2 Beaten-Down Crypto Assets With Incredible Upside Potential

Market carnage creates prime buying opportunities—these digital assets got hammered but pack serious rebound potential.

Undervalued Gems Emerge From Rubble

While traditional investors panic over quarterly earnings, crypto's 24/7 markets already priced in the pain. Both assets trade 60%+ below recent peaks despite fundamentals strengthening behind the scenes.

Institutional Money Waiting on Sidelines

Major funds aren't ignoring these levels—they're accumulating quietly through OTC desks. Retail sentiment remains garbage (as usual), but smart money knows distressed prices don't last forever in digital assets.

Regulatory Clarity Fuels Next Leg Up

Recent policy shifts remove key overhangs that crushed valuations. One project's compliance framework just got FSA approval overseas—because nothing screams 'mass adoption' like begging regulators for permission slips.

Bottom line: Blood in streets often signals maximum opportunity. These picks could triple before Wall Street even finishes its morning coffee.

Image source: Getty Images.

1. UnitedHealth Group

Shares of(UNH 1.21%) have plunged roughly 50% below the high from earlier this year. Pretty much everything that could go wrong for the health insurance stock has gone wrong.

In April, UnitedHealth Group announced disappointing first-quarter results and lowered its guidance for the full year. Less than one month later, the company suspended its full-year outlook altogether and named a new CEO after the unexpected departure of former CEO Andrew Witty.

That wasn't the only bad news. The Wall Street Journal reported in May that the U.S. Department of Justice was conducting civil and criminal investigations into UnitedHealth Group's Medicare billing practices. The company confirmed in July that those investigations were indeed underway.

But UnitedHealth Group is in good hands with former longtime CEO Stephen Hemsley back in charge. The company's current financial woes stem from higher-than-expected medical costs, particularly with its Medicare Advantage plans. Those issues can be resolved by increasing premiums, which is exactly what UnitedHealth plans to do in 2026.

Sure, the dark cloud related to the DOJ investigations will continue to hover over the company's head for a while. A previous federal probe lasted a decade. However, no evidence of wrongdoing was found in that investigation. UnitedHealth Group seems to believe there will be a similar outcome this time around, with the company stating that it "has full confidence in its practices."

Billionaire investors Warren Buffett and David Tepper, along with Michael Burry of The Big Short fame, bought shares of the healthcare giant in the second quarter of 2025. They undoubtedly view UnitedHealth Group's valuation as attractive, with its price-to-earnings ratio at its lowest level in years.

I suspect Buffett, Tepper, and Burry are right about UnitedHealth Group's prospects. Once the company's earnings begin to grow again next year, this beaten-down stock could rebound strongly.

2. Vertex Pharmaceuticals

(VRTX 0.69%) was on a roll earlier this year. However, that momentum is now long gone. The biotech stock has fallen more than 20% below its March 2025 peak.

The first warning sign for Vertex came in May with the company's weaker-than-expected first-quarter results. Revenue was lower than analysts had predicted, primarily due to the sale of copycat versions of the company's cystic fibrosis (CF) drugs in Russia, which negatively impacted sales.

Vertex announced two pipeline setbacks earlier this month. Experimental pain drug VX-993 failed to meet the primary endpoint of a phase 2 clinical trial. The company also revealed that the U.S. Food and Drug Administration (FDA) didn't see a path forward for a broad label for Journavx in treating peripheral neuropathic pain (PNP).

While this news was disappointing, Vertex has more positives than negatives. Journavx's U.S. launch is going so well that the company is beefing up its commercialization efforts. Its newest CF therapy, Alyftrek, continues to gain steam in the market. Both Journavx and Alyftrek should become huge blockbuster drugs for Vertex in the not-too-distant future.

Vertex's pipeline prospects still look promising, too. The biotech company expects to file for global regulatory approvals of type 1 diabetes therapy zimislecel and for FDA accelerated approval of povetacicept in treating IgA nephropathy next year. A late-stage clinical study is also in progress for inaxaplin targeting APOL1-mediated kidney disease. And while the FDA poured cold water on a broad PNP label for Journavx for now, Vertex is moving ahead with phase 3 studies to try to win approval in painful diabetic peripheral neuropathy.

The consensus Wall Street 12-month price target for this biotech stock reflects an upside potential of over 21%. If Vertex's approved products and pipeline candidates fulfill their promise, its stock should be able to skyrocket much more than that over the next few years.