The S&P 500 Index has delivered a strong performance in 2025 as it has climbed over 7% and reached new all-time highs. Despite the good run, investor sentiment remains mixed, with ongoing debates around valuations, inflation, and policy risk.
Chris Harvey, Head of Equity Strategy at Wells Fargo Securities, remains constructive on U.S. equities. Speaking with CNBC on June 12, he projected a 16% upside for the S&P 500 by year-end. While acknowledging persistent risks, Harvey argued that the market has largely absorbed the most disruptive effects of tariffs. He also thinks that encouraging indicators such as tighter credit spreads, a rebound in IPO and M&A activity, and upcoming regulatory shifts as signs that the broader environment remains supportive of further gains.
On inflation, Harvey highlighted the role of mortgage rates in restoring affordability. A meaningful decline in rates, he said, hinges on reduced rate volatility, something that could be achieved with clearer guidance from the Federal Reserve. He also noted that stronger fiscal discipline could have helped improve the outlook, calling policymakers’ inaction on the federal deficit a missed opportunity.
Harvey also argued that comparisons to the late 1990s are overstated. Unlike that period, he noted, today’s dominant technology firms are funding their growth through internal cash flows rather than debt. This, in his view, makes the current cycle more stable and fundamentally sound.
A similar tone was echoed by Lori Calvasina, Head of U.S. Equity Strategy at RBC Capital Markets, during a July 14 interview with CNBC. Calvasina offered an updated view on equity markets and explained RBC’s revised S&P 500 targets. The firm began the year with a 6,600 target but cut it to 5,550 in April following a sharp correction. As the market rebounded more quickly than expected, RBC raised its forecast to 5,750 in early June and again to 6,250 more recently, reflecting stronger-than-expected momentum off the lows.
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She noted that the recovery from the April pullback has been unusually swift, accomplishing in three months what typically unfolds over nine. According to Calvasina, investor attention is now shifting toward 2026 earnings, implying that much of the expected economic and inflation-related drag may already be reflected in current prices.
Valuation remains a central concern for RBC as well. While the top 10 stocks in the S&P 500 are trading at or near peak multiples, valuations across the rest of the index appear more balanced. Calvasina also pointed out that small caps, particularly those in the Russell 2000, hit valuation levels in April typically associated with recessions. Although this has led to renewed interest in the space, small caps have yet to show sustained outperformance relative to large caps.
With these insights in mind, let’s explore the 10 most oversold S&P 500 stocks so far in 2025.
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Our Methodology
To identify the most oversold S&P 500 stocks, we began by screening for companies within the index that have posted significant year-to-date (YTD) share price declines. From this initial pool, we selected 10 stocks with the steepest YTD losses and ranked them in descending order based on their performance. We also added the number of hedge fund holders for each stock, based on the hedge fund sentiment data as of Q1 2025 from Insider Monkey’s database.
Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here).
Note: All pricing and analyst rating data are as of market close on July 11, 2025.
10 Most Oversold S&P 500 Stocks So Far in 2025
10. Global Payments Inc. (NYSE:GPN)
Year-to-Date Performance: -29.7%
Number of Hedge Fund Holders: 65
Global Payments Inc. (NYSE:GPN) ranks lowest on our list of the most oversold S&P 500 stocks so far in 2025, with a 30% correction so far this year.
On June 2, Truist Securities analyst Matthew Coad initiated coverage of Global Payments with a Hold rating and a price target of $79. Although the stock looks undervalued compared to peers, and management is making efforts to streamline operations, he remains reserved about its growth potential. He expects organic revenue to stay within the 4%–5% range, which may limit the scope for a significant re-rating in the short term.
Coad also points out that investor sentiment could stay subdued until there is greater clarity around the pending asset exchange between Global Payments and Fidelity National Information Services (FIS). The proposed deal involves FIS acquiring Global Payments’ Issuer Solutions (Tsys) business for an enterprise value of $13.5 billion, netting approximately $12 billion for GPN after adjusting for $1.5 billion in expected tax benefits. In return, Global Payments will reacquire FIS’s minority stake in Worldpay for $6.6 billion in pre-tax value. The transaction could reshape the company’s strategic direction and financial profile once completed.
Until then, Coad suggests that more attractive investment opportunities may exist among other large-cap names under his coverage.
Global Payments is a U.S.-based financial technology company that offers payment solutions and related services to businesses, financial institutions, and consumers globally.
9. Conagra Brands Inc. (NYSE:CAG)
Year-to-Date Performance: -30.1%
Number of Hedge Fund Holders: 39
Conagra Brands Inc. (NYSE:CAG) is one of the most oversold S&P 500 stocks so far in 2025. The stock has declined around 30%–32% both YTD and over the past year, largely reflecting broader consumer weakness and persistent inflation, which continue to cloud the outlook for packaged food companies.
Investor sentiment took a further hit following the company’s Q4 FY 2025 results (fiscal year ended May), released on July 10. The numbers confirmed ongoing softness: net sales dropped 4.3% year-over-year, with organic sales falling 3.5%. While lower volumes were the primary driver of this decline, unfavorable price/mix also played a part.
Margins came under pressure, too. Adjusted operating margin contracted by 100 basis points to 13.8%, contributing to an 8% year-over-year decline in earnings per share, which came in at $0.56.
Reacting to the results, RBC Capital’s Nik Modi lowered Conagra’s price target from $25 to $22, maintaining a Sector Perform rating. In his note to clients, Modi acknowledged the firm’s Q4 miss and called attention to a cautious FY 2026 outlook, shaped by ongoing cost inflation and the impact of tariffs.
Interestingly, Conagra appears to be leaning into the downturn by continuing to invest in its brands, improving supply chain flexibility, and supporting volume recovery, despite the near-term strain this puts on margins and sentiment. According to Modi, these investments are critical for rebuilding momentum, even if they come at a short-term cost.
The market may remain cautious in the near term, but it may stabilize and recover depending on how effectively Conagra navigates these headwinds and how soon its investments begin to yield results.
Conagra Brands Inc. (NYSE:CAG) is one of North America’s leading branded food companies with a portfolio that includes brands such as Birds Eye, Duncan Hines, Healthy Choice, Marie Callender’s, Reddi-wip, and Slim Jim.