In this article, we will take a detailed look at the oversold global stocks to buy according to hedge funds.
Global stocks are businesses that have a diversified revenue base and do not rely entirely on one particular region or country. Their advantage is the ability to mitigate idiosyncratic risk, which arises from a specific country. Imagine a hypothetical scenario in which the US enters an economic recession that erodes consumer purchasing power, slows down industrial and manufacturing activity. The revenue growth and earnings of a US-based company will tank instantly, while a global stock will be able to compensate for the decline in the US business with growth in emerging or other developed markets. It therefore becomes obvious that global stocks are particularly attractive during times of heightened uncertainty when investors seek flight into safer assets.
The calendar 2025 perfectly fits the description of a market that would favor global stocks. The situation becomes even more attractive as many of the safer global stocks became oversold due to the recent tariff turmoil, making them potentially more attractive from a valuation standpoint. At the same time, Yardeni Research data showed that the net earnings revision index has been in only mild negative territory in the last 2 quarters. What this means is that leading analysts have still not completely bought into the possibility that the US stock market will enter a recession in 2025. Let’s dive deeper into economic indicators and see whether analysts are wrong, and the US market is indeed at the brink of a recession, which would favor global stocks if compared to the rest of the market.
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First, we want to briefly touch on the tariff dilemma and emphasize that their danger is real and will likely have a significant negative impact on GDP growth and private spending. Our thesis is reinforced by the reputable J.P. Morgan bank – here’s an excerpt from their recent publication:
“Facts continue to change — there is indication that the “detox period” may be over and the latest messaging from the Trump Administration seems to be shifting from tariffs to tax cuts and deregulation. However, the damage to the business cycle still remains unclear.
While tariff rates are expected to come down from current extreme levels, they are unlikely to be fully removed (China has been benefiting significantly from transshipment substitution). These are encouraging developments, but clarity and closure are still needed to solidify a more positive outlook and avoid further damage to the business cycle.”
Second, recent batches of economic indicators are highly disappointing. After negative data from the Philadelphia Fed, the more recent Dallas Fed data shows that general business activity, new orders, employment, and outlook are all contracting. With such sharp deterioration in economic activity in large states, odds are that Q1 2025 GDP data will mark the first of two required quarters of negative growth to declare a recession. The slowing economy is indirectly confirmed by leading executives of shipping companies, such as America’s supply chain management company’s CEO claimed that in the three weeks since the tariffs took effect, ocean-container bookings from China to the US are down by more than 60 percent. Some economists warn that the consequences could be empty shelves in US stores, similar to the onset of the COVID pandemic, when markets tanked by more than 30%.
Third, the consequences of lower shipments from China could be devastating for the US economy, given that hundreds of billions worth of goods flow through each year. The transportation sector already feels the consequences as one significant player lost a quarter of its value after reporting declining shipping volumes during its most recent earnings call. A prominent American capital market company recently reported that airfreight volumes from China have also stopped, as higher value-added products are seeing less importation. And the list goes on and on – countless industries are likely to be impacted by shortages of key supplies, or input prices that are too expensive to sustain production.
We do not intend to make apocalyptic predictions for the US economy, and especially for the stock market. History shows that regardless of how deep a recession is, prices always recover quite quickly and reach new highs. The key takeaway for readers is that many economic indicators and indirect signals suggest that the US economy is in trouble, and the outlook is uncertain. In this case, a smart move would be to diversify away some of the US exposure by investing in oversold global stocks that have the potential to better hold their value during a potential bear market.
An investor in a suit representing the company, seated in front of a long table of global leaders discussing the company’s investments.
Our Methodology
To compile our list of oversold global stocks, we used a screener to identify stocks with a Relative Strength Index (RSI) below 40. Then we manually identify the companies that drive at least 40% of their revenue from outside the US. Finally, we compared the list with Insider Monkey’s proprietary database of hedge funds’ ownership as of the fourth quarter of 2024 and included in the article the top 11 stocks with the largest number of hedge funds that own the stock, ranked in ascending order.
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. Quaker Chemical Corporation (NYSE:KWR)
RSI: 39.92
Number of Hedge Fund Holders: 21
Quaker Chemical Corporation (NYSE:KWR) is a global provider of industrial products for heavy manufacturing sectors. Its product portfolio is diverse and centered around metal removal fluids, corrosion inhibitors, forming and forging fluids, hydraulic fluids, rolling lubricants, etc. KWR serves industries such as steel, aluminum, automotive, aerospace, mining, and metalworking.
Quaker Chemical Corporation (NYSE:KWR) faced challenging market conditions in 2024, with softness across end markets and regions, but still delivered solid performance through portfolio strength and focus on improving customer operations and productivity. The company generated $444 million in Q4 net sales, down 5% YoY, and $311 million in adjusted EBITDA for the full year 2024. Despite market headwinds, KWR maintained stable volumes through market share gains and new business wins, outperforming aggregate end markets, which declined in the low to mid-single digits. The company also generated a strong operating cash flow of $205 million in 2024, enabling the execution of capital allocation priorities, including organic growth investments, dividend increases, debt reduction, acquisitions, and share repurchases.
Looking ahead to 2025, Quaker Chemical Corporation (NYSE:KWR) expects modest 1-2% growth in end markets, weighted towards the second half of the year. The company anticipates delivering revenue, adjusted EBITDA, and earnings growth in 2025, along with another strong year of cash flow generation. Management is focused on three key priorities: returning to growth, reducing complexity to unlock leverage in the business model, and disciplined capital deployment to enhance shareholder value. This includes globalizing operations, aligning resources with faster-growing regions, simplifying the organization, and refocusing on customer intimacy to drive organic growth and market share gains. All in all, KWR’s ability to gain market share positions it well for a potential recovery in industrial activity after the current economic slowdown is navigated, which makes it one of the oversold stocks to consider right now.
10. Columbia Sportswear Company (NASDAQ:COLM)
RSI: 37.94
Number of Hedge Fund Holders: 24
Columbia Sportswear Company (NASDAQ:COLM), one of the oversold global stocks on our list, is a leader in apparel, footwear, accessories, and equipment for outdoor activities. The company is known for its Columbia, SOREL, Mountain Hardwear, and prAna brands, which are sold in more than 100 countries. COLM’s advantage consists of a strong focus on innovation and functionality in its products, achieved through proprietary production technologies. COLM ranked eighth on our recent list of 10 Best Golf Stocks to Buy According to Analysts.
Columbia Sportswear Company (NASDAQ:COLM) reported mixed results for 2024, with net sales decreasing 3% to $3.4 billion due to challenging conditions in North America. However, the company made progress in several areas, including reducing inventory by 7%, delivering $90 million in cost savings through its profit improvement program, and returning $388 million to shareholders through share repurchases and dividends. The company maintained a strong balance sheet with $815 million in cash and no debt. For 2025, management expects modest net sales growth of 1-3% and an operating margin of 7.7% to 8.3%.
Looking ahead, Columbia Sportswear Company (NASDAQ:COLM) is implementing its ACCELERATE growth strategy to elevate the brand and attract younger, more active consumers. This includes refreshed marketing, enhanced consumer segmentation, and new product innovations. The company plans to increase demand creation spending to 6.5% of sales in 2025, up from 5.9% in 2024. COLM expects continued momentum in its international business, particularly in China and Europe, while working to return to growth in North America. The company is also expanding its review of its cost structure to pursue additional savings and enhance profitability beyond its initial profit improvement program.
9. Minerals Technologies Inc. (NYSE:MTX)
RSI: 29.28
Number of Hedge Fund Holders: 24
Minerals Technologies Inc. (NYSE:MTX) develops, produces, and markets a broad range of mineral-based products, systems, and services. Its Consumer & Specialties segment provides mineral-to-market and functional additive solutions for consumer and industrial goods, while the Engineered Solutions segment offers advanced technologies for foundry, steelmaking, environmental, and infrastructure applications. The company is a global leader with a presence in more than 30 countries.
Minerals Technologies Inc. (NYSE:MTX) faced a challenging first quarter in 2025, with sales of $492 million, down 8% YoY, primarily due to lower volumes and unfavorable mix. The company experienced a slow start in January, with customer order volume reductions and extended downtime at several customer facilities. However, order patterns shifted in March, with an uptick in volumes across most of the company, resulting in a 10% higher average daily rate of sales compared to January. Despite these challenges, MTX is one of the oversold stocks to invest in as the company remains confident in its long-term growth targets and strategy, focusing on further penetration into core markets, sales growth of higher-margin consumer-oriented products, and driving higher levels of innovation and new product development.
To address the current market uncertainties, Minerals Technologies Inc. (NYSE:MTX) has initiated a cost savings program targeting $10 million in annual savings by early 2026. The company also recorded a provision of $215 million for estimated costs related to talc-related claims and litigations. Looking ahead, the company expects a stronger Q2 with sales projected to increase by 5% to 10% sequentially and operating income to improve by approximately 20%. Management believes MTX remains well-positioned with its global footprint, portfolio of value-added products, and deep innovation pipeline to continue generating profitable long-term growth despite current market uncertainties.
8. Eastman Chemical Company (NYSE:EMN)
RSI: 38.34
Number of Hedge Fund Holders: 37
Eastman Chemical Company (NYSE:EMN) is a global specialty materials company producing a wide array of products, including specialty plastics, coatings, adhesives, and cellulose-based fibers, serving industries such as transportation, construction, consumer goods, agriculture, and healthcare. EMN has a significant global footprint, with manufacturing facilities and joint ventures in over 10 countries, supplying products to customers worldwide.
Eastman Chemical Company (NYSE:EMN) faced challenges in Q1 2025 due to trade tensions and tariffs, particularly between the US and China. The company revised its Renew revenue guidance from $75-100 million to $50-75 million due to uncertainties in consumer durable markets. Despite these challenges, EMN’s methanolysis program at Kingsport is performing well operationally, with high production rates and improved feedstock efficiency. The company is on track to achieve $50 million in EBITDA from manufacturing cost improvements.
Eastman Chemical Company (NYSE:EMN) is taking several mitigating actions to address the current market uncertainties, including optimizing capital expenditures and focusing on cash generation. The company reduced its capital expenditure guidance from $750 million to $550 million, with the Longview, Texas project being a significant part of this reduction. EMN remains confident in its strategy and ability to navigate through potential downside scenarios, which secures its place on our list of most oversold stocks to buy. The company’s diversified portfolio, vertical integration, and focus on innovation are expected by management to help offset some of the challenges faced in the current economic environment.
7. ManpowerGroup Inc. (NYSE:MAN)
RSI: 31.46
Number of Hedge Fund Holders: 37
ManpowerGroup Inc. (NYSE:MAN) is a global leader in workforce solutions, providing staffing, recruitment, outsourcing, and talent management services across more than 80 countries and territories. Serving a broad spectrum of industries, the company’s role is to connect millions of individuals with employment opportunities annually. The US-based company ranked fourth on our recent list of Top 20 Falling Stocks with Unusual Volume.
ManpowerGroup Inc. (NYSE:MAN) reported first quarter 2025 revenue of $4.1 billion, down 5% YoY in constant currency. The company’s adjusted EBITDA was $52 million, representing a 32% decrease in constant currency, while Adjusted EPS decreased 51% YoY to $0.44. The company faced a challenging environment in Europe and North America, while demand for services in Latin America and the Asia Pacific Middle East remained good. Permanent recruitment softened further, and reduced outplacement volumes impacted margins.
Despite the current challenges, ManpowerGroup Inc. (NYSE:MAN) remains focused on its strategic plan to diversify, digitize, and innovate. The company is implementing AI and Agentic AI as part of its technology roadmap. MAN continues to transform its business, investing in technology, process, and talent across its brands to serve client needs globally. The company is taking actions to adjust its cost base and add resources to respond to demand opportunities. Management remains confident in its ability to manage the business for short-term performance and long-term success, despite the uncertain times. With at least 37 hedge funds owning stakes in the company at the end of Q4 2024, MAN is one of the oversold stocks to buy according to hedge funds.
6. Avantor, Inc. (NYSE:AVTR)
RSI: 28.75
Number of Hedge Fund Holders: 39
Avantor, Inc. (NYSE:AVTR) is a provider of mission-critical products and services for the life sciences, advanced technologies, and applied materials industries. The company’s Laboratory Solutions and Bioscience Production segments offer ultra-high-purity chemicals, laboratory supplies, equipment, and services for daily operations. AVTR is a truly global player that leverages its presence in 180+ countries and vertical integration to get ahead of the competition.
Avantor, Inc. (NYSE:AVTR) faced challenges in Q1 2025, with organic revenue declining 2% YoY, primarily due to underperformance in the Lab business. The company’s performance was impacted by funding uncertainty in the US higher education system, weak funding for bench-stage biotech companies, and increased competitive intensity. Despite these headwinds, AVTR delivered earnings and margin in line with its plan, with adjusted EBITDA margin increasing by 20 basis points YoY to reach 17%, which makes it one of the oversold stocks to consider now.
In response to these challenges, Avantor, Inc. (NYSE:AVTR) is taking decisive actions to enhance growth and strengthen the business. The company is implementing immediate and significant changes in the Lab Solutions segment, including aggressive pursuit of new accounts and retention of key accounts. AVTR is also accelerating digital enhancements, optimizing pricing strategies, and expanding its product portfolio. Additionally, the company has expanded its cost transformation initiative, now targeting approximately $400 million in run-rate gross savings by the end of 2027, up from the previous target of $300 million.
5. LKQ Corporation (NASDAQ:LKQ)
RSI: 34.97
Number of Hedge Fund Holders: 40
LKQ Corporation (NASDAQ:LKQ) is a global distributor of alternative and specialty automotive parts, providing recycled, aftermarket, refurbished, and remanufactured components for vehicles. The company serves a diverse customer base, including collision and mechanical repair shops, dealerships, and retail consumers across North America, Europe, and Taiwan.
LKQ Corporation (NASDAQ:LKQ) posted mixed Q1 2025 results as revenue softness in North America and Europe was partially offset by operational cost savings and share repurchases. North American organic revenue fell 4.1% due to declining repairable claims driven by higher insurance premiums and falling used car prices, though the company outperformed the market by 570 basis points, signaling share gains. European revenues also declined, impacted by weak consumer sentiment and unseasonably mild weather. Management highlighted productivity efforts, SKU rationalization, and improved private label penetration as ways to maintain margin stability, especially in Europe.
Tariffs are a growing concern, particularly for LKQ Corporation (NASDAQ:LKQ)’s collision parts sourced from Asia, although recycled parts (a strength of LKQ) may see increased demand as price competitiveness becomes more pronounced. Specialty segment sales continued to struggle due to inflation and weaker discretionary consumer spending. Management remains committed to a simplification strategy, including recent divestitures and operational streamlining. With a tariff task force in place, LKQ aims to mitigate supply chain risks and protect margins through lean management, vendor negotiations, and pricing power where possible, securing its fifth place on our list of oversold stocks to buy.
4. ICON Public Limited Company (NASDAQ:ICLR)
RSI: 38.45
Number of Hedge Fund Holders: 46
ICON Public Limited Company (NASDAQ:ICLR) is a global contract research organization that provides development and commercialization services to pharmaceutical companies. In other words, the company helps pharma companies save costs by outsourcing some parts of the lengthy and cumbersome drug development process. ICLR’s competitive advantage consists of a large scale of operations in over 55 countries, and offering a wide range of services including clinical trial management, data analytics, regulatory consulting, and laboratory services. ICLR ranked sixth on our recent list of 11 Oversold Growth Stocks to Buy Now.
ICON Public Limited Company (NASDAQ:ICLR) reported Q4 2024 results that met prior guidance, though revenue growth remained modest due to ongoing industry headwinds. The company continues to navigate a cautious biopharma funding environment, especially in biotech, where trial starts remain delayed. However, ICLR’s bookings and backlog growth reflect improved award activity across strategic partnerships, particularly outside the top 20 pharma cohort. The company recorded $3.06 billion in gross bookings and a trailing 12-month book-to-bill of 1.2x, supported by new work in oncology and cardiometabolic diseases.
Looking ahead, ICON Public Limited Company (NASDAQ:ICLR) reaffirmed its previous full-year 2025 guidance, citing visibility into mid-year acceleration as newer awards ramp up. Cost control remains a strong focus – management aims to exceed $100 million in savings through robotic process automation, while also executing global resource realignment to match demand. Margin pressure is expected in the short term due to an increase in pass-through revenue mix, but ICLR remains optimistic about its digital innovation strategy and the scalability of its functional service partnerships. Management sees the broader outsourcing market as resilient, despite current volatility, and continues to prioritize long-term growth and efficiency. With that being said, ICLR remains a reliable executor and one of the best oversold stocks to consider in anticipation of a potential reacceleration in the clinical research market.
3. Kimberly-Clark Corporation (NYSE:KMB)
RSI: 36.44
Number of Hedge Fund Holders: 50
Kimberly-Clark Corporation (NYSE:KMB) is a global manufacturer and marketer of personal care and consumer tissue products. Its portfolio includes well-known brands such as Huggies, Kleenex, Kotex, Scott, Cottonelle, and Depend, which are sold in over 175 countries.
Kimberly-Clark Corporation (NYSE:KMB) delivered Q1 2025 organic sales growth below expectations, but maintained its profit margins well due to strong overhead and cost control. Management explained that scanner data strength did not fully translate into reported sales due to factors like one fewer shipping day and weaker private label performance. Despite modest Q1 growth, executives reaffirmed their confidence in accelerating volumes throughout the year, driven by new product launches and improved international offerings. Hedge funds also retain confidence in the company, reflected by at least 50 hedge funds owning the stock as of Q4 2024, making KMB one of the best oversold stocks on our list.
However, Kimberly-Clark Corporation (NYSE:KMB)’s outlook was tempered by $300 million in unexpected tariff headwinds, mostly linked to raw materials like pulp and sourcing challenges in China. Despite this, management reaffirmed its volume-driven growth target for the full year, believing innovation at all price tiers will win over consumers navigating inflationary pressures. Affordability is a key priority, with premium-to-value strategies aimed at building share without excessive margin sacrifice. Management is pushing on its streamlined matrix organization and aggressive SG&A savings to mitigate cost pressures while preserving its innovation pipeline.
2. Aon plc (NYSE:AON)
RSI: 34.65
Number of Hedge Fund Holders: 59
Aon plc (NYSE:AON) is a global professional services firm headquartered in London, providing risk management, insurance, and reinsurance brokerage, and human capital consulting services. AON has a large scale of operations in over 120 countries, and strong expertise across Commercial Risk Solutions, Reinsurance Solutions, Health Solutions, and Wealth Solutions.
Aon plc (NYSE:AON) delivered solid results in the recent Q1 2025, achieving 5% organic revenue growth and 12% adjusted operating income growth YoY, largely driven by its “3×3 Plan” focused on margin expansion and client service enhancement. The acquisition of NFP continues to bolster AON’s middle-market capabilities, with high producer retention and a robust M&A pipeline. Management sees increasing demand for the company’s integrated solutions in a complex macroeconomic landscape, particularly as global trade and regulatory volatility prompt clients to seek strategic advisory support on supply chain, insurance, and human capital planning.
Aon plc (NYSE:AON) reaffirmed its previous full-year guidance, underpinned by sustainable mid-single-digit revenue growth, continued restructuring-driven savings, and robust free cash flow. The firm’s balance sheet remains strong, and it continues to return capital to shareholders through buybacks and dividend hikes. Management sees the current environment, marked by trade disruptions, inflation, and demographic shifts, as a catalyst for growth, with clients increasingly turning to the company for risk mitigation and strategic adaptation. As it approaches its June 2025 Investor Day, AON is confident in delivering on its long-term financial and strategic commitments, making it one of the oversold global stocks to invest in.
1. PepsiCo, Inc. (NASDAQ:PEP)
RSI: 33.27
Number of Hedge Fund Holders: 69
PepsiCo, Inc. (NASDAQ:PEP) is a food and beverage company known for iconic beverage and snack brands like Pepsi, Mountain Dew, Gatorade, Lay’s, and Doritos. PEP is a global player as its products are distributed in over 200 countries. The company also ranked ninth on our recent list of 10 Stocks Analysts are Talking About Amid Trump’s Tariff War.
PepsiCo, Inc. (NASDAQ:PEP) reported modest Q1 2025 performance, although volumes remain weak, early signs from price-pack adjustments suggest improved unit performance, especially in convenience channels. Leadership emphasized ongoing investments in consumer-permissible and functional snacks while working to stabilize service disruptions caused by a recent SAP implementation. Portfolio expansion efforts via acquisitions were cited as critical to maintaining relevance with evolving consumer preferences.
Despite maintaining its top-line growth guidance, PepsiCo, Inc. (NASDAQ:PEP) revised its full-year EPS outlook due to new tariff costs, consumer uncertainty, and subdued performance in some products. Management stressed that these headwinds are being actively mitigated through strategic pricing, execution efficiency, and selective reinvestments in core brands. International markets remain a bright spot, with countries like India and Brazil showing strong momentum, although China and Mexico demonstrated relative softness. Overall, the company remains focused on balancing short-term pressures with long-term brand health and margin expansion
Overall, PEP ranks first on our list of oversold global stocks to buy according to hedge funds. While we acknowledge the potential of PEP to grow, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. There is an AI stock that went up since the beginning of 2025, while popular AI stocks lost around 25%. If you are looking for an AI stock that is more promising than PEP but that trades at less than 5 times its earnings, check out our report about this cheapest AI stock.
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