In this piece, we will take a look at the 12 best all time low stocks to invest in. If you want to skip our overview of the latest stock market news and what might happen later this year, then you can skip ahead and take a look at the 5 Best All-Time Stocks To Invest In.
After a rather devastating 2022 that must have made countless hedge fund managers either lose their hair or see it turn gray, the stock market of Q2 2024 is a markedly different environment. 2022 was the year a significant paradigm shift took place. This came in the form of multiple 75 basis point interest rate hikes by the Federal Reserve – a decision that pulled the rug out from below investors’ feet even though the warning bells for a rate hike had been ringing since the previous year. Higher interest rates mean that hedge funds find it considerably difficult to raise capital for their risky bets, and high growth stocks also set new all time low records as the broader market becomes wary of their ability to raise capital for growth and fund their daily business operations.
For instance, while its shares didn’t set an all time low as too much easy money had already flown into the stock market by then, 2022 was one of the worst years in Meta Platforms, Inc. (NASDAQ:META)’s history. Its shares dipped to below $91 in November 2022 as they effectively reversed all gains made since mid 2015. Similarly, the stock of Elon Musk’s Tesla, Inc. (NASDAQ:TSLA) reversed all gains made since the firm had convinced investors that mass producing an electric vehicle was not simply a paper plan but could be grounded in reality.
Since then, the market has changed. Mark Zuckerberg’s net worth almost touched $187 billion in April 2024, making him richer than Musk as the stock market continues to reward Meta’s stock for Zuckerberg’s well-articulated plans for artificial intelligence, a surprise dividend, and robust earnings performance. Musk, on the other hand, has suffered from a worsening electric vehicle industry hampered by high inflation and a glut in the lithium industry, saw another hit to his net worth in April 2024 after a Reuters report claimed that Tesla had scrapped plans for its highly hyped low-cost EV. This report was also the perfect illustration of the fickle and fast paced nature of today’s stock market, as while the stock tanked by 5% in the immediate aftermath of the report, it recovered nearly all these losses during the same trading day after Musk’s denial.
While these big ticket names have not set new all time lows, there are some stocks that have touched these levels over the course of the last 12 months despite the market’s AI euphoria. One such all time low stock that you might recognize belongs to the iconic American cinema chain AMC Entertainment Holdings, Inc. (NYSE:AMC). AMC, for those unfortunate enough to be out of the loop, was a meme stock that soared by a whopping 490% between April and mid June 2021 in the midst of the meme stock mania of the coronavirus pandemic and is now down 51% year to date and a couple of cents above its all time low share price. Seems like Warren Buffett was right when he said to be fearful when others are greedy, and those who still believed in AMC at the turn of 2024 were surely in for a rude awakening.
Another all time low stock making the news these days is the premium electric vehicle manufacturer and designer Lucid Group, Inc. (NASDAQ:LCID). Operating in the electric vehicle industry is not for the faint of heart right now, and the problems of high inflation, low demand, and a glut are multiplied tenfold for a firm that focuses exclusively on selling expensive and premium cars. Lucid’s shares are down by 34.58% year to date, and here’s what the firm’s management had to say during its latest earnings call:
In 2023, we made headway with our cost optimization programs, the key strategic priority for the company. We found success in areas, including freight, logistics, overhead and bill of materials. For example, we activated logistics as a part of the Phase II build-out of our Arizona factory, AMP 1, allowing us to bring the vast majority of vehicle components under the same roof as general assembly.
This enabled us to realize savings from the reduction in overhead, transportation and complexity as well as better efficiency. From an inventory perspective, we drew down raw material inventory levels by high teens percent from the start of Q4 through material planning and inventory management improvements. Improvements in focus accuracy, in particular, allowed us to reduce inventory resulted in savings related to logistics and material handling labor, equipment rentals and storage cost. We also experienced a significant reduction in freight from more efficient transportation and storage planning. For vehicle direct costs, we implemented a number of initiatives that resulted in certain bill of materials cost savings, some of which is directly related to our commitment to reduce our carbon footprint.
We have identified additional opportunities in cost of goods sold as well as operating expenses that we will look to operationalize over the course of 2024.
So, with these details in mind, we decided to take a look at some all time low stocks that hedge funds have bought. A couple of notable picks are Klaviyo, Inc. (NYSE:KVYO), Sage Therapeutics, Inc. (NASDAQ:SAGE), and AMC Entertainment Holdings, Inc. (NYSE:AMC).
A trader on the floor of a bustling stock exchange, surrounded by a sea of monitors.
Our Methodology
To make our list of the best all time low stocks, we ranked stocks whose shares are below 5.5% above their all time lows by the number of hedge funds that had bought the shares during Q4 2023. Only stocks with a market capitalization greater than $300 million were chosen.
For these best all time low stocks, 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.
12 Best All-Time Low Stocks To Invest In
12. VinFast Auto Ltd. (NASDAQ:VFS)
Number of Hedge Fund Investors In Q4 2023: 7
Share Price % Above All Time Low: 3.79%
VinFast Auto Ltd. (NASDAQ:VFS) is a Vietnamese electric vehicle company that makes and sells scooters. Despite the fact that its shares are down by 41% year to date, the shares are rated Strong Buy on average, and the average analyst share price target is $10.50.
By Q4 2023 end, seven out of the 933 hedge funds covered by Insider Monkey’s database had bought and owned VinFast Auto Ltd. (NASDAQ:VFS)’s shares. It joins Sage Therapeutics, Inc. (NASDAQ:SAGE), Klaviyo, Inc. (NYSE:KVYO), and AMC Entertainment Holdings, Inc. (NYSE:AMC) in our list of stocks near all time lows that hedge funds have bought.
11. BigCommerce Holdings, Inc. (NASDAQ:BIGC)
Number of Hedge Fund Investors In Q4 2023: 10
Share Price % Above All Time Low: 2.51%
BigCommerce Holdings, Inc. (NASDAQ:BIGC) is a mid sized American software company that enables businesses to set up their eCommerce platforms. The firm has beaten analyst EPS estimates in all four of its latest quarters, but its shares were dealt with a setback in March 2024 when BofA downgraded the stock to Underperform from Neutral and cut the share price target to $7.50 from $11.
For their fourth quarter of 2023 shareholdings, ten out of the 933 hedge funds tracked by Insider Monkey had held a stake in BigCommerce Holdings, Inc. (NASDAQ:BIGC). Eric Bannasch’s Cadian Capital was the firm’s biggest investor due to its $73.4 million investment.
10. Clover Health Investments, Corp. (NASDAQ:CLOV)
Number of Hedge Fund Investors In Q4 2023: 14
Share Price % Above All Time Low: 3.49%
Clover Health Investments, Corp. (NASDAQ:CLOV) is a small American health insurance provider headquartered in Franklin, Tennessee. In the midst of a quiet 2024, the firm shared in March 2024 that it had further expanded its care portfolio for patients suffering from mental health problems.
As of December 2023 end, 14 out of the 933 hedge funds part of Insider Monkey’s survey were the firm’s shareholders. Clover Health Investments, Corp. (NASDAQ:CLOV)’s largest shareholder in our database is Jim Simons’ Renaissance Technologies through its $11.9 million stake.
9. Arko Corp. (NASDAQ:ARKO)
Number of Hedge Fund Investors In Q4 2023: 15
Share Price % Above All Time Low: 1.99%
Arko Corp. (NASDAQ:ARKO) is a sizeable Virginia based retailer that operates on the convenience store model. Its shares have been in a consistent state of flux over the past month as the firm is busy expanding its footprint via an acquisition and new store openings.
Insider Monkey dug through 933 hedge funds for their fourth quarter of 2023 shareholdings and found 15 Arko Corp. (NASDAQ:ARKO) investors. Thomas Lenox Kempner’s Davidson Kempner owned the biggest stake which was worth $190 million.
8. Hamilton Insurance Group, Ltd. (NYSE:HG)
Number of Hedge Fund Investors In Q4 2023: 18
Share Price % Above All Time Low: 3.73%
Hamilton Insurance Group, Ltd. (NYSE:HG) is a Bermuda based financial services company that provides a variety of insurance and reinsurance products. The shares are rated Buy on average, and the average analyst share price target is $19.83.
By the end of 2023’s December quarter, 18 out of the 933 hedge funds covered by Insider Monkey’s research had held a stake in Hamilton Insurance Group, Ltd. (NYSE:HG).
7. Chimera Investment Corporation (NYSE:CIM)
Number of Hedge Fund Investors In Q4 2023: 18
Share Price % Above All Time Low: 4.12%
Chimera Investment Corporation (NYSE:CIM) is an American real estate investment trust that deals in residential mortgages and other loans. The fact that its stock is trading close to all time lows is unsurprising given its latest earnings that saw Chimera Investment Corporation (NYSE:CIM) miss analyst distribution estimates.
Insider Monkey scoured through 933 hedge fund portfolios for their shareholdings in 2023’s final quarter to find that 18 had bought the firm’s shares. Chimera Investment Corporation (NYSE:CIM)’s largest hedge fund investor among these is Dmitry Balyasny’s Balyasny Asset Management since it owns $15.7 million in stock.
6. Thoughtworks Holding, Inc. (NASDAQ:TWKS)
Number of Hedge Fund Investors In Q4 2023: 18
Share Price % Above All Time Low: 4.65%
Thoughtworks Holding, Inc. (NASDAQ:TWKS) is an American information technology firm that allows businesses to embark on a digital transformation journey and use data analysis and artificial intelligence technologies. The shares are rated Buy on average, and the average analyst share price target is $4.24.
18 out of the 933 hedge funds part of Insider Monkey’s Q4 2023 database had held a stake in Thoughtworks Holding, Inc. (NASDAQ:TWKS). Shashin Shah’s Think Investments was the biggest stakeholder through its $24 million investment.
Klaviyo, Inc. (NYSE:KVYO), Sage Therapeutics, Inc. (NASDAQ:SAGE), and AMC Entertainment Holdings, Inc. (NYSE:AMC) are some stocks near all time lows with notable hedge fund interest.
Click to continue reading and see 5 Best All-Time Low Stocks To Invest In.
Suggested Articles:
Disclosure. None. 12 Best All-Time Low Stocks To Invest In was initially published on Insider Monkey.