In this article, we will discuss the 11 Oversold Software Stocks to Buy Now.
According to Bain & Company, although the market had been challenging, technology deals increased their share of all buyouts in H1 2025. Even though some deal processes have stretched out, tech investors are upbeat going into H2. The firm further added that the sector has held up better compared to most through H1 2025, rising its share of all deals to 22% as of July, versus 19% at the end of 2024.
Trends Affecting the Broader Software Market
As per McKinsey, considering the earnings reports from numerous SaaS leaders, there are some early signs of traction with AI monetization. While global enterprise spending on AI applications increased eightfold over the previous year to close to $5 billion, it only makes up for less than 1% of the total software application spending.
With AI+SaaS products increasingly performing instead of merely supporting work, McKinsey opines that the new era highlights the importance of business model aligning customer value with units of work completed.
Amidst such trends, we will now have a look at the 11 Oversold Software Stocks to Buy Now.
Our Methodology
To list the 11 Oversold Software Stocks to Buy Now, we used a screener to shortlist the software stocks. After getting an extensive list, we narrowed it down by selecting the ones that have declined at least 20% over the past 6 months (as of September 24). Finally, we chose the ones popular among hedge funds, as of Q2 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 Software Stocks to Buy Now
11. WeRide Inc. (NASDAQ:WRD)
Number of Hedge Fund Holders: 14
% Decline Over 6 Months: ~27.9%
WeRide Inc. (NASDAQ:WRD) is one of the Oversold Software Stocks to Buy Now. On September 19, WeRide Inc. (NASDAQ:WRD) announced that its Robobus received Belgium’s first federal test permit for the Level 4 autonomous shuttle. As a result, WeRide Inc. (NASDAQ:WRD) is now the only technology company in the world that has products holding autonomous driving permits in 7 countries. These countries include Belgium, China, France, the UAE, Saudi Arabia, Singapore, and the US.
Elsewhere, WeRide Inc. (NASDAQ:WRD) reported Q2 2025 revenue of US$17.8 million, reflecting a rise of 60.8% YoY, showcasing the acceleration of commercial momentum. In Abu Dhabi, the company’s Robotaxi fleet size tripled since December 2024, ramping up regional commercialization and maintaining the largest Robotaxi fleet outside of the US and China. A major driver of WeRide Inc. (NASDAQ:WRD)’s momentum is increased contribution from the Robotaxi business, which has a key role in the revenue mix and overall financial strength.
10. Paysafe Limited (NYSE:PSFE)
Number of Hedge Fund Holders: 20
% Decline Over 6 Months: ~26%
Paysafe Limited (NYSE:PSFE) is one of the Oversold Software Stocks to Buy Now. On September 22, Paysafe Limited (NYSE:PSFE) announced a new partnership with CMC Markets. This partnership will help CMC Markets broaden range of payment options for traders in the European Economic Area (EEA), Southeast Asia, the Middle East, and other global markets (currently except the UK and US). Notably, Paysafe Limited (NYSE:PSFE)’s Skrill and Neteller will become the online trading broker’s first digital wallets and alternative payment methods (APMs) in the stated markets.
In Q2 2025, in Europe, Paysafe Limited (NYSE:PSFE) experienced double-digit growth driven by its consumer business, along with overall robust performance from existing customers, increased contributions from new customer wins, and the rollout of innovative products. Paysafe Limited (NYSE:PSFE) delivered 5% organic revenue growth and healthy adjusted EBITDA growth of 12% (excluding the divested direct marketing business), showcasing continued execution on the strategic priorities and growth throughout all the major product lines. For FY 2025, it expects revenues of $1,710 million – $1,734 million.
Paysafe Limited (NYSE:PSFE) offers end-to-end payment solutions.
9. Progress Software Corporation (NASDAQ:PRGS)
Number of Hedge Fund Holders: 24
% Decline Over 6 Months: ~25%
Progress Software Corporation (NASDAQ:PRGS) is one of the Oversold Software Stocks to Buy Now. On September 15, the company announced the launch of Progress Federal Solutions, Inc. This is a wholly owned subsidiary established to serve the specialized needs of U.S. federal, defense, and public sector organizations. Notably, Progress Federal Solutions tends to operate independently while leveraging the strength of Progress Software Corporation (NASDAQ:PRGS)’s technology portfolio.
In Q2 2025, Progress Software Corporation (NASDAQ:PRGS) stated that revenue contributions remained strong throughout all the geographies, resulting in ARR of $838 million or 46% YoY growth. Its Net Retention Rate came in at 100%, reflecting the consistent strength of its product portfolio. Progress Software Corporation (NASDAQ:PRGS) saw revenue of $237 million, reflecting a rise of 36% YoY on an actual currency basis and 35% on a constant currency basis. The company made progress on paying down its revolving credit facility, with another $40 million in Q2 2025.
8. Intapp, Inc. (NASDAQ:INTA)
Number of Hedge Fund Holders: 28
% Decline Over 6 Months: ~30%
Intapp, Inc. (NASDAQ:INTA) is one of the Oversold Software Stocks to Buy Now. On September 16, Intapp, Inc. (NASDAQ:INTA) announced that private equity firm Infinedi Partners selected Intapp DealCloud. The firm will be using DealCloud and its AI capabilities to manage pipeline, relationships, and business development activities. With DealCloud, Infinedi will be able to efficiently manage deal flow, fundraising, and relationships in one centralized platform. Access to collective firm intelligence would strengthen connections, accurately track and forecast deals and pipeline, and fast-track execution.
In Q4 2025, Intapp, Inc. (NASDAQ:INTA)’s total revenue came in at $135.0 million, reflecting an 18% YoY rise compared to Q4 2024, with SaaS revenue amounting to $90.2 million, a 27% YoY growth. Intapp, Inc. (NASDAQ:INTA) expanded its product portfolio and R&D capability via strategic acquisitions. It added notable new logos and consistently grew existing accounts through cross-sell and upsell. Additionally, it expanded its international footprint and migrated more clients to the cloud. For FY 2026, the company expects SaaS revenue of between $411.4 million and $415.4 million.
TimesSquare Capital Management, an equity investment management company, released its Q2 2025 investor letter. Here is what the fund said:
“Among the wide variety of Information Technology companies, we prefer critical system providers, specialized component designers, systems that improve productivity or efficiency for their clients, and others that are growing their shares of corporate IT budgets. Intapp, Inc. (NASDAQ:INTA), a provider of AI-powered solutions including deal and relationship management, fell -12%. Revenues for the latest quarter were in line with consensus expectations, along with better profitability and free cash flow. Cloud net revenue retention was stable and Intapp’s expanded AI offerings are receiving positive reception from clients.”
7. Sprout Social, Inc. (NASDAQ:SPT)
Number of Hedge Fund Holders: 29
% Decline Over 6 Months: ~43.3%
Sprout Social, Inc. (NASDAQ:SPT) is one of the Oversold Software Stocks to Buy Now. On September 15, the company launched a new integration with Canva, which is the leading all-in-one visual communication platform. As a comprehensive social media management platform to offer this integration, Sprout Social, Inc. (NASDAQ:SPT) allows brands to strengthen their social presence with more engaging content through streamlining the path from designing to publishing. Users will now be able to send finalized visuals from Canva directly into Sprout as draft posts. This will help accelerate workflows and reduce errors between creative and social teams.
Sprout Social, Inc. (NASDAQ:SPT) saw strong Q2 2025 results, highlighted by 12% revenue growth and healthy profitability. The company remains committed to strengthening its enterprise presence through increasing customer adoption, expanding within existing accounts, and scaling growth via strategic partnerships. Total remaining performance obligations (RPO) came in at $347.0 million as of June 30, 2025, reflecting 18% YoY growth.
6. SPS Commerce, Inc. (NASDAQ:SPSC)
Number of Hedge Fund Holders: 34
% Decline Over 6 Months: ~20.3%
SPS Commerce, Inc. (NASDAQ:SPSC) is one of the Oversold Software Stocks to Buy Now. On September 23, Morgan Stanley analyst Chris Quintero maintained a “Buy” rating on the company’s stock, setting a price objective of $170.00. The analyst’s rating is backed by a combination of factors demonstrating SPS Commerce, Inc. (NASDAQ:SPSC)’s strong growth potential. Its new network-led growth strategy happens to be a critical element, leveraging the extensive and differentiated network to fuel organic growth.
The analyst further added that this approach allows SPS Commerce, Inc. (NASDAQ:SPSC) to capitalize on the vast network of trading partner relationships and transaction volumes, which are unmatched by its peers, offering unique insights and data. Furthermore, the integration of AI to extract insights cements SPS Commerce, Inc. (NASDAQ:SPSC)’s competitive edge, improving the ability to understand and meet retailer goals, added Quintero. Additionally, the analyst opines that given its proven track record of high win rates and minimal losses to competitors, SPS Commerce, Inc. (NASDAQ:SPSC) remains well-placed to look for new upsell and cross-sell opportunities.
SPS Commerce, Inc. (NASDAQ:SPSC) offers cloud-based supply chain management solutions.
5. Freshworks Inc. (NASDAQ:FRSH)
Number of Hedge Fund Holders: 35
% Decline Over 6 Months: ~23.5%
Freshworks Inc. (NASDAQ:FRSH) is one of the Oversold Software Stocks to Buy Now. On September 12, Morgan Stanley reduced the price target on the company’s stock to $16 from $18, while keeping an “Equal Weight” rating, as reported by The Fly. As per the analyst, Freshworks Inc. (NASDAQ:FRSH)’s analyst day showcased its unique positioning to fill the gap between unscalable, lightweight point solutions and complex, expensive platform providers as an uncomplicated, AI-native service platform. That being said, peer multiple compression reduces the price objective even though there are minimal forecast changes after that event, noted the analyst.
Elsewhere, Freshworks Inc. (NASDAQ:FRSH) released Q2 2025 results, with 18% YoY revenue growth to $204.7 million and 27% adjusted free cash flow margin. The number of customers contributing over $5,000 in ARR was 23,975, reflecting a rise of 10% YoY and 9% adjusting for the constant currency. The strong momentum through H1 2025 demonstrates that the company remains the preferred choice for businesses to reduce complexity.
Freshworks Inc. (NASDAQ:FRSH), a software development company, offers software-as-a-service products.
4. Sabre Corporation (NASDAQ:SABR)
Number of Hedge Fund Holders: 35
% Decline Over 6 Months: ~46.1%
Sabre Corporation (NASDAQ:SABR) is one of the Oversold Software Stocks to Buy Now. On September 8, the company announced a new agreement with next-generation corporate booking platform Travelin.Ai, which would be gaining access to SabreMosaic Travel Marketplace, including traditional airfares, NDC offers, low-cost carrier content, and lodging options, as well as Sabre’s Lodging AI capabilities. The ability for TMCs (travel management companies) and their corporate customers to book business trips with leisure components provides access to a $1 trillion market. As per Richard Viner, Head of Sabre UK and Ireland, EMEA offers strong potential to raise hotel attach rates, and this agreement supports TMCs to boost revenue and bookings.
In Q2 2025, Sabre Corporation (NASDAQ:SABR) saw a strong operating margin improvement YoY of 6 percentage points, thanks to the disciplined cost management and lower technology costs attributable to its cloud migration actions. Sabre Corporation (NASDAQ:SABR) remains focused on executing its 2 strategic priorities of reducing leverage and fueling sustainable growth via innovation, while its new business volumes have been scaling.
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.”
2. Atlassian Corporation (NASDAQ:TEAM)
Number of Hedge Fund Holders: 64
% Decline Over 6 Months: ~29.4%
Atlassian Corporation (NASDAQ:TEAM) is one of the Oversold Software Stocks to Buy Now. On September 18, Atlassian Corporation (NASDAQ:TEAM) announced that it entered into a definitive agreement to acquire DX. Together, both companies will empower enterprises to understand how their AI investments are supporting engineering teams to accelerate and improve work. The transaction is expected to close in Q2 2026, subject to customary closing conditions and required regulatory approvals.
Elsewhere, Atlassian Corporation (NASDAQ:TEAM) closed out FY 2025 delivering more than $5.2 billion of revenue, garnering over $1.4 billion in FCF, and reaching 2.3 million AI monthly active users. Atlassian Corporation (NASDAQ:TEAM) and Google Cloud announced an expanded strategic partnership to bring together former’s enterprise-grade, AI-powered teamwork platform with Google Cloud’s AI-optimized infrastructure. The partnership demonstrates a milestone in Atlassian Corporation (NASDAQ:TEAM)’s multi-cloud strategy to ramp up cloud transformation and deliver advanced AI solutions.
In Q1 2026, the company expects total revenue of between $1,395 million – $1,403 million. Artisan Partners, an investment management company, released its Q2 2025 investor letter. Here is what the fund said:
Among our top detractors were Baker Hughes, Argenx and Atlassian Corporation (NASDAQ:TEAM). Atlassian is a leading provider of innovative, customizable team collaboration software tools. The company reported modestly disappointing quarterly results in May, following two prior quarters of solid results, due in part to delays in signing some large enterprise contracts. Other potential headwinds, such as tariff pressure on customers’ software budgets and the potential impact of artificial intelligence (AI) on knowledge worker jobs, also weighed on investors. We have been monitoring these potential headwinds but don’t see any change in Atlassian’s long-term profit cycle, and we remain confident in the potential of several company-specific, multiyear growth drivers. And with the hiring of a new chief revenue officer in late 2024, Atlassian is working to enhance its senior management talent in sales, marketing and R&D. With the stock trading at an attractive valuation, we added modestly to our position.
1. monday.com Ltd. (NASDAQ:MNDY)
Number of Hedge Fund Holders: 67
% Decline Over 6 Months: ~23.2%
monday.com Ltd. (NASDAQ:MNDY) is one of the Oversold Software Stocks to Buy Now. On September 17, Cantor Fitzgerald analyst Thomas Blakey reduced the price target on the company’s stock to $257 from $286, while keeping an “Overweight” rating, as reported by The Fly. As per the analyst, the firm noted monday.com Ltd. (NASDAQ:MNDY)’s opportunities from cross-sell and adoption of new AI solutions. Elsewhere, the company highlighted that its Q2 2025 was a strong one, amidst continued revenue growth and rapidly growing demand for its broad product suite, mainly from enterprise customers.
monday.com Ltd. (NASDAQ:MNDY) saw revenue of $299.0 million, reflecting a rise of 27% YoY. The company announced 3 new AI-powered capabilities, i.e., monday magic, monday vibe, and monday sidekick. In Q2 2025, the company achieved a record number of net new adds of customers who are paying more than $100,000 annually, which further validates traction with the enterprise organizations. The company highlighted that monday CRM reached $100 million in annual recurring revenue, demonstrating a strong milestone.
Sands Capital, an investment management company, released its Q4 2024 investor letter. Here is what the fund said:
“Monday.com Ltd. (NASDAQ:MNDY) shares declined following the release of its third-quarter business results. Weakness in shares of the business can be attributed to momentum from a strong second quarter that did not carry through into the third quarter.
The business continues to display healthy top-line growth of over 30 percent. However, revenue beat expectations by a narrower margin than in the second quarter, despite a tailwind from recent price increases. Additionally, guidance was lowered when accounting for the contribution of the recent price increases. Following the results, management also commented that it has been seeing some incremental weakness in Europe, given the weaker macroeconomic environment in key geographies, such as France and Germany, which put further pressure on shares.
We view recent results as within the range of expected outcomes and see several underappreciated tailwinds heading into 2025. We expect the business to sustain growth near 30 percent in 2025, supported by sustained momentum in its core business, continued success from new product launches, and a persistent tailwind from recent price increases. Longer term, we see additional upside potential from Monday’s artificial intelligence-enabled tools, which are not monetized today but may be upsold as add-ons or higher-priced tiers as they prove their value. We think the business’ valuation is attractive at current levels, given our view of sustained above-average growth over the next several years…” (Click here to read the full text)
While we acknowledge the potential of MNDY 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 MNDY and that has 100x upside potential, check out our report about this cheapest AI stock.
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