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 a patient, growth-oriented investment approach, suggesting the case rests on company fundamentals rather than short-term price momentum.

CoStar operates commercial real estate data and marketplace platforms, a business sensitive to property market cycles. Duolingo, meanwhile, is a consumer-facing language-learning app whose growth depends on sustaining user engagement and converting free users into paying subscribers. Both have seen sentiment sour, but each retains a distinct competitive position in its respective market.

For observers, the takeaway is less about any single call and more about how professional investors weigh beaten-down names. What to watch: upcoming earnings for signs of stabilizing demand, subscriber or booking trends, and whether broader sector headwinds ease. As always, a fund manager's view reflects one perspective among many, and past performance does not guarantee future results.