In this article, we will look at the 12 Oversold NASDAQ Stocks to Buy Now.
On July 14, Max Kettner, chief multi-asset strategist at HSBC, appeared on CNBC to talk about the global markets amid trade tensions. He stated that the sentiment is still bullish, considering how market reactions three months ago were very different compared to now. The market is not as “panicky” as it would have been, as he thinks that the tariff sensitivity has started to go down.
For him, the biggest risk is still yields and what happens to valuation, but the market is still 30-35 basis points away from what is called “the danger zone.” He stated he is particularly overweight on US equities, which is quite a different scenario from three months ago. The entire US-China happening was a significant game changer for him, as it signaled that a big risk had dissipated.
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Andrew Slimmon, Morgan Stanley Investment Management senior portfolio manager, also appeared on CNBC’s ‘The Exchange’ on July 14, stating that there are several indications that the market is stretched and due for a correction. He stated that tariffs will not be a cause for correction, as investors have learned their lesson from before.
Therefore, according to Slimmon, tariffs are unlikely to stir another sell-off. He further stated that earnings season results could be the culmination of this record rally. With these trends in view, let’s look at the 12 oversold NASDAQ stocks to buy now.
A couple looking at stocks of companies in their portfolio in a financial advisor’s office.
Our Methodology
We used stock screeners to compile a list of NASDAQ stocks that experienced significant YTD performance declines and selected the top 12 stocks with the highest analyst upside potential. We also added the number of hedge fund holders for each stock as of Q1 2025, sourcing the hedge fund sentiment data from Insider Monkey’s database. The list is sorted in ascending order of analyst upside potential.
Note: All data was recorded on July 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. 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).
12 Oversold NASDAQ Stocks to Buy Now
12. Revolution Medicines, Inc. (NASDAQ:RVMD)
YTD Decline: -12.28%
Analyst Upside: 87.65%
Number of Hedge Fund Holders: 61
Revolution Medicines, Inc. (NASDAQ:RVMD) is one of the best oversold NASDAQ stocks to buy now. On July 15, Goldman Sachs analyst Andrea Newkirk initiated a new Buy rating on Revolution Medicines, Inc. (NASDAQ:RVMD) with a $65 price target.
The analyst based the rating on the company’s promising clinical developments and strategic focus, stating that Revolution Medicines, Inc. (NASDAQ:RVMD) is at the forefront of precision oncology.
The company is focusing on a portfolio of RAS(On) inhibitors that treat RAS-addicted cancers, including pancreatic ductal adenocarcinoma (PDAC), non-small cell lung cancer (NSCLC), and colorectal cancer (CRC).
The analyst further stated that daraxonrasib is Revolution Medicines, Inc.’s (NASDAQ:RVMD) lead asset and is undergoing advanced clinical trials, such as two Phase 3 registrational trials for metastatic PDAC and NSCLC. Newkirk considers the potential of daraxonrasib, when used in combination with other therapies, to be quite promising, which may significantly increase its commercial success.
Revolution Medicines, Inc. (NASDAQ:RVMD) is a clinical-stage precision oncology company that develops novel targeted therapies. It discovers and develops cancer treatments through novel combinations and monotherapy treatment regimens that enhance clinical benefits.
11. Alvotech (NASDAQ:ALVO)
YTD Decline: -32.73%
Analyst Upside: 88.20%
Number of Hedge Fund Holders: 9
Alvotech (NASDAQ:ALVO) is one of the best oversold NASDAQ stocks to buy now. On July 9, Alvotech (NASDAQ:ALVO) announced that it is expanding its capacity for assembly and packaging by acquiring Ivers-Lee Group, a family-owned Swiss company that specializes in high-quality pharmaceutical assembly and packaging services.
Although Ivers-Lee will continue existing as a separate legal entity, its operations will be integrated into Alvotech’s (NASDAQ:ALVO) Technical Operations division. The acquisition would, therefore, support Alvotech’s (NASDAQ:ALVO) ambitious growth plans, increasing its flexibility and capacity to meet the rising global demand for biosimilars.
Robert Wessman, founder, chairman, and CEO of Alvotech (NASDAQ:ALVO), stated that the company is preparing for the launch of three new biosimilars in 2025, along with sales growth in global markets, and that the acquisition would support these plans.
Alvotech (NASDAQ:ALVO) is a biotechnology company that develops and manufactures biosimilar medicines. Headquartered in Luxembourg, the company operates in the following geographical segments: Europe, North America, Asia, and Other.
