10 Quality Stocks to Buy with Shares Down Over 30% YTD

Published September 26, 2022 at 2:27 pm EDT Updated September 7, 2026 at 2:30 pm EDT

In this article, we will take a look at the 10 Quality Stocks to Buy with Shares Down Over 30% YTD.

The iShares MSCI USA Quality Factor ETF seeks to track the investment results of MSCI USA Quality Factor Index, an index composed of 125 large and midcap US equities. The Index is designed to measure the equity performance of quality growth stocks by identifying stocks with high return on equity, stable y-o-y earnings growth, and low financial leverage.

As of June 30, 2022, the ETF had an annualized total return of 10.25% over the course of last 5 years, and 11.22% since inception in 2013.

As of September 22, 2022, the portfolio was heavily concentrated with stocks from the Information Technology sector, accounting for a cumulative 26.46% weightage, followed by Health Care at 15.06%, and Consumer Discretionary at 11.18%. Top three constituents of the ETF were S&P Global Inc., Johnson & Johnson, and Apple Inc. (NASDAQ:AAPL), with weights of 4.20%, 3.95%, and 3.93%, respectively.

Global markets have been going through a rough patch with fears of a potential recession due to inflation and aggressive monetary policies implemented by central banks. On September 21, the US central bank raised interest rates by three-quarters of a percentage point for the third consecutive time and signaled further increases in the future.

The increase in interest rates has led to a significant drop in share prices across the US market. As with the market, many stocks of blue chips and blue chips in the iShares MSCI USA Quality Factor ETF have also fallen substantially.

With the Federal Reserve expected to continue to raise rates, the markets could fall further if economic data fails to meet expectations. Even quality blue chip stocks could fall further. Nevertheless, there could be an opportunity for long term investors who invest in quality blue chip stocks especially given the lower valuations.

Photo by Adam Nowakowski on Unsplash

Methodology

For our list, we defined quality stocks as any stocks listed in the iShares MSCI USA Quality Factor ETF. Of those, we took 10 stocks that were down 30% year to date or more as of September 22, and we ranked them based on the number of hedge funds in our database that held shares in the same stock at the end of Q2 2022.

10 Quality Stocks to Buy with Shares Down Over 30% YTD

10. Accenture Plc (NYSE:ACN)

Percentage of iShares MSCI USA Quality Factor ETF Holdings: 1.27%

Year to Date Performance as of September 22: -36.72%

Number of Hedge Fund Holders: 61

Based in Dublin, Ireland, Accenture Plc (NYSE:ACN) is a global professional services company with leadership positions in providing digital, cloud and security. Accenture Plc employs more than 700,000 people and serves clients across more than 40 industries in more than 120 countries.

Due to the market decline in the S&P 500, shares of Accenture Plc have fallen more than 36% year to date as of September 22.

On September 23, RBC Capital analyst Daniel Perlin lowered the price target on Accenture Plc shares to $335 from $357 but maintained an ‘Outperform’ rating for its shares. The analyst is “positive on the stock longer term given the continued demand for digital transformation, Accenture’s unique position to deliver at scale, and its continued shareholder-friendly return of capital.”

As of Q2 2022, 61 out of the 895 hedge funds tracked by Insider Monkey were long Accenture Plc shares, for a total value of $3.2 billion. Nikolai Tangen’s Ako Capital is the largest shareholder with ownership of 2.3 million shares valued at $636 million.

Alongside Adobe Inc. (NASDAQ:ADBE), Alphabet Inc. (NASDAQ:GOOG), and Meta Platforms, Inc. (NASDAQ:META), Accenture Plc is a quality stock that’s down over 30% year to date as of September 22 that’s also held by many hedge funds in our database as of Q2 2022.

9. Cisco Systems, Inc. (NASDAQ:CSCO)

Percentage of iShares MSCI USA Quality Factor ETF Holdings: 1.23%

Year to Date Performance as of September 22: -35.06%

Number of Hedge Fund Holders: 63

San Jose, California-based Cisco Systems, Inc. (NASDAQ:CSCO) is a leading technology company focused on hardware and software products related to Internet Protocol (IP)-based networking technologies. Its core developments span areas of routing and switching, as well as home networking, IP telephony, optical networking, security, storage area networking, and wireless technology. Shares of Cisco Systems, Inc. are down more than 35% year to date as of September 22 due to the decline in the NASDAQ.

In August, Cisco Systems, Inc. released the financial results for the quarter ended July 30, 2022. Its revenue remained flat y-o-y at $13.1 billion, while its net income shrunk by 6% y-o-y to $2.8 billion, for the three months. It reported a normalized EPS of $0.83 for the quarter, beating the consensus by $0.01. The company also declared a regular cash dividend of $0.38 per share.

On August 31, KGI Securities analyst Jackson Chiang upgraded Cisco Systems, Inc. to ‘Outperform’ from ‘Neutral’ with a price target of $53 for its shares.

As of Q2 2022, 63 hedge funds out of the 895 hedge funds tracked by Insider Monkey held shares of Cisco Systems, Inc., valued at $1.9 billion. Its largest shareholder was Citadel Investment Group with ownership of 7.8 million shares valued at $334 million.

8. Intel Corporation (NASDAQ:INTC)

Percentage of iShares MSCI USA Quality Factor ETF Holdings: 0.76%

Year to Date Performance as of September 22: -45.50%

Number of Hedge Fund Holders: 65

Santa Clara, California-based Intel Corporation (NASDAQ:INTC) is a leading technology company best known for developing the microprocessors found in most of the personal computers used worldwide. It offers products for autonomous driving, 5G network, client connectivity, cloud computing, IoT, client computing, and AI and Analytics.

Due to competition and lower earnings, shares of Intel Corporation have fallen by over 45% year to date as of September 22.

Earlier this year in July, Intel Corporation released the financial results for the quarter ended July 2, 2022. Its net revenue declined by 22% y-o-y to $15.3 billion, while it reported a net loss of $454 million, for the three months. It reported a normalized EPS of $0.29, missing the consensus by $0.41. In September, its board of directors declared a quarterly dividend of $0.365 per share.

As of Q2 2022, 65 of the 895 hedge funds tracked by Insider Monkey owned shares of Intel Corporation, valued at $2.5 billion. Its largest shareholder was Generation Investment Management with ownership of 14.8 million shares valued at $553 million.

7. QUALCOMM, Incorporated (NASDAQ:QCOM)

Percentage of iShares MSCI USA Quality Factor ETF Holdings: 1.30%

Year to Date Performance as of September 22: -32.37%

Number of Hedge Fund Holders: 71

San Diego, California-based QUALCOMM, Incorporated (NASDAQ:QCOM) is a leading wireless technology innovator and the driving force behind the development, launch and expansion of 5G technology. Its portfolio includes products for processors, modems, platforms, RF systems, and connectivity, among others.

Due to the weaker market, shares of QUALCOMM, Incorporated have fallen over 32% year to date as of September 22. With the decline, shares of the stock trade for a forward P/E of under 10. Analysts have an average target price of $186.01 per share.

As of Q2 2022, 71 of the 895 hedge funds tracked by Insider Monkey were long QUALCOMM, Incorporated, holding shares worth $2.8 billion. Its largest hedge fund shareholder is Ken Griffin’s Citadel Investment Group.

6. NIKE, Inc. (NYSE:NKE)

Percentage of iShares MSCI USA Quality Factor ETF Holdings: 3.55%

Year to Date Performance as of September 22: -40.87%

Number of Hedge Fund Holders: 72

NIKE, Inc. (NYSE:NKE), based in Beaverton, Oregon, is the world’s leading designer, marketer and distributor of authentic athletic footwear, apparel, equipment, and accessories for a wide variety of sports and fitness activities.

Shares of NIKE, Inc. are down more than 40% year to date as of September 22 due to the weaker S&P 500. In September, UBS analyst Jay Sole affirmed his bullish sentiment for NIKE, Inc. shares despite the possibility of macro issues impacting the stock in the near term. The analyst maintains a target price of $156 for NIKE, Inc. shares with a ‘Buy’ rating.

As of Q2 2022, 72 of the 895 hedge funds tracked by Insider Monkey owned shares of NIKE, Inc., valued at $3.3 billion. Ken Fisher’s Fisher Asset Management is its largest shareholder with ownership of 8.5 million shares valued at $873 million.

Like NIKE, Inc., Adobe Inc., Alphabet Inc., and Meta Platforms, Inc. are quality stocks that are down over 30% year to date as of September 22 that are widely held by many hedge funds in our database as of Q2 2022.

5. NVIDIA Corporation (NASDAQ:NVDA)

Percentage of iShares MSCI USA Quality Factor ETF Holdings: 2.53%

Year to Date Performance as of September 22: -57.29%

Number of Hedge Fund Holders: 84

Founded in 1993, California-based NVIDIA Corporation (NASDAQ:NVDA) is a leading technology company focused on the design and manufacturing of accelerated computing hardware and software products. Its core businesses comprise of Gaming, Data Center, Professional Visualization, and Automotive, with Gaming and Data Center making up for more than 80% of its revenues. Its GeForce GPU is used by more than 200 million gamers and creators, making it the market leader with 80% market share in PC Gaming.

After rallying substantially over the last five years, shares of NVIDIA Corporation are down more than 57% year to date as of September 22 due to the lower NASDAQ.

Earlier in September, Needham analyst Rajvindra Gill lowered the firm’s price target on Nvidia Corporation shares to $170 from $185 while maintaining a ‘Buy’ rating on the shares. Despite the lowering of price target, the analyst is positive about NVIDIA’s shares for “their attractive valuation, superior balance sheet, and robust data center buildouts”.

NVIDIA Corporation is subject to bullish sentiment from a large number of hedge funds as 84 of the 895 hedge funds held its shares as of Q2 2022, with the total hedge fund holdings valued at $3.3 billion. Its largest shareholder is Citadel Investment Group.

4. Advanced Micro Devices, Inc. (NASDAQ:AMD)

Percentage of iShares MSCI USA Quality Factor ETF Holdings: 0.86%

Year to Date Performance as of September 22: -51.70%

Number of Hedge Fund Holders: 87

Based in Santa Clara, California, Advanced Micro Devices, Inc. (NASDAQ:AMD) is a leading semiconductor company using high-performance computing, graphics, and visualization technologies to provide computing solutions for cloud, edge, and end devices. On September 20, the semiconductor maker unveiled its latest Ryzen™ 7020 Series and Athlon™ 7020 Series Processor lineup, promising high-end performance and longer battery life for mobile and laptop devices.

Advanced Micro Devices, Inc. is down almost 52% year to date as of September 22 due to profit taking and weaker semiconductor shares.

In August, Advanced Micro Devices, Inc. released its financial results for the quarter ended June 25, 2022. Its revenues increased by 70% y-o-y to $6.6 billion, while net income declined by 37% y-o-y to $447 million, for the three months. The normalized EPS was recorded at $1.05 per share, beating the consensus by $0.01.

On September 15, Mizuho analyst Vijay Rakesh lowered the price target on Advanced Micro Devices, Inc. shares to $125 from $140 but maintained a ‘Buy’ rating on the shares.

As of Q2 2022, 87 hedge funds tracked by Insider Monkey held shares of Advanced Micro Devices, Inc., worth $4.8 billion. Ken Fisher’s Fisher Asset Management is its largest hedge fund shareholder with ownership of 25.1 million shares valued at $1.9 billion.

3. Adobe Inc. (NASDAQ:ADBE)

Percentage of iShares MSCI USA Quality Factor ETF Holdings: 1.21%

Year to Date Performance as of September 22: -49.38%

Number of Hedge Fund Holders: 92

Adobe Inc. is a leading digital media and digital marketing solutions company based in California. Its software and cloud solutions are packaged into three cloud solutions: Adobe Creative Cloud – comprising Photoshop, Lightroom, Illustrator, Premier Pro, and others; Adobe Document Cloud – comprising solutions for creating, editing, sharing, scanning, and signing digital documents; and Adobe Experience Cloud – solutions for customer journey management, data analytics, content personalization, commerce, and marketing workflows

On September 15, Adobe Inc. announced that it had entered into an agreement to acquire Figma, a collaborative design platform, for $20 billion comprising half cash and half stock compensation. Even though the acquisition makes business sense, the price tag and timing has raised concerns for investors and analysts, which has resulted in a significant drop in its share price.

As of September 22, shares of Adobe Inc. have fallen by almost 50% due to the weaker NASDAQ.

As of Q2 2022, a significant number of hedge funds exhibited a bullish sentiment for Adobe Inc. shares as 92 out of 895 hedge funds tracked by Insider Monkey held its shares with a total value of $7.5 billion. Its largest shareholder was Fisher Asset Management with ownership of nearly 6.2 million shares valued at $2.3 billion.

2. Alphabet Inc. (NASDAQ:GOOG)

Percentage of iShares MSCI USA Quality Factor ETF Holdings: 1.75%

Year to Date Performance as of September 22: -30.49%

Number of Hedge Fund Holders: 153

Alphabet Inc., based in Mountain View, California, is the parent company of several companies including the Google, Verily Life Sciences, GV (formerly Google Ventures), Calico, and X-the moonshot factory. Majority of its revenue is generated by Google Services which comprises of ads, Android, Chrome, hardware, Gmail, Google Drive, Google Maps, Google Photos, Google Play, Search, and YouTube.

Although it is a blue chip stock, shares of Alphabet Inc. are down over 30% as of September 22 due to the weaker market.

Alphabet Inc. released the financial results for Q2 2022 earlier this year in July. Its revenue increased by 13% y-o-y to $69.7 billion, while its net income decreased by 16% y-o-y to $16 billion, for three months ended June 30, 2022. It reported a normalized EPS of $1.21, missing the consensus by $0.08.

Alphabet Inc. is one of the most commonly owned stock among the 895 hedge funds tracked by Insider Monkey. As of Q2 2022, 153 hedge funds owned shares of Alphabet Inc., valued at $22.3 billion.

1. Meta Platforms, Inc. (NASDAQ:META)

Percentage of iShares MSCI USA Quality Factor ETF Holdings: 3.11%

Year to Date Performance as of September 22: -57.54%

Number of Hedge Fund Holders: 184

Menlo Park, California-based Meta Platforms, Inc. is a technology conglomerate focused on building products and services that help people connect and communicate. Formerly known as Facebook, Inc., the tech conglomerate reports its business under two segments: Family of Apps – comprising social media web and smartphone apps Facebook, Instagram, Messenger, and WhatsApp; and Reality Labs – comprising augmented and virtual reality products including hardware, software, and content.

Meta Platforms, Inc. mainly generates revenue through advertising services on its platforms which boast a combined total of 3.65 billion monthly active users as of June 30, 2022.

Due to competition from TikTok, Meta Platforms, Inc. shares are down over 57% year to date as of September 22.

In August, Morgan Stanley analyst reduced the price target on Meta Platforms, Inc. shares from $280 to $225, while Loop Capital lowered the price target from $180 to $165.

Meta Platforms, Inc. is among hedge funds’ favorites as 184 of the 895 hedge funds tracked by Insider Monkey hold its shares valued at a combined total of $18.2 billion.

Here is what Alger Capital specifically said about Meta Platforms, Inc.:

“Meta Platforms, Inc. operates Facebook, the world’s largest social network. The digital advertising industry is taking market share of advertising dollars from print, radio, and tv media. However, concerns about brand risk, or having advertisements appear alongside of controversial content, caused brands and agencies to move budgets away from meta, resulting in disappointing revenue. Diminished ad tracking capability relative to consumer opt-out also weighed upon sentiment for meta shares. Meta’s share performance responded favorably, however, to first quarter results that that while not strong fundamentally, were positive against extremely low expectations among some investors. The positive contribution to portfolio performance was due to a sequential quarterly increase in customer utilization and management lowering its expense guidance $3 billion in order to protect earnings. In a market environment that is rewarding companies with relatively high current earnings, we believe Meta’s spending discipline resonated with investors.”

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