In this article, we examine the 12 Best Falling Stocks to Buy Now.
Market pullbacks can create opportunities for investors willing to look beyond short-term volatility. Warren Buffett famously advised, “Be fearful when others are greedy, and greedy when others are fearful.” The Kobeissi Letter, a market commentary firm, echoed this sentiment in a recent post on X, noting: “Bear markets are the best opportunity to acquire long-term equity investments.”
In early 2025, bearish sentiment was widespread. In March, Goldman Sachs cut its year-end forecast for the S&P 500 to around 6,200 from a previous 6,500, citing mounting tariff risks, slower GDP growth, and rising economic uncertainty. By July, however, the outlook had improved, and Goldman raised its 12-month target to roughly 6,900.
“The forecast change reflects our economists’ projections of earlier and deeper rate easing from the Fed, lower bond yields, continued strength in the largest stocks, and investors’ willingness to tolerate near-term weakness in company earnings,” the bank said.
Still, this optimism has not been shared equally across the market. David Kostin, Goldman Sachs’ chief U.S. equity strategist, recently (on August 8) noted that the U.S. market is experiencing its highest level of stock-level differentiation in three decades. As of August 8, the S&P 500 was up 8% year-to-date and just 1% below its all-time high, yet the median stock remained 12% below its 52-week peak.
Many of these lagging names have seen selective downturns, often driven by sector rotation, earnings misses, or external shocks rather than structural weakness. This post identifies 12 such stocks that could offer attractive entry points at current levels.
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Our Methodology
To identify the 12 Best Falling Stocks to Buy Now, we began by screening (using Finviz and Yahoo Finance stock screeners) for the largest publicly traded companies whose share prices had declined by at least 35% year-to-date as of August 12, 2025. Next, we used the screener to aggregate a list of companies with an upside potential of at least 20%. We narrowed down to the 12 stocks that are the most popular among elite hedge funds, sourced from Insider Monkey’s Q1 2025 database. The list is ranked in ascending order of the number of hedge fund holders.
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 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here).
Best Falling Stocks to Buy Now
12. Molina Healthcare, Inc. (NYSE:MOH)
Number of Hedge Fund Holders: 38
Year-To-Date Returns: -47.15%
Analyst Upside Potential: 36.79%
Molina Healthcare, Inc. (NYSE:MOH) is one of the best falling stocks to buy now. On July 24, Cantor Fitzgerald reiterated its “Overweight” rating on Molina with a price target of $312. The reaffirmation came after Molina revised its 2025 guidance.
Cantor Fitzgerald highlighted concerns about the Health Insurance Exchange (HIX) business, noting that Molina’s 2025 HIX Medical Loss Ratio (MLR) guidance increased by 510 basis points to 85.1%. The analysts stated that the MLR guidance suggests that the HIX product line may operate at “break-even to negative low-single-digit margins,” compared to Elevance Health’s estimated 2-3% margins. Nonetheless, the firm noted that the revised guidance aligns more closely with investor expectations, especially after Elevance Health’s comments, which should provide more stability for Molina’s stock.
Cantor Fitzgerald stated that new uncertainties emerged during the second quarter of 2025. This includes challenges in determining “clean numbers” (excluding one-time SG&A benefits) and understanding why Molina’s Medicare MLR increased by 100 basis points. The firm pointed out that Molina’s Medicare book primarily consists of dual-eligible beneficiaries, which may explain the discrepancy.
Molina Healthcare, Inc. (NYSE:MOH) is an American managed care company. It provides health insurance services through government-sponsored programs, including Medicaid, Medicare, and state health insurance marketplaces. The company operates locally run health plans in more than 21 U.S. states, serving approximately 5.8 million members.
11. Dow Inc. (NYSE:DOW)
Number of Hedge Fund Holders: 43
Year-To-Date Returns: -47.99%
Analyst Upside Potential: 32.53%
Dow Inc. (NYSE:DOW) is one of the best falling stocks to buy now. On August 5, Rothschild Redburn raised Dow stock from a “Neutral” to a “Buy” rating. The firm also revised its price target downward from $65 to $40. Rothschild Redburn cited “relatively higher cyclical upside potential” for Dow compared to competitor Lyondell, which the firm said was driven by expectations of recovering polyethylene margins while polypropylene margins remain low.
The firm noted that Dow’s recent dividend cut, reducing the quarterly dividend by 50% to 35 cents per share, reset its capital allocation strategy. This action provided flexibility for debt repayment and a new share buyback program. Rothschild Redburn described Dow’s stock as being at a “trough free cash flow-based valuation” and below mid-cycle and replacement cost levels, and the firm sees the stock as offering an attractive risk/reward profile.
Dow Inc. (NYSE:DOW) is a global materials science company. It manufactures and markets performance chemicals, industrial intermediates, and plastics used in packaging, infrastructure, mobility, and consumer applications. Through its Packaging & Specialty Plastics segment, Dow supplies polyethylene and other ethylene derivatives critical to modern agriculture, including crop protection packaging, greenhouse films, and irrigation components.
10. Lululemon Athletica, Inc. (NASDAQ:LULU)
Number of Hedge Fund Holders: 48
Year-To-Date Returns: -51.25%
Analyst Upside Potential: 46.83%
Lululemon Athletica, Inc. (NASDAQ:LULU) is one of the best falling stocks to buy now. On July 24, Evercore ISI lowered its price target for Lululemon Athletica from $320 to $265, while maintaining an Outperform rating. The firm also removed Lululemon from its Top 5 Outperform list, replacing it with Ulta Beauty (NASDAQ:ULTA).
Evercore has trimmed its earnings outlook for Lululemon, lowering Q2 EPS to $2.95 from $3.00—still above the Street’s $2.88 consensus—and reducing global same-store sales growth expectations to 3.3% from 3.7%. For FY2025, EPS was revised down to $14.50 from $14.90, with same-store sales growth now projected at 3% instead of 4%, and gross margins expected to decline 130 basis points to 57.9%. FY2026 EPS was also cut to $15.85 from $16.70, slightly above the consensus of $15.58, as Evercore flagged concerns over Lululemon’s long-term growth trajectory.
Lululemon Athletica, Inc. (NASDAQ:LULU) is a Canadian athletic apparel company. It designs and sells performance wear, accessories, and footwear for activities such as yoga, running, and training. The company operates over 760 stores across North America, Asia, and Europe, and maintains a strong direct-to-consumer presence through its e-commerce platform.
9. Wix.com Ltd. (NASDAQ:WIX)
Number of Hedge Fund Holders: 50
Year-To-Date Returns: -46.20%
Analyst Upside Potential: 75.94%
Wix.com Ltd. (NASDAQ:WIX) is one of the best falling stocks to buy now. On August 11, the company announced an increase to its share repurchase program by an additional $200 million. This move expands the total authorized repurchase capacity to $500 million. Of the previously authorized $400 million, $100 million had already been utilized before this expansion.
Since the beginning of 2025, Wix has repurchased $300 million of its ordinary shares as part of this program. The repurchase program allows Wix to buy back its ordinary shares and/or convertible notes through various methods, including open market purchases, privately negotiated transactions, and plans compliant with U.S. securities laws and regulations. The program is flexible. It does not obligate Wix to acquire any specific amount of securities and can be suspended or discontinued at the company’s discretion.
The additional $200 million repurchase authorization will be implemented subject to Israeli legal requirements. This includes a 30-day period during which creditors may object to the repurchase plan as per Israeli company regulations.
Wix.com Ltd. (NASDAQ:WIX) is an Israeli software company. It operates a cloud-based platform that enables users to create, manage, and grow websites and digital experiences without coding. The company serves over 250 million registered users globally through products like Wix Editor, Wix Studio, and Velo, a no-code/low-code development environment.