In this article, we will discuss the 10 Oversold Fundamentally Strong Stocks to Buy Now.
As per DJE Kapital AG, a leading bank-independent financial services provider, July has often been a favorable month, and this held true for July 2025 also. The MSCI World Index in EUR increased during the month thanks to the favourable developments on the US stock markets. On the other hand, European markets were weaker in July. At the sector level, technology stocks remained in high demand worldwide, while pharmaceuticals/healthcare and consumer staples stocks disappointed.
What’s Next?
DJE Kapital AG is constructive about the markets over the medium term. Among the more aggressive sectors, the firm believes that the technology has been looking interesting, mainly in the areas of AI and software. As a result of Trump’s “Big Beautiful Bill,” the US economy and US earnings are expected to perform well overall as a result of tax breaks, the possibility of special depreciation allowances, as well as elevated investments.
Furthermore, the firm added that the government and corporate spending on infrastructure—mainly in the energy sector—remains high, irrespective of the tariff dispute. Notably, the well-positioned companies continue to benefit from this trend.
Amidst these developments, we will now have a look at the 10 Oversold Fundamentally Strong Stocks to Buy Now.
A close-up of a wealth manager’s hands hovering over a laptop presenting a customer with investment options.
Our Methodology
To list the 10 Oversold Fundamentally Strong Stocks to Buy Now, we sifted through iShares MSCI USA Quality Factor ETF and Invesco S&P 500® Quality ETF to shortlist fundamentally strong stocks. We then selected stocks that have declined at least ~25% over the past six months but are also popular among hedge funds. We have mentioned the hedge fund sentiment around each stock, as of Q1 2025.
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 the data is as of August 13
10 Oversold Fundamentally Strong Stocks to Buy Now
10. Texas Pacific Land Corporation (NYSE:TPL)
% Decline in 6 Months: ~36.2%
Number of Hedge Fund Holders: 31
Texas Pacific Land Corporation (NYSE:TPL) is one of the Oversold Fundamentally Strong Stocks to Buy Now. On August 6, the company released its financial and operating results for Q2 2025, highlighting its financial resilience amid commodity price fluctuations, with quarterly revenue records witnessed in SLEM and produced water royalties. Texas Pacific Land Corporation (NYSE:TPL)’s significant footprint throughout royalties, surface, and water positions it to extract sources of value from the Permian’s exceptional resource.
Texas Pacific Land Corporation (NYSE:TPL)’s total revenues for the 6 months ended June 30, 2025 came in at $383.5 million versus $346.5 million for the 6 months to June 30, 2024. The rise in total revenues was mainly because of a $24.3 million rise in oil and gas royalty revenue, as well as $17.2 million increase in easements and other surface-related income. As of June 30, 2025, Texas Pacific Land Corporation (NYSE:TPL)’s royalty acreage had an estimated 6.0 net well permits, 11.1 net drilled but uncompleted wells, and 5.1 net completed but not producing wells.
In particular, record produced water royalty revenue highlights Texas Pacific Land Corporation (NYSE:TPL)’s unique position to provide essential solutions and capture high-quality cash flows. Wedgewood Partners, an investment management company, released its Q4 2024 investor letter. Here is what the fund said:
“Texas Pacific Land Corporation (NYSE:TPL) was a top contributor to performance during both the quarter and the year. Texas Pacific Land continues to be an extraordinarily unique and profitable business. The Company owns over 800,000 surface acres of land in the Texas Permian Basin. The vast majority of this land was acquired in the year 1888 and more recently (i.e. the last 15 years) this land became highly productive oil and gas royalty acreage thanks to modern drilling and completion techniques and technologies. Despite all of these deserved accolades, we liquidated our positions after the stock rallied quite sharply upon being consecutively added to two major stock indexes over the past seven months. The earnings power of the Company has not substantially changed over the past seven months (for better or worse). However, passive indexes and the traders and managers that closely follow and benchmark against those indexes effectively tripled their appraisal of the Company’s corporate value, while that value never changed. We will continue to monitor Texas Paci7ic Land from the sidelines and would hope to invest in them again, perhaps after the market’s “animal spirits” subside.”
Hedge Fund Resource Center