We recently published a list of 10 Worst Beaten Down Stocks to Buy Now. In this article, we are going to take a look at where Carlisle Companies Incorporated (NYSE:CSL) stands against other worst beaten down stocks to buy now.
In 2024, the broader financial markets and economy stood up well amidst economic uncertainty, higher interest rates, and the US presidential election, according to Edward Jones, a financial services company providing wealth management, and other services. The US economic growth was consistently above trend, households continued to spend, inflation moderated, and the broader S&P 500 saw an increase of over 20% for the 2nd consecutive year.
What Lies Ahead?
As 2025 begins, much of the positive economic momentum from 2024 is expected to continue, although the pace of economic growth and US stock market gains might cool, according to Edward Jones. The firm expects that the US GDP growth will moderate but is likely to remain positive, courtesy of a healthy consumer and labor market. The conditions for US households are expected to improve moving forward, with the US Fed cutting the rates and inflation continuing to moderate. Furthermore, wage growth is expected to remain above inflation rates, exhibiting that consumers will continue to benefit from positive real wages.
Edward Jones expects that market leadership will broaden beyond the US mega-cap technology stocks in 2025, with investors looking for investments having increased domestic exposure and potential for growth in earnings and valuation expansion. It anticipates a balance in performance between value- and growth-style stocks, which strengthens the case for portfolio diversification.
READ ALSO: 7 Best Stocks to Buy For Long-Term and 8 Cheap Jim Cramer Stocks to Invest In.
US Labor Market Trends in 2025
It seems that the main source of strength for the broader US economy is its resilient labor market. When consumers’ employment is secure, they feel confident when it comes to spending, and consumer spending accounts for ~70% of the US GDP, says Edward Jones. The firm expects that the US labor market seems to be normalizing. Just like the economic growth, it expects to witness a reacceleration of the labor market towards the end of 2025.
Notably, the reduced borrowing costs, higher use cases in AI, and potential pro-growth policies are expected to fuel hiring activity. The labor market outlook can also be influenced by the new immigration policy. In case of a significant reduction in the US labor force, there might be a supply shock. As per Edward Jones, this might force employers to increase wages, mainly in low-cost labor industries including restaurants, manufacturing, and hospitality.
Amidst such trends, investors are required to consider companies trading at low valuations and having healthy fundamentals, which strengthen the case for a positive long-term outlook.
Our Methodology
To list the 10 Worst Beaten Down Stocks to Buy Now, we used a screener and chose the stocks that were trading close to their 52-week lows. Next, we filtered out the ones that analysts see significant upside to. Finally, the stocks were arranged in ascending order of their average upside potential, as of February 20. We also mentioned the hedge fund sentiment around each stock, as of Q4 2024.
Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 363.5% since May 2014, beating its benchmark by 208 percentage points (see more details here).
A close-up of a technician assembling a complex wiring harness for a building product.
Carlisle Companies Incorporated (NYSE:CSL)
Stock Price as of February 20: $334.8
52-week Low: $332.34
Average Upside Potential: ~33.3%
Number of Hedge Fund Holders: 42
Carlisle Companies Incorporated (NYSE:CSL) operates as a manufacturer and supplier of building envelope products and solutions. The company saw record EPS with FY 2024 revenue growth of 9% together with a record adjusted EBITDA margin of 26.6% and ROIC of 28.5%. Its adjusted EPS came in at $20.20, reflecting a rise of 30% YoY. These results were aided by resilient and recurring re-roofing revenue, which more than offset the negative impact of the broader challenging construction environment. Carlisle Companies Incorporated (NYSE:CSL) continues to progress towards its Vision 2030 target of $40 of adjusted EPS.
Notably, Vision 2030 places the company well to benefit from the widely understood macro-trends, which include growing commercial re-roofing demand, a housing shortage, and its ability to offer energy-efficient and labor-saving solutions and systems. Carlisle Companies Incorporated (NYSE:CSL) anticipates CCM business (Carlisle Construction Materials) to benefit from solid re-roofing demand, new products, the full year of the MTL acquisition, and, as it enters H2 2025, improving new construction markets.
In 2025, for CCM, Carlisle Companies Incorporated (NYSE:CSL) expects revenues to increase in the mid-single-digit percentage range YoY. However, CWT (Carlisle Weatherproofing Technologies) is expected to improve performance on share gain initiatives, new products, and the integration of Plasti-Fab and ThermaFoam.
Overall, CSL ranks 6th on our list of worst beaten down stocks to buy now. While we acknowledge the potential of CSL as an investment, our conviction lies in the belief that some deeply undervalued AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for a deeply undervalued AI stock that is more promising than CSL but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
READ NEXT: 20 Best AI Stocks To Buy Now and Complete List of 59 AI Companies Under $2 Billion in Market Cap
Disclosure: None. This article is originally published at Insider Monkey.