The big and large-cap stocks have spearheaded the rally in the past two years, but Wall Street’s expectations have gotten ahead of many of their fundamentals. The Nasdaq briefly entered correction territory as the stock market cooled over the past week due to tariff fears and a perceived slowdown in the growth of AI, which then spilled into the data center industry.
Wall Street is now reassessing the growth premium they are paying for many of these large-cap stocks. A lot of them have tumbled in the past week and have done so in a much more severe way than the broader market.
That said, large companies have staying power, and many of them could now be undervalued.
A close-up of a financial chart jumping as the large-capitalization value sector changes.
Methodology
For this article, I screened the worst-performing large-cap stocks ($10 billion to $100 billion) year-to-date.
I will also mention the number of hedge fund investors in these stocks. 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 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here).
15. Vertiv Holdings Co (NYSE:VRT)
Number of Hedge Fund Holders In Q4 2024: 92
Vertiv Holdings Co (NYSE:VRT) is a data center company that makes digital infrastructure products.
The stock is down significantly so far in 2025, mostly due to concerns about slowing demand for cooling systems in AI data centers. That’s despite solid Q4 EPS of $0.99 vs. $0.82 expected and revenue growth of 26% year-over-year.
The company issued softer-than-expected first-quarter guidance (EPS of $0.57-$0.63 vs. $0.64 expected).
Microsoft recently canceled some of its data center contracts, and the broader AI market pullback has dragged down VRT stock sharply since then.
The consensus price target of $137.14 implies 56.23% upside.
VRT stock is down 22.64% year-to-date.
14. Cava Group Inc (NYSE:CAVA)
Number of Hedge Fund Holders In Q4 2024: 47
Cava Group Inc (NYSE:CAVA) operates a chain of fast-casual Mediterranean restaurants.
The stock is down significantly so far in 2025 as Cava Group reported Q4 2024 earnings that missed analyst expectations by $0.01 per share.
The company provided lower-than-expected guidance for 2025 same-store sales growth. It expects growth of 6% to 8%, down from 13.4% in 2024. This expected slowdown caused the stock to plunge immediately.
Moreover, tariffs could also cause higher prices for customers. This could slow down growth if Cava passes on costs to customers or causes margin compression.
Rising input costs related to new menu items and incremental wage investments have already impacted restaurant-level profit margins slightly.
The consensus price target of $131.47 implies 51.64% upside.
CAVA stock is down 23.09% year-to-date.
13. Skyworks Solutions Inc (NASDAQ:SWKS)
Number of Hedge Fund Holders In Q4 2024: 31
Skyworks Solutions Inc (NASDAQ:SWKS) makes analog and mixed-signal semiconductors.
The stock is down significantly so far in 2025 after it reported revenue of $1.07 billion for Q1 FY2025, down 11.1% year-over-year.
Adjusted EPS of $1.60 slightly exceeded expectations. However, the company issued weak guidance for Q2 FY2025.
It forecasts revenue between $935 million and $965 million and a mid-to-high teens sequential decline in mobile revenue due to seasonal trends and competition.
In addition, a class action lawsuit was filed against Skyworks. It alleged that the company misled investors about revenue expectations during the second half of 2024 and early 2025.
The consensus price target of $83.78 implies 24.32% upside.
SWKS stock is down 23.21% year-to-date.
12. Viatris Inc (NASDAQ:VTRS)
Number of Hedge Fund Holders In Q4 2024: 48
Viatris Inc (NASDAQ:VTRS) is a healthcare company. It provides access to generic and branded medicines, biosimilars, and active pharmaceutical ingredients.
The stock is down significantly so far in 2025. In December 2024, the FDA issued a warning letter and import alert for Viatris’ Indore manufacturing facility in India due to regulatory compliance issues.
This impacted 11 actively distributed products, including lenalidomide and everolimus, with exceptions granted for only four products due to shortage concerns.
The company estimates this will reduce 2025 revenues by $500 million and adjusted EBITDA by $385 million.
On top of that, Viatris reported fourth-quarter revenues of $3.52 billion, down 8% year-over-year. It missed consensus estimates of $3.61 billion. Adjusted EPS was $0.54 and also missed expectations of $0.57.
2025 guidance also came in lower than expected. Viatris projected 2025 revenues between $13.5 billion and $14 billion, below consensus expectations of $14.3 billion. Adjusted EPS guidance of $2.12-$2.26 also fell short of the consensus estimate of $2.60.
The consensus price target of $11 implies 16.03% upside.
VTRS stock is down 23.86% year-to-date.
11. Coherent Corp (NYSE:COHR)
Number of Hedge Fund Holders In Q4 2024: 71
Coherent Corp (NYSE:COHR) is a manufacturing company in the industrial sector.
The stock is down significantly so far in 2025 due to weak guidance for Q3 FY2025. Despite strong Q2 FY2025 results, Coherent projected revenue for Q3 FY2025 to be between $1.39 billion and $1.48 billion.
This disappointed investors as it suggested slower sequential growth compared to Q2’s $1.43 billion revenue.
Also, non-GAAP EPS guidance of $0.75-$0.95 was lower than analyst expectations.
The consensus price target of $114.27 implies 58.99% upside.
COHR stock is down 24.16% year-to-date.
10. Avantor Inc (NYSE:AVTR)
Number of Hedge Fund Holders In Q4 2024: 39
Avantor Inc (NYSE:AVTR) provides biopharma, healthcare, and education products.
The stock is down significantly so far in 2025 mostly due to analyst downgrades recently after it reported weak Q4 2024 results.
Avantor reported Q4 revenues of $1.69 billion, down 2% year-over-year and below analyst expectations of $1.71 billion.
It did beat adjusted EPS estimates by two cents, but the revenue miss and weaker organic sales growth led to the stock tumbling down.
The consensus price target of $25.5 implies 61.86% upside.
AVTR stock is down 25.25% year-to-date.
9. Mobileye Global Inc (NASDAQ:MBLY)
Number of Hedge Fund Holders In Q4 2024: 30
Mobileye Global Inc (NASDAQ:MBLY) makes advanced driver assistance systems.
The stock is down significantly so far in 2025 due to it issuing disappointing revenue guidance for 2025. It signaled a potential slowdown in growth.
Analysts characterized the guidance as overly conservative but indicative of near-term challenges. Moreover, the lack of updates at CES 2025 caused investors to lose confidence.
Mobileye also reported a sharp decline in sales during late 2024, with fourth-quarter revenue falling from $637 million to $490 million year-over-year. This was accompanied by a net loss of $71 million.
The consensus price target of $22.95 implies 54.25% upside.
MBLY stock is down 25.30% year-to-date.
8. First Solar Inc (NASDAQ:FSLR)
Number of Hedge Fund Holders In Q4 2024: 65
First Solar Inc (NASDAQ:FSLR) is a solar company that makes and sells photovoltaic solar modules.
The stock is down significantly so far in 2025, as First Solar reported EPS of $3.65 for Q4 2024. This significantly missed analysts’ consensus estimate of $4.81 by $1.16.
First Solar did manage to beat revenue expectations of $1.48 billion by reporting $1.51 billion in revenue but the profitability guidance overshadowed the beat, especially since the guidance was also weaker than expected when it came to gross margins.
Plus, the return of Donald Trump to the presidency brought even more trouble to the renewable energy sector.
The consensus price target of $262.08 implies 100.22% upside.
FSLR stock is down 25.73% year-to-date.
7. Block Inc (NYSE:XYZ)
Number of Hedge Fund Holders In Q4 2024: 81
Block Inc (NYSE:XYZ) is a fintech company. It owns Cash App.
The stock is down significantly so far in 2025 as Block is facing a class-action lawsuit over allegations of compliance failures. This includes potentially facilitating illegal transactions on Square and Cash App platforms.
It has also been accused of inflating its user metrics and doing inadequate due diligence.
On top of that, Block’s Q4 2024 results missed Wall Street expectations. EPS of $0.26 fell short of consensus estimates of $0.37, and revenue came in at $6.03 billion vs. the $6.23 billion forecast.
The company is also heavily involved in crypto, and the recent decline in Bitcoin prices has added to Block’s woes.
The consensus price target of $96.31 implies 57.73% upside.
XYZ stock is down 28.09% year-to-date.
6. West Pharmaceutical Services Inc (NYSE:WST)
Number of Hedge Fund Holders In Q4 2024: 35
West Pharmaceutical Services Inc (NYSE:WST) makes injectable pharmaceutical packaging and delivery systems.
The stock is down significantly so far in 2025 due to the company issuing weak guidance for 2025. The guidance was significantly below market expectations.
The company projected revenues between $2.88 billion and $2.91 billion (versus the $3.04 billion consensus).
Adjusted EPS was projected at $6 to $6.2 vs. the $7.44 expected by analysts.
The consensus price target of $344 implies 49.21% upside.
WST stock is down 29.57% year-to-date.
5. Edison International (NYSE:EIX)
Number of Hedge Fund Holders In Q4 2024: 38
Edison International (NYSE:EIX) is an electric utility holding company that provides electricity to 15 million people in Southern California through its subsidiary, Southern California Edison.
The stock is down significantly so far in 2025 as the company faces multiple lawsuits alleging its equipment caused devastating wildfires. These fires have resulted in significant fatalities and property losses, with insured damages estimated between $28 billion and $35 billion.
Video evidence has reportedly shown electricity arcing from Edison’s equipment before the fire began. Edison itself disclosed that its equipment might have been involved in other fires.
Moreover, it reported adjusted EPS of $1.05 and missed analyst expectations of $1.09.
The consensus price target of $76.54 implies 38.6% upside.
EIX stock is down 30.14% year-to-date.
4. Deckers Outdoor Corp (NYSE:DECK)
Number of Hedge Fund Holders In Q4 2024: 66
Deckers Outdoor Corp (NYSE:DECK) makes footwear and apparel.
The stock is down significantly so far in 2025 after a post-earnings selloff. It reported strong Q3 FY2025 results with $1.83 billion revenue, up 17% year-over-year, and EPS of $3 that beat the $2.46 consensus.
But the stock still declined due to concerns over its valuations and slower growth. Analysts also expected the company to raise guidance more.
Furthermore, there has been insider selling, with a director selling $3.47 million of shares.
The consensus price target of $197.41 implies 45.11% upside.
DECK stock is down 32.99% year-to-date.
3. Illumina Inc (NASDAQ:ILMN)
Number of Hedge Fund Holders In Q4 2024: 61
Illumina Inc (NASDAQ:ILMN) is a biotech company.
The stock is down significantly so far in 2025 as Illumina was placed on China’s “Unreliable Entities List.” This could make it a potential loser if sanctions and trade restrictions keep getting tougher. China accounts for approximately 7% of Illumina’s revenue.
Moreover, Illumina’s Q4 results slightly exceeded analyst expectations, but this wasn’t enough to offset its weak guidance for this year.
Management projected revenue growth of low single digits and non-GAAP EPS between $4.50-$4.65. Illumina’s fiscal year 2024 revenue decreased by 2% year-over-year to $4.33 billion.
The consensus price target of $149.25 implies 74.17% upside.
ILMN stock is down 35.88% year-to-date.
2. Manhattan Associates Inc (NASDAQ:MANH)
Number of Hedge Fund Holders In Q4 2024: 34
Manhattan Associates Inc (NASDAQ:MANH) makes software for supply chains and retail inventory management.
The stock is down significantly so far in 2025 as it reported Q4 2024 Services revenue of $119.5 million. It grew by only 0.3% year-over-year and fell $2 million short of guidance provided in its previous quarter.
The company attributed this to delays in professional services work and deferred deals. Approximately 10% of customers with ongoing implementations had scaled back planned services work for the upcoming fiscal year.
Moreover, it announced the retirement of its President and CEO, Eddie Capel, in the first half of February.
The company is also facing multiple class action lawsuits.
The consensus price target of $273.33 implies 58.06% upside.
MANH stock is down 35.95% year-to-date.
1. The Trade Desk Inc (NASDAQ:TTD)
Number of Hedge Fund Holders In Q4 2024: 63
The Trade Desk Inc (NASDAQ:TTD) is a tech company that specializes in programmatic advertising.
The stock is down significantly so far in 2025 as it reported Q4 2024 revenue that missed its own guidance. Revenue came in at $741 million and missed guidance of $756 million. Analysts expected that it would post $760 million. This is the first revenue miss from the company in 33 quarters.
It also gave weak Q1 2025 guidance. The Trade Desk projected revenue of $575 million and adjusted EBITDA of $145 million, both below market expectations of $582 million in revenue and $193 million in EBITDA.
The company attributed the miss to execution challenges during the rollout of its AI-powered platform called Kokai.
In response, there have been multiple class action lawsuits against The Trade Desk. They allege false or misleading statements regarding its Kokai rollout.
The consensus price target of $119.45 implies 79.51% upside.
TTD stock is down 43.38% year-to-date.
While we acknowledge the potential of TTD as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than TTD but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
READ NEXT: 20 Best AI Stocks To Buy Now and Complete List of 59 AI Companies Under $2 Billion in Market Cap
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