This article looks at the 11 Most Oversold S&P 500 Stocks Heading into 2026.
During an interview with CNBC on November 12, Tom Sosnoff, founder and CEO of the financial platform LossDog, advised retail investors to focus on buying oversold and cheap stocks rather than chasing hyped companies, as he cautioned that the market was nearing record highs.
His comments were in response to a question about his view on the strong rally in those stocks in which the U.S. government has taken a stake. Sonsoff cited the example of the rare-earth producer MP Materials, which started the year at approximately $15 per share and rallied to nearly $100 before slumping by around 50%.
Later, on November 21, David Katz, the Chief Investment Officer at Matrix Asset Advisors, also, during an interview, mentioned the opportunities presented by investing in oversold businesses, while adding that the market correction was on course to end rather than to start.
Katz argued that investors would benefit by considering a broader pool of oversold stocks rather than a list and then investing their money in the businesses that they like. He cited Boeing as one of his favorite picks, since it is on track to bounce back after five difficult years.
Commenting on Fiserv, Katz said it was his least favorite oversold stock due to its recent quarterly earnings report and questions about the company’s prior results, and that he would remain cautious about it.
With that said, let’s now see the most oversold S&P 500 stocks heading into 2026.
Photo by Pascal Bernardon on Unsplash
Our Methodology
We used screeners to identify stocks listed on the S&P 500 Index with a Relative Strength Index (RSI) below 40 and a share price decline from a 52-week high of at least 20%, as of the close of business on December 9. From there, we selected 11 stocks with the largest declines in share price and ranked them in descending order. Additionally, we also included data on hedge fund holdings in these companies as of Q3 2025 to provide further insight into investor interest.
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 427.7% since May 2014, beating its benchmark by 264 percentage points (see more details here).
11 Most Oversold S&P 500 Stocks Heading into 2026
11. Air Products and Chemicals, Inc. (NYSE:APD)
Share Price Decline Versus 52-Week High: 32.36%
Relative Strength Index: 28.07
Number of Hedge Fund Holders: 51
Air Products and Chemicals, Inc. (NYSE:APD) is among the 11 Most Oversold S&P 500 Stocks Heading into 2026. On December 11, Argus Research lowered its price target on the stock to $265 from $317, while maintaining a Buy rating on the shares.
In a research note to investors, the analyst mentioned ongoing macroeconomic headwinds from soft demand and high input costs, but added that the situation is likely to ease in 2026. Despite the challenging environment, Argus expects improvements in EBITDA and revenue ahead.
On the same day, UBS downgraded Air Products and Chemicals, Inc. (NYSE:APD)’s rating to Neutral from Buy, and slashed its price target down from $310 to $250. The analyst noted the recent decline in share price following the company’s updates on the Louisiana and NEOM projects.
While UBS feels the plunge could be an overreaction, the firm believes that earnings growth over the medium term could fall below prior expectations. Moreover, it also sees a slower path to free cash flow improvement for the company.
In other news, on December 10, Deutsche Bank also cut its price target on Air Products and Chemicals, Inc. (NYSE:APD) to $255 from $285. However, it reiterated a Hold rating on the shares.
Despite recent analyst updates, Wall Street analysts have a consensus Moderate Buy rating on the stock, with a one-year average share price target of $304.19, implying a 25% upside.
Air Products and Chemicals, Inc. (NYSE:APD) is an industrial gases company that serves the energy, environmental, and emerging markets. The stock has had a challenging 2025 and is down 16% year-to-date.
10. Verisk Analytics, Inc. (NASDAQ:VRSK)
Share Price Decline Versus 52-Week High: 33.10%
Relative Strength Index: 38.81
Number of Hedge Fund Holders: 55
Verisk Analytics, Inc. (NASDAQ:VRSK) is among the 11 Most Oversold S&P 500 Stocks Heading into 2026. As of the close of business on December 10, Wall Street analysts have a consensus Moderate Buy rating for the stock, with a one-year average share price target of $251.29, representing an upside of 17%.
On December 10, RBC Capital analyst Ashish Sabadra kept the firm’s Buy rating on the stock with a price target of $250, a reaffirmation of the firm’s adjustment on October 30, when it slashed its price target on the data analytics company to $250 from $314 following its revenue miss for the third quarter.
RBC’s update this Wednesday follows Argus Research’s adjustment on Verisk Analytics, Inc. (NASDAQ:VRSK) on November 14, when it downgraded the stock’s rating to Hold from Buy, citing the company trimming its annual revenue forecast in the range of $3.05 billion and $3.08 billion, which was below analysts’ consensus of $3.12 billion.
Verisk Analytics, Inc. (NASDAQ:VRSK)’s third-quarter revenue miss was attributed to fewer severe weather events during the period, which reduced demand for its software used by insurers to estimate claims. The company said it was bracing for challenging weather conditions in Q4 as well.
In other news, on December 10, Verisk announced it would expand its strategic partnership with KYND, which will see the data analytics company’s Rulebook platform being embedded with the latter’s advanced cyber risk insights, resulting in enhanced cyber resilience for the insurance market.
Through the integration of expertise from both firms, insurers and brokers will now be able to make more informed decisions by leveraging access to ‘actionable intelligence’, said Verisk in a press release.
Verisk Analytics, Inc. (NASDAQ:VRSK) is a data analytics and technology company that serves clients in the insurance industry. The stock is down 22% year-to-date.
