In this article, we will look at 10 oversold stocks with attractive upside potential.
On June 15, BNN Bloomberg reported that equity markets across the globe reacted favorably to easing tensions between the United States and Iran.
The channel noted that rising expectations surrounding the reopening of the Strait of Hormuz have improved the broader investor sentiment. Concerns about inflation are expected to ease, reducing pressure on central banks to tighten monetary policy.
BNN Bloomberg highlighted that the overall sentiment across global markets has become optimistic. This is driven by a decline in oil prices, lessening geopolitical tensions, and shifting views on monetary policy. Investors remain focused on the Federal Reserve’s policy, with the new Fed Chairman at the helm, and on the broader outlook for inflation and economic growth.
Apart from a favorable sentiment, global markets have lately been characterized by continued demand for technology-related investments. This highlighted investors’ willingness to pursue growth opportunities despite concerns surrounding valuations.
Chief Strategist at Monex, Takashi Hiroki, shared his enthusiasm following some encouraging developments in the Middle East. He stated:
“This is great news. Buying by foreign investors is leading the market with expectations of easing tensions around the situation in the Middle East.”
With that background, let’s explore our 10 Oversold Stocks Offering High Upside.
Source:Pixabay
Our Methodology
To identify relevant stocks for this article, we screened U.S.-listed companies with market capitalizations above $2 billion and a Relative Strength Index (RSI) below 30. Also, we only shortlisted stocks with at least 45% upside potential, according to consensus, as of the June 18 close. Finally, we selected 10 stocks with the highest upside and ranked them in ascending order.
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 599.2% since May 2014, beating its benchmark by 372 percentage points (see more details here).
10. Comcast Corp. (NASDAQ:CMCSA)
Comcast Corp. (NASDAQ:CMCSA) into our list of 10 oversold stocks offering high upside. The company has seen positive commercial developments recently, which support a positive story. On June 16, Comcast Corp.’s (NASDAQ:CMCSA) Xfinity brand announced same-day delivery for WiFi equipment, targeting new Xfinity Internet subscribers in 20 initial markets.
The service provider intends to extend this accelerated delivery option over its whole operational area by early 2027. The company also confirmed that all new customers can pick up the hardware they need in-store on the day they sign up for service. It stated that the initiative makes Xfinity the first major wired internet provider to offer same-day WiFi equipment delivery.
Earlier on June 9, Comcast Corp. (NASDAQ:CMCSA) revealed that the company is undertaking a major network expansion across two Wisconsin counties, extending multi-gigabit symmetrical internet connectivity to more than 5,500 residential and business locations.
The ongoing expansion project will cover 300 miles. Initial customer serviceability is projected somewhere near the end of 2026, with the broader infrastructure build-out slated for completion by the end of 2027.
Comcast Corp. (NASDAQ:CMCSA) is a media and technology company that serves homes and businesses by offering video connectivity, broadband, and wireless services. It also provides broadcast and cable television services through NBC, Telemundo, and Sky networks. Comcast is also engaged in television production, theme park operations, and digital advertising solutions.
9. Netflix Inc. (NASDAQ:NFLX)
Netflix Inc. (NASDAQ:NFLX) features in our list of the 10 oversold stocks offering high upside with fundamental business strength and a moderately bullish consensus sentiment supporting the longer-term view. As of the June 18 closing, the stock offered around 50% upside potential based on a 1-year target price of $114.91. It received Buy ratings from 23 analysts, while the remaining 8 analysts assigned Hold ratings.
On June 18, Matthew Condon from Citizens reiterated a Market Perform rating for Netflix Inc. (NASDAQ:NFLX).
The analyst noted that potential upside on revenues remains limited since the consensus 2027 projections already seem to have accounted for a potential price hike. According to Condon, this limitation will still be there even if the anticipated price actions do take place.
Due to weaker engagement assumptions and a lack of clear near-term catalysts, the firm retains a more neutral stance despite the company’s structural advantages in size and distribution.
On June 17, TheWrap’s Lucas Manfredi highlighted that, contrary to an earlier Semafor report, Netflix Inc. (NASDAQ:NFLX) has firmly denied pursuing a takeover of Lionsgate Studios. According to a Semafor report, Netflix has dismissed its plans to acquire Roku, stating that it never submitted a bid after Roku agreed to be acquired by Fox.
Netflix Inc. (NASDAQ:NFLX) is a subscription-based entertainment service provider that streams television shows, films, documentaries, and more. It uses advanced algorithms to offer device compatibility and personalization for its global users. Subscribers can access an extensive library of content through internet-connected devices such as set-top boxes, laptops, and mobile phones.
8. Leidos Holdings Inc. (NYSE:LDOS)
Leidos Holdings Inc. (NYSE:LDOS) is one of the 10 oversold stocks offering high upside.
On May 21, Leidos Holdings Inc. (NYSE:LDOS) stated that it will receive 4 awards under the U.S. Department of State’s Evolve contract to assist in modernizing the IT systems utilized by American diplomats across the globe. The initiative’s main goals are to upgrade infrastructure and applications, increase the reliability of IT services over a global network of embassies and consulates, and improve cybersecurity.
Cloud and data center services, application development services, network and telecommunications services, and customer and end-user support are the 4 main service categories in which Leidos secured awards. With a 12-month basic term and 6 additional option years, the Evolve program is set up as a multiple-award, indefinite-delivery/indefinite-quantity (IDIQ) contract. The State Department’s efforts to modernize its technology will receive long-term assistance under the deal, which has a $10 billion cap.
Later in the first week of June, Sheila Kahyaoglu from Jefferies lowered the price target on Leidos Holdings Inc. (NYSE:LDOS) from $185 to $140. The firm also downgraded the stock from Buy to Hold.
Kahyaoglu noted that the firm’s previous view that defense technology exposure would allow the company to exceed organic growth expectations was inaccurate. Based on that, the analyst made the downward adjustments. Despite that, the revised price target still results in an upside of almost 29%.
Leidos Holdings Inc. (NYSE:LDOS) offers cyber operations services, digital modernization, national security software, intelligence & operational support, and biometrics & CBRNE solutions. It serves government and commercial entities. It also provides health & civil services, defense systems services, and energy & security technologies.
7. Autodesk Inc. (NASDAQ:ADSK)
Autodesk Inc. (NASDAQ:ADSK) is one of the 10 oversold stocks offering high upside.
On June 15, Autodesk Inc. (NASDAQ:ADSK) announced adjustments to its existing Revolving Credit Facility. The company increased its borrowing capacity to $2 billion from $1.5 billion, executed with a banking syndicate involving major names such as Citibank, Morgan Stanley, BNP Paribas, and BofA Securities.
Autodesk will utilize the arrangement to finance its potential acquisitions, share buybacks, working capital needs, and major capital expenditures. The arrangement involves a zero percent rate floor linked to SOFR, along with margins that will depend on the company’s credit ratings. Autodesk also has provisions to expand the arrangement in the future, as per its requirements.
Back on May 29, RBC Capital reduced the target price on Autodesk Inc. (NASDAQ:ADSK) from $335 to $305. The firm maintained an Outperform rating on the stock. The firm noted that investor concerns about growth and profitability have surfaced, following the company’s acquisition of MaintainX. The acquisition, valued at $3.6 billion, was Autodesk’s largest to date.
However, RBC Capital also highlighted that the company delivered solid outperformance during the recent quarter. It stated that Autodesk remains well-positioned to lead the innovation in industrial AI. Potential risks of margin dilution are anticipated to be absorbed in operating margin estimates for FY2027 and FY2029.
Autodesk Inc. (NASDAQ:ADSK) is involved in the engineering, provision of 3D design and entertainment technology solutions. The company offers Autodesk BIM Collaborate Pro, AutoCAD Civil 3D, Autodesk Build, Revit, and Tandem. It also sells AutoCAD LT, AutoCAD software, Fusion, Inventor, Vault, Flow Production Tracking, and Maya software.
6. Boston Scientific Corp. (NYSE:BSX)
Boston Scientific Corp. (NYSE:BSX) is one of the 10 oversold stocks offering high upside.
On June 12, Matt O’Brien from Piper Sandler reduced the target price on Boston Scientific Corporation (NYSE:BSX) from $90 to $65, resulting in an adjusted upside potential of close to 45% at the current level.
The analyst retained an Overweight rating on the stock, observing that the shares have significantly declined in light of a slowdown in some key indicators, and the route to reaching the company’s longstanding revenue growth target of 10% or more.
Earlier on June 3, Marie Thibault from BTIG also reduced the price target on Boston Scientific Corporation (NYSE:BSX) from $80 to $65, and upheld her Buy rating on the stock. This update has been attributed to the management’s expectations of slower growth for the company’s Watchman line over the next two quarters.
Thibault also noted that due to low current visibility, she expects flat sales for the second and third quarters. Looking ahead, the analyst projects a small quarter-over-quarter increase during the fourth quarter, followed by a steady and gradual recovery across 2027.
Boston Scientific Corp. (NYSE:BSX) specializes in medical devices for interventional specialties such as cardiovascular, endo-surgery, and neuro-modulation. The company operates through MedSurg and Cardiovascular segments, and offers a range of devices, including biliary stent systems, electrocautery enhanced delivery systems, direct visualization systems, and single-use duodeno-scopes.
While we acknowledge the potential of BSX 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 BSX and that has 100x upside potential, check out our report about the cheapest AI stock.
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