In this article, we will discuss the 10 Best Falling Stocks to Invest In According to Analysts.
Technology stocks are flashing bearish signals as a correction from all-time highs gathers pace. Bank of America strategists insist that investors need to be extremely cautious amid mounting headwinds that could accelerate the sell-off, calling for aggressive risk management.
“The NDX rally extended slightly beyond expectation, breaking above 30,000. The trend became stretched relative to our measured move targets,” the strategist said, explaining that the 14-week Relative Strength Index (RSI) reached overbought levels and turned down, forming a bearish engulfing week.”
The sentiments come amid the Federal Open Market Committee’s decision to hold interest rates, with new chair Kevin Warsh turning hawkish and signaling a potential rate hike before year-end.
“If the Fed were to follow market pricing and deliver a hike this year, we think the market will eventually view this as a policy mistake,” say fixed-income strategists led by Matthew Hornbach.
Higher interest rates are usually negative for equities, as they raise borrowing costs and reduce consumer purchasing power.
Amid the bearish sentiments from Bank of America strategists, JPMorgan’s asset management business is urging investors to maintain exposure to equities and other riskier assets in the latter half of the year. According to the strategists, heavy investment in AI and steady consumer spending should help support the equity market rally.
“The good news in terms of baseline forecast is we think the economy will strengthen in the middle of the year,” said David Kelly, chief global strategist at JPMorgan Chase Asset Management.
Amid a correction from all-time highs and divided opinion on market direction, let’s take a look at some of the best falling stocks to buy, according to analysts.
Our Methodology
To curate the list of the 10 Best Falling Stocks to Invest In According to Analysts, we used Yahoo and Finviz stock screener to scan for stocks that have negative YTD returns and are trading within 0% to 10% of their 52-week lows. We then trimmed the list to focus on stocks that analysts remain bullish on with an upside potential of more than 20% as of June 17. We also detailed the number of hedge funds that hold stakes in the stocks in Q1 2026. Finally, we ranked the stocks in ascending order based on their upside potential.
Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research shows we can outperform the market by imitating the top stock picks of the best hedge funds. Insider Monkey’s quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 599.2% since May 2014, beating its benchmark by 372 percentage points (see more details here).
Best Falling Stocks to Invest In According to Analysts
10. Palantir Technologies Inc. (NASDAQ:PLTR)
52 Week Range: $122.68-$207.52
Current Share Price: $130.63
Stock Upside Potential: 36.74%
Number of Hedge Fund Holders: 96
Palantir Technologies Inc. (NASDAQ:PLTR) is one of the best falling stocks to invest in, according to analysts. On June 16, UBS reiterated its Buy rating on Palantir Technologies Inc. (NASDAQ:PLTR) with a $200 price target.
The research firm remains bullish on the stock despite recent underperformance, driven by growing concerns about competition from artificial intelligence research labs. According to the research firm, Palantir Technologies’ competitive edge stems from its Ontology layer, which rivals, including OpenAI, Anthropic, and Databricks, are trying to replicate.
Ontology, a semantic and operational layer, sits on top of fragmented datasets and maps raw data into real-world concepts. Additionally, Palantir Edge stems from the complexity and depth of its operating system, which goes well beyond deploying large language models and ingesting data.
Wolfe Research has upgraded the stock to Peer Perform from Underperform, buoyed by its robust position in the enterprise AI software market and impressive growth rates.
Palantir Technologies Inc. (NASDAQ:PLTR) is a software company that builds platforms for big data analytics, complex decision-making, and the integration of artificial intelligence. It helps government agencies, commercial businesses, and health organizations integrate massive, siloed datasets to extract actionable insights.
9. Sony Group Corporation (NYSE:SONY)
52 Week Range: $19.62-$30.34
Current Share Price: $20.24
Stock Upside Potential: 37.89%
Number of Hedge Fund Holders: 27
Sony Group Corporation (NYSE:SONY) is one of the best falling stocks to invest in, according to analysts. On June 17, Goldman Sachs reiterated its Buy rating on Sony Group Corporation (NYSE:SONY) with a JPY 4,100 price target, following a sell‑side meeting with the company’s music business management.
According to the investment bank, the company is seeing an uptick in the number of companies approaching Sony Music for partnerships. The companies are also eyeing deals to license the company’s AI products. The push comes even as Sony continues to pursue copyright infringement lawsuits against some music-generating AI companies.
Goldman Sachs insists Sony is well-positioned even as artificial intelligence continues to have a significant impact on the music market. That’s because it boasts a vast music catalog and a high market share in fast-growing regions of Latin America. However, it expects investors to maintain a wait-and-see approach as the company explores monetization in the generative AI era.
Sony Group Corporation (NYSE:SONY) is a massive Japanese multinational conglomerate that operates primarily in consumer and professional electronics, video games, entertainment (motion pictures and music), and financial services. It is recognized globally as one of the most comprehensive entertainment and technology companies.
8. T-Mobile US, Inc. (NASDAQ:TMUS)
52 Week Range: $174.02-$261.56
Current Share Price: $181.31
Stock Upside Potential: 41.84%
Number of Hedge Fund Holders: 85
T-Mobile US, Inc. (NASDAQ:TMUS) is one of the best falling stocks to invest in, according to analysts. On June 16, T-Mobile US, Inc. (NASDAQ:TMUS) reaffirmed its commitment to shareholder value, with the board approving a quarterly dividend of $1.02 per share.
The dividend offering translates to an annualized dividend of $4.08 and a dividend yield of 2.2%. The $1.02 a share quarterly dividend is to be paid on September 10, 2026, to stockholders of record as of August 28, 2026.
Meanwhile, the Wall Street Journal reports that Deutsche Telekom CEO Tim Hottges is pushing for a merger with T-Mobile. Deutsche Telekom is the majority shareholder in T-Mobile, a company that accounts for a significant share of its earnings and contributes about two-thirds of revenue.
For a merger to proceed, Deutsche Telekom will have to win over the T-Mobile minority shareholders, who are believed to be skeptical of the transaction. A bone of contention is the fact that Deutsche Telekom is exposed to lower-margin international operations.
T-Mobile US, Inc. (NASDAQ:TMUS) is a wireless communications company that operates 4G and 5G networks. They primarily offer mobile phone plans, 5G home and fiber internet, and connected devices such as smartwatches and tablets. Beyond basic connectivity, they offer satellite phone services, cloud-integrated business solutions, and various digital member perks.
7. Microsoft Corporation (NASDAQ:MSFT)
52 Week Range: $356.28-$555.45
Current Share Price: $378.91
Stock Upside Potential: 44.71%
Number of Hedge Fund Holders: 282
Microsoft Corporation (NASDAQ:MSFT) is one of the best falling stocks to invest in, according to analysts. On June 17, Microsoft Corporation (NASDAQ:MSFT) stock edged lower amid reports it had abandoned plans to lease an Oracle Data center.
The tech giant has reportedly withdrawn from a deal that might have been worth more than $3 billion due to security concerns about requirements for government-related workloads. The reports also show that Oracle was unwilling to implement additional security frameworks for managing US government data.
Microsoft had planned to shift some of its workload to Oracle’s cloud infrastructure. It is believed to have withdrawn on Oracle’s public cloud, lacking the Federal Risk and Authorization Management Program. Oracle executives reportedly said achieving FedRAMP certification for the public cloud would require significant engineering work.
The lack of a FedRAMP-compliant cloud has reportedly forced Microsoft to seek deals with other cloud providers to prioritize its own cloud computing resources for customers.
Microsoft Corporation (NASDAQ:MSFT) is a multinational technology company that develops, manufactures, and licenses a wide range of computer software, hardware, and digital services. Its primary operations span personal computing, enterprise cloud computing, video gaming, and artificial intelligence.
6. Intercontinental Exchange Inc. (NYSE:ICE)
52 Week Range: $189.35-$133.73
Current Share Price: $134.59
Stock Upside Potential: 45.99%
Number of Hedge Fund Holders: 86
Intercontinental Exchange Inc. (NYSE:ICE) is one of the best falling stocks to invest in, according to analysts. On June 9, Intercontinental Exchange Inc. (NYSE:ICE) announced the launch of ICE Compass to strengthen its trading analytics platform.
The artificial intelligence-powered trading analytics platform is tailored for fixed-income trading desks, providing counterparty rankings and price estimates to support informed decision-making before trade execution. The platform allows customers to combine real-time and historical data with ICE’s market data and pricing streams.
ICE Compass can also process bids, offers, indications of interest, and other pricing data points. The platform also tracks intraday market movements, trading costs, and trading behaviors to enable counterparty selection and pre-trade cost analysis. By leveraging artificial intelligence and data science expertise, the platform can estimate trade counterparty price commitments and rank trading counterparties.
Intercontinental Exchange has already secured T. Rowe Price as its first anchor client for Ice Compass, having provided insights during its development phase.
Intercontinental Exchange (ICE) operates global financial and commodity markets, clearing houses, and mortgage technology infrastructure. It acts as a hub for raising capital, investing, and managing price risks.
While we acknowledge the potential of ICE to grow, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than ICE and that has 100x upside potential, check out our report about the cheapest AI stock.
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