In this article, we will discuss the 11 Best Beaten Down Stocks to Buy Now.
J.P. Morgan Research believes that the S&P 500 will close near 6,000 by year-end, aided by the double-digit growth in earnings. The growth is expected to accelerate next year, with 2026 EPS of $290, reflecting a rise of 12% YoY. For the global economy, the ongoing trade policy can result in a broad-based downshift in growth as well as a rotation in the inflation pressures toward the US.
US Volatility to Decline, Says J.P. Morgan
As per J.P. Morgan, the global equity volatility has now normalized after the April 2025 tariff shock, apart from the brief upticks related to the rates and geopolitical concerns. On a YTD basis, the VIX has realized a median of 19 versus the average level of ~21. J.P. Morgan Research believes that the US volatility might decline moderately, with the firm expecting a median level of 17–18.
The firm opines that international markets are expected to trade more favorably, and domestic stocks can outperform exporters in regions such as the eurozone, the U.K., and Japan. The trend is supported by the potential USD weakening as well as mixed trade headlines, hinting that the domestic stocks can continue to lead in broader international markets.
Amidst these trends, let us now have a look at the 11 Best Beaten Down Stocks to Buy Now.
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Our Methodology
To list the 11 Best Beaten Down Stocks to Buy Now, we used a screener and shortlisted the stocks that have declined at least ~30% over the past 6 months. Next, we chose the ones popular among hedge funds. Finally, the stocks have been arranged in ascending order of their hedge fund sentiments, as of Q1 2025.
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).
11 Best Beaten Down Stocks to Buy Now
11. Simulations Plus, Inc. (NASDAQ:SLP)
% Decline Over 6 Months: ~56.5%
Number of Hedge Funds: 13
Simulations Plus, Inc. (NASDAQ:SLP) is one of the Best Beaten Down Stocks to Buy Now. KeyBanc downgraded the company’s stock to “Sector Weight” from “Overweight” without a price target, as reported by The Fly. The downgrade from the firm highlighted ongoing challenges in the biopharma end market environment, which the firm opines impacts Simulations Plus, Inc. (NASDAQ:SLP) more severely because of the customer concentration and biotech exposure. Furthermore, the firm expects weaker customer demand to continue in the near-to-middle-term.
In Q3 2025, Simulations Plus, Inc. (NASDAQ:SLP)’s revenue increased by 10%, in line with its preliminary revenue. The company’s software revenue performed well, increasing 6%, mainly because of its ADMET Predictor® software and due to modest growth in its GastroPlus® and MonolixSuiteTM software. Furthermore, the services revenue for Q3 2025 increased 17%, primarily because of strong performance in the Medical Communications services.
During Q3 2025, Simulations Plus, Inc. (NASDAQ:SLP) implemented a strategic reorganization, pivoting from a business unit structure to a functionally driven operating model. This was the final phase of a multi-year transformation in order to streamline operations, unlock synergies, and concentrate resources towards the promising growth opportunities. For FY 2025, Simulations Plus, Inc. (NASDAQ:SLP) expects revenue of between $76 million – $80 million. Wasatch Global Investors, an asset management company, released its Q3 2024 investor letter. Here is what the fund said:
“Simulations Plus, Inc. (NASDAQ:SLP) was the strategy’s largest detractor from performance during the quarter. The company develops and produces software that helps pharmaceutical companies achieve efficiencies in the drug discovery process by enabling them, through simulations, to either fine-tune or avoid clinical trials, which are expensive and have a high failure rate. Simulations Plus has a long track record of delivering consistent growth and margin expansion. However, the stock has been down due to concerns about the funding environment for biotechnology and pharmaceutical companies. We reduced our position in Simulations Plus over concerns linked to the company’s recent acquisition strategy, which we will continue to monitor. However, we remain confident in the growth potential of the company’s core business.”
Simulations Plus, Inc. (NASDAQ:SLP) is in the software industry. It is engaged in developing and producing software for use in pharmaceutical research and for education, and offers consulting as well as contract research services to the broader pharmaceutical industry.
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