We recently published a list of 10 Best Beaten Down Stocks to Buy According to Analysts. In this article, we are going to take a look at where Rogers Communications Inc. (NYSE:RCI) stands against other best beaten down stocks to buy according to analysts.
JPMorgan released a market update where it highlighted the US Fed’s recent decision to keep the rates unchanged. Also, the US Fed decreased the growth forecasts and increased the near-term inflation expectations. The futures markets are pricing 2 interest rate cuts this year and a ~50% chance of the third cut. Jose Torres, Senior Economist at Interactive Brokers, believes that stocks are being impacted as slowdown worries continue to pressure the outlook for broader corporate earnings growth. According to him, investors continue to pile up shares in the defensive consumer staple, utilities, and healthcare segments and the real estate and energy areas.
Reuters reported that analysts have been turning more cautious about the US corporate earnings for Q1 2025, as Trump’s policies continue to threaten to trigger a global trade war that can impact the broader economic growth. Reuters, while quoting Tajinder Dhillon (senior research analyst at LSEG), noted that S&P 500 forecasts for Q1 2025 have declined by 4.5 percentage points since January 1. Notably, this has been the largest downward revision since Q4 2023.
The earnings growth for the S&P 500 companies is expected at 7.7% YoY, marking the lowest since Q3 2023 as well as a significant decline from 17.1% in Q4 2024. The worries related to the import tariffs and retaliation by US trade partners, together with the government cutbacks, can push the broader economy into recession have witnessed an increase over the past few weeks, reported Reuters.
CNBC, while quoting Scott Wren (senior global market strategist at the Wells Fargo Investment Institute), stated that numerous uncertainties can negatively impact the broader stock market, such as tariffs as well as a potential rebound in inflation. Furthermore, an increase in bond yields can also pose a headwind, as per Wren. Notably, increased yields can impact the demand for US stocks.
That being said, a favorable backdrop of healthy economic growth and consumer spending, together with relatively low unemployment, can help the S&P 500 to deliver ~12% in 2025. As per Wren, this would be marginally higher than the long-term historical average. The strategist thinks that the investors are required to be optimistic.
Amidst these trends, let us now have a look at the 10 Best Beaten Down Stocks to Buy According to Analysts.
To list the 10 Best Beaten Down Stocks to Buy According to Analysts, we used a screener and shortlisted the stocks that are trading close to their respective 52-week lows and that analysts see significant upside to. Next, the stocks were arranged in ascending order of their average upside potential, as of March 21. 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 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here).
Is Rogers Communications Inc. (RCI) The Best Beaten Down Stock to Buy According to Analysts?
A technician working on a mobile device, indicating the company’s wireless internet access capabilities.
Stock Price as of March 21: $27.29
Average Upside Potential: ~40.8%
52-week Low: $26.57
Number of Hedge Fund Holders: 17
Rogers Communications Inc. (NYSE:RCI) operates as a communications and media company in Canada. Fitch Ratings has mentioned the company’s healthy business profile, improved scale, and business diversification after its Shaw Communications Inc. acquisition, lauding its ability to generate strong FCF. Rogers Communications Inc. (NYSE:RCI)’s acquisition of Shaw improved its competitive position by enhancing scale, improving the business mix diversification, and enabling significant synergy realization. For 2025, the company expects single-digit total service revenue and adjusted EBITDA growth, strong FCF, and continued network investments and expansion throughout all the regions in Canada.
Rogers Communications Inc. (NYSE:RCI)’s Q4 2024 caps its third straight year of providing industry-leading financial and operating performance. The company topped $20 billion in annual revenue in 2024 as Canadians chose Rogers Wireless and Internet than any other carrier in Canada. During Q4 2024, the company’s total revenue and total service revenue rose by 3% and 2%, respectively, fueled by revenue growth in its Wireless and Media businesses and by stabilized revenue in the Cable business. Furthermore, Rogers Communications Inc. (NYSE:RCI) continues to see its network leadership progressing as it substantially completed its 5G network build along the Highway of Tears in BC.
Overall, RCI ranks 5th on our list of best beaten down stocks to buy according to analysts. While we acknowledge the potential of RCI 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 time frame. If you are looking for a deeply undervalued AI stock that is more promising than RCI but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock
