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.
9. The Campbell’s Company (NASDAQ:CPB)
Share Price Decline Versus 52-Week High: 35.07%
Relative Strength Index: 33.98
Number of Hedge Fund Holders: 40
The Campbell’s Company (NASDAQ:CPB) is among the 11 Most Oversold S&P 500 Stocks Heading into 2026. On December 9, the company reported financial results for the first quarter of fiscal 2026.
Net sales stood at $2.68 billion, declining 3% from the prior-year period due to lower volume and mix. The figure largely came in line with Wall Street’s expectations of $2.66 billion. The Goldfish crackers maker’s adjusted EPS came in at $0.77, beating estimates by four cents.
Gross profit dropped sharply from $867 million to $792 million, with adjusted gross profit margin decreasing 1.5% year-over-year to 29.9%, primarily because of inflation pressures, rising supply chain costs, and the impact of tariffs.
The Campbell’s Company (NASDAQ:CPB) reaffirmed its full-year guidance, with net sales expected to remain flat and annual adjusted EPS in the range of $2.40-$2.55.
Industry experts believe that the company’s maintenance of its earlier forecast for 2026 reiterated the broader challenges facing the packaged food sector, as consumers shift to cheaper, private alternatives due to rising prices.
Following the earnings call, several research firms, including Bernstein, Stifel, RBC Capital, and UBS, lowered the price targets for the stock. As of the close of business on December 10, Wall Street analysts have a consensus Hold rating for Campbell, with a one-year average share price target of $32.44, representing an upside of 14%.
The Campbell’s Company (NASDAQ:CPB) produces and markets affordable food and beverage products in the United States and globally. The stock is down 32% year-to-date.
8. Zoetis Inc. (NYSE:ZTS)
Share Price Decline Versus 52-Week High: 36.35%
Relative Strength Index: 29.96
Number of Hedge Fund Holders: 72
Zoetis Inc. (NYSE:ZTS) is among the 11 Most Oversold S&P 500 Stocks Heading into 2026. On December 10, HSBC slashed its price target on the stock to $140 from $180, as part of the firm’s broader overview of pharmaceutical stocks for 2026.
However, the investment bank maintained its earlier Buy rating for the shares. It stated that it expects the sector to outperform next year, “even more so if AI panic kicks in,” according to a report by TipRanks.
In other related news, Barclays initiated coverage of Zoetis Inc. (NYSE:ZTS) on December 8 with an Equal-Weight rating and set a share price target of $136. The firm said it has a neutral outlook for the specialty pharmaceuticals sector as a shift toward innovation and margin expansion drives investor confidence.
In a research note to investors, Barclays further noted that deleveraging was helping to counter pricing challenges faced by pharmaceutical companies, which could potentially lead to significant opportunities for the industry.
As of the close of business on December 10, Wall Street analysts have a Moderate Buy rating for the stock, with a one-year average share price target of $161.03, representing an upside potential of 38%.
Zoetis Inc. (NYSE:ZTS) produces vaccines and medications for animal health. The stock has had a difficult 2025 and is down 28% year-to-date.
7. LKQ Corporation (NASDAQ:LKQ)
Share Price Decline Versus 52-Week High: 37.15%
Relative Strength Index: 37.15
Number of Hedge Fund Holders: 49
LKQ Corporation (NASDAQ:LKQ) is among the 11 Most Oversold S&P 500 Stocks Heading into 2026. On December 10, Stephens & Co. analyst Jeff Lick initiated coverage of the stock with an Overweight rating and assigned a share price target of $39.
In a research note to investors, the analyst characterized the auto parts provider as a ‘deep-value stock’ with multiple avenues for share appreciation. According to TipRanks, Lick also praised the company’s free cash flow position and highlighted its unique status as the sole distributor of both aftermarket and salvage parts in the United States.
This follows Barclays analyst John Babcock’s reiteration on December 5 of an Equal-Weight rating on LKQ Corporation (NASDAQ:LKQ) with a price target of $33. This was a reaffirmation of his November 12 update in which the firm initiated coverage of the stock as part of a broader outlook for the auto retail sector.
As of the close of business on December 10, Wall Street analysts are bullish on the stock with a consensus Buy rating and a one-year average share price target of $41.19, representing an upside potential of 39%.
In other news, LKQ Corporation (NASDAQ:LKQ) announced on December 4 that it had begun the process for the potential divestiture of its Specialty segment as part of the company’s strategy to simplify its portfolio.
LKQ Corporation (NASDAQ:LKQ) is a leading distributor of alternative and specialty parts for automobiles and other vehicles. The stock has had a challenging year and is down 19% year-to-date.
6. Brown & Brown, Inc. (NYSE:BRO)
Share Price Decline Versus 52-Week High: 37.61%
Relative Strength Index: 38.56
Number of Hedge Fund Holders: 44
Brown & Brown, Inc. (NYSE:BRO) is among the 11 Most Oversold S&P 500 Stocks Heading into 2026. On December 4, Citi analyst Matthew Heimermann maintained the firm’s Buy rating on the stock with a target price of $104, a reaffirmation of an earlier update on October 30.
The adjustment follows Morgan Stanley and Barclays’ updates to their stock price targets on BRO on November 17 and 20, when both firms reduced their price targets to $85 from $95 and $84 from $102, respectively. According to TheFly, the reductions were driven by weak pricing trends and a slowdown in the property and casualty markets.
Earlier, on November 3, BofA downgraded Brown & Brown, Inc. (NYSE:BRO) to Neutral from Buy and reduced its price target to $97 from $135, citing softening rates and macroeconomic uncertainties.
The reductions in price targets have come despite Brown & Brown, Inc. (NYSE:BRO) reporting a 35.4% year-over-year increase in net revenue for Q3 2025 that totaled $1.6 billion, driven by a 34.2% increase in commissions and fees. The company’s net income per share came in at $1.05, up 15% from the prior year’s period.
As of the close of business on December 10, Wall Street analysts hold a consensus Hold rating on the stock, with a one-year average share price target of $93.50, implying 21% upside.
Brown & Brown, Inc. (NYSE:BRO) is a global insurance intermediary that offers a broad range of insurance products and services. The stock is down 24% year-to-date.
5. The Mosaic Company (NYSE:MOS)
Share Price Decline Versus 52-Week High: 37.72%
Relative Strength Index: 34.25
Number of Hedge Fund Holders: 47
The Mosaic Company (NYSE:MOS) is among the 11 Most Oversold S&P 500 Stocks Heading into 2026. On December 9, Barclays lowered its price target on the stock to $31 from $35, while keeping an Overweight rating on the shares.
This follows the firm’s November reduction of its target price on the stock to $35 from $42, as part of broader cuts in the agribusiness sector, citing ‘softness’ in the fourth quarter, with customers delaying purchases due to high prices.
On December 5, JPMorgan also lowered the price target on The Mosaic Company (NYSE:MOS) to $24 from $26, saying investors looking for exposure to agriculture were more likely to buy Nutrien or Corteva’s shares. The firm maintained its Neutral rating for the stock.
As of the close of business on December 10, the stock is a Moderate Buy based on the recommendations of 19 Wall Street analysts. The Mosaic Company (NYSE:MOS) has a one-year average share price target of $34.01, representing an upside potential of 43%.
In other news, on November 17, the company declared a quarterly dividend of $0.22 per common stock. It is scheduled for payment on December 18, 2025, to all shareholders of record as of December 4, 2025.
The Mosaic Company (NYSE:MOS) produces and markets concentrated phosphate and potash crop nutrients. The stock is down 3% year-to-date.
4. Copart, Inc. (NASDAQ:CPRT)
Share Price Decline Versus 52-Week High: 39.80%
Relative Strength Index: 27.18
Number of Hedge Fund Holders: 59
Copart, Inc. (NASDAQ:CPRT) is among the 11 Most Oversold S&P 500 Stocks Heading into 2026. On November 25, Barrington analyst Gary Prestopino maintained a Hold rating on the stock.
This followed JPMorgan’s update on the stock a day earlier, when the firm slashed its price target to $45 from $50, while keeping a Neutral rating. On November 21, Baird also lowered its price target to $52 from $55, citing continued insurance headwinds. However, the firm maintained its earlier Outperform rating on Copart, Inc. (NASDAQ:CPRT) shares.
As of the close of business on December 10, Wall Street analysts have a consensus Hold rating for the stock, with a one-year share price target of $48.89, representing an upside potential of 25%.
The company reported financial results for the first quarter of fiscal 2026 on November 20 and posted earnings per diluted share of $0.41, which was up nearly 11% year-over-year and beat estimates by two cents. However, revenue growth was largely flat, increasing by less than 1% to $1.16 billion and falling short of the $1.18 billion forecast.
Copart, Inc. (NASDAQ:CPRT) is a leading provider of online vehicle auctions and remarketing services. The stock has had a difficult 2025 and is down 33% year-to-date. According to Insider Monkey’s database for Q3 2025, 59 hedge funds hold a stake in the company.
3. Alexandria Real Estate Equities, Inc. (NYSE:ARE)
Share Price Decline Versus 52-Week High: 57.75%
Relative Strength Index: 26.02
Number of Hedge Fund Holders: 31
Alexandria Real Estate Equities, Inc. (NYSE:ARE) is among the 11 Most Oversold S&P 500 Stocks Heading into 2026. On December 5, BofA analyst Joshua Dennerlein slashed his price target on the stock to $50 from $57, while maintaining a Neutral rating on its shares.
The adjustment followed the company’s investor day held during the week. According to TheFly, the analyst said that the management now has a 4-5 year timeline for the life science market to reach equilibrium, up from an earlier expectation of 2-3 years.
Moreover, Dennerlein noted that the company had reduced its FY26 guidance issued at the end of the third quarter.
Earlier, on December 4, BMO Capital trimmed its price target for Alexandria Real Estate Equities, Inc. (NYSE:ARE) to $60 from $67 and kept an Outperform rating for the shares. The firm cited the recent quarterly dividend cut and the lowering of earnings guidance for next year as the reasons for the adjustment.
Last week, the company declared a quarterly cash dividend of $0.72 per common share for Q4 2025, representing a 45% sequential decline, in an effort to further strengthen its balance sheet and liquidity position.
As of the close of business on December 10, Wall Street analysts have a cautious outlook on the stock with a consensus Hold rating. However, Alexandria’s one-year average share price target of $63.08 implies a 36% upside.
Alexandria Real Estate Equities, Inc. (NYSE:ARE) is a life sciences real estate investment trust. The stock has declined 4% over the past week, taking its year-to-date fall to over 52%.
2. The Trade Desk, Inc. (NASDAQ:TTD)
Share Price Decline Versus 52-Week High: 71.28%
Relative Strength Index: 36.81
Number of Hedge Fund Holders: 42
The Trade Desk, Inc. (NASDAQ:TTD) is among the 11 Most Oversold S&P 500 Stocks Heading into 2026. On December 8, Wedbush lowered its price target on the stock to $40 from $50, citing competition from demand-side platforms, which are hurting the company’s future growth prospects, according to the firm.
However, Wedbush maintained a Neutral rating on the shares and stated that it expects continued revenue growth for The Trade Desk, Inc. (NASDAQ:TTD) given the shift towards advertisements on connected TVs and digital channels. Moreover, the company’s strong position across the ecosystem and its growing partnerships will also help drive the topline.
Wedbush’s revision follows DA Davidson’s update on the TTD on November 10, when it slashed its price target on the stock to $54 from $80, while keeping a Buy rating on the shares. The firm said that while the company’s third-quarter results were strong, the forecast for the fourth quarter was unlikely to ease investor concerns related to threats from AI and competition.
As of the close of business on December 10, Wall Street analysts have a Moderate Buy rating for the stock, with a one-year average share price target of $62.03, representing an upside potential of 58%.
The Trade Desk, Inc. (NASDAQ:TTD) is a global advertising technology company. The stock has had a difficult 2025 and is down by over 65% year-to-date.
1. Fiserv, Inc. (NASDAQ:FISV)
Share Price Decline Versus 52-Week High: 72.25%
Relative Strength Index: 37.16
Number of Hedge Fund Holders: 83
Fiserv, Inc. (NASDAQ:FISV) 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 Moderate Buy rating on the stock, with a one-year average share price target of $95.05, representing an upside potential of 43%.
Recent analyst updates include Mizuho Securities’ reiteration of an Outperform rating for the stock with a price target of $110 on Wednesday. This is a reaffirmation of its October 30 adjustment, when it slashed the price target to $110 from $145. The firm described third-quarter results as beyond disappointing, but noted the potential in the Clover point-of-sale system despite a slowdown in growth.
Mizuho’s update follows Citi analyst Bryan Keane’s reiteration of a Hold rating for Fiserv, Inc. (NASDAQ:FISV) on December 5, with a share price target of $75.
A day earlier, on December 4, JPMorgan downgraded the stock to Neutral from Overweight, while maintaining its price target at $85. In a research note to investors, the investment banking firm mentioned how ROI uncertainty and a market slowdown have put payment stocks on the path to their worst performance in 15 years.
Fiserv, Inc. (NASDAQ:FISV) provides payments and financial services to clients across various financial sectors. The stock is down 67% year-to-date.
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