In this article, we highlight the 13 Best Beaten Down Stocks to Invest in According to Analysts.
US stock markets hit new highs in 2025 during the artificial intelligence boom. Investors largely ignored concerns about higher tariffs from the Trump administration and fears of a bubble in AI companies, allowing the rally to continue.
The S&P 500 is entering the new year after strong double-digit gains, averaging 13% growth per year over the last decade. The Nasdaq, which focuses on tech stocks, is up more than 18%, thanks to the performance of the ‘magnificent seven.’
“I think conditions remain relatively fertile for stock prices to do OK overall,” Luschini told CBS News. “The big risk is that the whole AI narrative starts to lose a little of its viscosity.”
Wall Street strategists predict strong market performance in 2026, helped by the Federal Reserve’s monetary easing. JPMorgan expects the S&P 500 to rise 13% to 15% next year, supported by corporate earnings growth.
UBS Group AG strategists believe the S&P 500 could surpass 7,500 next year, thanks to strong US earnings growth. The AI boom is also expected to push equity markets higher as more capital flows into tech stocks.
Despite overall gains, some stocks have lagged amid concerns about monetary policy, weak earnings, and economic uncertainty. While some stocks hit record highs, others have dropped to 52-week lows, losing over 30% of their value.
However, John Stoltzfus, a strategist at Oppenheimer Asset Management, has downplayed the recent declines in some stocks.
“The softening in stock prices reflected in the major indexes at present looks like something between a ‘haircut’ and a ‘trim’ rather than the beginning of a more serious period of decline,” Stoltzfus said.
With this in mind, here are some of the best beaten-down stocks to consider buying, according to analysts, as strong momentum continues into 2026.
Source: unsplash
Our Methodology
To compile the 13 best beaten down stocks to invest in according to analysts, we used Finviz to screen companies trading within 0%–10% of their 52-week lows and that were down by more than 30% year-to-date. We then selected the stocks that were the most popular among hedge funds in Q3 2025 and that analysts are bullish on currently. We have ranked the stocks in ascending order of upside potential.
Note: All data was sourced on December 22.
Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research shows 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).
Best Beaten Down Stocks to Invest in According to Analysts
13. Snap Inc. (NYSE:SNAP)
52-Week Range: $6.90 – $13.28
Share price as of December 22: $7.60
Upside Potential: 27.94%
Year to date Loss: -33.26%
Number of Hedge Fund Holders: 50
Snap Inc. (NYSE:SNAP) is one of the best beaten down stocks to invest in according to analysts. On December 2, analysts at Guggenheim reiterated a Neutral rating and $8 price target on Snap Inc. (NYSE:SNAP).
The Neutral stance follows an analysis of the company’s Ads Manager audience reach and Apptopia download data that showed soft growth in November, hurt by the international slowdown. Global downloads tracked by Apptopia are also down in 2025 as domestic usage declines persist across data sources.
Meanwhile, Guggenheim expects Snap to deliver 474 million fourth-quarter daily active users, a three-million-user decline. It will align with management forecasts as the company faces headwinds, including the requirement for age verification on the platform. Nevertheless, the research firm is optimistic that Snap will reach 1 billion global monthly active users by the end of next year. The company delivered a 10% year-over-year increase in revenue in the third quarter to $1.51 billion. It has also inked a strategic partnership with Perplexity, expected to bring in 400 million.
Meanwhile, on December 11, Jefferies reiterated its Buy rating and $10 price target. RBC Capital analyst Brad Erickson, on the other hand, reiterated a Hold rating on the stock on December 18 and maintained a $10 price target.
Snap Inc. (NYSE:SNAP) is a social media and camera company best known for its Snapchat app, which focuses on visual communication through disappearing messages, AR Lenses, Stories, Spotlight (short videos), and Snap Map, and generates revenue primarily from business ads.
12. PayPal Holdings, Inc. (NASDAQ:PYPL)
52-Week Range: $55.85 – $93.25
Share price as of December 22: $59.86
Upside Potential: 30.19%
Year to date Loss: -30.17%
Number of Hedge Fund Holders: 86
PayPal Holdings Inc. (NASDAQ:PYPL) is one of the best beaten down stocks to invest in according to analysts. On December 15, PayPal Holdings Inc. (NASDAQ:PYPL) affirmed plans to deepen its presence in the US financial system. The company has applied to establish a Bank in the US as it rushes to capitalize on a friendly regulatory environment.
The filing with the Utah Department of Financial Institutions and the Federal Deposit Insurance Corporation is part of an effort to form an industrial loan company. The filling comes as FinTechs and crypto companies push to expand their businesses.
PayPal has set its sights on strengthening its lending business to small businesses in the US, having provided $30 billion in loans and capital since 2013. The effort will also allow it to reduce reliance on third parties. Additionally, it plans to offer interest-bearing savings accounts to customers.
“Securing capital remains a significant hurdle for small businesses striving to grow and scale,” said PayPal CEO Alex Chriss. “Establishing PayPal Bank will strengthen our business and improve our efficiency, enabling us to better support small business growth and economic opportunities across the U.S.”
Meanwhile, research firm Bernstein SocGen has reiterated a Market Perform rating on PayPal with a $76 price target on December 17. The positive stance comes amid expectations that obtaining a banking license will enable the company to expand its lending operations and reduce its reliance on partner banks.
PayPal Holdings, Inc. (NASDAQ:PYPL) is a global technology platform enabling digital payments for consumers and merchants. It acts as an electronic alternative to cash, checks, and cards for online/offline purchases, money transfers (P2P), and managing finances through its digital wallet.
11. Morningstar Inc. (NASDAQ:MORN)
52-Week Range: $202.89 – $342.34
Share price as of December 22: $216.76
Upside Potential: 31.48%
Year to date Loss: -34.79%
Number of Hedge Fund Holders: 38
Morningstar Inc. (NASDAQ:MORN) is one of the best beaten down stocks to invest in according to analysts. On December 18, Morningstar Inc. (NASDAQ:MORN) and its subsidiary PitchBook launched “The Evergreen Fund Landscape,” a new quarterly research series analyzing performance, flows, fees, and trends in semiliquid private market funds. The inaugural report shows evergreen fund assets doubling since 2022 to nearly $500 billion, with private credit driving growth and new product launches hitting record highs in 2025. Early index results highlight wide performance dispersion, underscoring the importance of manager selection, while fees remain above public market norms.
On December 5, the company reiterated its commitment to shareholder value by announcing a 10% increase in its quarterly dividend to 50 cents per share. It marks the fourth consecutive year of dividend increase backed by a 12.35% dividend growth over the last 12 months.
The 50 cents quarterly dividend is to be paid on January 30, 2026, to shareholders of record as of January 2, 2026. The company has also announced plans for three additional dividend payments in 2026, with its annualized dividend yield rising to $2 a share from $1.82 a share.
On November 26, BMO Capital analyst Jeffrey Silber reiterated a Buy rating on the stock and a $250 price target. According to the analyst, the stock is a Buy owing to the company’s strategic focus on artificial intelligence. The analyst has touted the company’s focus on delivering unique data and enhancing product insights, positioning it in the evolving market landscape. The company’s PitchBook platform, which integrates AI with human intelligence to aggregate data from diverse sources, stands out.
Morningstar Inc. (NASDAQ:MORN) is a leading global investment research firm that provides independent analysis, data, and tools for individual investors, financial advisors, and institutions, covering mutual funds, stocks, ETFs, and markets, and also offers investment management services.
10. GoDaddy Inc. (NYSE:GDDY)
52-Week Range: $121.94 – $216.00
Share price as of December 22: $126.08
Upside Potential: 33.82%
Year to date Loss: 36.86%
Number of Hedge Fund Holders: 49
GoDaddy Inc. (NYSE:GDDY) is one of the best beaten down stocks to invest in according to analysts. On December 17, RBC’s Brad Erickson reaffirmed a Buy on GoDaddy with a $200 target. On December 4, analysts at Benchmark reiterated a Buy rating on GoDaddy Inc. (NYSE:GDDY) and a $240 price target.
The research firm remains confident about the company’s prospects amid an improving competitive position in vibe coding, its agentic ecosystem. In addition, it is impressed by the economics of the company’s artificial intelligence units. Investments in the Data Platform across 21 million customers over the past two years are expected to drive meaningful revenue and cost efficiencies.
The company is also in the final testing phase of its Airo.ai product. The platform is poised to introduce six new AI agents to enhance small-business management. While the AI product’s monetization is expected to begin immediately, Benchmark insists that GoDaddy’s strategy remains underappreciated in the market despite its potential.
Meanwhile, Evercore ISI reiterated its In Line rating and $145 price target on the stock, impressed by demonstrations of Airo’s artificial intelligence offerings. The demonstrations showed Airo AI’s edge in developing a custom-built website for microbusinesses, featuring new agent-name Service functionality.
On December 3, Oppenheimer maintained a Perform rating on GoDaddy, impressed by management’s strategy to improve customer attachment and monetization through the Airo AI offerings. Management has already indicated that agentic functionality will require payment via subscription tiers.
GoDaddy is an online service provider that helps people build and grow businesses, primarily by selling domain names and offering easy website builders. It also provides hosting to keep sites online, plus tools for email, marketing (SEO, social), online stores, and security (SSLs).
9. Charter Communications, Inc. (NASDAQ:CHTR)
52-week Range: $193.00 – $437.06
Share price as of December 22: $206.02
Upside Potential: 39.96%
Year to date Loss: 39.99%
Number of Hedge Fund Holders: 53
Charter Communications Inc (NASDAQ:CHTR) is one of the best beaten down stocks to invest in according to analysts. On December 22, UBS analyst John Hodulik reiterated a Hold on Charter Communications Inc (NASDAQ:CHTR) with a $233 target.
On December 5, Charter Communications defended its proposed $34.5 billion merger with Cox Communications from allegations it would create an internet giant with excessive market power. In a filing with the Federal Communications Commission, the companies reiterated that the deal will not result in a combined company that is an “internet gatekeeper.”
The merger will result in internet service provider Cox Communications becoming the largest broadband provider, with about 36 million broadband subscribers and 70 million homes and businesses passed. According to advocacy groups, the combined company will be a behemoth with less competition.
Meanwhile, on December 3, CFRA analysts reiterated their pessimism about the deal’s ability to address the industry’s underlying negative trends. According to the research firm, the company is still struggling with higher subscriber losses in broadband. Consequently, the research firm has downgraded the stock to a strong sell with a $165 price target.
Charter Communications, Inc. (NASDAQ:CHTR)is a major US broadband connectivity and cable company that provides high-speed internet, mobile, TV (video), and voice (phone) services to residential and business customers, focusing on integrated entertainment and communication solutions across 41 states.
8. Vertex, Inc. (NASDAQ:VERX)
52-Week Range: $18.54 – $60.71
Share price as of December 22: $20.26
Upside Potential: 40.61%
Year to date Loss: -62.25%
Number of Hedge Fund Holders: 22
Vertex Inc. (NASDAQ:VERX) is one of the best beaten down stocks to invest in according to analysts. On December 5, Vertex Inc. (NASDAQ:VERX) confirmed expansion of its strategic partnership with CPA.com to include an artificial intelligence sales tax compliance solution. The solution targets accounting firms looking to provide automated tax compliance services to clients.
The AI-powered sales tax compliance solution is designed to help accounting firms deliver automated sales and tax compliance services to clients. It also enables Client Advisory Services and State and Local Tax teams assess exposure. Consequently, accounting firms will be able to manage clients’ compliance either directly through a white-labeled platform or by referring them to automated services.
“This launch marks an important next step in our journey to serve the accounting community,” said Bradd Wildstein, Vice President of Partner Sales at Vertex. “We’re helping CPA firms unlock new revenue streams and simplify return filing with innovative automation.”
The unveiling of the new automated tax compliance services solution comes on the heels of BMO Capital Markets predicting 2026 to be a recovery year for application and vertical software stocks. The research firm expects Vertex to be one of the biggest beneficiaries of a second consecutive solid tax season.
Vertex Inc. (NASDAQ:VERX) is a leading global provider of indirect tax software and solutions that help businesses automate, manage, and comply with complex tax regulations worldwide. They offer cloud-based and on-premise solutions designed to streamline end-to-end indirect tax processes.
7. GitLab Inc. (NASDAQ:GTLB)
52-Week Range: $35.81 – $74.18
Share price as of December 22: $38.38
Upside Potential: 43.61%
Year to date Loss: -31.90%
Number of Hedge Fund Holders: 51
Gitlab Inc (NASDAQ:GTLB) is one of the best beaten down stocks to invest in according to analysts. On December 16, BTIG began coverage of GitLab (GTLB) with a Buy rating and a $52 target. On December 3, Morgan Stanley reiterated an Overweight rating on the stock but cut the price target to $55 from $60. In contrast, Macquarie downgraded the stock to Neutral from Outperform and cut the price target to $40 from $70, concerned that the company has yet to show a clear path to reaccelerating growth.
GitLab delivered a small third-quarter revenue beat of $244.4 million, up 25% year over year. Nevertheless, the company increased the guidance, marking the first increase of the year. Macquarie has raised concerns that the company is facing challenges due to weakening federal and small business demand. The company is also experiencing a slowdown in customer remaining performance obligations growth, which declined to 28% from 34% in the third quarter.
On the other hand, DA Davidson reiterated a Neutral rating and a $45 price target on Gitlab, concerned by worsening growth trends and conservative guidance.
GitLab Inc. (NASDAQ:GTLB) is the company behind GitLab, a comprehensive, AI-powered DevSecOps platform that enables organizations to plan, build, secure, and deploy software in a single application. The platform is designed to help development, security, and operations (DevSecOps) teams collaborate effectively and deliver software faster and more securely.
6. SentinelOne Inc. (NYSE:S)
52-Week Range: $14.43 – $25.24
Share price as of December 22: $14.93
Upside Potential: 44.33%
Year-to-date Loss: -33.85%
Number of Hedge Fund Holders: 42
SentinelOne Inc. (NYSE:S) is one of the best beaten down stocks to invest in according to analysts. On December 17, in partnership with Arete, SentinelOne Inc. (NYSE:S) launched the On-Premises Deployment Solution. The solution is designed to help government organizations and Public Sector Undertakings (PSUs) maintain complete security visibility, strengthen defenses, and comply with strict data privacy.
Its deployment will enable SentinelOne’s AI-driven detection and response capabilities to operate on-premises. It will also operate within network-restricted and sensitive environments and deliver consistent security. The solution will also allow Arete and SentinelOne enable organizations and PSUs to operate with trusted, compliant, and adequate protection in regulated environments.
“This new solution allows Arete and SentinelOne to support sovereign and regulated security deployments while delivering strong security outcomes in high security environments,” said Raj Sivaraju, Arete’s President of APAC. “This positions us to meet the evolving needs of government organizations and PSUs that must balance effective cybersecurity with stringent data privacy and sovereignty requirements.”
Meanwhile, analysts at Citizens reiterated a Market Perform rating on SentinelOne on December 15 with a $23 price target. The rating and price target affirm confidence in SentinelOne’s share price appreciation despite challenges in scaling the business.
SentinelOne Inc. (NYSE:S) is an AI-powered cybersecurity company that provides an autonomous platform to detect, prevent, and respond to threats across endpoints, cloud, and identities for enterprises. It also uses machine learning to stop attacks at machine speed and offer complete visibility and automated protection for modern businesses.
5. Klarna Group plc (NYSE:KLAR)
52-Week Range: $27.90 – $47.48
Share price as of December 22: $31.31
Upside Potential: 53.16%
Year to date Loss: -31.67%
Number of Hedge Fund Holders: 50
Klarna Group plc (NYSE:KLAR) is one of the best beaten down stocks to invest in according to analysts. On December 18, Wells Fargo’s Jason Kupferberg reiterated a Buy on Klarna Group plc (NYSE:KLAR) with a $53 target.
Earlier on December 11, the company confirmed a strategic partnership with wallet infrastructure platform Privy. The two are joining forces to explore potential crypto wallet solutions. The partnership comes on the heels of Klarna’s launch of its stablecoin, KlarnaUSD, in collaboration with Tempo and Bridge. Consequently, it is teaming up with Privy to explore ways to develop a wallet that would make it easier for consumers to use stores and transact in cryptocurrencies. The strategic partnership also comes as Klarna increasingly explores various digital asset infrastructure possibilities.
Millions already trust Klarna to help them manage everyday spending, saving, and shopping. That puts us in a unique position to bring crypto into the financial lives of normal people, not just early adopters,” said Sebastian Siemiatkowski, CEO and co-founder of Klarna.
In addition to pursuing opportunities in cryptocurrencies, on December 15, Klarna introduced the Agentic Product Protocol. It is a new open standard designed to make products on the internet discoverable and interpretable by AI agents. The protocol is designed to provide access to a structured feed of more than 100 million products and 400 million prices, standardized across various markets.
The unveiling of the protocol comes as Klarna seeks to capitalize on AI becoming an interface for online commerce. Its protocol should make it easier to find products online and compare prices.
Klarna Group plc (NYSE:KLAR) is a global digital bank and flexible payments provider known for its “Buy Now, Pay Later” (BNPL) services, which allow shoppers to split purchases into interest-free installments or pay later, and integrate with online and in-store retailers. It offers AI-powered payment solutions, shopping apps, and marketing tools for merchants.
4. Monday.com Ltd. (NASDAQ:MNDY)
52-Week Range: $141.20 – $342.64
Share price as of December 22: $148.15
Upside Potential: 61.60%
Year to date Loss:- 37.02%
Number of Hedge Fund Holders: 55
Monday.com Ltd (NASDAQ:MNDY) is one of the best beaten down stocks to invest in according to analysts. On December 17, BTIG initiated coverage of Monday.com Ltd (NASDAQ:MNDY) with a Buy rating and a $210 price target.
The research firm remains confident about the company’s growth trajectory following an impressive third quarter, during which revenue rose 26%. In addition, the research has highlighted significant opportunities for total addressable market expansion in the CRM and Service segments. Analyst Allan Verkhovski has already downplayed market concerns around AI-driven Google SEO, insisting they are overblown.
According to Verkhovski, Monday.com’s new products are scaling at an impressive rate, as depicted by robust annual recurring revenue that has already reached $133 million. The company’s go-to-market strategy, with enterprise product bundles and solution selling, is also positioning it for growth, with increasing multi-product adoption and retention rates. BTIG expects the company to achieve its revenue target of $1.8 billion in 2027, representing a 21% compound annual growth rate over the past 2 years.
Tigress Financial Partners is also bullish on Monday.com’s prospects, having reiterated a Buy rating on the stock on December 10 and a $310 price target. According to the research firm, the company is well-positioned as an AI-native Work OS leader.
Monday.com Ltd (NASDAQ:MNDY) builds cloud-based work operating systems (Work OS) and applications that help teams manage projects, automate workflows, and collaborate visually using customizable boards, views (such as Kanban and Gantt), and tools for tasks, CRM, development, and HR.
3. The Trade Desk, Inc. (NASDAQ:TTD)
52-week Range: $35.65 – $127.59
Share price as of December 22: $37.29
Upside Potential: 68.95%
Year to date Loss: -68.33%
Number of Hedge Fund Holders: 42
The Trade Desk, Inc. (NASDAQ:TTD) is one of the best beaten down stocks to invest in according to analysts. On December 11, Jefferies analyst James Heaney, CFA, reiterated a Hold on Trade Desk with a $40 target. Needham analyst Laura Martin reiterated a Buy rating on the stock on December 11 and maintained a $60 price target.
The analyst remains cautious about the stock after a significant decline, attributed to communication missteps and broader macroeconomic concerns. However, the analyst has downplayed the impact of the average decrease in traffic among AdTech companies, insisting the company’s exposure to search traffic is minimal.
While recent data from ComScore suggests significant growth in desktop search queries, the analyst is confident in Trade Desk’s ability to mitigate some of the adverse effects of AI-driven changes in the advertising sector. Additionally, resilience in search traffic, coupled with strategic positioning, also strengthens Trade Desk’s ability to navigate the challenging landscape.
Earlier on December 5, Citi analyst Ygal Arounian reiterated that Trade Desk is a Hold and set a $50 price target. A Wedbush analyst also echoed similar sentiments, reiterating a Hold rating on the stock on December 8 with a $40 price target.
The Trade Desk, Inc. (NASDAQ:TTD) provides a self-service, cloud-based platform for advertisers to buy and manage data-driven digital ads across various channels. It helps marketers plan, target, and execute complex, omnichannel campaigns on the open internet.
2. Mobileye Global Inc. (NASDAQ:MBLY)
52-Week Range: $10.04 – $22.51
Share price as of December 22: $10.23
Upside Potential: 76.85%
Year to date Loss: -48.90%
Number of Hedge Fund Holders: 43
Mobileye Global Inc (NASDAQ:MBLY) is one of the best beaten down stocks to invest in according to analysts. On December 15, Mizuho cut its price target on Mobileye Global Inc (NASDAQ:MBLY) to $12 from $15 while keeping a Neutral rating. The firm cited weak U.S. EV sales in late 2025 and expected 2026 launch delays as sector headwinds, noting a mixed outlook for semiconductors and auto components, with industrials likely to fare better.
On December 8, the company confirmed a restructuring drive that will result in the laying off of 5% of its global workforce. The layoff will affect about 200 employees, out of a total of 4,000, with nearly 3,000 in Israel.
Most of the layoffs will affect workers in Israel as part of the company’s streamlining efforts across its divisions. The layoffs come on the stock slumping by more than 40% year to date. The company has also been forced to divest some of its holdings in its autonomous driving subsidiary. The layoffs are also in response to shrinking demand for some of the company’s products, which has led to the shutdown of specific units.
“As part of an ongoing response to changing needs, adjustments are being made to the workforce,” Mobileye said in a statement. “The company will support affected employees, while continuing to recruit for positions required to realize its long-term plans.”
Mobileye Global Inc (NASDAQ:MBLY) develops and deploys advanced driver-assistance systems (ADAS) and autonomous driving (AV) technologies, including computer vision software, sensors, and Eye chips. The company provides solutions ranging from collision avoidance to fully autonomous systems.
1. Strategy Inc. (NASDAQ:MSTR)
52-Week Range: $155.61 – $457.22
Share price as of December 22: $164.32
Upside Potential: 183.79%
Year to date Loss: -45.23%
Number of Hedge Fund Holders: 43
Strategy Inc (NASDAQ:MSTR) is one of the best beaten down stocks to invest in according to analysts. On December 16, S&P Global Ratings reiterated a B- Issuer credit rating for Strategy Inc (NASDAQ:MSTR), citing the company’s stable outlook.
According to the ratings firm, the establishment of a US$ reserve is a credit positive that affirms the company’s ability to mitigate liquidity risks associated with funding preferred dividend and coupon payments. The reserve is expected to prefund payments for 12 to 24 months before the company defers payments or sells Bitcoin.
While the company has lost about 40% of its market value due to a decline in Bitcoin prices, it maintains strong access to capital markets. It raised $700 million in November through a euro-denominated preferred stock offering. It has also funded its nearly $1.5 billion in reserves through the issuance of common stock.
Meanwhile, on December 5, Cantor Fitzgerald analyst Brett Knoblauch reiterated an Overweight rating but cut the price target to $229 from $560. According to the research firm, fears about the company are overblown, as it is not under any obligation to sell Bitcoin. Likewise, the company has enough cash to fund dividends for 21 months, with Bitcoin valued at $60.7 billion.
Strategy Inc. (NASDAQ:MSTR) provides AI-powered enterprise analytics software for business intelligence. It also serves as a central Bitcoin treasury, holding significant amounts of the cryptocurrency and offering related financial products.
While we acknowledge the potential of Strategy Inc. (NASDAQ:MSTR) 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 MSTR and that has 100x upside potential, check out our report about this cheapest AI stock.
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