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.
10. Nabors Industries Ltd. (NYSE:NBR)
% Decline Over 6 Months: ~55.1%
Number of Hedge Funds: 22
Nabors Industries Ltd. (NYSE:NBR) is one of the Best Beaten Down Stocks to Buy Now. Piper Sandler initiated coverage of the company’s stock with an “Underweight” rating and a price objective of $30, as reported by The Fly. Notably, the firm expects a challenging backdrop for US land, expecting the influence on oil prices because of tariffs and production hikes. Furthermore, the analyst is expecting a persistent negative rate-of-change environment for the balance of 2025.
However, Nabors Industries Ltd. (NYSE:NBR) completed the acquisition of Parker Wellbore, which has strengthened its portfolio with the complementary businesses. The acquisition is expected to be immediately accretive to Nabors Industries Ltd. (NYSE:NBR)’s 2025 FCF and to improve leverage metrics. Overall, the addition of Parker is a huge milestone for the company, significantly expanding Nabors Industries Ltd. (NYSE:NBR)’s Drilling Solutions business and adding strong cash generation to the combined company.
Apart from $130 million in incremental adjusted EBITDA for 2025 post-closing, Nabors Industries Ltd. (NYSE:NBR) remains on track to realize $40 million of cost synergies. Notably, Parker capital expenditures post-closing are aimed at $60 million for 2025. Miller Value Partners, an investment management company, released its Q1 2025 investor letter. Here is what the fund said:
“Our two largest detractors during the quarter were Gannett (GCI) and Nabors Industries Ltd. (NYSE:NBR), with shares down 43% and 26%, respectively, during the quarter. Both companies’ share prices are at deep discounts to our view of their long-term fundamental value, and we have recently increased position sizes in both holdings.
Nabors recently completed the acquisition of Parker Drilling. The transaction is accretive to free cash flow per share. Parker provides Nabors greater access to the growing lateral drilling marketplace. In addition, the transaction will significantly increase Nabors Drilling Solution (“NDS”) segment, which has market-leading technology and strong global growth opportunities. With very low capital intensity and high free cash flow conversion, Nabors NDS segment should support accelerating future free cash flow generation. While there is ongoing near-term risk on weaker than expected domestic and international drilling expenditures, we see these risks significantly discounted in the current share price. While there is also potential integration risk with doing an acquisition, the Parker Drilling transaction provides significant margin of safety in our opinion (attractive cost savings, balance sheet benefits, potential non-core asset sales and accelerating free cash flow generation). Nabors share price looks extremely attractive, below one times cash flow (approaching their Covid 2020 all-time lows). At a greater than 50% normalized free cash flow yield and EV/EBITDA (2025) below 3x, we see long-term upside potential multiples of the current share price.”
9. National Energy Services Reunited Corp. (NASDAQ:NESR)
% Decline Over 6 Months: ~35.1%
Number of Hedge Funds: 22
National Energy Services Reunited Corp. (NASDAQ:NESR) is one of the Best Beaten Down Stocks to Buy Now. Piper Sandler initiated coverage of the company’s stock with an “Overweight” rating and a price objective of $11, as reported by The Fly. Notably, the firm expects a challenging backdrop for US land and is expecting a persistent negative rate-of-change environment for the balance of 2025, with the decline in U.S. land rig count. However, National Energy Services Reunited Corp. (NASDAQ:NESR) highlighted that operational execution was strong across Q1 2025, thanks to the continued improved processes, streamlined procedures, and reinforced internal controls.
Despite the global economic headwinds, National Energy Services Reunited Corp. (NASDAQ:NESR) believes that conditions in the MENA region are supportive of growth, and it is focused on core strategic priorities. These include reporting profitable revenue growth, enhancing execution efficiency, commercializing new technology, as well as improving debt reduction and working capital efficiency to help long-term financial performance.
National Energy Services Reunited Corp. (NASDAQ:NESR)’s net debt to adjusted EBITDA ratio was below 1.0, ending Q1 2025 at 0.93 as of March 31, 2025. This reflects a significant improvement from 1.30 as of March 31, 2024.
National Energy Services Reunited Corp. (NASDAQ:NESR) is one of the leading national oilfield services providers.
8. Venture Global, Inc. (NYSE:VG)
% Decline Over 6 Months: ~31.0%
Number of Hedge Funds: 24
Venture Global, Inc. (NYSE:VG) is one of the Best Beaten Down Stocks to Buy Now. Deutsche Bank downgraded the company’s stock to “Hold” from “Buy” with a price objective of $17, up from the prior target of $13.50, as reported by The Fly. The firm cited valuation as a factor for the downgrade, with Venture Global, Inc. (NYSE:VG)’s shares near the new price target. Furthermore, the company’s longer-term valuation remains challenged by the lack of liquidity in the Title Transfer Facility curve, and its spending on the Calcasieu Pass 2 development, highlighted the firm’s analyst.
The CP2 Project got authorization from the U.S. Department of Energy to export LNG to non-free trade agreement nations. Notably, the company has also announced that it has initiated full mobilization and started site work at its third LNG export facility, CP2 LNG. Venture Global, Inc. (NYSE:VG) expressed optimism about launching on-site work for this project, which is anticipated to deliver reliable, low-cost LNG to the world starting in 2027. Venture Global, Inc. (NYSE:VG) announced the execution of a new 20-year Sales and Purchase Agreement with PETRONAS LNG Ltd., which is a subsidiary of Malaysian state-owned oil and gas company, PETRONAS.
Venture Global, Inc. (NYSE:VG) is a long-term, low-cost provider of US LNG sourced from resource-rich North American natural gas basins.
Sands Capital, an investment management company, released it Q1 2025 investor letter. Here is what the fund said:
“Venture Global, Inc. (NYSE:VG) specializes in the development and operation of liquefied natural gas (LNG) export facilities along the U.S. Gulf Coast. We believe natural gas demand is likely to continue growing over the next several decades as an abundant, affordable, reliable, highly scalable, and relatively clean energy source relative to other hydrocarbons. Given the fundamental mismatch between where the world’s largest and cheapest natural gas resources are located (primarily the United States and the Middle East) versus key areas of demand growth (Asia), we expect LNG demand to grow even faster while becoming increasingly critical from a global energy security perspective. Against this backdrop, we expect that Venture Global’s modular approach to facility development will enable the company to capture a disproportionate share of incremental demand. Its innovative approach meaningfully compresses construction timelines, reduces capital intensity and operating costs, and, we believe, facilitates a virtuous cycle that can allow for project cash flows to be generated and reinvested much faster and more effectively than for its peers. As a result, we see a runway for Venture Global to sustain above-average growth as it profitably expands its production over the next decade.”
7. Atlas Energy Solutions Inc. (NYSE:AESI)
% Decline Over 6 Months: 44.0%
Number of Hedge Funds: 25
Atlas Energy Solutions Inc. (NYSE:AESI) is one of the Best Beaten Down Stocks to Buy Now. Piper Sandler downgraded the company’s stock to “Neutral” from “Overweight” with an unchanged price target of $16. The firm expects a challenging backdrop for the US land, with the oil prices being affected by the tariffs and production hikes. Furthermore, it sees limited upside for Atlas Energy Solutions Inc. (NYSE:AESI)’s shares.
However, Q1 2025 was a healthy start for Atlas Energy Solutions Inc. (NYSE:AESI), considering the acquisition of Moser Energy Systems and the start-up of the Dune Express. The company believes that the acquisition of Moser offers a compelling platform for future growth, and it demonstrated optimism about scaling the business and implementing technologies to increase efficiencies.
The addition of Moser’s distributed power platform to Atlas Energy Solutions Inc. (NYSE:AESI)’s existing businesses will help develop an innovative, diversified energy solutions provider, possessing a leading portfolio of proppant, logistics, and distributed power solutions. Notably, the Moser asset base consists of a dynamic fleet of natural gas-powered generators, enhancing Atlas Energy Solutions Inc. (NYSE:AESI)’s current operations into production and distributed power end markets, aided by healthy macro tailwinds.
Atlas Energy Solutions Inc. (NYSE:AESI) is a leading solutions provider to the energy industry.
6. Expro Group Holdings N.V. (NYSE:XPRO)
% Decline Over 6 Months: ~42.7%
Number of Hedge Funds: 29
Expro Group Holdings N.V. (NYSE:XPRO) is one of the Best Beaten Down Stocks to Buy Now. Piper Sandler analyst Derek Podhaizer initiated coverage of the company’s stock with a “Neutral” rating and a price objective of $10, as reported by The Fly. The firm expects a challenging backdrop for the US land, with the impact on oil prices because of tariffs and production hikes. Furthermore, the analyst expects a persistent negative rate-of-change environment for the remainder of 2025. However, Expro Group Holdings N.V. (NYSE:XPRO) saw Q1 2025 adjusted EBITDA and adjusted EBITDA margin of $76 million and 20%, respectively, which demonstrates its best first quarter performance since it completed the Expro/Frank’s merger in Q4 2021.
Notably, the organic investment, as well as a successful M&A strategy, have been enabling margin expansion. Expro Group Holdings N.V. (NYSE:XPRO) continues to advance the development and commercialization of technologies in a bid to increase automation and fuel demand for its services and solutions. Expro Group Holdings N.V. (NYSE:XPRO) continues to focus on making progress in 2025 towards its medium-term target of a mid-20s adjusted EBITDA margin, notwithstanding the near-term uncertainty due to tariffs, additional OPEC+ supply, and geopolitical risks. The company’s business, which is largely levered to long-cycle development, remains well-placed for the dynamic operating environment.
Expro Group Holdings N.V. (NYSE:XPRO) works across the entire well life cycle and is the leading provider of energy services, providing cost-effective and innovative solutions.
5. Liberty Energy Inc. (NYSE:LBRT)
% Decline Over 6 Months: ~50.9%
Number of Hedge Funds: 29
Liberty Energy Inc. (NYSE:LBRT) is one of the Best Beaten Down Stocks to Buy Now. Piper Sandler analyst Derek Podhaizer initiated coverage of the company’s stock with a “Neutral” rating and a price objective of $14, as reported by The Fly. The firm expects a challenging backdrop for the US land. Furthermore, the firm’s analyst anticipates a persistent negative rate-of-change environment for the balance of 2025, with the decline in the US land rig count. However, in Q1 2025, Liberty Energy Inc. (NYSE:LBRT) saw revenue of $977 million and adjusted EBITDA of $168 million.
It witnessed robust sequential improvement in utilization throughout the fleet, touched new heights in operational efficiencies, and set a new high watermark in asset lifespan for the equipment components. Liberty Energy Inc. (NYSE:LBRT) remains well-placed to navigate market uncertainties, mainly because of enhanced scale, vertical integration, technological advancements, and a fortress balance sheet. With global oil markets contending with tariff impacts, geopolitical worries, and concerns related to the oil supply, North American producers have been evaluating a range of macroeconomic scenarios.
Liberty Energy Inc. (NYSE:LBRT)’s unmatched scale, integrated services, strong supply chain, and advanced technology systems continue to enable it to lower the total cost to produce a barrel of oil.
Liberty Energy Inc. (NYSE:LBRT) is an oilfield services company, providing hydraulic fracturing services to onshore E&P firms’ major basins.
4. Ambac Financial Group, Inc. (NYSE:AMBC)
% Decline Over 6 Months: ~37.4%
Number of Hedge Funds: 31
Ambac Financial Group, Inc. (NYSE:AMBC) is one of the Best Beaten Down Stocks to Buy Now. Truist analyst Mark Hughes initiated coverage of the company’s stock with a “Buy” rating and a price objective of $10, as reported by The Fly. As per the firm, Ambac Financial Group, Inc. (NYSE:AMBC) is a rapidly emerging player in the attractive managing general agent brokerage market. The firm’s analyst noted that the company now has the resources to grow its insurance distribution operation, while the sales of its legacy business remain on track for H2 2025.
Ambac Financial Group, Inc. (NYSE:AMBC)’s P&C business saw a strong start to the year, with premium production rising 70% to $318 million and revenue increasing 27% to $63 million in Q1 2025, both on a YoY basis, aided by its acquisition of Beat. Ambac Financial Group, Inc. (NYSE:AMBC)’s increasingly diversified portfolio focuses on long-term growth and withstanding market cyclicality.
Ambac Financial Group, Inc. (NYSE:AMBC) has announced the extension from July 3, 2025, to December 31, 2025, of the term of the stock purchase agreement related to the sale of its legacy financial guarantee businesses. Ambac Financial Group, Inc. (NYSE:AMBC)’s top management believes that this transaction is the capstone to its transformation into a pure-play specialty P&C insurance platform. Third Avenue Management, an investment management company based in New York City, released its Q4 2024 investor letter. Here is what the fund said:
“The Fund initiated two new positions during the quarter, OceanFirst Financial (“OCFC”) and Ambac Financial Group, Inc. (NYSE:AMBC).
Ambac Financial Group (“Ambac”) was formerly a business that provided financial guarantees and other insurance policies prior to the Global Financial Crisis. This summer, it announced a transformational deal with Oaktree Capital Management to sell its legacy business for $420 million in cash, and a removal of all material debt encumbrances from the balance sheet.
It is anticipated that the transaction will close in the first quarter of 2025, at which point the business will have been transformed, with the majority of its NAV, in our view, represented by its significant net cash position and a tax-loss carryforward of $1.3 billion that it will seek to monetize. Fund Management’s attraction to Ambac also stems from the attractive, asset-light nature of its other insurance-related operating businesses. While much work remains to be done, we see the potential to build a growing, high-margin operating platform of managing general agents who focus on specialized Excess & Surplus insurance lines. The existing Ambac operating units generate recurring revenue and earnings, based on a percentage of the insurance premium they underwrite on behalf of insurance carriers, an activity which generally does not assume balance sheet risk. We also see optionality for shareholders to benefit from resource conversion activity as the scope of the business grows, offering operating leverage improvements and NAV growth, but also through redeployment of significant net cash and monetization of very large tax assets. Conversion of net cash and tax assets into higher and better uses likely entails further acquisitions of managing general agents and underwriters. Ambac should be able to achieve a significantly higher valuation if it is able to execute on its strategic objectives. These include building its reputation as an asset-light, high-margin insurance operation, rather than as a legacy financial guarantee business, while growing its scale and margins, and converting balance sheet assets into high-quality operating assets.”
Ambac Financial Group, Inc. (NYSE:AMBC) operates as a financial services holding company.
3. Enphase Energy, Inc. (NASDAQ:ENPH)
% Decline Over 6 Months: 37.9%
Number of Hedge Funds: 40
Enphase Energy, Inc. (NASDAQ:ENPH) is one of the Best Beaten Down Stocks to Buy Now. JPMorgan downgraded the company’s stock to “Neutral” from “Overweight” with a price objective of $37, down from the prior target of $64, as reported by The Fly. The firm has updated its US residential solar growth assumptions in an effort to reflect the impact of the One Big Beautiful Bill. The firm noted expected share loss and margin pressure, as the industry is shifting towards third-party owned systems, which led to the downgrade of Enphase Energy, Inc. (NASDAQ:ENPH)’s stock.
However, the company has a strong US manufacturing presence as it shipped ~1.21 million microinverters and 44.1 MWh of IQ Batteries in Q1 2025. Enphase Energy, Inc. (NASDAQ:ENPH)’s total revenue came in at $356.1 million as compared to $382.7 million in Q4 2024. Furthermore, Enphase Energy, Inc. (NASDAQ:ENPH) announced that production shipments of its newest EV charger, the IQ® EV Charger 2, have been expanded throughout Europe to now include Greece, Romania, Ireland, and Poland. To give a brief overview, the IQ EV Charger 2 is a smart charger that has been designed to work seamlessly with Enphase solar and battery systems or as a powerful standalone charger.
2. Fortive Corporation (NYSE:FTV)
% Decline Over 6 Months: ~34.3%
Number of Hedge Funds: 41
Fortive Corporation (NYSE:FTV) is one of the Best Beaten Down Stocks to Buy Now. TD Cowen downgraded the company’s stock to “Hold” from “Buy” with a price objective of $50, down from the prior target of $85, as reported by The Fly. Following the spinoff of Ralliant, the thesis on the new Fortive becomes less clear, noted the firm’s analyst. The firm mentioned the concerns related to the company’s growth trajectory, highlighting that Fortive Corporation (NYSE:FTV)’s strongest business unit has been decelerating post a period of strong performance, with other segments struggling to cater to the expectations and lagging behind competitors.
As per Fortive Corporation (NYSE:FTV)’s top management, the new Fortive emerges with a robust financial track record with strong FCF generation, ~50% recurring revenue, significant competitive advantages, and a strategic orientation towards attractive markets with healthy secular tailwinds. The renewed emphasis towards accelerating profitable growth via Fortive Business System, together with a new shareholder returns-focused capital allocation strategy, provides the company confidence in delivering strong returns.
1. Centene Corporation (NYSE:CNC)
% Decline Over 6 Months: ~52.2%
Number of Hedge Funds: 64
Centene Corporation (NYSE:CNC) is one of the Best Beaten Down Stocks to Buy Now. Bank of America downgraded the company’s stock to “Underperform” from “Neutral,” reducing the price objective to $30 from $52 per share. The firm cited worries associated with Donald Trump’s recently enacted One Big Beautiful Bill Act. As per the analyst, the passage of the bill has exposed Centene Corporation (NYSE:CNC) to the slowing end markets in Medicaid and Affordable Care Act (ACA) exchanges.
Furthermore, the firm also noted the higher likelihood of enhanced exchange subsidies expiring at the end of 2025. The analyst anticipates that 2026 might have more downside than upside risk from pricing to risk on exchanges, considering the material shifts in the risk pool. However, for Q1 2025, Centene Corporation (NYSE:CNC) stated that premium and service revenues rose by 17% to $42.5 billion from $36.3 billion in the comparable period of 2024. This rise was mainly aided by premium and membership growth in the PDP business, together with robust product positioning and market growth in the broader Marketplace business.
Centene Corporation (NYSE:CNC) operates as a healthcare enterprise, which is engaged in providing programs and services to under-insured and uninsured families, and commercial organizations.
River Road Asset Management, an investment management company, released Q4 2024 investor letter. Here is what the fund said:
“The holding with the lowest contribution to active return wasCentene Corporation (NYSE:CNC) , a managed care organization (MCO) specializing in government-sponsored plans. Historically, health insurance has been a steady business that generates consistent free cash flow (CNC has produced positive FCF since 1998), and we believe CNC stands out as the prime MCO beneficiary of any future economic weakness. The company is the leading provider of Medicaid managed care plans with 17% market share, and it also owns the leading individual exchange franchise. When the economy stumbles, CNC’s revenues should increase as more individuals qualify for CNC’s plans. We are particularly encouraged by the new management’s focus on shareholder value–since the founder stepped down in Q4 2021, the company has divested seven businesses for more than $3.5B and deployed the proceeds into share repurchases.
Despite these strong long-term fundamentals, Centene’s stock declined. This was primarily due to ongoing challenges in its Medicaid business, where the medical loss ratio continued to deteriorate due to a mismatch between reimbursement rates and patient acuity following redeterminations, with Medicaid membership declining -14% even as exchange enrollment grew 22%. While management remains confident this pressure is temporary and all states have acknowledged the need to adjust rates to match patient acuity, investors remained concerned about the timing of this recovery. The stock was further pressured by broader health care sector headwinds, including potential policy risks from a Republican sweep and changes to Medicare Part D prescription drug plans. Even though the company maintained its fiscal year (FY) 2024 adjusted earnings per share (EPS) guidance of over $6.80 and executed significant share repurchases of $1.6B in Q3 and October (~4.7% of shares outstanding), the stock traded at just 9.4x forward earnings, well below its five-year average of 12x, reflecting near-term investor skepticism. We maintained the position.”
While we acknowledge the potential of CNC 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 CNC and that has 100x upside potential, check out our report about this cheapest AI stock.
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