12 Best Beaten Down Stocks to Buy According to Hedge Funds

1. Intuitive Surgical, Inc. (NASDAQ:ISRG)

Number of Hedge Fund Holders: 107

52-Week Low: $425

Stock Price: $436.39

Intuitive Surgical, Inc. (NASDAQ:ISRG) 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 $529 from $571, while keeping a “Buy” rating, as reported by The Fly. This comes as part of a broader research note previewing Q3 results for the MedTech industry. As per the analyst, the headlines impacting sentiments in MedTech consist of Medicaid cuts, ACA subsidies not being renewed, and challenges in the broader economy. The investors are concerned that fewer patients might look for medical treatment. As per the analyst, the latest threat of high tariffs on China imports further adds to uncertainty.

That being said, the results in Q3 might prove to be better than feared. This is because much of the headline risk is expected to take effect further in the future, added the firm’s analyst. Elsewhere, Intuitive Surgical, Inc. (NASDAQ:ISRG) announced that the US FDA cleared software advancements for the Ion endoluminal system. Ion is the company’s robotic-assisted bronchoscopy platform, and features an ultra-thin, shape-sensing catheter designed to navigate deep into the lung. This advanced technology allows physicians to access small, hard-to-reach nodules and precisely position biopsy tools in order to sample potentially cancerous tissue.

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

“Intuitive Surgical, Inc. (NASDAQ:ISRG) manufactures the da Vinci Surgical System, a robotic surgical system used for minimally invasive surgical procedures. The stock contributed to performance on solid financial results. Intuitive continues to generate strong procedure growth and is in the early stages of a new product cycle with its da Vinci 5 system. We continue to view Intuitive as a competitively advantaged business with durable moats, including proprietary technology, a strong portfolio of patents, regulatory approvals, a large installed base of robotic systems, a growing base of customers trained on its platform, and a robust balance sheet. We believe the company has a long runway for growth driven by the continued adoption and expansion of robotic surgery.”

While we acknowledge the potential of ISRG 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 ISRG and that has 100x upside potential, check out our report about this cheapest AI stock.

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