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.
9. FS KKR Capital Corp. (NYSE:FSK)
On March 4, 2026, Truist analyst Arren Cyganovich lowered the price target on FS KKR Capital Corp. (NYSE:FSK) to $11 from $17 and maintained a Hold rating as part of broader research on business development companies following earnings. Arren Cyganovich said the expected reduction in 2026 net interest income reflects increased non-accrual loans.
On March 3, 2026, B. Riley also lowered its price target on FS KKR Capital Corp. (NYSE:FSK) to $11 from $17.50 and kept a Neutral rating following the Q4 report. B. Riley said portfolio headwinds “have been a consistent theme” for the company.
On February 25, 2026, FS KKR Capital Corp. (NYSE:FSK) reported Q4 adjusted net investment income of 52c, below the 54c consensus estimate. Net asset value was $20.89 per share, compared with $21.99 as of September 30, 2025, and $23.64 as of December 31, 2024. CEO and Chairman Michael Forman said the company faced “specific challenges associated with a few investments” that affected results during the second and fourth quarters. Forman added that the investment team is focused on stabilizing those positions while continuing to pursue new originations primarily in first lien senior secured structures to further diversify the portfolio.
FS KKR Capital Corp. (NYSE:FSK) is a business development company that invests primarily in senior secured and, to a lesser extent, subordinated debt of private middle market companies in the United States.
8. Gildan Activewear Inc. (NYSE:GIL)
On March 2, 2026, Telsey Advisory raised its price target on Gildan Activewear Inc. (NYSE:GIL) to $74 from $72 and maintained an Outperform rating. Telsey Advisory said investor concerns have emerged following lighter sales guidance, but the firm increased its target, citing higher expected synergy capture and the possibility of an earlier return to share buybacks.
On February 27, 2026, TD Securities raised its price target on Gildan Activewear Inc. (NYSE:GIL) to $80 from $77 and kept a Buy rating after updating its model following the company’s Q4 report.
On February 26, 2026, Gildan Activewear Inc. (NYSE:GIL) reported Q4 adjusted continuing operations EPS of 96c, compared with the 95c consensus estimate, while revenue totaled $1.08B versus the $1.06B consensus. CEO Glenn Chamandy said 2025 marked “another important year for Gildan,” highlighting record revenue from continuing operations and the closing of the HanesBrands acquisition on December 1. Chamandy added that the integration is underway and the company now expects run-rate cost synergies of about $250M by the end of 2028, including approximately $100M in 2026.
Gildan Activewear Inc. (NYSE:GIL) manufactures and sells apparel products, including activewear such as T-shirts, fleece, polos, and sports shirts, as well as hosiery products like athletic and dress socks, under multiple brands.
7. Planet Fitness, Inc. (NYSE:PLNT)
On March 9, 2026, Jefferies reiterated a Buy rating and $175 price target on Planet Fitness, Inc. (NYSE:PLNT) after the company appointed former CFO Tom Fitzgerald as interim CFO following the departure of Jay Stasz. Jefferies said the move helps shift the narrative away from earlier communication confusion and back to the fundamentals of the company’s business model, describing Planet Fitness as “one of the best out there.” The firm added that with credibility being restored and the recent share price dislocation appearing severe, it would buy the shares “aggressively.”
Earlier the same day, Planet Fitness announced that Tom Fitzgerald, who previously served as the company’s CFO, has been named Interim CFO effective March 9. Fitzgerald replaces Jay Stasz, and the company said it has begun a search for a permanent CFO with the support of an executive search firm.
On February 24, 2026, Planet Fitness reported Q4 adjusted EPS of 83c versus the 79c consensus estimate and revenue of $376.26M compared with the $367.92M consensus. System-wide same club sales rose 5.7%. CEO Colleen Keating said the company delivered “strong performance in 2025,” ending the year with about 20.8 million members and nearly 2,900 clubs globally. Keating also noted the addition of roughly 1.1 million net new members during the year despite a 50% price increase for new Classic Card memberships.
Planet Fitness, Inc. (NYSE:PLNT) franchises and operates fitness centers under the Planet Fitness brand.
6. THOR Industries, Inc. (NYSE:THO)
On March 4, 2026, DA Davidson lowered the price target on THOR Industries, Inc. (NYSE:THO) to $100 from $102 and maintained a Neutral rating. DA Davidson said the shares traded lower after the company delivered a slight Q2 operational beat while reiterating its FY26 guidance framework. The firm remains cautious, citing sluggish retail demand and added uncertainty around consumer purchasing behavior amid recent geopolitical tensions.
Also on March 4, BMO Capital lowered its price target on Thor Industries to $125 from $135 while maintaining an Outperform rating. BMO Capital said the company exceeded Q2 estimates but kept its guidance unchanged despite softer retail and ordering trends. The firm added that retail demand has been weaker than expected in early 2026, though weather headwinds following a strong show season have made it difficult to assess underlying trends.
On March 3, 2026, Thor Industries reported Q2 EPS of 34c, well above the 4c consensus estimate, and revenue of $2.13B compared with the $1.96B consensus. CEO Bob Martin said the results reflect execution “in a challenging retail environment” while highlighting steps taken to streamline operations and optimize costs. Martin also pointed to the strategic realignment of North American RV operations as a move intended to improve efficiency and strengthen long-term competitiveness. Management said dealer engagement remains strong and consumer interest in the RV lifestyle remains encouraging as the company enters the spring selling season.
THOR Industries, Inc. (NYSE:THO) designs, manufactures, and sells recreational vehicles and related parts and accessories in the United States, Europe, Canada, and internationally.
5. Trex Company, Inc. (NYSE:TREX)
On March 9, 2026, Trex Company, Inc. (NYSE:TREX) introduced Trex Refug decking, a new product engineered to resist fire ignition and slow flame spread. The polymer PVC boards are supported by independent third-party testing and are designed to meet building-code requirements for Class A Flame Spread and ignition resistance. The company said the product complies with standards for both WUI zones and IWUIC, allowing it to be specified in many high fire-risk areas while maintaining aesthetics and performance.
On March 3, 2026, Trex Company announced an agreement to repurchase approximately $100M of its outstanding common stock through an accelerated share repurchase program with Wells Fargo Bank, National Association. The program is part of the company’s board-approved $150M share repurchase authorization. Under the agreement, Trex paid $100M to Wells Fargo and expects to receive an initial delivery of about 1.9M shares of its common stock.
On February 24, 2026, Trex reported Q4 EPS of 4c compared with the (1c) consensus estimate and revenue of $161M versus the $144.4M consensus. CEO Bryan Fairbanks said fourth-quarter sales “exceeded expectations” despite a challenging repair and remodeling environment, supported by stronger railing sales late in the quarter and slightly better-than-expected decking shipments in December. Fairbanks added that the estimated sell-through of Trex products grew about 4% for the year, outpacing the broader repair and remodel market.
Trex Company, Inc. (NYSE:TREX) manufactures and sells composite decking and railing products in the United States.
4. Universal Health Services, Inc. (NYSE:UHS)
On March 9, 2026, Universal Health Services, Inc. (NYSE:UHS) announced a definitive agreement to acquire Talkspace (TALK) for $5.25 per share, implying an enterprise value of about $835M. The transaction will be financed through borrowings under the company’s existing revolving credit facility. Talkspace is a virtual behavioral healthcare provider with a network of roughly 6,000 licensed professionals serving all 50 states, Washington, D.C., and Puerto Rico. As of December 31, 2025, its services were available to more than 200M individuals through health insurance plans, employee assistance programs, or employer, school, or government benefits. The company generated $229M in revenue and delivered more than 1.6M therapy and psychiatry sessions in 2025. Excluding one-time acquisition costs, the deal is expected to be slightly accretive to UHS’ adjusted net income per diluted share during the first twelve months after closing and increasingly accretive thereafter. The transaction was unanimously approved by the boards of both companies and is expected to close in the third quarter of 2026, subject to Talkspace shareholder approval, regulatory approvals, and customary closing conditions.
On March 2, 2026, Wells Fargo lowered its price target on Universal Health Services to $212 from $235 and maintained an Equal Weight rating. Wells Fargo said Q4 results were weak, primarily due to the Acute business. The firm added that 2026 guidance is in line with consensus but will require stronger volumes and core growth than seen in 2025.
On February 25, 2026, Universal Health Services reported Q4 EPS of $5.88 versus the $5.90 consensus estimate and revenue of $4.49B compared with the $4.5B consensus. The company expects FY26 adjusted EPS of $22.64-$24.52, compared with the $23.52 consensus estimate.
Universal Health Services, Inc. (NYSE:UHS) owns and operates acute care hospitals and outpatient and behavioral health care facilities in the United States through its Acute Care Hospital Services and Behavioral Health Care Services segments.
3. Western Alliance Bancorporation (NYSE:WAL)
On March 9, 2026, TD Cowen downgraded Western Alliance Bancorporation (NYSE:WAL) to Hold from Buy with an $83 price target. TD Cowen said the bank’s Leucadia Asset Management update adds to a series of recent credit events that have altered investor perception of its risk profile. While the exposures appear idiosyncratic, TD Cowen believes tolerance for further credit developments has likely declined and noted the Cantor credit situation remains unresolved, leaving the shares in what the firm described as a “penalty box.”
Also on March 9, Wells Fargo upgraded Western Alliance to Equal Weight from Underweight while lowering its price target to $79 from $83. Wells Fargo said the recent selloff has brought the stock closer to tangible book value, making valuation more attractive despite recent missteps. The firm also pointed to a positive view on the bank’s new CFO.
On March 6, 2026, Western Alliance disclosed that Jefferies informed the bank that $126.4M owed under a forbearance agreement would not be paid as agreed. The bank and its collateral agent subsequently filed a complaint in the New York Supreme Court against Jefferies, Leucadia Asset Management, and related parties, alleging breach of contract and fraud tied to a commercial loan collateralized by accounts receivable purchased from First Brands Group. After the defendants failed to make the remaining payments due in the first quarter of 2026, the company recorded a charge-off for the full $126.4M loan balance with a corresponding provision. CEO Kenneth Vecchione said the company acted “swiftly and decisively to protect our stakeholders,” adding that planned securities sale gains and operating expense reductions are expected to offset about $100M of the impact while the company evaluates options to address the remaining gap.
Western Alliance Bancorporation (NYSE:WAL) operates as the bank holding company for Western Alliance Bank, providing commercial and consumer banking services primarily in Arizona, California, and Nevada.
2. The Cooper Companies, Inc. (NASDAQ:COO)
On March 6, 2026, Needham raised its price target on The Cooper Companies, Inc. (NASDAQ:COO) to $101 from $99 and maintained a Buy rating. Needham said the company’s Q1 results marked a solid start to the year, noting improving end markets and operating efficiencies that have supported margin expansion and earnings upside.
Also on March 6, Barclays raised its price target on Cooper Companies to $103 from $98 and kept an Overweight rating. Barclays said the company delivered improving sequential growth in its Vision and Surgical segments, which helped offset declines in older, lower-margin hydrogel products in Japan. The firm added that the shares appear attractive at current levels.
On March 5, 2026, Cooper Companies reported Q1 non-GAAP EPS of $1.10, above the $1.03 consensus estimate, with revenue of $1.024B compared with the $1.02B consensus. CEO Al White said the company delivered “a strong start to the fiscal year,” supported by product launches, profitability, and robust cash flow. White also highlighted growth in the premium MyDay portfolio and early traction from MyDay MiSight, while operating margins exceeded expectations due to efficiencies and synergies from last year’s reorganization.
The Cooper Companies, Inc. (NASDAQ:COO) develops, manufactures, and markets products for contact lens wearers through its CooperVision and CooperSurgical segments.
1. The Gap, Inc. (NYSE:GAP)
On March 6, 2026, Goldman Sachs maintained a Buy rating and $32 price target on The Gap, Inc. (NYSE:GAP) after hosting the company’s management team for investor meetings. Goldman Sachs said management struck a constructive tone around continued momentum across its largest brands and the opportunity to turn around the Athleta business.
Also on March 6, BofA raised its price target on The Gap, Inc. (NYSE:GAP) to $29 from $27 and kept a Neutral rating, stating there “were no surprises” in the Q4 results. BofA said the firm is encouraged by positive comparable sales but remains concerned that lower-end consumers could face pressure from tariffs. BofA also raised its FY26 EPS estimate by 3% to $2.25 to reflect a slightly improved gross margin outlook.
On March 5, 2026, The Gap, Inc. (NYSE:GAP) reported Q4 EPS of 45c, compared with the 46c consensus estimate, and revenue of $4.2B versus the $4.24B consensus. Comparable sales increased 3% year over year. CEO Richard Dickson said the company delivered a “successful fourth quarter” and achieved its second consecutive year of topline growth alongside an eighth consecutive quarter of positive comparable sales. Gap expects FY26 adjusted EPS of $2.20-$2.35, compared with the $2.33 consensus estimate.
The Gap, Inc. (NYSE:GAP) operates an apparel retail business offering clothing, accessories, and personal care products for men, women, and children under the Old Navy, Gap, Banana Republic, and Athleta brands.
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