Beaten Down Stocks
Buying a fundamentally strong stock in a beaten down state is a strategy as old as the stock market. Hunting for stocks at attractive valuations in the beaten-down sectors, especially when the market is down and out, has always been considered a sure-shot formula to make money.
A stock of a company with sound business available at a beaten-down price can be a high-risk high-return opportunity, which can add alpha – superior returns over market returns. Downturns can create solid investment opportunities for those who can balance the patience and the aggression required.