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8 Beaten-Down Stocks to Buy at Deep Discounts

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The vicious stock selloff has rekindled fears of a bear market: a drop of at least 20% in major indexes from their highs. Standard & Poor’s 500-stock index is off just 8% from its peak. But for scores of stocks, the bear is already here.

If you believe in the adage “buy low, sell high,” the time to shop for stocks is when they’re unloved. With that in mind, we identified eight stocks that have fallen at least 20% from their 52-week highs. Our priority was to identify proven companies that are leaders in their industries and that have a strong chance of bouncing back from what’s ailing them. We avoided energy production companies because the slump in oil prices could persist for some time (although our list includes an oil pipeline company, and two companies that do a fair amount of business with energy firms).

There’s no guarantee our picks will rebound or even stop falling soon. But pinpointing the bottom in a stock is a feat few investors can master. Better to keep a watch list, and when you think you see long-term value, begin to move in. That strategy has helped make Warren Buffett a multibillionaire, and it can work for mere mortals, too.

Stocks are listed alphabetically. Share prices and related data are as of August 21.

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