In this article, we will take a look at the 12 Best Depressed Stocks to Buy in 2025.
The V-shape recovery in the US equity markets, from April lows, has been relenting. Likewise, equities have rallied to all-time highs as investors continue to shrug off premium valuations in play. Similarly, Fundstrat’s Head of Research and CIO, Tom Lee, insists that this is the most hated bull market of all time.
Minor pullbacks have only been countered by intense buying pressure, much to the excitement of bulls. Likewise, Lee expects the rally to continue, as most companies have absorbed the tariff and trade war shocks.
Trivariate’s Adam Parker shares similar sentiments, reiterating the prospects for a 10% EPS growth for the S&P 500 with a low 20x price to forward earnings ratio.
“We see the S & P 500 above 7000 before the end of 2026, if not sooner. The top 50 companies are relatively immune from higher inflation, a dynamic that was made crystal clear post-COVID. Moreover, lower input costs like commodities and oil, tame logistics expenses, and a weakening dollar might all help the earnings outlook for the second half of 2025. AI productivity and revenue synergies likely help 2026 and 2027 earnings,” Parker wrote in a research note.
With top analysts on Wall Street bullish about the long-term outlook for equity markets, the focus is slowly shifting to stocks trading at discounted valuations following deep pullbacks. Buying depressed stocks isn’t just a bargain hunter’s move; it’s a smart way to invest when fundamentals are sound. It is a strategy deployed by long-term investors that involves taking advantage of the best opportunities when stocks are trading at a discount.
With that in mind, let’s take a look at the 12 Best Depressed Stocks to Buy in 2025.
Our Methodology
To compile the list of the 12 Best Depressed Stocks to Invest in Now, we used Finviz screener to filter out the stocks that are trading close to their respective 52-week lows (0-10%) with more than 20% upside potential from current levels (as of August 6). Next, we selected stocks with a market capitalization of more than $20 billion and that are popular among elite hedge funds. Finally, we ranked the stocks in ascending order based on hedge fund holdings, as of Q1 2025.
Why are we interested in the stocks that hedge funds pile into? The reason is straightforward: our research has demonstrated that we can outperform the market by replicating 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).
Best Depressed Stocks to Buy in 2025
12. Infosys Limited (NYSE:INFY)
52 Week Range: $15.82 – $23.63
Current Share Price: $16.07
Stock Upside Potential: 21.11%
Market Cap: $68.87 Billion
Number of Hedge Fund Holders: 30
Infosys Limited (NYSE:INFY) is one of the best depressed stocks to buy in 2025. On July 28, Infosys (NYSE: INFY) announced a strategic partnership with German energy giant RWE to deploy automated digital workplace solutions aimed at boosting operational efficiency.
Using the Infosys Workplace Suite, the initiative will introduce tools like Office 365 migration, Azure-powered bots, collaboration apps, and service automation to streamline workflows and empower employees with self-service capabilities.
Building on a 12-year relationship, the collaboration emphasizes user-centric design and sustainability. RWE’s Group CIO Gülnaz Öneş highlighted the alignment of modern tech with the company’s efficiency goals, while Infosys EVP Ashiss Kumar Dash underscored the mission to enhance RWE’s customer value and workforce capabilities. The project marks a key step in RWE’s journey toward operational excellence.
Infosys Limited (NYSE: INFY) provides a broad range of digital, consulting, and cybersecurity services. Its Cyber Security division helps organizations build resilient security frameworks tailored to evolving threats. Key offerings include managed security services, cloud protection, identity and access management, and data security—delivering end-to-end solutions to safeguard business operations.
11. AvalonBay Communities, Inc. (NYSE:AVB)
52 Week Range: $180.40-$239.29
Current Share Price: $184.31
Stock Upside Potential: 23.04%
Market Cap: $26.55 Billion
Number of Hedge Fund Holders: 32
AvalonBay Communities, Inc. (NYSE:AVB) is one of the best depressed stocks to buy in 2025. On July 30, the company delivered solid second-quarter results. Earnings per share were up 5.6% year-over-year to $1.88, better than the analyst estimate of $1.20 a share.
Same-store residential revenue was up 3% year-over-year to $689.1 million in the quarter and up 3% to $1.37 billion for the six months ended June 30, 2025. In addition to solid financial results, AvalonBay Communities completed the development of Avalon Princeton on Harrison, which contains 200 apartment homes.
Additionally, Avalon Bay Communities has begun construction on two apartment communities: Avalon Kendall, located in Kendall, Florida, and Avalon Brier Creek, located in Durham, North Carolina. The apartment complex will comprise a total of 624 apartment homes.
AvalonBay Communities, Inc. (NYSE:AVB) is a real estate investment trust (REIT) that develops, redevelops, acquires, and manages apartment communities. Consequently, it owns and operates an extensive portfolio of apartment communities and also develops new properties.
10. ONEOK, Inc. (NYSE:OKE)
52 Week Range: $74.23-$118.07
Current Share Price: $76.12
Stock Upside Potential: 28.37%
Market Cap: $46.99 Billion
Number of Hedge Fund Holders: 42
ONEOK, Inc. (NYSE:OKE) is one of the best depressed stocks to buy in 2025. On July 16, the company reiterated its commitment to shareholder value by maintaining a quarterly dividend of $1.03 a share. The quarterly dividend translates to an annualized dividend of $4.12 a share.
The company will pay a $1.03 per share dividend on August 14, 2025, to shareholders of record as of August 1, 2025. As it stands, ONEOK rewards investors with a 5.15% dividend yield, which is significantly above industry averages.
The dividend offering follows the completion of the acquisition of the Delaware Basin JV for $940 million. The acquisition is poised to enhance ONEOK’s operations in the Permian Basin by granting it full ownership of natural gas gathering and processing facilities in the Delaware Basin.
ONEOK, Inc. (NYSE:OKE) is an energy company focused on midstream services in natural gas and natural gas liquids (NGLs) processing and transportation. It owns and operates an extensive network of pipelines, processing plants, and storage facilities, connecting energy producers with end-users.
9. United Parcel Service, Inc. (NYSE:UPS)
52 Week Range: $84.28-$145.01
Current Share Price: $86.23
Stock Upside Potential: 23.67%
Market Cap: $73.04 Billion
Number of Hedge Fund Holders: 57
United Parcel Service, Inc. (NYSE:UPS) is one of the best depressed stocks to buy in 2025. On July 29, the company entered into key agreements with PeriShip Global, LLC, a wholly owned subsidiary of VerifyMe Inc. (NASDAQ: VRME).
A regulatory filing indicates that PeriShip Global has entered into a UPS Digital Channel Program Agreement with the shipping and logistics giant. It has also entered into a UPS Partner API Access Agreement with UPS Digital, Inc. The three-year agreements will accord PeriShip access to designated UPS services at promotional rates.
Some of the services that the VerifyMe subsidiary stands to enjoy include proactive monitoring, weather tracking, and issue resolution through UPS digital channel applications. UPS will also provide PeriShip with the opportunity to develop interfaces to certain UPS APIs and access to UPS Access services.
United Parcel Service, Inc. (NYSE:UPS) is a global package delivery and supply chain management company. It provides a wide range of logistics solutions, including domestic and international package delivery, freight forwarding, and supply chain management services.
