In this article, we will look at the 10 Best Beaten Down Growth Stocks to Buy According to Analysts.
On October 27, Tejas Dessai, Director of Research at Global X ETFs, joined CNBC Television for an interview to discuss how the big tech earnings this week are expected to impact the broader stock market. He noted that the current week is crucial for the market, as it is expected to set the tone for the AI trade heading into the end of the year. He noted that earnings overall have been strong for the quarter and highlighted that investors will be closely watching the earnings set to be released this week. Dessai highlighted that investors are more focused on capital expenditure guidance by hyperscalers and AI revenue surprises. He noted that these two factors are particularly important because an increase in expenditure indicates that companies have confidence in AI, and revenue surprises provide justification for the huge amount of money being allocated.
Dessai believes that it is this capital expenditure and monetization of AI that is expected to drive markets higher into 2026. Dessai expects that the hyperscaler capital expenditure will reach $350 billion in 2025 and $490 billion in 2026. While answering a question regarding the alternative case scenario, where the capital expenditure fails to meet market expectations. Dessai notes that this is only possible if the big tech companies do not see the AI potential and innovation delivering as per the expectations. However, he adds that this is unlikely at the moment as the demand for AI continues to outweigh supply in almost a 10-to-1 ratio. Therefore, Dessai expects the tech companies to continue increasing the capital expenditure and, at the same time, deliver on revenue growth estimates as well.
With that, let’s take a look at the 10 Best Beaten Down Growth Stocks to Buy According to Analysts.
Our Methodology
To curate the list of 10 Best Beaten Down Growth Stocks to Buy According to Analysts, we used the Finviz Stock Screener, CNN, Yahoo Finance, Seeking Alpha and Insider Monkey’s Q2 hedge fund database as our sources. Using the screener, we aggregate a list of growth stocks trading within 0% to 10% of their 52-week lows, with FWD EPS Growth of at least 15%, and analysts expect more than 25% upside. Next, we cross-checked the stock price and 52-week range from Yahoo Finance, FWD EPS Growth from Seeking Alpha, and analyst upside potential from CNN. Lastly, we ranked the stocks in ascending order of the upside potential. We have also added the hedge fund sentiment around each stock sourced from Insider Monkey’s database. Please note that the data was recorded on October 30.
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10 Best Beaten Down Growth Stocks to Buy According to Analysts
10. T-Mobile US, Inc. (NASDAQ:TMUS)
Price: $215.01
52-Week Range: 208.39 – 276.49
FWD EPS Growth: 19.50%
Number of Hedge Fund Holders: 76
Analyst Upside Potential: 27.90%
T-Mobile US, Inc. (NASDAQ:TMUS) is one of the Best Beaten Down Growth Stocks to Buy According to Analysts. Wall Street has a mixed opinion on T-Mobile US, Inc. (NASDAQ:TMUS) since it released its fiscal third quarter results on October 23. The company topped EPS estimates for the quarter by $0.20; however, the revenue of $21.96 billion fell short of the consensus by $7.29 million.
Recently, on October 28, Laurent Yoon from Bernstein reiterated a Hold rating on T-Mobile US, Inc. (NASDAQ:TMUS) with a price target of $265.
Earlier on October 23, Michael Funk of Bank of America Securities had also reiterated a Hold rating on the stock with a price target of $270. Funk noted that the company posted strong results during the third quarter. He highlighted subscriber growth, postpaid phone net additions, and service revenue as key indicators where T-Mobile US, Inc. (NASDAQ:TMUS) exceeded expectations.
Additionally, the company updated its guidance, suggesting management’s confidence in the company’s growth potential. However, Funk maintained a Hold rating despite these strong results because he believes the company’s current market valuation already incorporates these performance metrics, thereby reducing further upside.
T-Mobile US, Inc. (NASDAQ:TMUS) provides wireless communication services across the United States, Puerto Rico, and the Virgin Islands under brands including T-Mobile, Metro by T-Mobile, and Mint Mobile.
9. NICE Ltd. (NASDAQ:NICE)
Price: $134.31
52-Week Range: 126.66 – 200.65
FWD EPS Growth: 15.69%
Number of Hedge Fund Holders: 23
Analyst Upside Potential: 41.46%
NICE Ltd. (NASDAQ:NICE) is one of the Best Beaten Down Growth Stocks to Buy According to Analysts. On October 21, Morgan Stanley assumed coverage of NICE Ltd. (NASDAQ:NICE) with an Overweight rating and a $193 price target.
The firm noted that the Q3 checks for the software segment were generally stable. However, it was moderate considering the performance from Q1 to Q2. Morgan Stanley notes that while expectations for the software segment are low, any potential upside is unlikely to change investor sentiment.
In addition to Morgan Stanley, on October 12, Samad Samana from Jefferies also initiated coverage of NICE Ltd. (NASDAQ:NICE) with a Hold rating and a price target of $152.
The company is set to release its FQ3 results on November 13. Management during the second quarter earnings release noted they expect third quarter non-GAAP revenue in the range of $722 million to $732 million, indicating 5% year-over-year growth at the midpoint. In addition, the non-GAAP diluted EPS is anticipated in the range of $3.12 to $3.22, reflecting 10% year-over-year growth.
NICE Ltd. (NASDAQ:NICE) is an international enterprise software provider that provides software that helps businesses improve customer interactions and prevent financial crimes.
