Why Acadia Healthcare Company, Inc. (ACHC) is Among the Best Oversold NASDAQ Stocks to Buy Right Now

We recently published a list of 11 Oversold NASDAQ Stocks to Buy Right Now. In this article, we are going to take a look at where Acadia Healthcare Company, Inc. (NASDAQ:ACHC) stands against other oversold NASDAQ stocks to buy right now.

On April 28, Darrell Cronk, Wells Fargo Wealth and Investment Management CIO, appeared on CNBC’s ‘Squawk on the Street’ to discuss market outlooks and what investors should look at in the current market circumstances. He opined that it is growth that investors should be worried about, not inflation. Cronk was of the view that the market will likely see better buying/entry opportunities in the coming weeks, and so it is essential to be careful when chasing equities too hard. There is a growing divide between sentiment and positioning, as we live in a geopolitical-first world where the rules of the game can change with stunning speed.

Cronk further opined that many people overlook a key fact about tariffs, solely focusing on their inflationary nature. While tariffs are inflationary, they are blunt-force resets in prices and are not sustained inflationary. So, although companies need to be able to absorb the blunt force reset of prices and impact of margins, it’s not like one continues to see the rate of change of inflation move meaningfully higher up from years one to two, three, and four. This trend only emerges when tariffs move meaningfully higher up over a period of time.

READ ALSO: Recession Resistant Investing: 10 Best Grocery Stocks To Buy Now and 10 Best Stocks That Will Always Grow. 

Are Rate Cuts a Good Idea?

Cronk also talked about how the president has been screaming at the Fed to slash interest rates. But it’s not just the president; the bond market is doing the same. Fed cuts over a period of time are essential. However, according to Cronk, if the Fed shows up tomorrow and announces an emergency cut of sorts, markets wouldn’t perceive it so well. The markets would take it as the Fed knowing something they do not, and the growth scare would grow more pervasive and problematic. This is why the Fed has to be careful about how they act.

The Fed appears to be more concerned about inflation, and it has been consistent in that. If they switched to more growth concerns than inflation concerns, the markets would perceive them as more dovish. He said that we just saw the Fed’s president saying that June could be on the table for a possible rate cut. The Fed is thus starting to lay the groundwork, and we would have to see how that narrative turns out. If it takes a more dovish approach, markets would perceive that in a well-timed, thoughtful way.

Since April 1, nine of the eleven S&P gig sectors have revised their guidance lower. The problem is that out of the 20%- 25% of the reported earnings that the market has seen right now, less than 20% of them have been willing to give forward guidance. Therefore, Cronk highlighted that the guidance suspension is obviously problematic and important here. The market thus needs consumer discretionary stocks and industrials to hold up and tech to deliver.

Our Methodology 

We used stock screeners to compile a list of NASDAQ stocks that experienced significant YTD performance declines. We then selected the 11 stocks with the highest analyst upside potential as of April 29, 2025. We also added the number of hedge fund holders for these stocks as of Q4 2024, sourcing hedge fund data from Insider Monkey’s database. The list is sorted in ascending order of the upside potential.

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 363.5% since May 2014, beating its benchmark by 208 percentage points (see more details here).

Acadia Healthcare Company, Inc. (NASDAQ:ACHC)

Perf YTD: -44.06%

Analyst Upside: 80.34%

Number of Hedge Fund Holders: 46

Acadia Healthcare Company, Inc. (NASDAQ:ACHC) provides behavioral healthcare services across the US in various settings, including inpatient psychiatric hospitals, residential treatment centers, specialty treatment facilities, and outpatient clinics.

Guggenheim analyst Jason Cassorla initiated coverage of Acadia Healthcare Company, Inc. (NASDAQ:ACHC) with a Buy rating and $36 price target on April 9, reasoning that investors are looking for value in the managed care, hospitals, and behavioral health sector, or stocks with compelling stories “outside the noise.”

Acadia Healthcare Company, Inc. (NASDAQ:ACHC) has positive operations, as it reported a revenue of $774.2 million in fiscal Q4 2024, up 4.2% over fiscal Q4 2023. Same facility revenue also rose 4.7% compared to the same quarter last year, including a 1.4% growth in revenue per patient day and a 3.2% rise in patient days. The company also added 577 newly licensed beds in the quarter, which included 344 licensed beds from newly constructed facilities and 233 beds from existing facilities. Acadia Healthcare Company, Inc. (NASDAQ:ACHC) is continually expanding its operations, completing construction on around 1,100 beds in fiscal Q4 2024 and bringing the full-year count to around 1,300 newly constructed beds.

Overall, ACHC ranks 6th on our list of oversold NASDAQ stocks to buy right now. While we acknowledge the potential for ACHC as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. There is an AI stock that went up since the beginning of 2025, while popular AI stocks lost around 25%. If you are looking for an AI stock that is more promising than ACHC but trades at less than 5 times its earnings, check out our report about this cheapest AI stock.

READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires.

Disclosure: None. This article is originally published at Insider Monkey.