In this article, we will discuss the 10 Oversold Tech Stocks to Buy According to Analysts.

On April 17, Yung-Yu Ma of PNC joined ‘Closing Bell’ on CNBC to discuss whether equity markets can continue moving higher and also to look at tech stocks. Yung-Yu Ma described the recent strength in the equity markets as a V-shaped recovery and noted that calling the market’s performance over the then-past 11 days a nice run is an understatement. He expressed confidence that the momentum can continue because some of the significant tail risks have been removed. Yung-Yu Ma also clarified that while risks have not vanished and uncertainty lingers with unresolved issues, the tail risks have been significantly diminished. He believes that the tide has turned and the positive trend has reasserted itself, particularly as long-term concerns regarding energy disruptions appear less likely. He maintained that the market is taking the correct approach by focusing on these constructive dynamics, and he suggested it would take a major shift to reverse the current momentum.

Additionally, Yung-Yu Ma believes that tech will continue to drive the market higher and facilitate broad-based productivity gains across the entire economy, particularly through semiconductors and other key areas. Regarding the recent bounce in software stocks, Yung-Yu Ma suggested that the market is currently in a sorting process. He noted that software valuations are much more reasonable now than they were a few months ago, and the focus has shifted to which specific companies can innovate and implement AI in a way that delivers necessary value to clients.

Our Methodology

We used screeners to identify tech stocks that have declined by at least 35% over the past 3 months but for which analysts see potential to recover (with an average upside potential of at least 35%), and limited our final selection to companies that have recently reported noteworthy developments likely to impact investor sentiment. The list includes both pure-play tech companies and tech-enabled businesses. These stocks are also popular among analysts and elite hedge funds.

Note: All data was sourced on April 21. 

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 Tech Stocks to Buy According to Analysts

10. Klarna Group (NYSE:KLAR)

Average Upside Potential: 35.69%

Klarna Group (NYSE:KLAR) is one of the oversold tech stocks to buy according to analysts. On April 14, Klarna partnered with Aven Hospitality to integrate its flexible payment options into Aven’s Booking Engine, which serves over 10,000 hotels. This collaboration aims to provide travelers with alternatives to traditional credit cards, which often accrue interest on high-value travel expenses. By offering Klarna’s services at the point of booking, hotels can provide guests with more transparency and control over their financial commitments.

The integration allows travelers to choose between paying in full, using interest-free installments, or opting for longer-term financing with clear terms. This shift is designed to meet increasing consumer demand for flexible payment methods in high-cost commerce categories like hospitality. David Sykes, Chief Commercial Officer at Klarna, noted that this provides a smarter way to manage large transactions that have historically defaulted to revolving credit balances.

The service is initially launching across the US, Sweden, Germany, Austria, Norway, and Finland, with plans to expand into additional markets throughout the year. Ethan Wiseman of Aven Hospitality highlighted that payment flexibility is now an expectation for guests rather than a luxury. By using Klarna Group’s (NYSE:KLAR) AI-powered commerce network, Aven Hospitality enables its hotel partners to capture more bookings while simplifying the payment process for global travelers.

Klarna Group (NYSE:KLAR) is a global fintech company offering payment and shopping solutions. It specializes in ‘buy now, pay later’ services, enabling consumers to split payments or defer purchases while helping merchants boost sales through flexible checkout options.

9. Yext Inc. (NYSE:YEXT)

Average Upside Potential: 49.07%

Yext Inc. (NYSE:YEXT) is one of the oversold tech stocks to buy according to analysts. On March 20, Yext announced the final results of its modified Dutch Auction tender offer, which concluded on March 18. A total of 62,965,247 shares of common stock were properly tendered at or below the final purchase price of $5.75 per share. This total includes over 17 million shares submitted via notices of guaranteed delivery.

The company accepted 24,347,826 shares for purchase at the $5.75 price point, resulting in an aggregate cost of ~$140 million, excluding associated fees. These accepted shares represent roughly 19.7% of Yext’s total outstanding common stock as of March 19. Due to the high volume of shares tendered, the company applied a final proration factor of ~38.5% for most participants.

The transaction was managed with BofA Securities serving as the dealer manager and D.F. King & Co., Inc. acting as the information agent. Shares were accepted on a pro rata basis, with exceptions made for “odd lots,” which were accepted in full. Stockholders seeking further details regarding the results or the distribution of funds have been directed to contact the designated agents.

Yext Inc. (NYSE:YEXT) offers a platform that responds to consumer inquiries around the globe. The cloud-based platform provides businesses with a centralized solution that includes controlling the content landing pages, managing customer reviews, and updating their content, among other things.