In this article, we will look at the 11 Most Oversold Stocks to Buy Now.

Recent market volatility has renewed investor attention on entry points. Equity markets have faced bouts of selling pressure in recent weeks as geopolitical tensions and macroeconomic uncertainty weighed on sentiment. While such episodes often trigger broad declines across sectors, they can also create situations where fundamentally sound companies become temporarily oversold as investors react to short-term risks.

Institutional investors frequently emphasize the importance of valuation and timing when identifying long-term opportunities. In its 2026 Long-Term Capital Market Assumptions Report, J.P. Morgan notes that “the starting point for valuations has an impact on long-term returns.” The firm’s view reflects a widely held principle in investing: when stocks decline significantly, their future return potential may improve as valuations become more attractive relative to fundamentals.

Other asset managers have echoed similar views on the role of market pullbacks in shaping long-term investment outcomes. In a viewpoint article entitled ‘What to do when stocks drop’, Fidelity notes that “pullbacks can present an opportunity.” This perspective highlights how temporary dislocations in the market can allow investors to accumulate shares of companies at lower prices than would otherwise be available during periods of strong bullish momentum.

Taken together, these outlooks suggest that periods of volatility and broad market pullbacks may offer attractive entry points for investors willing to focus on long-term fundamentals rather than short-term sentiment. With that in mind, we take a closer look at the 11 Most Oversold Stocks to Buy Now.

Our Methodology

We used the Finviz screener to identify stocks with an RSI reading of less than 30 and limited our final selection to companies that have recently reported noteworthy developments likely to impact investor sentiment. These stocks are also popular among analysts and elite hedge funds.

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. American Eagle Outfitters, Inc. (NYSE:AEO)

TD Cowen lowered its price target on American Eagle Outfitters, Inc. (NYSE:AEO) to $21 from $27 on March 6 and maintained a Hold rating, updating its model following the company’s Q4 results. TD Cowen noted the results set “a high bar,” though the continued strength of the Aerie brand remains encouraging.

Also on March 6, Citi raised its price target on American Eagle to $24 from $23 and kept a Neutral rating on the shares.

On March 4, 2026, the company reported Q4 EPS of 84c, above the 72c consensus estimate, with revenue of $1.76B compared with the $1.74B consensus. Total comparable sales increased 8% in the quarter, including Aerie comps up 23% and American Eagle comps up 2%. CEO Jay Schottenstein said the company saw “strong execution in the back half of the year,” which helped “reignite growth across our brands and channels.” Schottenstein pointed to record fourth-quarter and holiday performance supported by new product collections and marketing campaigns that drove higher demand. Schottenstein added that the company entered 2026 from “a position of strength” and is focused on investing in its brands while pursuing additional efficiency initiatives.

American Eagle Outfitters, Inc. (NYSE:AEO) operates as a multi-brand specialty retailer offering jeans, apparel, accessories, and personal care products under the American Eagle brand, along with intimates, apparel, activewear, and swim collections through the Aerie and OFFLINE by Aerie brands.

10. Donaldson Company, Inc. (NYSE:DCI)

On March 9, 2026, Morgan Stanley analyst Angel Castillo lowered the price target on Donaldson Company, Inc. (NYSE:DCI) to $91 from $93 previously and maintained an Equal Weight rating. Angel Castillo adjusted several targets across the machinery and construction group as part of a weekly update to Morgan Stanley’s models.

On February 26, 2026, Donaldson Company, Inc. (NYSE:DCI) reported Q2 adjusted EPS of 83c, below the 89c consensus estimate, with revenue of $896M compared with the $898.64M consensus. CEO Tod Carpenter said the company delivered “record sales” during the quarter while continuing to strengthen the business to meet demand in key high-margin segments. Carpenter also highlighted the agreement to acquire Facet, which expands the company’s product portfolio with fuel and fluid filtration capabilities serving durable markets, including aerospace and defense and power generation.

Donaldson Company, Inc. (NYSE:DCI) lowered its fiscal 2026 adjusted EPS outlook to $3.93-$4.01 from $3.95-$4.11, compared with the $4.05 consensus estimate. The company expects fiscal 2026 revenue to rise 1%-5% from $3.69B in 2025, versus the $3.83B consensus. Management said strong backlogs and expected operating improvements in the second half support projections for record sales, operating margin, and earnings in fiscal 2026.

Donaldson Company, Inc. (NYSE:DCI) manufactures and sells filtration systems and replacement parts worldwide through its Mobile Solutions, Industrial Solutions, and Life Sciences segments.