The challenge isn't finding stocks that are beaten down. The challenge is finding ones that are worth buying. In some cases, stocks are down because their prospects for market-beating growth over the next several years has significantly deteriorated. But in other cases, stocks will perform well for their shareholders as their businesses keep delivering profitable growth.

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Wix.com (NASDAQ: WIX) certainly fits the "beaten-down" description: As of this writing, it's down 80% from its all-time high. The stock is down in large part due to its slumping profitability. In 2020, the company's revenue was up 30% year over year, whereas its free cash flow (FCF) was only up 1%. In 2021, revenue was up 29%, but FCF plummeted 78%. And through the first half of 2022, it's had negative FCF of $49.5 million with single-digit revenue growth.

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Source Fool.com