From Yahoo Finance: 2025-05-04 18:11:00

The US markets have seen record highs driven by bulls over the past two years, with valuations reaching historical norms. However, Trump’s trade war and tariffs have caused a 6% drop in the S&P 500 and 8% drop in the NASDAQ, sparking fears of a recession and higher inflation.

With a falling stock market, investors with high-risk tolerance can find unique investment opportunities as prices drop. Analysts suggest that now is a good time to invest in stocks with discounted valuations, but caution against expecting a quick market rebound to new highs.

Freshpet, Inc. (NASDAQ:FRPT) is a company specializing in fresh, refrigerated pet food products for dogs and cats. Despite solid financial performance, the stock has dropped about 49% this year. The company’s net sales increased by 27.2% in 2024, leading to profitability and improved gross margins.

Analysts have identified Freshpet, Inc. (FRPT) as the top falling stock to buy, with an upside potential of 63.30%. Benchmark Co. analyst Todd Brooks has reiterated a Buy rating with a $140 price target, believing the company will continue to dominate the fresh dog food segment. However, there is a stronger potential for higher returns in AI stocks in the short term. The article discusses a report on the cheapest AI stock trading at less than 5 times its earnings, promising a better investment opportunity than FRPT. For more information on AI stocks, check out the 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires. No disclosure mentioned. Published by Insider Monkey.

Read more: The Best Falling Stock to Buy According to Analysts