These two hard-hit stocks are poised for a comeback, says fund manager

A fund manager at Baillie Gifford has identified CoStar and Duolingo as two stocks that have weathered significant investor pessimism but may offer long-term potential. The observation is notable because it comes from a firm known for patient, growth-oriented investing, suggesting the case rests on fundamentals rather than near-term momentum.

CoStar operates commercial real estate data platforms, a business sensitive to property-market cycles. Duolingo runs a consumer language-learning app whose growth depends on sustaining subscriber engagement. Both have seen sentiment sour, which is precisely the backdrop value-oriented investors often watch.

For readers, the takeaway is less about the specific names than the framework: when pessimism is already reflected in a stock's price, the question shifts to whether the underlying business can keep compounding. What to watch includes upcoming earnings, user and subscriber trends, and whether management guidance stabilizes. Fund-manager endorsements are opinions, not guarantees, and should be weighed alongside independent research.