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.
8. Novo Nordisk A/S (NYSE:NVO)
52 Week Range: $45.57-$139.74
Current Share Price: $46.10
Stock Upside Potential: 58.35%
Market Cap: $154.57 Billion
Number of Hedge Fund Holders: 60
Novo Nordisk A/S (NYSE:NVO) is one of the best depressed stocks to buy in 2025. On August 4, the company confirmed it had received an unsolicited mini-tender offer from TRC Capital Investment Corporation.
The mini tender offer is for the purchase of up to 2 million American Depositary shares representing less than 0.045% of its total share capital. Novo Nordisk management remains neutral in the tender offer and has advised shareholders to exercise caution and consult financial advisors.
Given that the tender offer covers an immaterial stake, there will be no change in Novo Nordisk’s control or capital structure.
Novo Nordisk A/S (NYSE:NVO) is a healthcare company that develops and delivers innovative treatments for serious chronic diseases, with a particular emphasis on diabetes and obesity. It also develops treatments for rare blood and endocrine diseases, haemophilia, and growth disorders.
7. Fair Isaac Corporation (NYSE:FICO)
52 Week Range: $1336.03 – $2402.52
Current Share Price: $1343.12
Stock Upside Potential: 46.27%
Market Cap: $33.45 Billion
Number of Hedge Fund Holders: 68
Fair Isaac Corporation (NYSE:FICO) is one of the best depressed stocks to buy in 2025. On August 4, BMO Capital reiterated its ‘Outperform’ rating on the stock but reduced the price target to $1,650 from $1,800. The price target adjustment follows an expert event by Clayton Dukes, a former senior employee, on August 1.
The former employee shared key industry dynamics and presented a more pessimistic view, which forced BMO Capital to alter its price target on Fair Isaac. According to Dukes, the emergence of a duopoly in the credit rating industry presents significant risks. The former employee is wary of flat pricing for the company as a result of the following year.
Consequently, BMO Capital reiterated its ‘Outperform’ rating but cut the price target to account for potential market shifts over time. The positive stance underscores the research firm’s continued confidence in the company’s performance and long-term prospects.
Fair Isaac Corporation (NYSE:FICO) provides analytic, software, and data management products and services that help businesses automate, improve, and connect decisions. It offers FICO Score, a widely used credit score, and also provides solutions for credit risk management, fraud prevention, customer management, and regulatory compliance.
6. Accenture plc (NYSE:ACN)
52 Week Range: $245.28-$398.35
Current Share Price: $246.34
Stock Upside Potential: 34.10%
Market Cap: $154.18 Billion
Number of Hedge Fund Holders: 69
Accenture Plc (NYSE:ACN) is one of the best depressed stocks to buy in 2025. On July 11, analysts at Stifel reiterated a ‘Buy’ rating on the stock, impressed by the company’s management quality despite market challenges.
While the stock has come under pressure, dropping close to its 52-week low, Stifel insists Accenture is one of the “consistently best-managed businesses in the sector.” The research firm has reiterated its confidence in the company’s leadership team amid the cyclical and secular challenges at play.
Stifel has reiterated that the company’s fiscal year 2026 consensus estimates are reasonable, if not beatable. The remarks come on Accenture delivering 4% year-over-year organic growth in its fiscal third quarter. Earnings per share in the quarter were up 13% outperforming the expected 6% increase.
Accenture Plc (NYSE:ACN) is a global professional services company that provides a wide range of services, including consulting, technology, and operations. It helps clients transform their businesses by leveraging digital technologies like cloud, AI, and data.
5. Fiserv, Inc. (NYSE:FI)
52 Week Range: $128.22-$238.59
Current Share Price: $134.28
Stock Upside Potential: 40.20%
Market Cap: $72.86 Billion
Number of Hedge Fund Holders: 72
Fiserv, Inc. (NYSE:FI) is one of the best depressed stocks to buy in 2025. On July 29, Truist Securities reiterated a ‘Buy’ rating on the stock but cut its price target to $170 from $185. The adjustment follows the company’s second-quarter earnings and reflects a lower price-to-earnings multiple of 15x to Truist Securities’ 2026 adjusted earnings per share.
The price target adjustment comes as Fiserv shares have declined 32% year to date. Truist Securities attributes 1% of the decline to negative earnings-per-share revisions. It also attributes the sell-off to multiple compressions following the deceleration of volume growth in the Clover business.
Nevertheless, Truist Securities is confident about Fiserv’s Clover business, which serves small and medium-sized companies and touts it as a crown jewel. Consequently, its forecasts align with Wall Street and management guidance.
Fiserv, Inc. (NYSE:FI) is a global provider of financial technology and payments solutions, focusing on moving money and information. It offers a wide range of services to financial institutions, businesses, and consumers, including payment processing, digital banking, and merchant solutions.
4. Elevance Health, Inc. (NYSE:ELV)
52 Week Range: $273.73-$567.26
Current Share Price: $274.41
Stock Upside Potential: 32.46%
Market Cap: $662.24 Billion
Number of Hedge Fund Holders: 75
Elevance Health, Inc. (NYSE:ELV) is one of the best depressed stocks to buy in 2025. On July 28, UBS reiterated a ‘Buy’ rating on the stock and a $435 price target. The positive stance follows the healthcare company’s second-quarter results.
The healthcare company delivered adjusted earnings per share of $8.84, in line with consensus estimates. It also delivered $49.8 billion in revenues, beating expectations by 2.8%. Nevertheless, the company reduced its earnings per share outlook by $4.50, resulting in a $1.3 billion decrease in pretax income. Elevance also increased its 2025 medical loss ratio expectations by 90 basis points.
Elevance attributes the higher medical loss expectations to worse-than-expected cost trends in the Affordable Care Act exchange and Medicaid businesses. UBS maintains a Buy rating on the stock, citing potential earnings stability and growth in the commercial and Carelon segments.
Elevance Health, Inc. (NYSE:ELV) is a healthcare company dedicated to enhancing the health of individuals and communities. It offers a range of services, including health plans, clinical solutions, behavioral health, pharmacy benefits, and complex care solutions.
3. Comcast Corporation (NASDAQ:CMCSA)
52 Week Range: $31.44 – $45.31
Current Share Price: $32.40
Stock Upside Potential: 21.10%
Market Cap: $118.74 Billion
Number of Hedge Fund Holders: 81
Comcast Corporation (NASDAQ:CMCSA) is one of the best depressed stocks to buy in 2025. On August 5, Comcast Corporation announced a $19 million initiative to enhance Bossier City’s high-speed internet infrastructure, aiming to complete the project by late 2026.
New services will launch in select neighborhoods this year, offering internet plans starting at $14.95/month with a five-year price lock. Comcast’s strong financial position, characterized by a 70.8% gross profit margin and 18 consecutive years of dividend payments, underscores its ability to sustain investment.
Alongside its infrastructure upgrade, Comcast is deepening community ties through support for events like the Red River Balloon Rally and a free haircut drive for veterans. Employees packed 200 backpacks with school supplies ahead of an August 9 donation drive, and the company lit up the Bakowski Bridge of Lights to symbolize its growing presence. This expansion reflects Comcast’s broader goal to close the digital divide with multi-gigabit speeds and 99.9% reliability.
Comcast Corporation (NASDAQ:CMCSA) is a global media and technology leader with diverse operations spanning connectivity, content, and experiences. Its Residential and Business Connectivity divisions offer high-speed broadband, wireless services, video platforms, and enterprise-level Ethernet solutions.
2. Merck & Co., Inc. (NYSE:MRK)
52 Week Range: $73.31-$120.30
Current Share Price: $80.79
Stock Upside Potential: 26.03%
Market Cap: $199.48 Billion
Number of Hedge Fund Holders: 93
Merck & Co., Inc. (NYSE:MRK) is one of the best depressed stocks to buy in 2025. On August 2, the company completed the divestment of its Surface Solutions business to Global New Material International Holdings.
The sale follows regulatory approval and fulfillment of customary closing conditions. Merck & Co. is to receive €665 million from the transaction. It plans to use the net proceeds from the sale to strengthen its core strategic business. Part of the plan entails positioning the Electronics division more strongly to offer semiconductor solutions.
“With the completion of this transaction, we are focusing our portfolio even more clearly on technology-driven businesses,” said Belén Garijo, Chairwoman of the Executive Board and CEO of Merck. “Alongside acquisitions such as our recent purchases of SpringWorks Therapeutics, HUB Organoids, Unity-SC and Mirus Bio, the divestment of non-strategic businesses remains a key part of our M&A strategy, which is focused on long-term growth through innovation.”
Merck & Co., Inc. (NYSE:MRK) is a science and technology company that focuses on healthcare, life sciences, and electronics. It develops and manufactures products for various sectors, including pharmaceuticals, laboratory tools, and electronic materials.
1. UnitedHealth Group Incorporated (NYSE:UNH)
52 Week Range: $234.60-630.73
Current Share Price: $246
Stock Upside Potential: 27.36%
Market Cap: $222.96 Billion
Number of Hedge Fund Holders: 139
UnitedHealth Group Incorporated (NYSE:UNH) is one of the best depressed stocks to buy in 2025. On August 1, the company announced that Wayne S. DeVeydt will assume the role of Chief Financial Officer, effective September 2, 2025.
DeVeydt takes over from John F. Rex, who is transitioning to a strategic advisor role to the CEO. He also joins UnitedHealth, having served as managing director and operating partner at Bain Capital. DeVeydt also joins the company with healthcare industry experience, having served as chairman and CEO of Surgery Partners.
UnitedHealth Group Chairman and CEO Stephen J. Hemsley has echoed DeVeydt’s deep financial acumen and operating experience that will be of great benefit to the company.
DeVeydt said, “There is no organization besides UnitedHealth Group that presents the kinds of opportunities to make a difference in health care, from individual patient care to broad system efficiency.”
UnitedHealth Group Incorporated (NYSE:UNH) is a healthcare giant that operates two main businesses: Optum, which delivers technology-enabled healthcare services, and a segment that offers health benefits and insurance coverage.
While we acknowledge the potential of UnitedHealth Group Incorporated (NYSE:UNH) 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 UNH and that has 100x upside potential, check out our report about this cheapest AI stock.
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