This list highlights high-quality companies that have recently underperformed. Sorted by recent performance, highlighting the most beaten-down stocks first.
| Symbol | Company | Sector | Price | Market Cap | 3M % | 1M % | FA Rating |
|---|---|---|---|---|---|---|---|
| QLYS | QUALYS INC | Information Technology | 83.17 | 2.97B | -38.20% | -13.89% | 7 / 10 |
| IT | GARTNER INC | Information Technology | 154.62 | 10.89B | -32.97% | -2.91% | 6 / 10 |
| BMI | BADGER METER INC | Information Technology | 115.54 | 3.37B | -32.70% | -22.15% | 7 / 10 |
| FICO | FAIR ISAAC CORP | Information Technology | 1073.52 | 25.46B | -31.50% | -3.56% | 6 / 10 |
| ACN | ACCENTURE PLC-CL A | Information Technology | 197.65 | 121.34B | -30.94% | -2.90% | 7 / 10 |
| HLNE | HAMILTON LANE INC-CLASS A | Financials | 106.78 | 5.96B | -30.11% | 5.72% | 7 / 10 |
| CHKP | CHECK POINT SOFTWARE TECH | Information Technology | 136.43 | 14.22B | -26.47% | -11.71% | 7 / 10 |
| EXLS | EXLSERVICE HOLDINGS INC | Information Technology | 31.86 | 4.98B | -25.51% | 3.61% | 8 / 10 |
| HRB | H&R BLOCK INC | Consumer Discretionary | 32.16 | 4.08B | -23.52% | 4.15% | 7 / 10 |
| MANH | MANHATTAN ASSOCIATES INC | Information Technology | 132.71 | 7.86B | -23.41% | -5.08% | 7 / 10 |
Note: This table shows a subset of the stocks matching the screen criteria. The full list of stocks can be viewed in the Stock Screener tool.
Temporary setbacks can create opportunities to buy high-quality businesses at better valuations.
Look for strong fundamentals combined with recent price weakness.
These are the rules used to build this stock list.
We combine strict quality metrics with recent negative performance filters to identify strong companies trading below recent highs.
Profit Margin above 10%
Ensures strong operational profitability and pricing power.
ROIC (3Y avg) above 15%
Indicates efficient capital allocation over time.
Free Cash Flow Margin above 10%
Strong cash generation relative to sales.
Capex/Sales (3Y avg) below 5%
Low reinvestment requirements improve efficiency.
Revenue Growth (5Y CAGR) above 5%
Ensures long-term business expansion.
EPS Growth (5Y CAGR) above 7%
Confirms consistent earnings growth.
3-Month Performance below -12%
Identifies recently beaten-down stocks.
Fallen angels are stocks that were once market favorites or high-quality names but have sold off meaningfully. Some investors watch them closely because temporary setbacks can sometimes create opportunity.
The idea is to find companies whose share prices have weakened more than their long-term business quality. That can be interesting when the market overreacts to short-term issues but the fundamentals remain relatively strong.
We combine strict quality metrics with recent negative performance filters to identify strong companies trading below recent highs.
Look for strong fundamentals combined with recent price weakness.
