Making investments in particular beaten-down stocks could be highly tricky. If appropriate stocks are selected by the investor at a specific price and then sell those shares at the appropriate time, they could generate huge capital gains. In the majority of cases, there are a number of reasons behind the slow down of beaten down stocks and such stocks do not possess the capacity to recover such losses forever or at least for the long term. No accurate formula is available for gaining capital gains through these beaten down stocks. This particular stock could be taken into account as an opportunity. The majority of investors are taking benefit of the good performing firm with relatively low prices of stocks. This could be taken into account as the opportunity to purchase and then hold the share or stock for long until the stock bounces back. Once bouncing back of the stock starts, it could generate huge profits. Our article is based on the research done by Insider Monkey related to 10 Best beaten Down Stocks. Insider Monkey has shared a CNBC report as below:
For instance, In a report by CNBC, according to Rob Williams, Vice President of financial planning at Charles Schwab over the last 20 or so years, the S&P produced an average annual return of around 6%. But if you missed the best 20 days in the market over that time span, by, for example, capitulating in declines, and then reinvesting later, your average annual return would shrivel to 0.1%.
We are starting our list of 10 best beaten down stock with Devon Energy Corporation which has lost around 20% since the year 2019. Holocene Advisors of Brandon Haley is the top hedge fund manager of this particular stock and had made investment of $53 million in this stock. Around 10,000 shares have been purchased by an insider at rate of $9 each in March 2020 and its value goes up by 80% until now. The next company on our list is ConocoPhillips. This company has lost around 28% since the year 2019. Fisher Asset Management of Ken Fisher is the top hedge fund manager of this particular stock. They had made an investment of $161 in this company. Around 2400 shares have been purchased by an insider in May 2020 at the rate of $41 each and its value goes up by 2% until now.
There are some other beaten down stocks on the list which can be read directly at 15 Best Beaten Down Stocks to Buy Now.