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.
9. Banco Macro S.A. (NYSE:BMA)
Year-to-Date Decline: 60.54%
Analyst Upside Potential: 85.70%
Number of Hedge Fund Holders: 19
Banco Macro S.A. (NYSE:BMA) is one of the Oversold Financial Stocks to Buy According to Hedge Funds. On September 30, Carlos Gomez-Lopez from HSBC lowered the firm’s price target on Banco Macro S.A. (NYSE:BMA) from $104 to $80, while upgrading the stock from Hold to a Buy rating.
Banco Macro S.A. (NYSE:BMA) released its fiscal second-quarter results on August 27, 2025. The company topped revenue and EPS estimates by $3.93 million and $0.01, respectively. However, despite this outperformance, the share price has declined more than 24% since the announcement.
Analyst Carlos Gomez-Lopez noted that HSBC has recognized Banco Macro S.A. (NYSE:BMA) as one of the best capitalized banks in the Argentine banking system. He also noted that the bank has a history of leveraging volatile periods, such as the current one, to make favorable acquisitions. Therefore, the firm upgraded the stock with a Buy rating.
Banco Macro S.A. (NYSE:BMA) is an Argentine-based Bank that offers traditional banking services to individuals and companies.
8. Goosehead Insurance, Inc. (NASDAQ:GSHD)
Year-to-Date Decline: 31.37%
Analyst Upside Potential: 52.35%
Number of Hedge Fund Holders: 21
Goosehead Insurance, Inc. (NASDAQ:GSHD) is one of the Oversold Financial Stocks to Buy According to Hedge Funds. On October 6, Keefe Bruyette analyst Tommy McJoynt lowered the firm’s price target on Goosehead Insurance, Inc. (NASDAQ:GSHD) from $120 to $102, while keeping an Outperform rating on the stock.
The company delivered strong results in its fiscal second quarter of 2025. Its revenue of $94.03 million grew 20.41% year-over-year and was ahead of the consensus by $353,580. This was driven by an 18% increase in Total Written Premium, which reached $1.2 billion. However, the EPS of $0.49 fell slightly short of the expectations by $0.01.
During the earnings call, management highlighted that they are building new go-to-market partnerships and are also engaged in developing new technologies to engage with clients. They expect full-year Total Written Premiums to reach between $4.38 billion and $4.65 billion, representing a growth of 15% to 22% year-over-year. Moreover, the revenue for the year is expected to be between the range of $350 million and $385 million.
Goosehead Insurance, Inc. (NASDAQ:GSHD) is an independent personal lines insurance company. The company also offers an online Digital Agent as an online quoting platform.
7. Grupo Financiero Galicia S.A. (NASDAQ:GGAL)
Year-to-Date Decline: 58.30%
Analyst Upside Potential: 123.07%
Number of Hedge Fund Holders: 23
Grupo Financiero Galicia S.A. (NASDAQ:GGAL) is one of the Oversold Financial Stocks to Buy According to Hedge Funds. On September 30, Carlos Gomez-Lopez from HSBC initiated coverage on Grupo Financiero Galicia S.A. (NASDAQ:GGAL) with a Buy rating and a $60 price target.
The analyst noted that his firm sees Grupo Financiero Galicia S.A. (NASDAQ:GGAL) as one of the largest private financial groups in Argentina. He noted that the company has leading positions in the insurance, asset management, banking, and consumer finance sectors of the region.
This positive sentiment comes despite the company missing Wall Street estimates during its fiscal second quarter of 2025. The company posted $1.17 billion in revenue, which fell short of the expectation by $332.15 million. Moreover, the EPS of $0.79 was also behind the consensus by $0.33. Regardless, Wall Street’s 12-month price target represents 123.07% upside from the current levels.
Grupo Financiero Galicia S.A. (NASDAQ:GGAL) is a financial holding company that operates through its subsidiaries to provide various banking and financial services.
6. Qfin Holdings, Inc. (NASDAQ:QFIN)
Year-to-Date Decline: 23.73%
Analyst Upside Potential: 67.69%
Number of Hedge Fund Holders: 26
Qfin Holdings, Inc. (NASDAQ:QFIN) is one of the Oversold Financial Stocks to Buy According to Hedge Funds. Wall Street is bullish on Qfin Holdings, Inc. (NASDAQ:QFIN) since the company released its unaudited fiscal second quarter results for 2025 on August 14.
The company grew its total revenue for the quarter to RMB5,215.9 million from RMB4,690.7 million in Q1 2025. The net income, however, dropped from RMB1,796.6 million in the prior quarter to RMB1,730.5 million in Q2 2025. Management noted that their platform saw an 11.4% increase in consumers, which grew from 247.6 million last year to 275.8 million consumers. Moreover, the cumulative number of approved credit lines also improved 12.3% year-over-year during the quarter.
Several analysts have reiterated their bullish sentiment on the stock since the announcement. On August 18, DBS reiterated Qfin Holdings, Inc. (NASDAQ:QFIN) with a Buy rating, while reducing the price target from $55.6 to $52.6. More recently, Katherine Lei from J.P. Morgan also reiterated a Buy rating on the stock on September 10, while reducing the price target from $50 to $45.
Qfin Holdings, Inc. (NASDAQ:QFIN) is an investment holding company that provides credit technology services.
5. Ategrity Specialty Insurance Company Holdings (NYSE:ASIC)
Year-to-Date Decline: 28.32%
Analyst Upside Potential: 46.98%
Number of Hedge Fund Holders: 28
Ategrity Specialty Insurance Company Holdings (NYSE:ASIC) is one of the Oversold Financial Stocks to Buy According to Hedge Funds. Wall Street is bullish on Ategrity Specialty Insurance Company Holdings (NYSE:ASIC) since the company topped revenue and EPS estimates during its fiscal second quarter of 2025.
The company delivered quarterly revenue of $101.78 million, which topped estimates by $3.58 million. The EPS of $0.41 also topped the consensus by $0.10. Management noted growing their Gross Written Premiums by 32.3% year-over-year to $167.5 million.
This was the company’s first quarterly result since its IPO, and several Wall Street analysts have expressed their bullish sentiment on the stock. For instance, on August 12, Elyse Greenspan from Wells Fargo reiterated a Buy rating on Ategrity Specialty Insurance Company Holdings (NYSE:ASIC), while reducing the price target from $29 to $26. On the same day, Andrew Kligerman from TD Cowen also reiterated a Buy rating on the stock with a price target of $27.
Ategrity Specialty Insurance Company Holdings (NYSE:ASIC) provides excess and surplus property and casualty insurance products for small to medium-sized businesses across the United States.
4. Kemper Corporation (NYSE:KMPR)
Year-to-Date Decline: 22.60%
Analyst Upside Potential: 42.18%
Number of Hedge Fund Holders: 34
Kemper Corporation (NYSE:KMPR) is one of the Oversold Financial Stocks to Buy According to Hedge Funds. Kemper Corporation (NYSE:KMPR) posted mixed results for its fiscal second quarter of 2025 on August 5, 2025. The share price has decreased by 18.49% since the announcement. However, Wall Street remains bullish on the stock.
The company posted a revenue of $1.23 billion, up 8.92% year-over-year and ahead of consensus by $2.43 million. However, the EPS of $1.30 fell short of the expectations by $0.21. Management noted the company’s trailing 12-month operating cash flow reached an all-time high of $590 million. Moreover, the company generated 10% ROE and 15% Adjusted ROE, while the BVPS increased 12% during the same time.
Following the announcement, on September 11, Andrew Kligerman from TD Cowen reiterated a Buy rating on the stock with a price target of $81. More recently, on September 19, Gregory Peters from Raymond James also reiterated a Buy rating on Kemper Corporation (NYSE:KMPR) with a price target of $60.
Kemper Corporation (NYSE:KMPR) is a diversified insurance holding company that offers property and casualty insurance as well as life insurance through its subsidiaries.
3. Blue Owl Capital Inc. (NYSE:OWL)
Year-to-Date Decline: 31.03%
Analyst Upside Potential: 41.36%
Number of Hedge Fund Holders: 40
Blue Owl Capital Inc. (NYSE:OWL) is one of the Oversold Financial Stocks to Buy According to Hedge Funds. On October 3, Craig Siegenthaler from Bank of America Securities lowered the firm’s price target on Blue Owl Capital Inc. (NYSE:OWL) from $29 to $27, while keeping a Buy rating on the stock.
The company topped Wall Street’s revenue estimates during its fiscal second quarter of 2025, while the EPS also stayed in line with expectations. The company delivered a revenue of $646.05 million, up 24.24% year-over-year and ahead of the consensus by $8.17 million. Moreover, the EPS of $0.21 stayed in line with the expectations.
The analyst noted that they expect the company to have a decent fundraising quarter; however, it is expected to be down in quarterly comparison. The firm expects Blue Owl Capital Inc. (NYSE:OWL)’s Q3 inflows to be driven by outsized flows in the wealth products.
Blue Owl Capital Inc. (NYSE:OWL) is an alternative asset manager that provides private capital across Credit, GP Strategic Capital, and Real Estate platforms for institutional and private wealth clients.
2. eToro Group Ltd. (NASDAQ:ETOR)
Year-to-Date Decline: 38.84%
Analyst Upside Potential: 46.41%
Number of Hedge Fund Holders: 42
eToro Group Ltd. (NASDAQ:ETOR) is one of the Oversold Financial Stocks to Buy According to Hedge Funds. On October 1, Craig Siegenthaler from Bank of America Securities reduced the firm’s price target on eToro Group Ltd. (NASDAQ:ETOR) from $61 to $50, while keeping a Neutral rating on the stock.
The analyst noted that they remain bullish on the online brokers in the long term, supported by multiple factors. However, they are less bullish in the short term due to an expensive entry point in the sector and expectations of lower interest rates. The firm sees the fiscal third quarter to be a good quarter for 2 brokers; however, it noted that the expectations are high for the sector.
eToro Group Ltd. (NASDAQ:ETOR) outperformed Wall Street’s revenue estimates during the fiscal second quarter of 2025. The company delivered a revenue of $209.63 million, which topped estimates by $14.93 million. The EPS of $0.31, however, fell short of the consensus by $0.20.
eToro Group Ltd. (NASDAQ:ETOR) operates a social investment platform where users can view and interact with other investors’ portfolios and ideas.
1. Morningstar, Inc. (NASDAQ:MORN)
Year-to-Date Decline: 31.97%
Analyst Upside Potential: 43.73%
Number of Hedge Fund Holders: 44
Morningstar, Inc. (NASDAQ:MORN) is one of the Oversold Financial Stocks to Buy According to Hedge Funds. On September 29, Jeffrey Silber from BMO Capital maintained a Buy rating on Morningstar, Inc. (NASDAQ:MORN) with a price target of $325.
The analyst noted that the company’s investment in Credit Rating, Licensed Data products, and platform enhancements is bringing positive developments and strategic growth. This is because the company’s Direct Platform has shown improved organic growth in the EMEA and APAC regions, which the analyst notes are challenging markets for US asset managers due to cost sensitivity and fee pressure. Silber expects the company to maintain a strong balance sheet as a result of this growth.
Moreover, Silber noted that the company’s Pitchbook Platform is also positioned well due to its strategic data advantage. The company has built the platform with years of infrastructural investment, and the platform is backed by rigorous data verification processes. The analyst believes that the company’s potential for margin expansion and anticipated EPS growth make it an attractive investment opportunity.
Morningstar, Inc. (NASDAQ:MORN) is an independent investment research, data, and analysis provider that helps investors make informed decisions.
While we acknowledge the potential of MORN to grow, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than MORN and that has 100x upside potential, check out our report about this cheapest AI stock.
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