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.
10. Fortinet, Inc. (NASDAQ:FTNT)
5-year Revenue Growth: ~21.6%
5-year EPS Growth: ~32.4%
6-Month Decline: ~26.4%
Average Upside Potential: ~12%
Number of Hedge Fund Holders: 44
Fortinet, Inc. (NASDAQ:FTNT) is one of the Oversold Fundamentally Strong Stocks to Buy Right Now. On January 5, Piper Sandler analyst Rob Owens lifted the price target on the company’s stock to $90 from $85 while keeping a “Neutral” rating, as reported by The Fly. As per the firm, 2025 was a difficult year for its Security & Infrastructure Software coverage. That being said, the firm remains cautiously optimistic for a better year in 2026. This conviction is backed by the fact that several names are now entering the year at interesting valuation levels and are well-placed to be longer-term GenAI winners.
In a different update, Fortinet, Inc. (NASDAQ:FTNT) announced the Fortinet Secure AI Data Center solution, which has been built in close collaboration with leading technology partner Arista Networks, deployed at Monolithic Power Systems (MPS).
The company further announced that the solution tends to unite best-of-breed networking as well as security to deliver a validated, scalable, zero-trust architecture for an AI data center.
Fortinet, Inc. (NASDAQ:FTNT) offers cybersecurity and convergence of networking and security solutions.
9. Brown & Brown, Inc. (NYSE:BRO)
5-year Revenue Growth: ~16%
5-year EPS Growth: ~15.4%
6-Month Decline: ~25.2%
Average Upside Potential: ~17.3%
Number of Hedge Fund Holders: 44
Brown & Brown, Inc. (NYSE:BRO) is one of the Oversold Fundamentally Strong Stocks to Buy Right Now. On January 8, Barclays analyst Alex Scott reduced the price target on the company’s stock to $83 from $84, while keeping an “Equal Weight” rating. Notably, the firm adjusted ratings and price objectives as part of the 2026 outlook for the broader North America property and casualty Insurance group.
As per the firm’s analyst, the pricing continues to soften throughout commercial and reinsurance, with personal lines looking relatively better, as well as brokers witnessing organic growth headwinds. The firm suggests staying selective.
On January 7, Goldman Sachs reduced the price objective on Brown & Brown, Inc. (NYSE:BRO)’s stock to $87 from $90, while keeping a “Neutral” rating. According to the sector note on Americas Insurance, the firm anticipates robust and fairly resilient insurer profitability over the upcoming few years.
That being said, it noted that there is a softening phase in the P&C insurance cycle, which results in higher capital supply and competition. This can lead to a deceleration in growth/pricing/margins, which remains broadly underappreciated in the Street estimates.
Brown & Brown, Inc. (NYSE:BRO) is engaged in marketing and selling insurance products and services.
8. PayPal Holdings, Inc. (NASDAQ:PYPL)
5-year Revenue Growth: ~10.1%
5-year EPS Growth: ~13.4%
6-Month Decline: ~19.2%
Average Upside Potential: ~21.4%
Number of Hedge Fund Holders: 86
PayPal Holdings, Inc. (NASDAQ:PYPL) is one of the Oversold Fundamentally Strong Stocks to Buy Right Now. On January 8, Susquehanna reduced the price target on PayPal Holdings, Inc. (NASDAQ:PYPL)’s stock to $90 from $94, while keeping a “Positive” rating, as reported by The Fly. Notably, the firm trimmed the company’s Q4 2025 estimates, highlighting that the branded experiences might witness a deceleration of a few points in the quarter.
The firm opines that PayPal Holdings, Inc. (NASDAQ:PYPL)’s overall growth outlook might be more gradual than initially expected.
In a different update, on January 8, Paychex, Inc. announced a new partnership with PayPal Holdings, Inc. (NASDAQ:PYPL) within the Paychex Flex® Perks platform. As a result of this collaboration, employees of Paychex customers can easily set up PayPal Direct Deposit, offering up to 2-day early access to their paychecks.
Elsewhere, Monness Crespi downgraded PayPal Holdings, Inc. (NASDAQ:PYPL)’s stock to “Neutral” from “Buy.” The firm highlighted macroeconomic factors in its downgrade rationale, specifically mentioning about building weakness in the 90% of consumers in the US, which make up 50% of the spend. That being said, the firm acknowledged that the company’s long-term bull case is intact.
PayPal Holdings, Inc. (NASDAQ:PYPL) operates a technology platform, which enables digital payments for merchants and consumers.
7. Paycom Software, Inc. (NYSE:PAYC)
5-year Revenue Growth: ~19.7%
5-year EPS Growth: ~23.3%
6-Month Decline: ~29%
Average Upside Potential: ~22.4%
Number of Hedge Fund Holders: 35
Paycom Software, Inc. (NYSE:PAYC) is one of the Oversold Fundamentally Strong Stocks to Buy Right Now. On January 8, TD Cowen analyst Jared Levine reduced the price objective on the company’s stock to $184 from $200 while keeping a “Buy” rating, as reported by The Fly. Notably, the firm updated estimates to reflect the latest Fed Funds rate expectations as well as thoughts ahead of the upcoming Q4 2025 results.
In a different update, Citi reduced the price objective on Paycom Software, Inc. (NYSE:PAYC)’s stock to $185 from $191, while keeping a “Neutral” rating, as reported by The Fly. Notably, the firm adjusted models in the broader application software group after meeting with the management of companies. The analyst added that companies have been witnessing a stable but uncertain demand environment amidst relief from the reopening of the US government.
Elsewhere, BTIG analyst Allan Verkhovski upgraded Paycom Software, Inc. (NYSE:PAYC)’s stock to “Buy,” setting a price objective of $195. As per the analyst, despite the disappointing Q3 2025 results, the market has been underestimating Paycom Software, Inc. (NYSE:PAYC)’s ability to sustain a double-digit recurring revenue growth.
Paycom Software, Inc. (NYSE:PAYC) offers a cloud-based human capital management (HCM) solution delivered as software-as-a-service for small to mid-sized companies.
6. Fiserv, Inc. (NASDAQ:FISV)
5-year Revenue Growth: ~7.03%
5-year EPS Growth: ~37.5%
6-Month Decline: ~57.8%
Average Upside Potential: ~28.9%
Number of Hedge Fund Holders: N/A
Fiserv, Inc. (NASDAQ:FISV) is one of the Oversold Fundamentally Strong Stocks to Buy Right Now. On January 6, the company announced a strategic collaboration with Microsoft to ramp up innovation by further embedding AI into Fiserv development platforms as well as empowering the global workforce with AI. Fiserv, Inc. (NASDAQ:FISV) added that the collaboration is expected to boost internal productivity at the company and deliver AI-driven solutions, which create greater value for Fiserv clients, such as financial institutions, businesses, and consumers.
Fiserv, Inc. (NASDAQ:FISV) will deploy Microsoft 365 Copilot throughout its global workforce, enabling employees with access to advanced AI tools, which improve productivity, accelerate decision-making, as well as elevate the work quality.
In parallel, Fiserv, Inc. (NASDAQ:FISV) has been working with Microsoft to increase the use of Microsoft Foundry, which is an Azure-powered AI platform designed to build, customize, deploy, and manage AI applications. The collaboration with Microsoft allows Fiserv, Inc. (NASDAQ:FISV) to bring intelligent capabilities to market.
Fiserv, Inc. (NASDAQ:FISV) works as a global leader in payments and financial technology.
5. Netflix, Inc. (NASDAQ:NFLX)
5-year Revenue Growth: ~13%
5-year EPS Growth: ~31%
6-Month Decline: ~30%
Average Upside Potential: ~46.6%
Number of Hedge Fund Holders: 154
Netflix, Inc. (NASDAQ:NFLX) is one of the Oversold Fundamentally Strong Stocks to Buy Right Now. On January 7, the company welcomed the WBD Board of Directors’ continued commitment towards the merger agreement between Netflix and WBD, and the unanimous recommendation of rejecting the revised offer from Paramount Skydance Corporation (PSKY).
Netflix, Inc. (NASDAQ:NFLX)’s co-CEOs added that the WBD Board is fully supportive of and has been recommending Netflix, Inc. (NASDAQ:NFLX)’s merger agreement. WBD Board recognizes it as the superior proposal, which is expected to deliver the greatest value to its stockholders, and consumers, creators, as well as the broader entertainment industry.
In a different update, CFRA analyst Kenneth Leon downgraded Netflix, Inc. (NASDAQ:NFLX)’s stock to “Hold” from “Buy” with a price objective of $100, down from the prior target of $130. The firm cited the pending acquisition of WBD for the downgrade. As per the analyst, Netflix, Inc. (NASDAQ:NFLX)’s strategy for decades didn’t revolve around acquisitions, and Warner’s high debt exhibits risks.
4. Coinbase Global, Inc. (NASDAQ:COIN)
5-year Revenue Growth: ~55.3%
5-year EPS Growth: ~91.1%
6-Month Decline: ~29%
Average Upside Potential: ~48.2%
Number of Hedge Fund Holders: 73
Coinbase Global, Inc. (NASDAQ:COIN) is one of the Oversold Fundamentally Strong Stocks to Buy Right Now. On January 6, Bernstein analyst Gautam Chhugani reduced the price target on the company’s stock to $440 from $510 while keeping an “Outperform” rating, as reported by The Fly. For 2026, the firm anticipates a tokenization supercycle. Also, the firm remains optimistic about Bitcoin, despite the unfavourable sentiments in Q4 2025. With reasonable confidence, the firm opines that Bitcoin and digital asset markets have now bottomed.
In a different update, on January 6, Rosenblatt reduced the price target on Coinbase Global, Inc. (NASDAQ:COIN)’s stock to $325 from $470, while maintaining a “Buy” rating, as reported by The Fly. The firm noted that there has been a significant deceleration in trading volumes after the healthy Q3 2025 and record performance in October. Notably, the firm’s updated model expects Q4 2025 total trading volume of ~$207 billion. This demonstrates a decline of 35% compared to its earlier estimate.
That being said, Rosenblatt expects that this slowdown has been largely discounted by Coinbase Global, Inc. (NASDAQ:COIN)’s stock. The firm expects significant upside potential from the company’s product expansion initiatives, added the analyst. Notably, it is also expected that reduced dependency on cryptocurrency trading should support significant multiple expansion, as there is scaling of new revenue streams.
Coinbase Global, Inc. (NASDAQ:COIN) operates the platform for crypto assets.
3. Super Micro Computer, Inc. (NASDAQ:SMCI)
5-year Revenue Growth: ~44.8%
5-year EPS Growth: ~56.4%
6-Month Decline: ~39.7%
Average Upside Potential: ~49.2%
Number of Hedge Fund Holders: 42
Super Micro Computer, Inc. (NASDAQ:SMCI) is one of the Oversold Fundamentally Strong Stocks to Buy Right Now. On January 9, Mizuho reduced the price target on the company’s stock to $31 from $45, while keeping a “Neutral” rating, as reported by The Fly. Notably, the firm adjusted targets in the semiconductors and semiconductor capital equipment group with respect to its 2026 outlook.
Additionally, the firm anticipates continued upside for the group in 2026 due to attractive valuations, albeit more modest compared to 2025. While the analyst’s top sectors in 2026 include AI accelerators and wafer fab equipment, optical, and memory, the firm is cautious about EVs, autos, as well as analog and computers, and handsets.
In a different update, on January 6, Super Micro Computer, Inc. (NASDAQ:SMCI) announced that it entered into a definitive credit agreement providing for a senior revolving credit facility with JPMorgan Chase Bank, N.A., as administrative agent, as well as a syndicate of lenders. Notably, the revolving credit facility offers aggregate commitments of $2.0 billion, with a maturity date of December 29, 2030.
Super Micro Computer, Inc. (NASDAQ:SMCI) develops and sells server and storage solutions based on modular and open-standard architecture.
2. ServiceNow, Inc. (NYSE:NOW)
5-year Revenue Growth: ~24.5%
5-year EPS Growth: ~18.9%
6-Month Decline: ~28.1%
Average Upside Potential: ~51.2%
Number of Hedge Fund Holders: 104
ServiceNow, Inc. (NYSE:NOW) is one of the Oversold Fundamentally Strong Stocks to Buy Right Now. On January 5, Piper Sandler analyst Rob Owens reduced the firm’s price objective on the company’s stock to $200 from $230, while keeping an “Overweight” rating. As per the firm, 2025 was a difficult year for Security & Infrastructure Software coverage. Notably, the firm remains cautiously optimistic for a better year in 2026, and it believes that several names are entering the year at interesting valuation levels.
In a different update, on December 24, Citi maintained a “Buy” rating on ServiceNow, Inc. (NYSE:NOW)’s stock with a price objective of $250.60. As per the analyst, the firm likes the industrial logic of the company’s acquisition of Armis. The analyst believes that the deal adds predictive security features to ServiceNow, Inc. (NYSE:NOW)’s AI Control Tower offering. However, Citi added that the deal is not transformative, despite this deal being the company’s largest ever.
ServiceNow, Inc. (NYSE:NOW) offers a cloud-based solution for digital workflows.
1. The Trade Desk, Inc. (NASDAQ:TTD)
5-year Revenue Growth: ~30.6%
5-year EPS Growth: ~24.3%
6-Month Decline: ~48.5%
Average Upside Potential: ~57.5%
Number of Hedge Fund Holders: 42
The Trade Desk, Inc. (NASDAQ:TTD) is one of the Oversold Fundamentally Strong Stocks to Buy Right Now. On January 5, Guggenheim analyst Michael Morris reduced the price target on The Trade Desk, Inc. (NASDAQ: TTD)’s stock to $50 from $55, while keeping a “Buy” rating, as reported by The Fly. The firm highlighted fierce competition in the broader digital advertising market. That being said, it sees an attractive risk-reward profile considering the current valuation.
The firm noted that the company is trading at a discount to peers on both sales and operating income before depreciation and amortization (OIBDA) multiples. This creates potential for healthy returns in 2026 if The Trade Desk, Inc. (NASDAQ:TTD) addresses 3 critical challenges.
Guggenheim highlighted that the company should outperform consensus revenue growth expectations of 16% in 2026 and simplify the investor messaging around clear metrics. Also, it needs to develop a scaled growth driver like international expansion or the OpenPath initiative.
The Trade Desk, Inc. (NASDAQ:TTD) operates as a technology company.
While we acknowledge the potential of TTD 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 TTD and that has 100x upside potential, check out our report about this cheapest AI stock.
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