In this article, we will be taking a look at the 5 best beaten down stocks to buy now. To read our detailed analysis of undervalued stocks and their potential, you can go directly to see the 11 Best Beaten Down Stocks to Buy Now.
5. BlackRock, Inc. (NYSE:BLK)
Number of Hedge Fund Holders: 49
Year-to-Date Price Share Decline as of August 1: 26.6%
Date of BlackRock, Inc. (NYSE:BLK) hitting a 52-week low: June 16
BlackRock, Inc. (NYSE:BLK), a publicly-owned investment manager, is next on our list. The company provides services to institutional, intermediary, and individual investors including corporate, public, union, and industry pension plans, insurance companies, governments, and others.
This July, a Buy rating was reiterated on BlackRock, Inc. (NYSE:BLK) shares, alongside a $270 price target. The price target and rating were set by Brian Bedell at Deutsche Bank.
BlackRock, Inc.’s (NYSE:BLK) stock price had plunged by 29% as of this July, creating an opportunity for investors to buy the 52-week low stock at a discounted price. The company is set to benefit from its $90 billion in net capital inflows as of the second quarter of 2022, a figure that can propel the company’s revenue and EPS higher, leading analysts to believe that BlackRock, Inc. (NYSE:BLK) will benefit from diluted EPS growth of 6.4% annually for the next five years. Being a stable dividend-payer that raised its yield for the past 18 years as well, the company is even more attractive to investors with its 2.9% yield as of August 1.
Out of 912 hedge funds, 49 hedge funds were long BlackRock, Inc. (NYSE:BLK) in the first quarter. In the previous quarter as well, 49 hedge funds were long the stock. Their total stake values were $1.8 billion and $1.5 billion respectively.
Carillon Tower Advisers, an investment management firm, mentioned BlackRock, Inc. (NYSE:BLK) in its first quarter 2022 investor letter. Here’s what they said:
“BlackRock (NYSE:BLK) shares underperformed due to a decline in equity market performance. As a reminder, market weakness typically drives assets under management lower, which in turn leads to lower revenues.”
4. Newmont Corporation (NYSE:NEM)
Number of Hedge Fund Holders: 53
Year-to-Date Price Share Decline as of August 1: 25.8%
Date of Newmont Corporation (NYSE:NEM) hitting a 52-week low: August 3
Newmont Corporation (NYSE:NEM) is another gold company on our list. It engages in the production and exploration of gold, while also exploring for copper, silver, zinc, and lead.
Analyst Carey MacRury at Canaccord upgraded Newmont Corporation (NYSE:NEM) from Hold to Buy this July. The analyst also has a $60 price target on the company’s shares.
While Newmont Corporation (NYSE:NEM) has been trading below its peak, the company commented this July that it is still committed to providing its shareholders sustainable returns. The company pays an attractive dividend to shareholders at a 4.9% yield as of August 1, making it one of the most tempting 52-week low stocks on the market. Andrew Bary at Barron’s has noted that Newmont Corporation’s (NYSE:NEM) strong balance sheet showing over $4 billion in cash and about $1.3 billion in net debt should be reassuring in terms of the company’s ability to continue paying its dividend.
Our hedge fund data for the first quarter shows 53 funds long Newmont Corporation (NYSE:NEM), with a total stake value of $3.5 billion.
3. Snap Inc. (NYSE:SNAP)
Number of Hedge Fund Holders: 54
Year-to-Date Price Share Decline as of August 1: 78.8%
Date of Snap Inc. (NYSE:SNAP) hitting a 52-week low: July 28
Snap Inc. (NYSE:SNAP) is a communication services company operating one of the most popular social media platforms in the world, Snapchat. The company is based in Santa Monica, California.
A Market Perform rating was reiterated on Snap Inc. (NYSE:SNAP) shares as of this July by MoffettNathanson’s Michael Nathanson.
Brent Thill, an analyst at Jefferies, continues to hold a Buy rating on Snap Inc. (NYSE:SNAP) shares as of the same month, alongside a price target of $20. The analyst also expects revenue growths of 14% and 19% in the financial years of 2022 and 2023 respectively, making the stock seem more tempting among the 52-week low stocks.
Snap Inc. (NYSE:SNAP) had 54 hedge funds long in its stock in the first quarter, with a total stake value of $2.7 billion. In the previous quarter, 55 hedge funds were long the stock, with a total stake value of $4.2 billion.
2. Intel Corporation (NASDAQ:INTC)
Number of Hedge Fund Holders: 76
Year-to-Date Price Share Decline as of August 1: 31.8%
Date of Intel Corporation (NASDAQ:INTC) hitting a 52-week low: July 29
Intel Corporation (NASDAQ:INTC) is an information technology company that designs and manufactures computer products and technologies globally. It is based in Santa Clara, California.
Gus Richard, an analyst at Northland, holds an Outperform rating on Intel Corporation (NASDAQ:INTC) shares as of this July. The analyst also placed a $55 price target on the company’s shares.
Currently, there is a predicted upside of 23.7% on Intel Corporation (NASDAQ:INTC) shares, making now a good time to buy the 52-week low stock at a discount. Analyst Richard also noted that products built on Intel 4 and Intel 3 will help turn the tide on Intel’s current losses. Intel 4 is the 10-nanometer successor node to Intel 7, and is succeeded by the even more enhanced Intel 3. The Intel 4 process will allow the company to use extreme ultraviolet (EUV) lithography in its chips, and will be used in products that will be released in 2023.
There were 76 hedge funds long Intel Corporation (NASDAQ:INTC) in the first quarter, with a total stake value of $3.2 billion.
1. Comcast Corporation (NASDAQ:CMCSA)
Number of Hedge Fund Holders: 78
Year-to-Date Price Share Decline as of August 1: 26.1%
Date of Comcast Corporation (NASDAQ:CMCSA) hitting a 52-week low: July 29
Comcast Corporation (NASDAQ:CMCSA) is a media and technology company operating globally. It offers broadband, video, voice, wireless, and other services to its customers worldwide.
Analyst Gregory Williams at Comcast Corporation (NASDAQ:CMCSA) holds an Outperform rating on the company’s shares as of this July. The analyst’s price target on the stock is $51.
Comcast Corporation (NASDAQ:CMCSA) continues to remain an attractive 52-week low stock among hedge funds and individual investors alike, in light of its growth prospects. Morgan Stanley’s Benjamin Swinburne noted this July that he expects EPS growth of 5% to 10% over time, due to Comcast Corporation’s (NASDAQ:CMCSA) beneficial broadband pricing power, share buybacks, and diverse portfolio of assets. Swinburne holds an Overweight rating on the stock due to the above.
In the first quarter of 2022, 78 hedge funds were long Comcast Corporation (NASDAQ:CMCSA), with a total stake value of $7.1 billion.
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