In this article, we will look at the 11 Oversold Financial Stocks to Buy According to Hedge Funds.
On October 7, Mary Ann Bartels, Chief Investment Strategist at Sanctuary Wealth, joined CNBC to talk about the market trends. Bartels highlighted that the markets are very overbought; however, it has been the case since September 2025. This is because the market has not been able to get a decent pull-back. She notes that she would like to see some market pull-back as it is necessary for the long-term health of the market. However, Bartels argued that this does not necessarily mean a sell signal. In fact, she sees the S&P 500 reaching 7,000 by year’s end and 7,200 by early 2026. Therefore, this suggests that there are still buying opportunities in the market.
Bartels noted that this bull market is widely driven by AI and tech-related advancements, ranging from tech infrastructure to utilities. She believes that this trend has the potential to lead the market to the end of the decade. Bartels explained that if she looks at long-term secular growth analysis, she sees the S&P 500 at 10,000 to 13,000. Therefore, for those investors who believe this is a bubble, Bartels noted that this might just be the early stages of a bubble.
Bartels also discussed the Federal Reserve cutting rates in a healthy economy. She noted that while the rules of economics suggest that rate cuts do not happen in healthy economies, however, she noted that rate cuts in the current market scenarios would be very stimulative for risk assets.
With that, let’s take a look at the 11 Oversold Financial Stocks to Buy According to Hedge Funds.
Our Methodology
To curate the list of 11 Oversold Financial Stocks to Buy According to Hedge Funds, we used the Finviz Stock Screener, CNN, and Insider Monkey’s Q2 2025 database as our sources. Using the screener, we aggregated a list of Financial stocks that have declined more than 20% year-to-date, but for which analysts expect more than 30% upside from current levels. Next, we cross-checked the YTD decline and analyst upside from CNN and ranked the stocks in ascending order of the number of hedge fund holders sourced from Insider Monkey’s database.
Please note that the data was recorded on October 6, 2025.
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 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here).
11 Oversold Financial Stocks to Buy According to Hedge Funds
11. The Baldwin Insurance Group, Inc. (NASDAQ:BWIN)
Year-to-Date Decline: 22.73%
Analyst Upside Potential: 35.42%
Number of Hedge Fund Holders: 10
The Baldwin Insurance Group, Inc. (NASDAQ:BWIN) is one of the Oversold Financial Stocks to Buy According to Hedge Funds. On October 6, Tommy McJoynt from Keefe Bruyette lowered the firm’s price target on The Baldwin Insurance Group, Inc. (NASDAQ:BWIN) from $44 to $37, while maintaining an Outperform rating on the stock.
The company topped Wall Street’s revenue estimates for its fiscal second quarter of 2025, while the EPS also stayed in line with expectations. However, the stock price has declined more than 24% since the earnings release on August 5, 2025.
The Baldwin Insurance Group, Inc. (NASDAQ:BWIN) delivered $378.81 million in quarterly revenue for FQ2 2025, reflecting an 11.47% year-over-year increase and ahead of expectations by $3.79 million. The EPS of $0.42 also stayed in line with the expectations.
In addition to Keefe Bruyette, several other analysts have also recently reiterated their bullish sentiment on the stock. For instance, earlier on August 20, Gregory Peters from Raymond James reiterated a Buy rating on The Baldwin Insurance Group, Inc. (NASDAQ:BWIN) with a $40 price target. Overall, analysts’ 12-month price target reflects 35.42% upside from current levels.
The Baldwin Insurance Group, Inc. (NASDAQ:BWIN) is an insurance distribution company that operates through three main business segments, including Insurance Advisory Solutions, Mainstreet Insurance Solutions, and Underwriting, Capacity & Technology Solutions.
10. Banco BBVA Argentina S.A. (NYSE:BBAR)
Year-to-Date Decline: 61.78%
Analyst Upside Potential: 170.43%
Number of Hedge Fund Holders: 13
Banco BBVA Argentina S.A. (NYSE:BBAR) is one of the Oversold Financial Stocks to Buy According to Hedge Funds. On September 30, Carlos Gomez-Lopez from HSBC upgraded Banco BBVA Argentina S.A. (NYSE:BBAR) from Hold to Buy, while reducing the price target on the stock from $21 to $17.
The rating upgrade follows the company’s fiscal second-quarter results, which were announced on August 20, 2025. The company missed Wall Street’s EPS and revenue estimates for the quarter, and the stock has been down around 44% since the release. Banco BBVA Argentina S.A. (NYSE:BBAR) posted a revenue of $527.39 million, short of the consensus by $5.51 million. Moreover, the EPS of $0.21 was also behind expectations by $0.16.
However, despite this underperformance, Carlos Gomez-Lopez noted that this volatility offers an attractive entry point for Argentine banks. He believes that the exchange rates are lower, which favors the entry into the sector. Moreover, the long-term investment case for Argentine banks remains robust.
Banco BBVA Argentina S.A. (NYSE:BBAR) is an Argentina-based banking institution that provides a range of financial and non-financial services for individuals and companies.
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