In this article, we will take a look at the 11 best all-time low stocks to buy now.
Investors should buy when the market is down and sell when the market is showing signs of peaking. You might have heard this mantra several times now and it has become a cliché. But it’s the truth. Despite heavy losses and seemingly endless market downturns, market experts believe now might be the right time to pile into solid stocks for long-term gains. According to a CNBC report, Jeffrey Hirsch, a market historian and publisher of the Stock Trader’s Almanac, believes the market decline recorded in the first three quarters of 2022 provided a solid entry point for investors. The analyst has data from history to back his claim. He says that since 1946, the S&P 500 has gained an average of 28.2% over the next five quarters after declining for the first three quarters of a calendar year.
“We think the market is setting up for the best buying opportunity of the 4-Year Cycle,” Hirsch reportedly said.
While recession warnings and layoffs dominate the news these days, there are some notable experts who think the market would begin to turn the corner in 2023. According to Bloomberg, famous investment firms including Goldman Sachs Group Inc., JPMorgan Chase & Co. and UBS Asset Management believe that the stock market in 2023 could bring “big gains” for investors if they get the market right. Their optimism comes from the easing inflation that is evident from data coming from the US as well as from global markets. Similarly, Deutsche Bank AG expects the S&P 500 Index to jump to 4,500 in the first half of 2023 before registering a 25% decline in the third quarter. However, the bank said during the last quarter of the year the index would again rebound to 4,500.
Our list includes notable names like Coinbase Global, Inc. (NASDAQ:COIN), Rivian Automotive, Inc. (NASDAQ:RIVN) and Lyft, Inc. (NASDAQ:LYFT). Most of the stocks in our list have lost over 70% in value over the past 12 months. Why do we call them “best” all-time low stocks? Some of these companies are taking drastic measures to turn things around in 2023 while others are just poised to grow based on their long-term growth catalysts.
Our Methodology
For this article we picked some notable stocks that touched their all-time lows but have some promising catalysts that can push their stock price higher. Some of these stocks touched their all-time lows a few months back and haven’t recovered much since, while others fell to their all-time lows recently. We have also mentioned the number of hedge funds having stakes in each of these stocks and ranked the list based on the same metric.
Best All-time Low Stocks To Buy Now
11. Cerberus Cyber Sentinel Corporation (NASDAQ:CISO)
Number of Hedge Fund Holders: N/A
Cerberus Cyber Sentinel Corporation (NASDAQ:CISO) is operating in a market whose value could touch $2 trillion in value. The cyber security company, which will soon change its name to CISCO Global, could face a rising demand for its products as companies pour huge investments to solidify defenses of their online assets. Cerberus Cyber Sentinel Corporation (NASDAQ:CISO) recently agreed to buy RAN Security, a cybersecurity company with headquarters in Buenos Aires, Argentina, and offices in Chile, Peru, Bolivia, and Paraguay.
10. OceanPal Inc. (NASDAQ:OP)
Number of Hedge Fund Holders: 3
OceanPal Inc. (NASDAQ:OP) is a shipping transportation services provider. The penny stock, trading at around $1 as of January 11, has lost 90% of its value over the past 12 months. In December, OceanPal Inc. (NASDAQ:OP) delayed the implementation date of its reverse stock split due to a delay in getting the necessary regulatory approval.
OceanPal Inc. (NASDAQ:OP) is a high-risk stock suitable for only those investors that have a higher risk appetite and those who can wait. OceanPal Inc. (NASDAQ:OP) is operating in the global freight market which was expected to reach a size of $30,916.35 million in 2022, from $28.66 billion in 2021.
3 hedge funds in Insider Monkey’s database have stakes in the company. Jim Simons’ Renaissance Technologies has a $4,000 stake in OceanPal Inc. (NASDAQ:OP) as of the end of the September quarter.
9. Virgin Orbit Holdings, Inc. (NASDAQ:VORB)
Number of Hedge Fund Holders: 10
Richard Branson’s Virgin Orbit Holdings, Inc. (NASDAQ:VORB) is down to all-time lows after the company’s recent launch of satellites failed. Virgin Orbit Holdings, Inc. (NASDAQ:VORB)’s CEO said that the nature of the mission added “layers of complexity” that prevented the company’s satellites from entering the final orbit. It’s highly likely that the company would begin to work on future launches and eventually get success. For 2023, Virgin Orbit Holdings, Inc. (NASDAQ:VORB) has seven launches scheduled. It launches rockets from modified Boeing 747, a technique which is praised by industry experts for its ambitiousness.
Virgin Orbit Holdings, Inc. (NASDAQ:VORB) could be a good investment for those who want to bet on the commercial space industry. A total of 10 hedge funds in Insider Monkey’s database had stakes in Virgin Orbit Holdings, Inc. (NASDAQ:VORB) as of the end of the third quarter.
In addition to Coinbase Global, Inc. (NASDAQ:COIN), Rivian Automotive, Inc. (NASDAQ:RIVN) and Lyft, Inc. (NASDAQ:LYFT), VORB is one of the best all-time low stocks to buy now.
8. PLBY Group, Inc. (NASDAQ:PLBY)
Number of Hedge Fund Holders: 10
Media and lifestyle company PLBY Group, Inc. (NASDAQ:PLBY) has lost about 90% in value over the past year. PLBY Group, Inc. (NASDAQ:PLBY) in December launched an attractive common stock rights offering. PLBY Group, Inc. (NASDAQ:PLBY) is expected to receive gross proceeds of $50 million, less expenses, related to the rights offering. Under the offering PLBY Group, Inc. (NASDAQ:PLBY) will distribute a non-transferable subscription right to purchase 0.30681187 of a share to all shareholders of at least four shares as of December 16, at a subscription price of $3.50 per whole share. The intention of the offering is to raise money. A major chunk of the company’s revenue comes from merchandise sold on its website. More than half of its revenue comes from women and PLBY Group, Inc. (NASDAQ:PLBY) is targeting the lucrative audience base of millennial and Gen Z customers.
A total of 10 hedge funds tracked by Insider Monkey reported having stakes in PLBY Group, Inc. (NASDAQ:PLBY). As of the end of the third quarter, Michael Novogratz’s Fortress Investment Group owns a $7.3 million stake in the company.
7. Erasca, Inc. (NASDAQ:ERAS)
Number of Hedge Fund Holders: 10
Erasca, Inc. (NASDAQ:ERAS) is a California-based biotech company. Erasca, Inc. (NASDAQ:ERAS) is near all-time lows but could rebound in the future. In December, the biotech company got a go-ahead from the FDA for its investigational new drug (IND) application for oral drug, ERAS-3490, to treat KRAS G12C-mutated solid tumors, including non-small cell lung cancer. The treatment shows anti-tumor activity and dose-dependent survival benefit in the KRAS G12C NSCLC intracranial model NCI-H1373-luc, a nonclinical model of NSCLC CNS metastases.
10 hedge funds tracked by Insider Monkey had stakes in Erasca, Inc. (NASDAQ:ERAS) as of the end of the third quarter. Among the biggest stakeholders of the company are Bihua Chen’s Cormorant Asset Management, Christopher Medlock James’ Partner Fund Management and David Witzke and Michael Gregory’s Avidity Partners Management.
6. Dave Inc. (NASDAQ:DAVE)
Number of Hedge Fund Holders: 10
California-based digital banking service Dave Inc. (NASDAQ:DAVE) has lost 95% of its value of the past 12 months. Earlier this month, the company’s board approved a 1-for-32 reverse stock split of Dave Inc. (NASDAQ:DAVE)’s Class A and Class V common stock groups. Despite its short-term problems, Dave bulls believe the company is operating in a high-growth market with huge upside potential. In the third quarter, Dave Inc. (NASDAQ:DAVE) beat its revenue growth estimates and reported a 26% YoY growth in its monthly transacting members
The fintech industry in which Dave Inc. (NASDAQ:DAVE) is operating is expected to grow at a CAGR of 17.2% and reach $949 billion by 2030. As of the end of the third quarter, 10 hedge funds tracked by Insider Monkey reported having stakes in Dave Inc. (NASDAQ:DAVE).
In the next part of this article we will take a look at some other important stocks, including Coinbase Global, Inc. (NASDAQ:COIN), Rivian Automotive, Inc. (NASDAQ:RIVN) and Lyft, Inc. (NASDAQ:LYFT), that are expected to grow in the long term.
5. Century Therapeutics, Inc. (NASDAQ:IPSC)
Number of Hedge Fund Holders: 12
Century Therapeutics, Inc. (NASDAQ:IPSC) is one of the best all-time low stocks to buy now. The biotech company has a strong pipeline of allogeneic iNK and iT cell therapy product candidates for solid tumor and hematologic malignancies. Century Therapeutics, Inc. (NASDAQ:IPSC) is known for its Allo-Evasion technology to avoid host rejection and potentially increase the durability of clinical responses.
Century Therapeutics has lost about 70% in value over the past 12 months. Earlier this month, Century Therapeutics, Inc. (NASDAQ:IPSC) announced that it plans to cut 25% of its workforce and prioritize certain programs in its pipeline in a move to extend its cash runway into 2026.
Century Therapeutics, Inc. (NASDAQ:IPSC) said that it will focus on its lead candidates CNTY-101 and CNTY-102 for B-cell malignancies and CNTY-107 for solid tumors.
As of the end of the third quarter, 12 hedge funds tracked by Insider Monkey reported having stakes in Century Therapeutics, Inc. (NASDAQ:IPSC). Eli Casdin’s Casdin Capital has a $32 million stake in Century Therapeutics, Inc. (NASDAQ:IPSC).
4. Coinbase Global, Inc. (NASDAQ:COIN)
Number of Hedge Fund Holders: 28
Problems for the crypto company Coinbase are far from over. Coinbase Global, Inc. (NASDAQ:COIN) has lost over 80% over the past 12 months. Coinbase Global, Inc. (NASDAQ:COIN) touched its all-time low in December. Recently, Coinbase Global, Inc. (NASDAQ:COIN) announced to slash about 20% of its workforce as it plans to cut costs and initiate massive restructuring. Coinbase Global, Inc. (NASDAQ:COIN)’s management said that the layoffs and new restructuring measures are expected to cut the company’s expenses by 25% for the quarter ending in March.
Coinbase Global, Inc. (NASDAQ:COIN) could be the biggest beneficiary of a possible turnaround in the crypto market when recession fears recede. Latest data shows that option traders are initiating bullish bets on the company as they believe Coinbase Global, Inc. (NASDAQ:COIN) could post gains if the crypto market recovers. According to CNBC, Optimize Advisors’ Mike Khouw said the cryptocurrency exchange platform traded at 1.6x average daily volume on Monday. Buyers purchased 10,000 of the Jan. 13 weekly 40-calls at an average price of $1.15 per contract.
3. Rivian Automotive, Inc. (NASDAQ:RIVN)
Number of Hedge Fund Holders: 30
American EV company Rivian Automotive, Inc. (NASDAQ:RIVN) fell to new lows after it missed estimates for 2022. Rivian Automotive, Inc. (NASDAQ:RIVN) said it produced 24,337 vehicles in 2022, including 10,020 in the fourth quarter. Rivian Automotive, Inc. (NASDAQ:RIVN) suffered amid supply-chain issues and demand headwinds. Latest media reports also suggest that several executives recently left the company. The WSJ reported that Rivian’s vice president who was overseeing body engineering left the company, in addition to the company’s head of supply chain. Rivian Automotive, Inc. (NASDAQ:RIVN) shares have lost a whopping 80% over the past 12 months.
Rivian Automotive, Inc. (NASDAQ:RIVN) is still operating in a high-growth market. If the market starts to turn the corner and the company manages to fix its supply-chain problems, the stock could be a profitable investment for long-term investors.
As of the end of the third quarter of 2022, 30 hedge funds had stakes in Rivian Automotive, Inc. (NASDAQ:RIVN), compared to 35 funds in the previous quarter.
2. Lyft, Inc. (NASDAQ:LYFT)
Number of Hedge Fund Holders: 37
Lyft, Inc. (NASDAQ:LYFT) is one of the most notable ride-hailing services in the world. In November, the stock fell to its all-time lows after several market analysts downgraded the stock following Lyft, Inc. (NASDAQ:LYFT)’s disappointing quarterly results. Evercore ISI team led by Mark Mahaney decreased its price target on Lyft, Inc. (NASDAQ:LYFT) from $41 to $18 per share and downgraded the stock to In-Line from Outperform. Evercore said in a note to investors that they prefer Uber over Lyft and highlighted that Lyft lost 1% market share to Uber. The stock analysis firm also warned of a demand slump in 2023.
As of the end of the third quarter, 37 hedge funds tracked by Insider Monkey reported having stakes in Lyft, Inc. (NASDAQ:LYFT), compared to 35 funds in the previous quarter. This shows a positive hedge fund sentiment around the stock.
Here is what Artisan Partners specifically said about Lyft, Inc. (NASDAQ:LYFT) in its Q2 2022 investor letter:
“Lyft, Inc. (NASDAQ:LYFT), the second-largest ride-hailing company in the US, connects riders and drivers over a mobile app. When we began our GardenSM campaign, our thesis was based on a likely strong ridership recovery post-pandemic, as well as management’s growing focus on increasing profitability after years of heavy investment. While the company has made some progress on margins as the economy has re-opened, driver shortages and fuel inflation have disrupted that progress. Given uncertainty around when these cost pressures could abate, we exited our position.”
1. Peloton Interactive, Inc. (NASDAQ:PTON)
Number of Hedge Fund Holders: 45
Peloton Interactive, Inc. (NASDAQ:PTON) touched its all-time low back in May and hasn’t seen any lift in the stock price since as it’s trading at around $9 as of January 11. Despite its deep-rooted problems, some analysts believe Peloton Interactive, Inc. (NASDAQ:PTON) can rebound as most of its revenue is now coming from subscriptions. Subscriptions account for 70% of gross margins, with low churn rates. Some Peloton bulls also believe that Peloton Interactive, Inc. (NASDAQ:PTON) has a strong product base and is set to profit in the future as Peloton products have now become a status symbol. In the first quarter, Peloton Interactive, Inc. (NASDAQ:PTON) posted a 36% y/y growth rate in subscription revenue to $412.3 million. Subscriptions accounted for about 67% of the total revenue of the company in the period.
Hedge funds also increased their bets on Peloton Interactive, Inc. (NASDAQ:PTON). As of the end of the third quarter, 45 hedge funds tracked by Insider Monkey reported having stakes in Peloton, compared to 39 funds in the previous quarter.
Here is what Merion Road Capital specifically said about Peloton Interactive, Inc. (NASDAQ:PTON) in its Q3 2022 investor letter:
“Peloton Interactive, Inc. (NASDAQ:PTON) is quite a different story. You may recall from my Q1 letter that I initiated a position in the stock given the potential for a new CEO to leverage the company’s passionate and engaged userbase. The investment had meaningful upside potential (multiples of the then trading price), but also presented real downside risk; as such, I kept our exposure to just a few percentage points of the portfolio. Fast forward six months and underlying trends like churn, engagement, and new users weakened dramatically. I sold our shares as the likelihood for the company to achieve financial success has become increasingly remote.”
You can also take a peek at 15 Biggest Non-Tech Companies in the World and 23 Most Powerful Countries in the World.
Suggested articles:
- 10 Cheap Hot Stocks To Buy
- 15 Most Advanced Countries in Medicine
- 10 Pro-Life Companies to Invest In
Disclosure: None. 11 Best All-Time Low Stocks To Buy Now is originally published on Insider Monkey.
