In this article, we will look at the 5 best falling stocks to buy now. If you want to explore similar stocks, you can go to 14 Best Falling Stocks To Buy Now.

5. Bill.com Holdings, Inc. (NYSE:BILL)

6-month Decline as of March 14: 53.24% 

Number of Hedge Fund Holders: 58

On February 2, Bill.com Holdings, Inc. (NYSE:BILL) posted earnings for the fiscal second quarter of 2023. The company reported an EPS of $0.42 and outperformed EPS estimates by $0.28. The company generated a revenue of $260.01 million, up 66.16% year over year and ahead of market expectations by $17 million. As of March 14, Bill.com Holdings, Inc. (NYSE:BILL) has crashed 53.24% over the past 6 months.

This March, Citi revised its price target on Bill.com Holdings, Inc. (NYSE:BILL) to $108 from $131 and maintained a Buy rating on the shares.

At the end of Q4 2022, 58 hedge funds were long Bill.com Holdings, Inc. (NYSE:BILL) and disclosed positions worth $1.15 billion in the company. As of December 31, Alkeon Capital Management is the top investor in the company and has a stake worth $215.4 million. Bill.com Holdings, Inc. (NYSE:BILL) is placed fifth among the best fallings stocks to buy now.

Here is what TimesSquare Capital Management had to say about Bill.com Holdings, Inc. (NYSE:BILL) in its Q3 2022 investor letter:

“Bill.com Holdings, Inc. (NYSE:BILL) offers cloud-based software that simplifies, digitizes, and automates back-office functions for small and mid-sized businesses. The company has indicated that customer spending softened a bit in recent months and that has been factored into forward guidance. We decided to sell out of the position, which had declined by -20% while it was held in the quarter.”

4. Enphase Energy, Inc. (NASDAQ:ENPH)

6-month Decline as of March 14: 31.77%

Number of Hedge Fund Holders: 63

At the close of the fourth quarter of 2022, Enphase Energy, Inc. (NASDAQ:ENPH) was spotted on 63 investors’ portfolios that held positions worth $2.21 billion in the company. This is compared to 59 hedge funds in the previous quarter with stakes worth $2.20 billion. Of those, Two Sigma Advisors was the top shareholder and disclosed a position worth $354.4 million in the company.

On March 9, Citi analyst Vikram Bagri raised his price target on Enphase Energy, Inc. (NASDAQ:ENPH) to $285 from $205 and reiterated a Buy rating on the shares. Though Enphase Energy, Inc. (NASDAQ:ENPH) has fallen by 31.77% over the past 6 months, Wall Street is bullish on the stock. Enphase Energy, Inc. (NASDAQ:ENPH) is one of the best falling stocks to buy now according to analysts.

Here is what ClearBridge Investments had to say about Enphase Energy, Inc. (NASDAQ:ENPH) in its Q3 2022 investor letter:

“In IT, Enphase Energy, Inc. (NASDAQ:ENPH) delivered a strong quarter driven by secular growth in global rooftop solar, increased penetration into Europe, where demand accelerated, and a continued ramp up in battery storage sales. Also with a strong presence in the U.S., Enphase Energy designs and manufactures microinverters for residential and small commercial solar PV systems and has made strides in evolving from a solar inverter maker into a “home energy management” company that can act as the brains for the home’s energy system, including microinverters for solar, as well as storage and energy management software.”

3. Datadog, Inc. (NASDAQ:DDOG)

6-month Decline as of March 14: 30.83%

Number of Hedge Fund Holders: 63

On March 8, Wells Fargo analyst Andrew Nowinski and his Overweight rating and $105 price target on Datadog, Inc. (NASDAQ:DDOG). As of March 14, the stock has tanked by 30.83% over the past 6 months.

Datadog, Inc. (NASDAQ:DDOG) was held by 63 hedge funds at the end of Q4 2022. These funds held collective positions worth $1.46 billion in the company. Datadog, Inc. (NASDAQ:DDOG) is placed third on our list of the best falling stocks to buy according to hedge funds.

As of December 31, Durable Capital Partners is the leading investor in Datadog, Inc. (NASDAQ:DDOG) and has a position worth $205.1 million in the company.

Here is what RiverPark Advisors had to say about Datadog, Inc. (NASDAQ:DDOG)  in its Q4 2022 investor letter:

“We initiated a small position in Datadog, Inc. (NASDAQ:DDOG) during the quarter. As businesses have transitioned to cloud software infrastructure, much of which is in isolated data silos, it has become increasingly difficult for data engineers to monitor and analyze system performance. Datadog provides a SaaS software platform to monitor and analyze the performance of software applications and IT infrastructure.

The company has quickly grown its revenue from $100 million in 2017 to $1 billion in 2021 and, we believe, should continue to grow revenue at more than 30% annually as it penetrates its $40 billion and fast-growing market. Less than 10% of software applications are currently monitored. Datadog’s customer count has been growing rapidly, up 27% year over year as of 3Q22. Additionally, the company’s dollar-based net retention rate has been 130%+ as existing customers continue to use an increasing number of products and the company continues to add new features. For 3Q22, 80% of customers used 2+ products, while 16% of customers used 6+ products (up from less than 1% two years ago). As an extremely capex light software business, DDOG already has significant FCF (and a 24% FCF margin), which should continue to grow more than 40% for 2022 to $355 million, up from $1 million two years ago.”

2. Fidelity National Information Services, Inc. (NYSE:FIS)

6-month Decline as of March 14: 37.78%

Number of Hedge Fund Holders: 64

Fidelity National Information Services, Inc. (NYSE:FIS) was a part of 64 investors’ portfolios at the end of Q4 2022. These funds held collective positions worth $2.56 billion in the company, up from $3.15 billion in the previous quarter with 60 positions. The hedge fund sentiment for the stock is positive and it is one of the best falling stocks to buy now.

On February 13, Fidelity National Information Services, Inc. (NYSE:FIS) posted market-beating earnings for the fourth quarter of fiscal 2022. The company generated a revenue of $3.71 billion and outperformed estimates by $22.69 million. The company reported an EPS of $1.71 and beat EPS expectations by $0.01. As of March 14, the stock has declined by 37.78% over the past 6 months.

As of December 31, Steve Cohen’s Point72 Asset Management is the most prominent investor in Fidelity National Information Services, Inc. (NYSE:FIS) and has disclosed a stake worth $410.3 million in the company.

Here is what Diamond Hill Capital had to say about Fidelity National Information Services, Inc. (NYSE:FIS) in its Q4 2022 investor letter:

“In addition to SVB Financial and V.F. Corporation, we eliminated our positions in financial services technology company Fidelity National Information Services, Inc. (NYSE:FIS) and media and technology company Comcast Corporation. Several reasons factored into our decision to sell Fidelity National Information Services, including board and leadership changes, a strategic review, and a cooperation agreement with activist shareholder D.E. Shaw (and discussions with JANA Partners).”

1. Tesla, Inc. (NASDAQ:TSLA)

6-month Decline as of March 14: 39.67%

Number of Hedge Fund Holders: 91

Tesla, Inc. (NASDAQ:TSLA) is the best falling stock to buy now according to analysts and hedge funds. The stock has lost 39.67% over the past 6 months, as of March 14, but Wall Street remains optimistic. On March 9, Morgan Stanley reiterated its Overweight rating and a $220 price target on Tesla, Inc. (NASDAQ:TSLA).

At the end of Q4 2022, 91 hedge funds held stakes in Tesla, Inc. (NASDAQ:TSLA). The total value of these stakes amounted to $5.93 billion. As of December 31, Citadel Investment Group is the top stockholder in Tesla, Inc. (NASDAQ:TSLA) and has a position worth $926.2 million.

Here is what ClearBridge Investments had to say about Tesla, Inc. (NASDAQ:TSLA) in its Q4 2022 investor letter:

“Tesla, Inc. (NASDAQ:TSLA), meanwhile, also fits squarely within our earnings reset group. We took advantage of its enterprise multiple falling back to historic lows to initiate a starter position in the leading manufacturer of electric vehicles (EV) and developer of battery technologies. Tesla has a significant structural cost advantage in battery production, EV manufacturing and EV selling, which gives it industry-leading operating margins in EVs. As the auto cycle has softened, the stock has sold off substantially with the rest of the automakers, despite EVs continuing to have a secular growth advantage. Tesla has a clean balance sheet with negative net debt and enormous revenue growth, EBITDA growth and free cash flow generation. Its margin buffer also gives the company the ability to cut prices while still protecting earnings better than competitors, which should help support continued volume growth. There is also significant upside optionality driven by its software offerings, which we do not believe is currently priced into the stock.

That being said, Tesla is highly indexed to a flagging auto market and we expect its earnings outlook to worsen in the near term. We are also monitoring increasing EV competition and the recently emerging risks to the brand and management integrity raised by CEO Elon Musk’s actions at Twitter to determine future position size in the portfolio.”

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