12 Best Beaten Down Stocks to Buy According to Hedge Funds

In this article, we will discuss the 12 Best Beaten Down Stocks to Buy According to Hedge Funds.

According to BNY, a global financial services company, the US Fed is restarting rate cuts amid a softening of the labor market, while slowing job growth has prompted expectations of more cuts. Amidst these trends, the equities are rising, demonstrating confidence in the expansion’s resilience. According to the firm, growth is slowing but not stalling, with a well-calibrated policy expected to sustain it. Its experts anticipate US growth to be modestly above consensus but below trend, supported by lower trade uncertainty and Fed attentiveness to broader labor dynamics.

S&P 500 Continues to Gain 

Despite growth worries, the S&P 500 saw an increase of over 13% this year, with earnings and margins proving stronger than expected, opines BNY. The financial services giant further added that, in the US, performance continues to broaden out beyond big tech, as cyclicals, high beta, consumer discretionary, and equal-weighted tech have been leading recent gains. The firm expects earnings to grow 10% in 2025 and 13.5% in 2026.

Let us now have a look at the 12 Best Beaten Down Stocks to Buy According to Hedge Funds

Our Methodology

To list the 12 Best Beaten Down Stocks to Buy According to Hedge Funds, we used a screener to shortlist the stocks that trade close to their respective 52-week lows. Next, we chose the ones popular among hedge funds, as of Q2 2025. Finally, the stocks are arranged in ascending order of their hedge fund sentiments.

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 427.7% since May 2014, beating its benchmark by 264 percentage points (see more details here).

Note: All the data is as of October 14, 2025

12 Best Beaten Down Stocks to Buy According to Hedge Funds

12. Alcon Inc. (NYSE:ALC)

Number of Hedge Fund Holders: 34

52-Week Low: $71.55

Stock Price: $74.08

Alcon Inc. (NYSE:ALC) is one of the Best Beaten Down Stocks to Buy According to Hedge Funds. On October 13, BTIG reduced the price target on the company’s stock to $91 from $92, while keeping a “Buy” rating as part of a research note previewing Q3 results for the broader MedTech industry.

According to the analyst, investors are concerned that lesser number of patients might seek medical treatment due to headlines affecting the MedTech sector. Additionally, the latest threat of increased tariffs on Chinese imports is adding to the uncertainty, the analyst noted.

Alcon Inc. (NYSE:ALC) believes that the strong early demand for the recent product launches, such as Unity VCS, Voyager, PanOptix Pro, Precision7, Systane Pro PF and Tryptyr, remains encouraging. Despite in early stages, such launches place the company well to accelerate top-line growth and generate cash.

Parnassus Investments, an investment management company, released its Q2 2025 investor letter. Here is what the fund said:

“Within Health Care, we initiated a position in Alcon Inc. (NYSE:ALC), a market leader in the eye care industry. We expect its culture of innovation will enable the company to accelerate market share gains and revenue growth during our investment horizon. Alcon is a dominant player in the eye care industry. The company operates in a strong, durable category, and ALC’s product launches should enable them to continue to gain market share and experience accelerating growth.”