10 Oversold Stocks to Buy Now

7. ReNew Energy Global (NASDAQ:RNW)

3-Month Decline as of January 7: 32.59%

Average Upside Potential as of January 7: 98.78%

Number of Hedge Fund Holders: 29

ReNew Energy Global (NASDAQ:RNW) is one of the oversold stocks to buy now. On December 17, Roth Capital lowered the firm’s price target on ReNew Energy Global to $8 from $8.15 and kept a Buy rating on the shares. This decision followed the company announcement on December 15 that Masdar pulled out of the investor consortium, leading to the cancellation of the proposed take-private deal. While Masdar did not explain its withdrawal, the firm noted the move was unexpected since both parties appeared to be on the verge of a final agreement.

Furthermore, on December 15, Mizuho reduced its price target for ReNew Energy Global to $7 from $8.15 with a Neutral rating following the news that Masdar has withdrawn from the consortium intended to take the company private. Despite a decline in the stock price on the said date, the firm suggested the selloff is overdone and attributed the downward pressure to arbitrage investors exiting their positions rather than a shift in fundamental value.

Consequently, Mizuho’s revised valuation shifts away from buyout expectations, now basing the target on no-growth next-12-month EBITDA multiples for the company’s power generation and manufacturing segments through FY2028, aligning ReNew Energy Global (NASDAQ:RNW) more closely with its industry peers.

ReNew Energy Global (NASDAQ:RNW), together with its subsidiaries, generates power through non-conventional and renewable energy sources in India. It operates through five segments: Wind Power, Solar Power, Hydro Power, Transmission Line, and Manufacturing segments.