In this article, we will look at the 10 Oversold Growth Stocks to Invest In Now.
On May 18, Jeffrey Solomon, vice chair and special advisor at TD Bank U.S., appeared on CNBC’s ‘Squawk on the Street’ to talk about how the Iran war and energy prices are driving markets, his economic outlook, and more.
According to him, the number one thing driving the markets right now is what is going to happen in Iran, as well as the circumstances surrounding energy prices. He thinks that outweighs all other factors affecting the market at the moment, and added that people are likely to trade based on the news and what is happening on a daily basis.
READ ALSO: 10 Semiconductor Stocks with Highest Upside Potential Right Now AND 15 Best Small Cap Stocks to Buy for 10x Potential.
He made the case that this ends faster than anybody is anticipating, just because there is an economic incentive for both sides to kind of reach this. That, he believes, is probably one of the things that hasn’t been talked about in the Trump XI conference, that both sides have a lot of vested interest in bringing an off-ramp pretty quickly, because there are economic implications to both China and the United States, as well as the global economy.
With these broader market trends in view, let’s look at the best oversold growth stocks to invest in now.
Our Methodology
We sifted through the Finviz stock screener to compile a list of stocks that have declined by at least 25% over the past six months but for which analysts see potential to recover, and which have a track record of delivering earnings growth and have grown their EPS by at least 20% over the past 3 years. We limited our final selection to companies that have recently reported noteworthy developments likely to impact investor sentiment. These stocks are also popular among analysts and elite hedge funds. We sourced the hedge fund sentiment data from Insider Monkey’s database, and the stocks are ranked in ascending order of their hedge fund sentiment as of Q4 2025.
Note: All data was recorded on March 18.
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 498.7% since May 2014, beating its benchmark by 303 percentage points (see more details here).
10 Oversold Growth Stocks to Invest In Now
10. The Beachbody Company, Inc. (NASDAQ:BODI)
Number of Hedge Fund Holders: 4
The Beachbody Company, Inc. (NASDAQ:BODI) is one of the best oversold growth stocks to invest in now. Roth Capital lifted the price target on The Beachbody Company, Inc. (NASDAQ:BODI) to $13 from $10 on May 13, maintaining a Neutral rating on the shares. The rating update came after the company reported its fiscal Q1 results, telling investors in a research note that sequential growth in the company’s legacy businesses remains negative. It further stated that while various retail launches are planned, The Beachbody Company’s (NASDAQ:BODI) product velocity is uncertain.
The Beachbody Company, Inc. (NASDAQ:BODI) also received a rating update from Noble Capital the same day, with the firm lifting the price target on the stock to $22 from $15 while maintaining an Outperform rating on the shares. The update came after the company’s fiscal Q1 results surpassed expectations despite continued legacy business runoff.
For reference, The Beachbody Company, Inc. (NASDAQ:BODI) reported total revenue of $54.3 million in fiscal Q1 2026, compared to $72.4 million in the prior year period. Digital revenue was $33.6 million compared to $42.9 million in the prior year period, while digital subscriptions totaled 0.81 million in the quarter.
The Beachbody Company, Inc. (NASDAQ:BODI) is a health and wellness company that offers holistic health and wellness platforms. Its product offerings include nutritional products, digital subscriptions, and connected fitness products.
9. Velo3D, Inc. (NASDAQ:VELO)
Number of Hedge Fund Holders: 5
Velo3D, Inc. (NASDAQ:VELO) is one of the best oversold growth stocks to invest in now. Lake Street lifted the price target on Velo3D, Inc. (NASDAQ:VELO) to $20 from $18 on May 13, reaffirming a Buy rating on the shares. The rating update came after the company released its fiscal Q1 2026 financial results on May 12, with the firm contending that a “strong print should give investors confidence in the expected ramp this year”.
In its financial results for the quarter, Velo3D, Inc. (NASDAQ:VELO) reported a revenue of $13.8 million, up 48% year-over-year, with a gross margin of 17.2%. Management reported that the 3D Printer and parts revenue rose 60% compared to the prior year period, attributed to an increase in the average selling price, number of systems sold, and an increase in RPS revenues. The company also reaffirmed its outlook for 2026 revenue between $60 million and $70 million and to turn EBITDA positive in the second half of 2026.
Velo3D, Inc. (NASDAQ:VELO) is a technology company involved in the development and manufacturing of metal laser sintering printing machines for 3D printing. The company’s products include assure system, Flow Software, Sapphire Printer, & sapphire XC.
8. Biodesix, Inc. (NASDAQ:BDSX)
Number of Hedge Fund Holders: 6
Biodesix, Inc. (NASDAQ:BDSX) is one of the best oversold growth stocks to invest in now. Canaccord lifted the price target on Biodesix, Inc. (NASDAQ:BDSX) to $22 from $20 on May 5, reiterating a Buy rating on the shares. The firm stated that the price target increase is driven primarily by raised revenue assumptions and operating margin expansion in its 10-year DCF model.
The rating update came after Biodesix, Inc. (NASDAQ:BDSX) reported business and financial results for fiscal Q1 2026 on May 4, reporting that Diagnostic Testing revenue reached $22.3 million in the quarter, representing 37% year-over-year growth. This was attributed to a 29% increase in test volumes to 17,800 and a higher average revenue per test, while the improvement in average revenue per test was primarily driven by expanded payer coverage and enhancements to revenue cycle management.
Biodesix, Inc. (NASDAQ:BDSX) further reported that total revenue for fiscal Q1 2026 was $25.6 million, up 42% over the respective prior-year comparable period, with an 84% gross margin.
Biodesix, Inc. (NASDAQ:BDSX) is a provider of blood-based diagnostics services for patients with lung disease. The firm offers GeneStrat and VeriStrat, along with six other diagnostic tests, including: Nodify XL2, Nodify CDT, GeneStrat, VeriStrat, Bio-Rad SARS-CoV-2 ddPCR test, and the Platelia SARS-CoV-2 test.
7. RideNow Group, Inc. (NASDAQ:RDNW)
Number of Hedge Fund Holders: 8
RideNow Group, Inc. (NASDAQ:RDNW) is one of the best oversold growth stocks to invest in now. Baird lifted the price target on RideNow Group, Inc. (NASDAQ:RDNW) to $9 from $7 on May 15, reiterating a Neutral rating on the shares. The firm updated its model as robust same-store sales fuel its upside.
The rating update came after the company reported its financial results for fiscal Q1 2026 on May 14, reporting that Powersports revenue rose 6.4% to reach $260.4 million, which represents an increase of $15.7 million. Powersports Revenue was up 13.1% on a same-store sales basis, which was driven by a 16.3% increase in unit sales. The company further reported that the Powersports gross profit was $71.6 million, up 8.3%, while selling, general & administrative expense was $62.1 million, or 86.7% of total Company gross profit, compared to $61.1 million, or 90.9% of gross profit in the prior year period.
RideNow Group, Inc. (NASDAQ:RDNW) provides motor vehicle dealer and e-commerce platforms. The company’s operations are divided into the Powersports Dealership Group and Vehicle Transportation Services segments.
6. Forum Energy Technologies, Inc. (NYSE:FET)
Number of Hedge Fund Holders: 15
Forum Energy Technologies, Inc. (NYSE:FET) is one of the best oversold growth stocks to invest in now. In its financial results for fiscal Q1 2026 announced on April 30, Forum Energy Technologies, Inc. (NYSE:FET) reported revenue of $209 million and net income of $4 million or $0.39 per diluted share. Management stated that adjusting for restructuring costs, net income was $6 million or approximately $0.47 per diluted share, while orders reached $221 million with a book-to-bill ratio of 106%. Adjusted EBITDA for the quarter was $23 million, with the company reporting that revenue and adjusted EBITDA rose 8% and 14% year-over-year. It received solid orders for its differentiated products, raising its backlog 44% compared to the first quarter of 2025.
Forum Energy Technologies, Inc. (NYSE:FET) also reported that while the conflict in the Middle East has resulted in considerable hardships for the region, the company has experienced minimal impact on its financial results and anticipates increased commodity prices and elevated upstream spending in the longer term to drive demand for its products and technology.
Forum Energy Technologies, Inc. (NYSE:FET) is involved in the design, manufacturing, and distribution of products to the oil and natural gas industry. The company’s operations are divided into the following segments: Drilling and Completions and Artificial Lift and Downhole.
While we acknowledge the potential of FET to grow, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than FET and that has 100x upside potential, check out our report about the cheapest AI stock.
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