3 Beaten-Down Small Caps Building Momentum for a 2025 Rally

Beaten-down stocks can, at first glance, look like an opportunity to buy in at a cheap price. However, stocks usually have a reason to be down significantly. Buying into these stocks can sometimes mean that a value trap has lured an investor. A value trap is where the decline in a stock’s price makes it feel undervalued, but in actuality, the business fundamentals support the decline in value. This can make investors think they are getting a good deal, but the shares never recover or continue declining. In ...