11 Best Rebound Stocks to Buy According to Hedge Funds

4. Adobe Inc. (NASDAQ:ADBE)

Year-To-Date Decline in Share Price: 24.16%

Number of Hedge Fund Holders: 111

Adobe Inc. (NASDAQ:ADBE) is included in our list of the 11 Best Rebound Stocks to Buy According to Hedge Funds.

Melius Research downgraded Adobe Inc. (NASDAQ:ADBE) from ‘Hold’ to ‘Sell’ on August 11, 2025, setting a $310 price target. The analyst believes that the software-as-a-service segment is under pressure due to the AI surge, reshaping the competitive landscape.

Furthermore, Melius Research expects infrastructure companies to benefit from the AI transformation at the expense of application-focused companies such as Adobe Inc. (NASDAQ:ADBE). The investment firm expects margin pressures and slower growth in the company’s core segments, thereby lowering its 2026 and 2027 earnings estimates.

While Adobe Inc. (NASDAQ:ADBE) remains a leader in creative and digital experience software, the analyst’s outlook indicates caution for investors.

Operating through its Digital Media, Digital Experience, and Publishing and Advertising segments, Adobe Inc. (NASDAQ:ADBE) operates as a technology company globally. It is included in our list of the Best Rebound Stocks To Buy.