In this article, we will discuss the 12 Best Growth Stocks Trading in Oversold Territory.

On June 11, Emily Roland, the Co-Chief Investment Strategist at Manulife John Hancock Investment Management, joined ‘Squawk Box’ on CNBC to discuss where investors can find opportunity right now. Roland explained that the market has been on a momentum-driven run since the lows in late March, with most indices gaining roughly 30%. Given these gains, a pullback is not surprising, particularly as the market faces headwinds like high rates and liquidity demands from numerous IPOs. Despite this, she noted that the market remains a dip buyer’s dream, even amidst negative geopolitical news overnight. Roland emphasized that they want to participate in the market, but the current challenge is managing risk rather than lacking exposure. She described the environment as having significant fear-of-missing-out among advisors and advocates for a disciplined approach, using a race car analogy of drafting the market to participate without overextending.

Discussing the confounding nature of the market’s rise in the face of higher oil prices, inflation, and conflict in the Middle East, Roland pointed to a fundamental catalyst: earnings season. She noted that analysts originally expected 13% growth, but actual results came in at 28%. She asserted that stock prices follow profits and that the US earnings engine is strong. However, she noted a significant shift: the stock market is now nearly twice the size of the economy, making it a dominant force. Furthermore, she identified three major forces currently shaping markets: the liquidity demands of a wave of IPOs, high-free-cash-flow companies issuing equity, and global central banks potentially tightening policy.

Our Methodology

We used screeners to identify stocks with an RSI below 40 that have a track record of delivering earnings growth and have grown their EPS by at least 30% over the past 3 years. We limited our final selection to companies that have recently reported noteworthy developments likely to impact investor sentiment. These stocks are also popular among analysts and elite hedge funds.

Note: All data was sourced on June 15. 

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. Insider Monkey’s quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 599.2% since May 2014, beating its benchmark by 372 percentage points (see more details here).

12 Best Growth Stocks Trading in Oversold Territory

12. Fortinet Inc. (NASDAQ:FTNT)

Number of Hedge Fund Holders: 52

Fortinet Inc. (NASDAQ:FTNT) is one of the best growth stocks trading in oversold territory. On May 12, Fortinet partnered with NVIDIA (NASDAQ:NVDA) to accelerate the FortiAIGate solution, providing high-performance, GPU-accelerated security for AI workloads. This integration protects data and autonomous agents in data centers and the cloud, allowing organizations to monitor AI usage and scale operations without compromising speed or governance.

The solution enables secure AI runtime by applying guardrails to large language models while maintaining low latency through NVIDIA’s computing platforms. By supporting self-hosting and inline deployment, FortiAIGate ensures data sovereignty and compliance with local regulations, keeping sensitive information within specified borders.

FortiAIGate implements zero-trust principles to prevent prompt injection and data leakage, while its multitenant architecture allows for efficient resource isolation. By using NVIDIA infrastructure, the platform delivers high-throughput security with a reduced hardware footprint, lowering operational costs and improving overall AI ROI.

Fortinet Inc. (NASDAQ:FTNT) provides cybersecurity and convergence of networking and security solutions worldwide.

11. US Foods Holding Corp. (NYSE:USFD)

Number of Hedge Fund Holders: 52

US Foods Holding Corp. (NYSE:USFD) is one of the best growth stocks trading in oversold territory. On May 7, US Foods reported its Q1 2026 results, showing a 2.8% increase in net sales to $9.6 billion. The company saw total case volume rise by 1.4%, supported by a notable 4.6% growth in independent restaurant case volume. Net income grew 0.9% to $116 million, while diluted EPS increased by 6.1%.

The company achieved an Adjusted EBITDA of $413 million, up 6.2%, and Adjusted Diluted EPS rose 14.7% to $0.78. These results were attributed to disciplined strategy execution and progress on self-help initiatives, which helped the company manage through a challenging macroeconomic environment and weather-related disruptions.

During the quarter, US Foods Holding Corp. (NYSE:USFD) maintained a strong balance sheet while focusing on capital allocation, including $125 million in share repurchases. Management noted that the business exited the quarter with sustained momentum, driven by market share gains across target customer segments and improved distribution productivity.

US Foods Holding Corp. (NYSE:USFD) is a US foodservice distributor supplying restaurants, healthcare, hospitality, and government customers with food products, kitchen essentials, and related services nationwide.

10. ​Viking Holdings Ltd. (NYSE:VIK)

Number of Hedge Fund Holders: 55

​Viking Holdings Ltd. (NYSE:VIK) is one of the best growth stocks trading in oversold territory. On June 5, Viking announced a variety of new immersive experiences for its European river voyages, now available for the 2026 season. The updates include unique shore excursions, such as scenic Zeppelin airship flights over Germany’s Ruhr Valley and Cologne, as well as specialized culinary and cultural tours throughout the Rhine, Danube, Seine, and Elbe river regions.

To foster more intimate exploration, the cruise line is introducing small-group experiences at iconic landmarks like the Palace of Versailles, Schönbrunn Palace, and the medieval village of Colmar. These additions are designed to provide guests with deeper, more personal engagement with the history and local traditions of their destination.

Additionally, ​Viking Holdings Ltd. (NYSE:VIK) is expanding its pre- and post-cruise land extensions to include new multi-country itineraries in regions like Italy, France, Croatia, Slovenia, and the Benelux. Looking further ahead, the company is also accepting early sign-ups for its 2030 Oberammergau Passion Play offerings, reinforcing its long-standing partnership with the event organizers.

​Viking Holdings Ltd. (NYSE:VIK) engages in passenger shipping and other forms of passenger transport in North America, the UK, and internationally. It operates through the River & Ocean segments.

9. AstraZeneca (NYSE:AZN)

Number of Hedge Fund Holders: 56

AstraZeneca (NYSE:AZN) is one of the growth stocks trading in oversold territory. On June 8, AstraZeneca’s oral GLP-1 receptor agonist, elecoglipron, is advancing to a Phase III clinical program following positive results from the VISTA and SOLSTICE Phase IIb trials. In the VISTA study, adults with obesity or overweight achieved 11.8% weight loss at 36 weeks, while the SOLSTICE trial showed a 1.9% reduction in HbA1c for adults with type 2 diabetes at 26 weeks.

The safety profile for the drug was consistent with the GLP-1 class, with mostly mild to moderate gastrointestinal adverse events reported. AstraZeneca (NYSE:AZN) noted that the Phase II data will help optimize the dose escalation schedule for the upcoming Phase III studies, which are designed to further enhance tolerability for patients.

The expanded Phase III program includes the EMBOLD and ELUMINATE trials, which will evaluate elecoglipron as both a monotherapy and in combination with other treatments. These trials aim to address the complex nature of obesity and type 2 diabetes while investigating the drug’s long-term cardiovascular and kidney health outcomes.

AstraZeneca (NYSE:AZN) is a global biopharmaceutical company headquartered in Cambridge, focused on oncology. It develops a broad portfolio of cancer treatments targeting lung, breast, ovarian, and blood cancers, aiming to advance science-led therapies across multiple platforms.

8. Zoom Communications Inc. (NASDAQ:ZM)

Number of Hedge Fund Holders: 60

Zoom Communications Inc. (NASDAQ:ZM) is one of the best growth stocks trading in oversold territory.  On June 1, Zoom Communications launched ZoomMate, an agentic AI platform designed to bridge the gap between workplace conversations and task execution. By integrating live conversational context with data from tools like Salesforce, Jira, Slack, and ServiceNow, the platform allows users to move from decision-making to completed work without switching applications.

The tool aims to eliminate the friction caused by fragmented workflows by performing agentic searches, generating AI content, and automating follow-through actions. It is designed to act as a central hub that captures meeting context and applies it to enterprise systems, ensuring that work decisions are immediately translated into actionable deliverables.

Industry analysts note that ZoomMate differentiates itself by operating within the flow of live conversations where decisions are made, rather than functioning as an isolated helper. This approach provides the platform with real-time business context, enabling more grounded AI recommendations and helping teams maintain continuity across their various professional workflows.

Zoom Communications Inc. (NASDAQ:ZM) provides an AI-first collaboration platform including video, voice, and chat services. The California-based company empowers modern hybrid work by offering seamless communication and collaboration capabilities to global enterprises and individuals.

7. Roivant Sciences Ltd. (NASDAQ:ROIV)

Number of Hedge Fund Holders: 60

Roivant Sciences Ltd. (NASDAQ:ROIV) is one of the best growth stocks trading in oversold territory. On May 20, Roivant Sciences reported its financial results for FQ4 and the full year FY2026, alongside a comprehensive business update. The company finished the year with $4.3 billion in consolidated cash and marketable securities, providing a runway into profitability. A significant highlight was a $2.25 billion global settlement reached with Moderna, concluding pending patent-infringement litigation.

In its clinical portfolio, Roivant reported positive results for IMVT-1402 in difficult-to-treat rheumatoid arthritis, with further updates expected later this year. Additionally, brepocitinib received Breakthrough Therapy Designation for cutaneous sarcoidosis, and its commercial launch for dermatomyositis is scheduled for late September 2026. Topline data for several other programs, including studies in non-infectious uveitis and pulmonary hypertension, are also anticipated in H2 2026.

CEO Matt Gline expressed confidence in the company’s momentum, emphasizing the potential of their differentiated pipeline to address significant patient needs. With multiple clinical readouts on the horizon and clear timelines for upcoming launches and trial results, Roivant Sciences Ltd. (NASDAQ:ROIV) maintains a strong strategic trajectory for the remainder of the calendar year.

Roivant Sciences Ltd. (NASDAQ:ROIV) develops and commercializes medicines through a network of subsidiary companies. It acquires or in-licenses drug candidates and advances them through clinical development across multiple therapeutic areas, including immunology, dermatology, and rare diseases.

6. Natera Inc. (NASDAQ:NTRA)

Number of Hedge Fund Holders: 68

Natera Inc. (NASDAQ:NTRA) is one of the best growth stocks trading in oversold territory. On June 4, Natera and CytoDyn entered a strategic collaboration to utilize ctDNA-guided insights and molecular response analysis for CytoDyn’s metastatic colorectal cancer (mCRC) development program. Under the agreement, Natera will use its Signatera personalized MRD assay to evaluate clinical trial samples from CytoDyn’s CLOVER Phase 2 study, focusing on ctDNA dynamics and response patterns linked to the monoclonal antibody leronlimab.

The partnership also grants CytoDyn access to Natera Inc.’s (NASDAQ:NTRA) proprietary oncology database, which integrates molecular response data with curated electronic medical records. By leveraging this large-scale multimodal dataset, the companies aim to analyze treatment patterns and disease progression to better inform future clinical trial designs, biomarker-driven patient selection, and overall development strategies for leronlimab.

This collaboration follows the completion of enrollment for the CLOVER study, which is investigating leronlimab in combination with standard therapies for previously treated mCRC patients. Both companies anticipate that these combined molecular and real-world insights will provide a deeper understanding of treatment response, potentially supporting the future expansion of leronlimab into additional solid tumor indications.

Natera Inc. (NASDAQ:NTRA) is a global leader in cell-free DNA and precision medicine, providing highly certified, personalized genetic diagnostics for oncology, women’s health, and organ health.

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