5 Best Beaten Down Stocks To Buy Today

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In this article, we discuss the 5 best beaten down stocks to buy today. If you want to read our detailed analysis of these stocks, go directly to the 11 Best Beaten Down Stocks To Buy Today.

5. Roku, Inc. (NASDAQ:ROKU)

Number of Hedge Fund Holders: 61  

Percentage Loss in Share Price over Past Three Months: 23.99% 

Roku, Inc. (NASDAQ:ROKU) owns and runs a streaming platform. The company is among a host of growth stocks that have suffered in the post-pandemic economy. The firm beat market predictions on earnings per share in the third quarter results but missed on revenue. Analysts cut their price targets on the stock due to lowered guidance for the coming months as the firm deals with player production and slowed account growth. 

However, Roku, Inc. (NASDAQ:ROKU) grew at a solid rate during the pandemic and the skyrocketing advertisement revenues for digital platforms are expected to benefit the company as it deals with this mini-crisis. 

At the end of the second quarter of 2021, 61 hedge funds in the database of Insider Monkey held stakes worth $5.6 billion in Roku, Inc. (NASDAQ:ROKU), down from 63 in the preceding quarter worth $3.7 billion.

In its Q4 2020 investor letter, RGA Investment Advisors, an asset management firm, highlighted a few stocks and Roku, Inc. (NASDAQ:ROKU) was one of them. Here is what the fund said:

“For two years running, Roku has now been either the largest or second largest driver of performance in portfolios. When we purchased Roku, obviously we never expected such a phenomenal outcome, so quickly—these things can only be chalked up to luck. However, we do think luck is the residue of design and Roku had all the hallmarks ex ante as the kind of position that could do something wildly spectacular. One of the first signs in seeing Roku’s potential was the sharp contrast between our modeled expectations for the top line of the business and where the consensus expectations were. This was the Shopify setup all over again. By this time, we had added an additional tool to our analytical framework, and this helped further enforce our conviction that not only was it we who were right about where things should go, but also that the very existence of this gap could be a potent source of fuel behind the stock as the world came around to our expectation. Specifically, we had become increasingly comfortable building lifetime value analyses of companies, and notably, when we bought Roku, we were quite confident that with only modest annual increases in average revenue per user (ARPU), and a 5-year average customer lifespan, we were buying the company for its existing customer base and nothing more. In other words, the growth at Roku was entirely free at the prevailing prices we bought into.”

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