5 Best Beaten Down Stocks to Buy Now

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.

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