Below we presented the list of 5 best beaten down stocks to buy now. For our detailed discussion and a more comprehensive list please see 15 best beaten down stocks to buy now.
At Insider Monkey we leave no stone unturned when looking for the next great investment idea. For example, lithium mining is one of the fastest growing industries right now, so we are checking out stock pitches like this emerging lithium stock. We go through lists like the 10 best hydrogen fuel cell stocks to pick the next Tesla that will deliver a 10x return. Even though we recommend positions in only a tiny fraction of the companies we analyze, we check out as many stocks as we can. We read hedge fund investor letters and listen to stock pitches at hedge fund conferences. You can subscribe to our free daily newsletter on our homepage. Keeping this in mind let’s take a look at the best beaten down stocks to buy:
5. Raytheon Technologies (NYSE:RTX)
No of HFs: 55
Total Value of HF Holdings: $2.98 Billion
RTX lost 25% since 2019. An insider recently purchased 1,000 shares at around $52 in October 2020. The stock is up 28% since then. In an article, United Technologies Corporation mentioned a few comments on the stock.
“We are pleased that the Board of Directors decided to split United Technologies Corp. (“UTC”) into three separate, focused companies. Unfortunately, the initial announcement caused confusion and created uncertainty about the free cash flow generation of newly-acquired Rockwell Collins. We believe management has largely rectified this by shortening the time to separation and providing better disclosure on Rockwell Collins’s free cash flow generation. We have urged management to quantify the elimination of stranded costs and explore a highly value-creating transaction for Carrier,and believe they are receptive to these suggestions. Despite the separation announcement, UTC’s sum-of-the parts discount has continued to widen and the valuation gap versus UTC’s closest multi-industry peer, Honeywell International, has reached a new 10-year high. The coming separation will shine a greater spotlight on the large valuation gap to UTC’s pure-play peers.During the separation process, we expect the management team to highlight UTC’s asset quality and to increase transparency around Pratt & Whitney’s very significant multi-year inflection in free cash flow generation.