13 Best Falling Stocks To Buy Right Now
In this piece, we will take a look at the 13 best falling stocks to buy now. If you want to skip our coverage of the latest stock market news, then you can take a look at the 5 Best Falling Stocks To Buy Right Now.
The start of the year has seen some stocks perform well and the broader market comes to terms with the fact that the Federal Reserve might not have any other option apart from keeping interest rates higher for longer. Recent data sets for the U.S. economy show that inflation is still a threat, and while the American economy has surpassed all expectations by managing to avoid a recession, globally, the picture isn't rosy. Europe's two major economies, the United Kingdom and Germany, have both entered into recessions, and the Chinese economic giant is in no mood to return to its pre pandemic trajectory either.
Yet, since the inflationary situation is no longer as dire as it was at the onset of the Russian invasion of Ukraine in 2022, stock market investors can still take some relief in knowing that their investments will not turn sour. The right stocks, such as those belonging to high growth areas such as computing, artificial intelligence, and space exploration, have posted impressive returns in 2024 despite the fact that we're less than two months into the year.
For instance, shares of NVIDIA Corporation (NASDAQ:NVDA), the hottest artificial intelligence stock in today's age, are up by 251% over the past 12 months and 50% year to date. And if you thought that only AI stocks were seeing love on the stock market, then you'd be surprised. This is because 2024 has provided a surprise boost to space stocks, as the shares of Intuitive Machines, Inc. (NASDAQ:LUNR) have soared by a whopping 210% year to date.
These returns are why the stock market is one of the most preferred investing vehicles for all kinds of investors. Intuitive's shares have provided triple digit percentage returns in less than two months because of the strong performance of its IM-1 mission. The IM-1 involves Intuitive's Nova-C Odysseus lunar lander which started off its lunar journey in February with the landing due on the 22nd. Odysseus, named after a Greek mythological figure, has sent Intuitive Machines, Inc. (NASDAQ:LUNR)'s shares out of the penny stock category since a successful landing will kick off NASA's Artemis program - a multi billion dollar initiative that seeks to establish a presence on the Moon this decade.
However, while some stocks are up, others are falling. The regional banking sector in particular has been at the center of the wrong kind of attention in 2024. Its turmoils have been triggered by the troubled office real estate market, whose debt investors have had to deal with the impact of record high interest rates on their sizeable portfolios.
Since the year is still young, there are only a few sizeable and important stocks that are near triple digit lows on the market. And these stocks are falling because of their fundamentals rather than broader, market driving trends. For instance, one falling stock whose shares haven't seen much love in 2024 belongs to the highly growing and catchy electric vehicle industry. Shares of the Brazilian lithium exploration firm Sigma Lithium Corporation (NASDAQ:SGML) are down by 51% year to date in the wake of falling global lithium prices. Lithium carbonate prices in China plummeted by 74% from November 2023 to the start of the second week of February, and naturally, investors were wary of holding Sigma Lithium's shares during such a turbulent time period.
Finally, in such an environment where stocks lose their value due to underlying business or industry trends, one might be inclined to see what the smart money is doing. We've done this today and made a list of falling stocks that are seeing interest from hedge fund investors. Some notable names on the list are Pacific Biosciences of California, Inc. (NASDAQ:PACB), QuidelOrtho Corporation (NASDAQ:QDEL), and Forward Air Corporation (NASDAQ:FWRD).
A close-up of a laptop monitor with stock market prices scrolling up and down.
Our Methodology
To make our list of the best falling stocks, we first ranked all stocks that have lost 25% or more on the stock market this year and touched 52 week lows. Then, we ranked the falling stocks by the number of hedge funds that had bought their shares as of the fourth quarter of 2023.
For these best falling stocks according to hedge funds, we used hedge fund sentiment. Hedge funds’ top 10 consensus stock picks outperformed the S&P 500 Index by more than 140 percentage points over the last 10 years (see the details here). That’s why we pay very close attention to this often-ignored indicator.
13 Best Falling Stocks To Buy Right Now
13. Global Gas Corporation (NASDAQ:HGAS)
Year To Date Share Price Drop: 26.69%
Number of Hedge Fund Investors In Q4 2023: 12
52-Week Range: $2.41 - $10.66
Current Share Price: $2.42
Global Gas Corporation (NASDAQ:HGAS) is a small American company that sells gas to industrial gases to green economy companies such as those working with carbon recovery projects. It's one of the youngest stocks on our list, as the shares were made available for trading in December 2023.
During the same month, 12 out of the 933hedge funds profiled by Insider Monkey had bought Global Gas Corporation (NASDAQ:HGAS)'s shares. It joins QuidelOrtho Corporation (NASDAQ:QDEL), Pacific Biosciences of California, Inc. (NASDAQ:PACB), and Forward Air Corporation (NASDAQ:FWRD) in our list of the best falling stocks that hedge funds have bought.
12. PetMed Express, Inc. (NASDAQ:PETS)
Year To Date Share Price Drop: 31.27%
Number of Hedge Fund Investors In Q4 2023: 15
52-Week Range: $5.16 - $20.27
Current Share Price: $5.21
PetMed Express, Inc. (NASDAQ:PETS) is a specialized healthcare company that deals with animal and pet health in the U.S. The firm has been struggling as of late, since it has missed analyst EPS estimates for its four quarters ending in September 2023. Additionally, the latest earnings report saw PetMed Express, Inc. (NASDAQ:PETS) admit the negative optics of having to refile its financial reports.
After digging through 933 hedge fund portfolios for their fourth quarter of 2023 shareholdings, Insider Monkey found that 15 had invested in the firm. Jim Simons'Renaissance Technologies was the biggest PetMed Express, Inc. (NASDAQ:PETS) investor as it owned $10.1 million worth of shares.
11. Opendoor Technologies Inc. (NASDAQ:OPEN)
Year To Date Share Price Drop: 29.91%
Number of Hedge Fund Investors In Q4 2023: 17
52-Week Range: $1.10 - $5.41
Current Share Price: $3
Opendoor Technologies Inc. (NASDAQ:OPEN) is a real estate technology company that serves as the link between property buyers and sellers. Despite the fact that the firm has performed well on the financial front by having beaten analyst EPS estimates in all four of its latest quarters, the shares are rated Hold on average and the average analyst share price target is $3.39.
As of Q4 2023 end, 17 out of the 933 hedge funds covered by Insider Monkey's research had held a stake in the company. Opendoor Technologies Inc. (NASDAQ:OPEN)'s largest hedge fund stakeholder is Jim Simons' Renaissance Technologies courtesy of its $118 million stake.
10. AN2 Therapeutics, Inc. (NASDAQ:ANTX)
Year To Date Share Price Drop: 81.68%
Number of Hedge Fund Investors In Q4 2023: 17
52-Week Range: $3.56 - $2.22
Current Share Price: $3.64
AN2 Therapeutics, Inc. (NASDAQ:ANTX) is a small biotechnology company headquartered in Menlo Park, California. The firm was out with some bad news for investors in February 2024 when it revealed that it would be pausing enrollments in a trial for its lung disease treatment.
After digging through 933 hedge fund portfolios for last year's December quarter, Insider Monkey discovered 17 AN2 Therapeutics, Inc. (NASDAQ:ANTX) investors. Peter Kolchinsky's RA Capital Management was the biggest investor among these since it owned $113 million worth of shares.
9. Digital Turbine, Inc. (NASDAQ:APPS)
Year To Date Share Price Drop: 49.68%
Number of Hedge Fund Investors In Q4 2023: 19
52-Week Range: $3.43 - $14.61
Current Share Price: $3.48
Digital Turbine, Inc. (NASDAQ:APPS) is an American technology company that serves the needs of the advertising, publishing, and other associated industries. The firm scored a win in February 2024 when it landed a business deal to expand its product offering to millions of devices in South Korea.
During 2024's fourth quarter, 19 out of the 933 hedge funds covered by Insider Monkey's research had bought the firm's shares. Digital Turbine, Inc. (NASDAQ:APPS)'s largest hedge fund shareholder is Scott Stewart Miller's Greenhaven Road Investment Management as it owns 1.9 million shares that are worth $13.3 million.
8. GoPro, Inc. (NASDAQ:GPRO)
Year To Date Share Price Drop: 30.70%
Number of Hedge Fund Investors In Q4 2023: 20
52-Week Range: $2.36 - $5.63
Current Share Price: $2.37
GoPro, Inc. (NASDAQ:GPRO) is an American consumer technology company that provides video cameras and other products. Amidst a stock slump that has come amidst poor earnings performance, the firm announced in January 2024 that it is acquiring an Australian helmet company to expand its total addressable market.
By the end of 2024's December quarter, 20 out of the 933 hedge funds covered by Insider Monkey's research were GoPro, Inc. (NASDAQ:GPRO)'s investors. D. E. Shaw's D E Shaw owned the biggest stake which was worth $12.5 million.
7. Bloom Energy Corporation (NYSE:BE)
Year To Date Share Price Drop: 33.06%
Number of Hedge Fund Investors In Q4 2023: 23
52-Week Range: $8.98 - $23.40
Current Share Price: $9.88
Bloom Energy Corporation (NYSE:BE) is a green energy company that makes and sells fuel cells. The firm's fourth quarter of 2023 earnings report was a sight for sore eyes as it saw Bloom Energy Corporation (NYSE:BE) struggle and report a painful 22.8% annual revenue drop.
Insider Monkey's 933 hedge fund survey for last year's final quarter revealed that 23 had invested in the firm. Bloom Energy Corporation (NYSE:BE)'s largest hedge fund investor is Phillippe Laffont's Coatue Management due to its $65.6 million investment.
6. Sabre Corporation (NASDAQ:SABR)
Year To Date Share Price Drop: 30.68%
Number of Hedge Fund Investors In Q4 2023: 26
52-Week Range: $2.82 - $5.765
Current Share Price: $2.96
Sabre Corporation (NASDAQ:SABR) is a software company that serves the needs of the travel and hospitality industry by providing a software platform that allows users to access industry offerings under a single roof. Despite the fact that its fourth quarter of 2023 earnings marked 8.6% revenue growth, the shares fell in the aftermath due to a broader analyst miss.
During Q4 2023, 26 out of the 933 hedge funds profiled by Insider Monkey were Sabre Corporation (NASDAQ:SABR)'s investors. Terry Smith's Fundsmith LLP owned the biggest stake that was worth $97.9 million.
Pacific Biosciences of California, Inc. (NASDAQ:PACB), Sabre Corporation (NASDAQ:SABR), QuidelOrtho Corporation (NASDAQ:QDEL), and Forward Air Corporation (NASDAQ:FWRD) are some top falling stocks to buy according to hedge funds.
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Disclosure: None. 13 Best Falling Stocks To Buy Right Now is originally published on Insider Monkey.
