In this article, we will be taking a look at the 10 most oversold stocks to buy according to billionaires.

Due to the uncertainty surrounding the tariff news, Wall Street is seeing some effects. Investors are mostly concerned about tariffs because they believe they could hinder economic development and lead to inflation, which is why the broader market has fallen significantly since Trump took office on January 20. While Trump claims tariffs can increase national revenue, encourage broad-based growth, and be used as a negotiating tool with other countries, investors worry that trade policies can lower consumer confidence and limit businesses’ capacity to spend capital.

Tariffs, Growth Fears, and Fed Policy

Wells Fargo Wealth and Investment Management CIO Darrell Cronk appeared on CNBC’s “Squawk on the Street” on April 28 to talk about market outlooks and what investors should consider given the current state of the market. He believed that rather than inflation, investors should be concerned about growth. According to Cronk, it is crucial to exercise caution when pursuing stocks too aggressively because the market is expected to present greater buying and entry opportunities in the upcoming weeks. Since the terms of the game can change incredibly quickly in our geopolitical-first environment, there is a widening gap between sentiment and positioning.

Cronk went on to say that many people only consider the inflationary aspect of tariffs, ignoring another important element. Tariffs cause inflation, but only when they impose price resets; they do not cause persistent inflation. Therefore, even while businesses must be prepared to withstand the impact of margins and the blunt force reset of prices, it’s not like the rate of change of inflation keeps getting noticeably larger from year one to years two, three, and four. Only when tariffs rise noticeably over time does this trend become apparent.

Cronk also discussed the president’s insistence that the Fed lower interest rates. Not only the president, but the bond market is following suit. The Fed must make decreases gradually. However, Cronk asserts that markets would not react well if the Fed appeared tomorrow and declared some kind of emergency cut. The growth worry would become more widespread and troublesome since the markets would interpret it as the Fed knowing something they don’t. For this reason, the Fed must exercise caution in its actions.

The Fed has consistently stated that it is more worried about inflation. The markets would view them as more dovish if they began to focus more on growth issues rather than inflation. He claimed that the president of the Fed recently stated that a rate cut in June would be conceivable. As a result, the Fed is beginning to set the foundation; we will have to wait and watch how that story develops. If it adopts a more dovish stance, markets would thoughtfully and strategically interpret that.

Nine out of the eleven S&P gig sectors have lowered their guidance since April 1. The issue is that less than 20% of the 20% to 25% of reported results that the market has currently seen have been willing to provide guidance. Cronk thus emphasized how crucial and harmful the guidance suspension is in this case. Therefore, the market needs tech to deliver and consumer discretionary stocks and industrials to hold up.

Our Methodology

For our methodology, we first used a stock analysis screener to identify stocks with a market capitalization above $10 billion and a Relative Strength Index (RSI) below 40. From the filtered results, we selected the top 10 stocks and ranked them based on the number of billionaire investors holding positions, aligning with the focus of our analysis. In cases where multiple stocks had the same number of billionaire holders, we used the total dollar value of billionaire holdings as a tiebreaker, giving a higher rank to the stock with the greater investment value.

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).

Here is our list of the 10 most oversold stocks to buy according to billionaires.

10. Lineage, Inc. (NASDAQ:LINE)

Number of Billionaire Holdings: 6 

Dollar Value of Billionaire Holdings: $246,614,432 

Lineage, Inc. (NASDAQ:LINE) is the world’s largest temperature-controlled warehouse REIT, operating over 485 refrigerated facilities across 18 countries. The company provides cold storage and logistics solutions for major food producers, retailers, and distributors, helping keep perishable goods like food, beverages, and pharmaceuticals fresh and safe throughout the global supply chain.

Lineage, Inc. (NASDAQ:LINE), one of the most oversold stocks, reported revenue of $1.29 billion, which is down 3% year-over-year, reflecting a return to normal seasonal trends following years of elevated inventory. Adjusted EBITDA fell 7% to $304 million, with margins dipping to 23.5% due to reduced throughput revenue and some customer hesitancy tied to tariffs. However, AFFO per share rose 6% to $0.86, supported by strong cost controls and productivity gains driven by LinOS, the company’s proprietary warehouse execution system.

Lineage, Inc. (NASDAQ:LINE)’s appeal to billionaire investors lies in its strong automation edge, with LinOS reducing labor costs by 15% and boosting throughput at pilot sites. It’s strategic acquisitions, such as the $121 million purchase of three facilities from Bellingham Cold Storage, are enhancing its presence in key regions like the Pacific Northwest.

The corporation recently signed a multi-year deal with Tyson Foods to build and manage advanced cold storage facilities, further reinforcing its innovation leadership. The company is also expanding in Europe, upgrading high-utilization warehouses with semi- and fully automated systems to drive future growth and efficiency.

9. Watsco, Inc. (NYSE:WSO)

Number of Billionaire Holdings: 8 

Dollar Value of Billionaire Holdings: $135,616,884 

Watsco, Inc. (NYSE:WSO) is North America’s largest distributor of HVAC/R equipment, parts, and supplies, serving as a key link between manufacturers and contractors, or businesses that install and maintain these systems. Rather than manufacturing products, the company purchases HVAC units and related components from major brands and resells them to thousands of contractors and commercial clients. The company stands ninth among the most oversold stocks to buy according to billionaires.

Watsco, Inc. (NYSE:WSO) reported Q1 revenue of $1.53 billion, which is down 2.2% year-over-year, missing analyst estimates due to international weakness and ongoing product transition challenges. Despite a flat gross profit of $430 million, gross margin improved to 28.1% thanks to a stronger mix of high-efficiency products. Its earnings per share declined to $1.93 from $2.17, which reflected inventory-related costs tied to the company’s shift toward environmentally compliant A2L refrigerant systems.

Domestically, the company’s core U.S. residential replacement business remained strong, growing 10% and accounting for 91% of total sales. International sales, however, dropped 9% due to macroeconomic headwinds and currency pressure. The company is navigating a major product transition affecting over half of its sales, requiring close to $1 billion in inventory conversion. It is a move expected to drive long-term growth and compliance with new environmental regulations.

Billionaires are drawn to Watsco, Inc. (NYSE:WSO) for its stable, recession-resistant industry, long-standing dividend track record, now in its 51st year with an 11% hike to $12 per share, and strong balance sheet, boasting $432 million in cash and zero debt. The A2L refrigerant transition, though disruptive, positions the company for regulatory leadership and future margin expansion as competitors lag. The business’s recent developments include the continued rollout of digital tools to optimize pricing and inventory management, enhancing operational efficiency.