**TLDR**: *Note the flair, for beginners and those getting started. Just a post to share some resorces on where to find stocks.*
There are two basic approaches to look for undervalued stocks. The first approach is to find the high quality companies that you want to invest in, and put them on a watchlist and wait. The other approach is to find out stocks that have been beaten down in price, fallen out of favor and then sieve through them to find one or two that is worth investing.
The first approach is an exercise in patience and self-control, there is always a temptation to buy expensive because of FOMO. I am guilty of this. The second approach poses a unique problem for the investor, the need to sort out the value-traps from undervalued stocks that have temporary problems. The investor could also buy too early, only to watch the stock go down another 30% - 50% before eventually recovering. I have seen investors here buy the stock first because the cheap price is too irresistible without doing a proper analysis of the company.
Anyway, this post are some resources on where to find beaten down stocks.
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**1. Sectors that are oversold**
|Sectors|2026|YTD|
|:-|:-|:-|
|Energy|NYSEARCA:XLE|34.81%|
|Technology|NYSEARCA:XLK|34.79%|
|Healthcare|NYSEARCA:XLV|9.79%|
|Industrials|NYSEARCA:XLI|7.06%|
|Basic Materials|NYSEARCA:XLB|6.46%|
|Consumer Staples|NYSEARCA:XLP|5.35%|
|Real Estate|NYSEARCA:XLRE|2.38%|
|Financial Services|NYSEARCA:XLF|\-1.67%|
|Communications svs|NYSEARCA:XLC|\-4.64%|
|Consumer Discretionary|NYSEARCA:XLY|\-7.77%|
|Utilities|NYSEARCA:XLU|\-8.04%|
You can put them into a google sheet and monitor it, here is a template
[https://docs.google.com/spreadsheets/d/19lzY4CC9qHCpu7Ocy5FScGbUoZLf0Le-GYW3MU3-8Vk/edit?gid=369799323#gid=369799323](https://docs.google.com/spreadsheets/d/19lzY4CC9qHCpu7Ocy5FScGbUoZLf0Le-GYW3MU3-8Vk/edit?gid=369799323#gid=369799323)
**2. The 52 Week low lists**
[https://www.barrons.com/market-data/stocks/new-fifty-two-week-highs-lows](https://www.barrons.com/market-data/stocks/new-fifty-two-week-highs-lows)
(Best to download the NYSE and NASDAQ list onto a spreadsheet, and then remove all the ETFs, Bonds, SPACs, BDC and REITS)
**3. Stocks that have been downgraded:**
[https://www.wsj.com/market-data/stocks/upgradesdowngrades](https://www.wsj.com/market-data/stocks/upgradesdowngrades)
**4. Stocks which recently cut or suspended dividends**
[https://www.dividendstocks.com/tools/dividend-cuts/](https://www.dividendstocks.com/tools/dividend-cuts/)
[https://www.marketbeat.com/dividends/cuts/](https://www.marketbeat.com/dividends/cuts/)
Comment: the companies listed needs to be inspected, some have reduced dividend due to spinoffs (eg. Honeywell) or this year's dividend is less than last year becasue of a special payout last year.
Here is a list of anticipated unsafe dividends:
[https://www.morningstar.com/stocks/which-companies-might-cut-their-dividends-next](https://www.morningstar.com/stocks/which-companies-might-cut-their-dividends-next)
[https://www.simplysafedividends.com/world-of-dividends/posts/42-2026-monthly-dividend-stocks-the-complete-list-ranked-by-dividend-safety](https://www.simplysafedividends.com/world-of-dividends/posts/42-2026-monthly-dividend-stocks-the-complete-list-ranked-by-dividend-safety)
**5. Screeners**
I can't comment on a good screener, perhaps someone else can.
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Finally remember this: finding a bunch of stocks from these lists is just the first step. The second and third tasks are: **How do you know they are not value traps ?** and **How do you know it won't go down another 30-50% before recovering ?**
