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.”
11. Waste Connections, Inc. (NYSE:WCN)
Number of Hedge Fund Holders: 43
52-Week Low: $169.36
Stock Price: $172.56
Waste Connections, Inc. (NYSE:WCN) is one of the Best Beaten Down Stocks to Buy According to Hedge Funds. On October 10, Scotiabank lifted the price target on the company’s stock to “Outperform” from “Sector Perform” with an unchanged price target of $208, as reported by The Fly. The firm cited the stock’s improved relative valuation and confidence in Waste Connections, Inc. (NYSE:WCN)’s future FCF conversion for the upgrade. As per the analyst, Waste Connections, Inc. (NYSE:WCN)’s shares have significantly underperformed the solid waste group over the previous year. This compressed its valuation premium to peers. Notably, the firm expects the current share levels as a great entry point.
On a separate note, on October 16, UBS reduced the price target on the company’s stock to $190 from $205, while keeping a “Neutral” rating on the shares. As per the analyst, 2025 is shaping up to be a modestly below-average year for the Municipal Solid Waste operating performance. However, the volatility in relative share performance is more of an inverse reaction to the broader market sentiment shifts, added the analyst.
Chautauqua Capital Management, a division of Baird Asset Management, is a boutique investment firm that released its Q2 2025 investor letter for “Baird Chautauqua International and Global Growth Fund”. Here is what the fund said:
“Waste Connections, Inc. (NYSE:WCN) reported a strong 1Q25 driven by solid waste pricing; however, shares fell 9% in 2Q after a 14% gain in 1Q. There may have been some investor disappointment that management did not raise guidance for the year. Recycled commodity prices declined 10%, but recycling represents only 2% of total revenues. Overall, the company is performing well operationally.”
10. ONEOK, Inc. (NYSE:OKE)
Number of Hedge Fund Holders: 44
52-Week Low: $69.05
Stock Price: $69.58
ONEOK, Inc. (NYSE:OKE) is one of the Best Beaten Down Stocks to Buy According to Hedge Funds. On October 9, Robert Kad, an analyst from Morgan Stanley, maintained a “Buy” rating on the company’s stock, while the associated price target remained same at $110.00. The analyst’s rating is backed by a combination of factors demonstrating ONEOK, Inc. (NYSE:OKE)’s potential for healthy performance within the midstream sector. Despite the negative skew in oil macro risks, the analyst believes there is a dislocation in ONEOK, Inc. (NYSE:OKE)’s valuation relative to its fundamentals. This demonstrates that the company and its peers are expected to lead the sector’s performance by 2026.
Also, the positive investor sentiment towards ONEOK, Inc. (NYSE:OKE)’s current valuation, cash flow resilience, and management’s proven execution track record backs the analyst’s rating. As per the analyst, the company’s strategic emphasis on counter-cyclical share repurchases over accelerated deleveraging is regarded as the favorable approach.
ClearBridge Investments, an investment management company, released its Q2 2025 investor letter. Here is what the fund said:
“U.S. energy infrastructure company ONEOK, Inc. (NYSE:OKE) and Canadian energy infrastructure company Pembina Pipeline were the largest detractors. ONEOK is one of the largest diversified energy infrastructure companies in the U.S., owning and operating an extensive network of natural gas liquids (NGL), natural gas, refined products and crude oil assets. Underperformance for the quarter was primarily driven by the OPEC+ decision to increase production and accelerate the unwinding of voluntary cuts, which ultimately led to further softening of the oil price outlook.”
9. The Kraft Heinz Company (NASDAQ:KHC)
Number of Hedge Fund Holders: 45
52-Week Low: $24.8
Stock Price: $25.44
The Kraft Heinz Company (NASDAQ:KHC) is one of the Best Beaten Down Stocks to Buy According to Hedge Funds. On October 6, analyst Robert Moskow from TD Cowen maintained a “Hold” rating on the company’s stock and has a price objective of $28.00. The analyst’s rating is based on the combination of factors impacting the company’s performance. As per the analyst, The Kraft Heinz Company (NASDAQ:KHC) continues to face challenges in its North American segment. The analyst further highlighted that, in the Emerging Markets, geopolitical instability in Indonesia impacted sales, affecting its performance in that region.
The Kraft Heinz Company (NASDAQ:KHC) stated that its investments in product improvements and manufacturing capabilities continue to pay off, fueling brand and product superiority, which has been resonating with consumers. The Kraft Heinz Company (NASDAQ:KHC) continues to deliver value and drive improvement, thanks to the Brand Growth System and its Go To Market model.
Hotchkis & Wiley, an investment management company, released its Q2 2025 investor letter. Here is what the fund said:
“The Kraft Heinz Company (NASDAQ:KHC) is the third largest U.S. food and beverage company. KHC shares declined following mixed earnings results in the quarter. While organic sales growth over the medium term is likely to be just 1-2%, we believe the company can also make bolt-on acquisitions and share repurchases to further ensure positive earnings per share (EPS) growth. Modest EPS growth combined with a dividend yield above 4% should result in a competitive total return.”
8. Targa Resources Corp. (NYSE:TRGP)
Number of Hedge Fund Holders: 48
52-Week Low: $147.31
Stock Price: $150.38
Targa Resources Corp. (NYSE:TRGP) is one of the Best Beaten Down Stocks to Buy According to Hedge Funds. On October 7, JPMorgan analyst Jeremy Tonet lifted the price target on the company’s stock to $215 from $214, while keeping an “Overweight” rating as part of the Q3 earnings preview. As per the firm, Targa Resources Corp. (NYSE:TRGP)’s H2 2025 momentum is materializing. Elsewhere, the company announced new organic growth projects to support continuing NGL and natural gas production growth in the Permian Basin as well as to meet the infrastructure requirements of its customers.
With around 1 million barrels per day of natural gas liquids that are being transported on Targa Resources Corp. (NYSE:TRGP)’s existing NGL transportation system, which includes volumes from the Pembrook II plant that came online during Q3 2025 in the Permian Midland and is running at high utilization, the company is going ahead with plans to construct the Speedway NGL Pipeline. Also, in a bid to accommodate future growth on Targa Resources Corp. (NYSE:TRGP)’s Permian Delaware system, it is also moving forward with the construction of its next 275 million cubic feet per day gas processing plant, the Yeti plant, which is anticipated to be in-service in Q3 2027.
Oakmark Funds, advised by Harris Associates, released its Q3 2025 investor letter. Here is what the fund said:
“Targa Resources Corp. (NYSE:TRGP) is a leading midstream natural gas and natural gas liquids (NGL) company. Targa is a part of a group that controls 90% of the fractionation capacity in the largest hub for NGLs in the world, known as Mont Belvieu. Thanks to the region’s unique topography and proximity to the Gulf Coast, Targa benefits from meaningful cost advantages and significant barriers to entry. We like that Targa generates approximately 90% of its earnings through multi-year fee-based arrangements with its customer base, which provides protection against oversupply or re-contracting. Uncertainty around Permian oil production growth has recently weighed on the share price. However, in our view, Targa remains well-positioned to grow, even if the Permian slows dramatically. We were happy to purchase shares at a discount to peers based on normalized earnings power and our estimate of intrinsic value.”
7. Verisk Analytics, Inc. (NASDAQ:VRSK)
Number of Hedge Fund Holders: 49
52-Week Low: $239.78
Stock Price: $243.36
Verisk Analytics, Inc. (NASDAQ:VRSK) is one of the Best Beaten Down Stocks to Buy According to Hedge Funds. On October 1, Seaport Research analyst John Mazzoni initiated coverage of the company’s stock with a “Buy” rating and a price objective of $280. The firm views Verisk Analytics, Inc. (NASDAQ:VRSK) as a top defensive pick in the broader Information Services, considering its leading position in underwriting and claims data in the insurance end market.
Elsewhere, Verisk Analytics, Inc. (NASDAQ:VRSK) highlighted that it demonstrated the continued evolution of its business from industry utility to data analytics specialist to integrated technology network. Verisk Analytics, Inc. (NASDAQ:VRSK) continues to invest its capital in core operations and towards acquisitions of robust and strategic businesses where it can create value with attractive returns consistent with the capital discipline. The company completed the acquisition of SuranceBay, cementing the commitment to streamline and automate the process of buying and selling insurance and to support a robust life and annuity ecosystem with solutions enhancing workflows among carriers, general agencies, insurance agents, and consumers.
ClearBridge Investments, an investment management company, released its Q2 2025 investor letter. Here is what the fund said:
“We initiated seven new positions in the quarter while exiting four others. Our largest purchase was Verisk Analytics, Inc. (NASDAQ:VRSK), a data and software solutions provider to the insurance industry. Verisk’s modern solutions are powerful and sticky, making them a must-have for major insurance companies. Through new products and raising prices, the company should continue growing high single digits and drive margins and free cash flow higher.”
6. Old Dominion Freight Line, Inc. (NASDAQ:ODFL)
Number of Hedge Fund Holders: 51
52-Week Low: $133.6
Stock Price: $135.43
Old Dominion Freight Line, Inc. (NASDAQ:ODFL) is one of the Best Beaten Down Stocks to Buy According to Hedge Funds. On October 14, Raymond James reduced the price target on the company’s stock to $160 from $165, while keeping an “Outperform” rating. As per the firm, upcoming rate cuts might eventually fuel activity, mainly in the auto and housing sectors. Old Dominion Freight Line, Inc. (NASDAQ:ODFL) released certain less-than-truckload (LTL) operating metrics for August 2025. Notably, revenue per day fell by 4.8% compared to August 2024 because of a 9.2% decrease in LTL tons per day, which was partially mitigated by an increase in LTL revenue per hundredweight.
Old Dominion Freight Line, Inc. (NASDAQ:ODFL) believes that it is the best-positioned carrier to win profitable market share in the long term. Old Dominion Freight Line, Inc. (NASDAQ:ODFL)’s consistent execution and investment in the network throughout the economic cycle place the company in a unique position to capitalize on an improvement in demand as and when it materializes.
ClearBridge Investments, an investment management company, released its Q3 2025 investor letter. Here is what the fund said:
“We initiated new positions in global insurance broker Marsh & McLennan, and Old Dominion Freight Line, Inc. (NASDAQ:ODFL), a less-than-truckload (LTL) shipping company. Old Dominion Freight Line is a best-in-class industrial company with a pristine balance sheet, strong profitability and fabulous returns. Earnings are currently burdened by a weak volume environment, providing an attractive entry point.”
5. United Parcel Service, Inc. (NYSE:UPS)
Number of Hedge Fund Holders: 53
52-Week Low: $82
Stock Price: $84.05
United Parcel Service, Inc. (NYSE:UPS) is one of the Best Beaten Down Stocks to Buy According to Hedge Funds. On October 14, Stephens analyst Reed Seay reduced the price target on the company’s stock to $86 from $92, while keeping an “Equal Weight” rating, as reported by The Fly. The analyst highlighted that United Parcel Service, Inc. (NYSE:UPS) has been winding down its volumes from Amazon. Furthermore, the analyst expects continued pressure among SMBs and B2B customers because of the macro headwinds.
Elsewhere, United Parcel Service, Inc. (NYSE:UPS) and American Express announced an expanded agreement to support small businesses in growing and driving commerce in their communities. Notably, both companies are rolling out new and exclusive offers to help SMBs. Amidst the busy holiday season on the cards, merchants are allowed to access exclusive savings from UPS through American Express’ Business Savings Suite. Such savings span UPS air, ground, and international shipping options and enable SMBs to save more while shipping more with UPS.
River Road Asset Management, an investment management company, released its Q4 2024 investor letter. Here is what the fund said:
“As of December 31, the portfolio held 29 positions, up four positions from Q3. During Q4, the largest sector increase was 736 bps within industrials, while the largest decrease was -276 bps within consumer discretionary. We established five new positions and eliminated one position
We also initiated a position in United Parcel Service, Inc. (NYSE:UPS) (Cl B) (UPS, 3.0 conviction), the world’s largest package delivery company, which handles over six billion packages annually and can reach 90% of the world’s gross domestic product (GDP) within a day. After years of elevated network investments to expand capacity, UPS has refocused its strategy on growing return on invested capital (ROIC). We believe the stock will rerate higher as margins, which we believe have bottomed, are expected to expand with the price per package growing faster than the cost per package. In the interim, investors collect a 5% dividend, which has grown in 21 out of 24 years since UPS went public. The dividend is supported by healthy free cash flow and an investment grade balance sheet with ~1x net leverage.”
4. Charter Communications, Inc. (NASDAQ:CHTR)
Number of Hedge Fund Holders: 56
52-Week Low: $251.8
Stock Price: $266.25
Charter Communications, Inc. (NASDAQ:CHTR) is one of the Best Beaten Down Stocks to Buy According to Hedge Funds. On October 6, Citi resumed coverage of the company’s stock with a “Buy” rating and a price objective of $325, as reported by The Fly. As per the analyst, Charter Communications, Inc. (NASDAQ:CHTR) will continue to see broadband subscriber losses. That being said, the analyst believes that its stock provides value after the recent correction into improving FCF generation. Notably, over the past 6 months, the company’s stock has seen a decline of over ~20%.
Charter Communications, Inc. (NASDAQ:CHTR) expects that its strategic investments in network evolution and convergence, rural build, US-based service, and seamless entertainment innovation would drive future customer and revenue growth. On October 6, analyst Michael Rollins from Citi highlighted that, despite recent challenges in broadband volume and competitive pressures, there is value in Charter Communications, Inc. (NASDAQ:CHTR)’s improving FCF generation.
Oakmark Funds, advised by Harris Associates, released its Q3 2025 investor letter. Here is what the fund said:
“Charter Communications, Inc. (NASDAQ:CHTR) was the top detractor during the quarter. The broadband leader’s stock price declined after it reported weak second-quarter earnings. Year-over-year earnings before interest, tax, depreciation and amortization were flat, and the closely watched decline in broadband subscriptions fell at a greater pace than anticipated. However, broadband average revenue per user (ARPU) growth accelerated, reaffirming one of the core points of our thesis. We expect continued near term volatility in subscriber results but believe the company’s high-capacity network is well positioned to compete over the long-term.”
3. Bristol-Myers Squibb Company (NYSE:BMY)
Number of Hedge Fund Holders: 67
52-Week Low: $42.9
Stock Price: $43.80
Bristol-Myers Squibb Company (NYSE:BMY) is one of the Best Beaten Down Stocks to Buy According to Hedge Funds. On October 10, Citi lifted the price target on the company’s stock to $48 from $47, while keeping a “Neutral” rating on the stock, as reported by The Fly. Notably, the firm adjusted price targets in the biotechnology and pharmaceuticals sector as part of the Q3 earnings preview. As per the analyst, the group remains well-placed into H2 2025 and 2026 as policy overhangs ease and investor emphasis gets back to fundamentals.
Elsewhere, Bristol-Myers Squibb Company (NYSE:BMY) and Orbital Therapeutics announced a definitive agreement under which the former will acquire Orbital. The acquisition consists of Orbital’s lead RNA immunotherapy preclinical candidate, currently in IND-enabling studies, OTX-201. Also, Bristol-Myers Squibb Company (NYSE:BMY) would acquire Orbital’s proprietary RNA platform, which integrates circular and linear RNA engineering, advanced LNP delivery, and AI-driven design in a bid to enable durable, programmable RNA therapies tailored to the distinct biology of the diseases.
2. The Procter & Gamble Company (NYSE:PG)
Number of Hedge Fund Holders: 88
52-Week Low: $146.9
Stock Price: $149.16
The Procter & Gamble Company (NYSE:PG) is one of the Best Beaten Down Stocks to Buy According to Hedge Funds. On October 10, JPMorgan reduced the price target on the company’s stock to $163 from $170, while keeping a “Neutral” rating as part of the Q3 preview for the broader household, personal care, and beauty group. As per the analyst, most of such large-cap companies in the group are expected to report another weak quarter amidst depressed consumer demand in the US and decelerating trends for Western Europe.
However, The Procter & Gamble Company (NYSE:PG) had announced a portfolio and productivity plan to emphasize its portfolio and organization to improve the cost structure and competitiveness. The Procter & Gamble Company (NYSE:PG) anticipates incurring non-core restructuring costs of ~$1 billion – $1.6 billion before-tax over the 2-year period. The company plans to incur half of the costs under this plan by FY 2026 end, with the balance incurred in FY 2027.
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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