports Federal authorities were investigating it over its admissions, length of stay and billing practices. Acadia Healthcare Company, Inc. (NASDAQ:ACHC) has already refuted any wrongdoing, insisting that decisions on patient care are not business decisions and are not influenced by insurance coverage or patients’ ability to pay.

The company fires from all angles amid the federal probe, delivering solid second-quarter results. Revenue increased by 8.8% to $796 million in the company’s Q2 2024 earnings, while adjusted EBITDA increased by 7.6% year over year. Acadia Healthcare Company, Inc. (NASDAQ:ACHC) plans to add about 1,200 beds and expects strong volume growth and mid-single-digit same-store patient day growth in the year’s second half despite the closure of two underperforming facilities.

To improve safety and care coordination, the company has also standardized clinical protocols, launched new training initiatives, and spent about $100 million on technology. Acadia Healthcare Company, Inc. (NASDAQ:ACHC) claims that these efforts are yielding encouraging outcomes, as evidenced by rises in patient satisfaction ratings and excellent evaluations for their opioid treatment programs. These are a few of Acadia Healthcare’s latest innovations.

Acadia Healthcare Company, Inc. (NASDAQ:ACHC) is one of the worst-beaten stocks to invest in as its business model has proved resilient, as evidenced by 10% revenue growth over the past 12 months. Alongside this growth, EBITDA grew strongly over the same time period by 12.69%, indicating increased operational efficiency. Additionally, 35 hedge funds held stakes in the company at the end of the second quarter of 2024.