11 Oversold Software Stocks to Buy Now

3. Clearwater Analytics Holdings, Inc. (NYSE:CWAN)

Number of Hedge Fund Holders: 51

% Decline Over 6 Months: ~32.5%

Clearwater Analytics Holdings, Inc. (NYSE:CWAN) is one of the Oversold Software Stocks to Buy Now. On September 19, Morgan Stanley analyst Michael Infante maintained a “Buy” rating on the company’s stock, setting a price objective of $27.00. The analyst’s rating is backed by a combination of factors demonstrating Clearwater Analytics Holdings, Inc. (NYSE:CWAN)’s growth potential and market differentiation. The company’s core platform stands out in the industry, mainly with the integration capabilities, which are not yet fully reflected in the present stock valuation, opines the firm analyst.

Amidst the integration of acquired assets, Clearwater Analytics Holdings, Inc. (NYSE:CWAN) has been innovating and releasing new products, demonstrating a robust pipeline for future adoption, added Infante. Furthermore, Clearwater Analytics Holdings, Inc. (NYSE:CWAN) announced significant developments, like an expansion deal with a US bank for the compliance solution tailored to government clients, and new modules for the private credit operations.

Loomis Sayles, an investment management company, released its Q2 2025 investor letter. Here is what the fund said:

“Clearwater Analytics Holdings, Inc. (NYSE:CWAN), Champion Homes and Flowco Holdings were the largest individual detractors from performance. Clearwater Analytics Holdings provides cloud native software in investment lifecycle management for the insurance and asset management industry. Earlier this year, the company made three acquisitions and is currently in the midst of integrating these acquisitions. The uncertainty around interest rates post-election also weighed on the stock.”