5 Best Depressed Stocks To Buy Now

In this article, we discuss 5 best depressed stocks to buy now. If you want to read the detailed analysis of the depressed stocks, go directly to the 13 Best Depressed Stocks To Buy Now.

5. Zumiez Inc. (NASDAQ:ZUMZ)

Number of Hedge Fund Holders: 16

Zumiez Inc. (NASDAQ:ZUMZ) is a specialty retailer that sells clothing, footwear, accessories, and hard goods for young men and women. The company projects its net sales for the three months ending April 29, 2023, to be between $178 and $184 million, and it anticipates earnings per share to range from a loss of $0.85 to a loss of $0.95.

In the fiscal year 2023, Zumiez Inc. (NASDAQ:ZUMZ) plans to open around 23 new stores, with up to 8 stores in North America, 10 in Europe, and 5 in Australia. Its forward P/E ratio of 12.32x is higher than the industry average of 10.50x. Over the past 52 weeks, Zumiez Inc. (NASDAQ:ZUMZ)’s stock price has fluctuated between a high of $43.89 and a low of $18.86. Currently, the stock price is 117.60% lower than its 52-week high but 6.49% higher than its 52-week low.

According to Insider Monkey’s data, Zumiez Inc. (NASDAQ:ZUMZ) was part of 16 hedge fund portfolios at the end of Q4 2022, compared to 15 in the prior quarter. Steven Baughman’s Divisar Capital is the largest stakeholder of Zumiez Inc. (NASDAQ:ZUMZ), with 510,119 shares worth $11.09 million.

4. Vanda Pharmaceuticals Inc. (NASDAQ:VNDA)

Number of Hedge Fund Holders: 17

Vanda Pharmaceuticals Inc. (NASDAQ:VNDA) is a biopharmaceutical company that develops and commercializes therapies for unmet medical needs worldwide. Their marketed products include HETLIOZ for non-24-hour sleep-wake disorders and Fanapt for schizophrenia. Compared to the industry’s forward P/E ratio of 43.15x, Vanda Pharmaceuticals Inc. (NASDAQ: VNDA) is trading at a forward P/E ratio of 30.30x.

Vanda Pharmaceuticals Inc. (NASDAQ:VNDA) also has pipeline products such as HETLIOZ for various sleep disorders, Fanapt for bipolar I disorder and Parkinson’s disease psychosis, and Tradipitant for several conditions including COVID-19 pneumonia. Other pipeline products include VTR-297 for oncology indications, VQW-765 for psychiatric disorders, VHX-896, and antisense oligonucleotide molecules.

Vanda Pharmaceuticals Inc. (NASDAQ:VNDA) reported $64.5 million in revenue for Q4 and $254.4 million for the full year, with 63% of the revenue coming from Hetlioz sales and the rest from Fanapt sales. The company’s revenue fell 5% YoY, which was attributed to challenges related to Hetlioz prescription reimbursement. However, the company had $466.9 million in cash at the end of December, an 8% increase from the previous year.

Among the hedge funds tracked by Insider Monkey, D. E. Shaw is the most notable stakeholder of Vanda Pharmaceuticals Inc. (NASDAQ:VNDA) as of Q4 2022, with 1.09 million shares worth $8.10 million. As of the end of the fourth quarter, 17 hedge funds in Insider Monkey’s database of 943 funds held stakes in Vanda Pharmaceuticals Inc. (NASDAQ:VNDA), compared to 19 funds in the third quarter.

3. Camping World Holdings Inc. (NYSE:CWH)

Number of Hedge Fund Holders: 17

Camping World Holdings, Inc. (NYSE:CWH) and its subsidiaries retail recreational vehicles and related products and services through almost 200 stores across the US. Despite a decrease in revenue and adjusted EBITDA during Q4 2022, the company broke a record by selling 14,460 used vehicles, up 6% YoY. However, the company’s Forward P/E ratio of 7.91x is lower than the industry average of 10.18x, indicating that it is trading at a discount to its competitors.

Camping World Holdings, Inc. (NYSE:CWH) is acquiring Pan Pacific RV Center, which includes two RV dealerships located in California, and the deal is expected to close in Q2 2023. This acquisition will increase Camping World Holdings, Inc. (NYSE:CWH)’s California location count to twenty, and the new SuperCenters will offer new and used RVs from top brands, along with outdoor products and accessories and the entire portfolio of Good Sam products and services.

BMO Capital reduced Camping World Holdings, Inc. (NYSE:CWH)’s price target to $26 from $30 on February 23 but maintained a ‘Market Perform’ rating. The company’s Q4 results did not meet expectations, but the analyst noted that the company was positive about how the industry was dealing with overproduction in 2022 and excess channel inventory.

Hedge fund sentiment reflects the negative trajectory of Camping World Holdings Inc. (NYSE:CWH), held by 17 hedge funds during Q4 2022. In comparison, 22 hedge funds held stakes in Camping World Holdings in Q3 2022. Abrams Capital Management is Camping World Holdings Inc. (NYSE:CWH)’s largest shareholder, with shares worth $114.03 million.

2. Green Dot Corporation (NYSE:GDOT)

Number of Hedge Fund Holders: 17

Green Dot Corporation (NYSE:GDOT) provides various financial services to individuals and businesses in the United States and operates through three main segments: Consumer Services, Business to Business Services, and Money Movement Services. As a financial technology and bank holding company, Green Dot offers a diverse range of financial solutions to its customers. The stock price of Green Dot Corporation (NYSE:GDOT) peaked at $30.29 and a low of $15.00 over the past 52 weeks. At present, the stock price is -93.67% lower than its 52-week high and 4.09% higher than its 52-week low. In addition, shares of the company rallied -39.80% in the last 12 months. Green Dot Corporation (NYSE:GDOT) has a ‘Strong Buy’ consensus rating, which is derived from three buy ratings, one hold rating, and zero sell ratings.

Green Dot Corporation (NYSE:GDOT) has experienced a boost in its market presence thanks to its collaboration with Walmart Inc. (NYSE:WMT) and the adoption of its Banking as a Service (BaaS) platform. GDOT recently released its Q4 2022 earnings report, which showed strong earnings and revenues that surpassed the estimated figures. The company’s non-GAAP earnings per share of 34 cents exceeded the consensus estimate by 54.6% and increased by 25.9% YoY, while its non-GAAP operating revenues of $336.6 million surpassed the estimated figures by 5.1% and increased by 1.8% YoY. GDOT’s long-standing partnership with Walmart has played a significant role in driving its operating revenues, as it has been supplying Walmart-branded GPS cards since the Walmart MoneyCard program’s launch in 2007.

Green Dot Corporation (NYSE:GDOT) has experienced a decrease in hedge fund interest recently. Green Dot Corporation (NYSE:GDOT) was in 17 hedge funds’ portfolios at the end of the fourth quarter of 2022, down from 22 funds a quarter earlier. Jeffrey Smith’s Starboard Value LP is Green Dot Corporation (NYSE:GDOT)’s largest shareholder, with shares worth $83.75 million.

1. Container Store Group Inc. (NYSE:TCS)

Number of Hedge Fund Holders: 18

The Container Store Group, Inc. (NYSE:TCS) is a US-based retailer of storage and organization products operating in two segments – The Container Store and Elfa. They offer over 11,000 products to customers. The company’s stock price had a 52-week high of $8.93 and a 52-week low of $3.49. Currently, the stock price is -150.84% from its 52-week high and 1.97% from its 52-week low. Over the past month, the stock price decreased by 20.68%. The Container Store Group, Inc. (NYSE:TCS) tops the list of 10 best depressed stocks to buy now.

The Container Store Group, Inc. (NYSE:TCS) has a consensus rating of ‘Moderate Buy’ which is based on 1 buy ratings, 0 hold ratings and 0 sell ratings. The Container Store Group, Inc. (NYSE:TCS)’s price-earnings (P/E) ratio is currently at 3.67x, which is low compared to the Retailers – Miscellaneous Specialty industry median of 18x.

Hedge funds are loading up on Container Store Group Inc. (NYSE:TCS), as Insider Monkey’s data shows that 18 hedge funds held a stake in the company as of the end of the Q4 2022, compared to 16 funds at the end of the previous quarter. Leonard Green & Partners is the most notable stakeholder of Container Store Group Inc. (NYSE:TCS) as of Q4 2022, with 15.51 million shares worth $66.84 million.

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