11 Oversold Fundamentally Strong Stocks to Buy Right Now

In this article, we will discuss the 11 Oversold Fundamentally Strong Stocks to Buy Right Now.

Recently, Jim Walker, Chief Economist at Aletheia Capital, appeared on NDTV Profit and highlighted that the outlook for 2026 is not very good. He expects a significant slowdown, mainly in the US, Europe, the UK, and Japan. All the advanced economies are expected to slow in 2026, added Walker. He said that emerging markets, such as India and China, are required to do business themselves to get the domestic economies moving and stimulated.

Things to Watch Out For

Walker says that the critical factor that investors should watch is the investment component in the US, primarily their GDP numbers. Notably, figures and signals from the housing market and interest rate yields indicate a possibility of a significantly weaker 2026 in terms of US GDP growth. This year it is expected to average only 2.2%, added Walker.

Elsewhere, State Street Investment Management highlighted that the US is the epicenter of AI trade, with Mag 7 share price gains aided by AI spending expectations. As per the investment firm, the capital spending by this cohort is anticipated to increase to ~$520 billion in 2026, or over 30% YoY. Notably, AI-driven capex continues to boost GDP and earnings, not just in the technology sector, with expectations of unlocking broader productivity gains.

Amidst such trends, we will now have a look at the 11 Oversold Fundamentally Strong Stocks to Buy Right Now

Our Methodology

To list the 11 Oversold Fundamentally Strong Stocks to Buy Right Now, we sifted through several online rankings to shortlist the high-quality stocks. Then, we chose the ones that have declined atleast ~26% over the past 6 months and in which analysts see upside potential to. Finally, the stocks are ranked in an ascending order of their hedge fund sentiments, as of Q3 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 427.7% since May 2014, beating its benchmark by 264 percentage points (see more details here).

Note: All the data is as of January 5.

11 Oversold Fundamentally Strong Stocks to Buy Right Now

11. Chipotle Mexican Grill, Inc. (NYSE:CMG)

5-year Revenue Growth: ~15.1%

5-year EPS Growth: ~45.3%

6-Month Decline: ~28.3%

Average Upside Potential: ~10%

Number of Hedge Fund Holders: 65

Chipotle Mexican Grill, Inc. (NYSE:CMG) is one of the Oversold Fundamentally Strong Stocks to Buy Right Now. On January 9, Telsey Advisory began coverage of the company’s stock with an “Outperform” rating and a price objective of $50. While the broader restaurant industry witnessed slower consumer spending in 2025, the firm believes that this will not be the case in 2026.

It expects marginal improvement in restaurant trends, with consumer spending benefiting from increased tax refunds as well as reduced rates. Furthermore, the analyst believes that the company-specific initiatives are also expected to fuel growth.

In a different update, on January 8, Truist lifted the price target on Chipotle Mexican Grill, Inc. (NYSE:CMG)’s stock to $50 from $45, while keeping a “Buy” rating. The analyst believes that after the tough year for restaurants, the 2026 outlook remains mixed, with temporary tailwinds from tax refunds as well as favorable weather. That being said, the analyst also believes that slowing job growth, consumer confidence, and commodity inflation are some of the headwinds.

Chipotle Mexican Grill, Inc. (NYSE:CMG) owns and operates Chipotle Mexican Grill restaurants.