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.
READ ALSO: 13 Cheap Healthcare Stocks with Huge Upside Potential and 13 Cheap Stocks with Huge Upside Potential.
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.
10. NewAmsterdam Pharma Company N.V. (NASDAQ:NAMS)
YTD Decline: -13.74%
Analyst Upside: 89.45%
Number of Hedge Fund Holders: 27
NewAmsterdam Pharma Company N.V. (NASDAQ:NAMS) is one of the best oversold NASDAQ stocks to buy now. On June 12, Jefferies analyst Dennis Ding maintained a bullish stance on NewAmsterdam Pharma Company N.V. (NASDAQ:NAMS), giving it a Buy rating with a $45 price target.
Ding stated that one of the primary reasons behind the optimistic rating is the company’s focus on attaining a broader FDA label through the MACE-4 endpoint for their PREVAIL study, which is anticipated to deliver notable cardiovascular benefits.
The analyst dismissed broader analyst concerns associated with stroke impacts, reasoning that the BROADWAY analysis data supports an optimistic outlook, especially with the contributions from small LDL-P and Lp(a) that coincide with expectations.
Ding further stated that another promising factor for NewAmsterdam Pharma Company N.V.’s (NASDAQ:NAMS) future performance is the potential MACE benefit from PREVAIL, which may surpass 20%. In addition, the unique position of obicetrapib in the market also paints a positive picture for NewAmsterdam Pharma Company N.V. (NASDAQ:NAMS), according to the analyst, as it may drive considerable benefits.
NewAmsterdam Pharma Company N.V. (NASDAQ:NAMS) is a clinical-stage biopharmaceutical company that develops oral, non-statin medicine for patients at high risk of cardiovascular disease. The company’s lead product candidate is Obicetrapib, an oral, low-dose cholesteryl ester transfer protein inhibitor that aims at preventing major adverse cardiovascular events.
9. Beam Therapeutics Inc. (NASDAQ:BEAM)
YTD Decline: -14.64%
Analyst Upside: 93.67%
Number of Hedge Fund Holders: 28
Beam Therapeutics Inc. (NASDAQ:BEAM) is one of the best oversold NASDAQ stocks to buy now. On July 1, Beam Therapeutics Inc. (NASDAQ:BEAM) announced an Agreement and Plan of Merger under which it acquired an early-stage life sciences company.
Beam Therapeutics Inc. (NASDAQ:BEAM) agreed to issue 403,128 shares of its common stock as an upfront payment, along with additional milestone payments of up to $89 million upon the attainment of certain clinical, development, and commercial milestones.
Management expects the strategic acquisition to boost the company’s market position and capabilities, potentially affecting its operations.
Beam Therapeutics Inc. (NASDAQ:BEAM) is a biotechnology company that develops precision genetic medicines through base editing, a technology that allows efficient and predictable single-base changes at targeted genomic sequences. The company’s lead programs focus on sickle cell disease and alpha-1 antitrypsin deficiency.
Beam Therapeutics Inc. (NASDAQ:BEAM) is advancing programs in other genetic diseases as well, along with oncology and immunology. Its primary programs include BEAM-101, Engineered Stem Cell Antibody Paired Evasion (ESCAPE), BEAM-302, BEAM-301, and BEAM-201.
8. WeRide Inc. (NASDAQ:WRD)
YTD Decline: -39.25%
Analyst Upside: 97.88%
Number of Hedge Fund Holders: 1
WeRide Inc. (NASDAQ:WRD) is one of the best oversold NASDAQ stocks to buy now. Analyst Tim Hsiao from Morgan Stanley maintained a Buy rating on WeRide Inc. (NASDAQ:WRD) on May 22 and set a $13.00 price target.
The analyst based the rating on the company’s potential in the autonomous vehicle market, maintaining an optimistic outlook on its long-term prospects despite near-term uncertainties in the robosweeper and robobus sectors.
The analyst is particularly optimistic about the robotaxi segment, stating that WeRide Inc.’s (NASDAQ:WRD) continued expansion in China and recent project breakthroughs with Uber position it well to capitalize on its first-mover advantage in Level 4 autonomous driving.
While Hsiao acknowledged that WeRide Inc. (NASDAQ:WRD) may see share price volatility in the short term, he stated that he sees considerable upside potential, especially as the focus of the market moves back to robotaxis. The firm reasoned that the unchanged expectations for robotaxis and the expected breakeven in 2027 further support the constructive rating.
WeRide Inc. (NASDAQ:WRD) is headquartered in Guangzhou, China, and develops an autonomous driving technology platform. The company offers Robotaxi, Robobus, Robovan, Robosweeper, and advanced driving solutions. Its offerings also include smart services in online ride-hailing, environmental sanitation, on-demand transport, and urban logistics.
7. Denali Therapeutics, Inc. (NASDAQ:DNLI)
YTD Decline: -27.92%
Analyst Upside: 117.84%
Number of Hedge Fund Holders: 31
Denali Therapeutics, Inc. (NASDAQ:DNLI) is one of the best oversold NASDAQ stocks to buy now. In a report released on July 7, Thomas Shrader from BTIG maintained a Buy rating on Denali Therapeutics, Inc. (NASDAQ:DNLI) with a price target of $32.00.
Basing the optimistic rating on the company’s promising developments, the analyst reasoned that Denali Therapeutics, Inc. (NASDAQ:DNLI) has made notable developments in its enzyme replacement therapy, DNL-310, which the FDA has accepted for priority review for the treatment of Hunter Syndrome.
He stated that therapy is significant for its ability to cross the blood-brain barrier, which may provide considerable advantages over the present treatments. With the FDA’s acceptance showing strong regulatory support, the drug may attain an expedited path to the market.
The firm also stated that Denali Therapeutics, Inc.’s (NASDAQ:DNLI) broader pipeline, which includes other Transport Vehicle-enabled therapies, also suggests the potential to address various neurological conditions.
Denali Therapeutics, Inc. (NASDAQ: DNLI) develops and commercializes product candidates for the treatment of neurodegenerative diseases. Its product portfolio includes LRRK2, RIPK1, TREM2, and Tau.
6. Crinetics Pharmaceuticals, Inc. (NASDAQ:CRNX)
YTD Decline: -35.42%
Analyst Upside: 118.05%
Number of Hedge Fund Holders: 31
Crinetics Pharmaceuticals, Inc. (NASDAQ:CRNX) is one of the best oversold NASDAQ stocks to buy now. In a report released on July 10, Richard Law CFA from Goldman Sachs initiated coverage of Crinetics Pharmaceuticals, Inc. (NASDAQ:CRNX) with a Hold rating and a $36 price target.
The analyst told investors that Crinetics Pharmaceuticals, Inc.’s (NASDAQ:CRNX) near-term value may be considerably influenced by uncertainties, such as the launch performances of paltusotine and Crenessity. He further reasoned that Crinetics Pharmaceuticals, Inc.’s (NASDAQ:CRNX) lack of other meaningful pipeline catalysts supports the Neutral rating.
Crinetics Pharmaceuticals, Inc. (NASDAQ:CRNX) is a clinical-stage pharmaceutical company that develops and commercializes novel therapeutics for rare endocrine diseases and endocrine-related tumors.
The company’s product candidate, CRN00808, is an oral treatment for acromegaly. It is also developing other oral treatments for neuroendocrine tumors, hyperinsulinism, and Cushing’s disease.
5. Immunovant, Inc. (NASDAQ:IMVT)
YTD Decline: -24.95%
Analyst Upside: 139.38%
Number of Hedge Fund Holders: 37
Immunovant, Inc. (NASDAQ:IMVT) is one of the best oversold NASDAQ stocks to buy now. On July 10, Goldman Sachs analyst Corinne Johnson resumed coverage of Immunovant, Inc. (NASDAQ:IMVT) with a Hold rating and set a price target of $18.00.
The analyst supported the Neutral rating by stating that it sees limited downside to Immunovant, Inc. (NASDAQ:IMVT), and that a challenging regulatory backdrop also exists for the company, necessitating a cautious outlook.
Immunovant, Inc. (NASDAQ:IMVT) has approximately $714 million in cash and cash equivalents as of March 31, which management declared provides runway for announced indications through GD readout anticipated in 2027.
Immunovant, Inc. (NASDAQ:IMVT) develops treatments for autoimmune diseases. Its product pipeline includes batoclimab and IMVT-1402. Both are novel antibodies targeting the neonatal fragment crystallizable receptor (FcRn).
4. Apogee Therapeutics Inc. (NASDAQ:APGE)
YTD Decline: -14.17%
Analyst Upside: 144.34%
Number of Hedge Fund Holders: 36
Apogee Therapeutics Inc. (NASDAQ:APGE) is one of the best oversold NASDAQ stocks to buy now. On July 11, BTIG analyst Julian Harrison maintained a Buy rating on Apogee Therapeutics Inc. (NASDAQ:APGE), raising the price target to $115 from $100.
The analyst told investors in a research note that the new EASI-75 watermark for Biologics in Atopic Dermatitis surpassed expectations, supporting a market-leading profile and painting a positive picture for the company.
Apogee Therapeutics Inc. (NASDAQ:APGE) has $681.4 million in cash, cash equivalents, and marketable securities as of March 31. Based on the company’s current operating plans, management expects its existing cash, cash equivalents and marketable securities to support its operating expenses into the first quarter of 2028.
Apogee Therapeutics Inc. (NASDAQ:APGE) is a biotechnology company that offers treatments for chronic obstructive pulmonary disease (COPD), atopic dermatitis (AD), and associated inflammatory and immunology (I&I) indications.
3. Ultragenyx Pharmaceutical Inc. (NASDAQ:RARE)
YTD Decline: -30.52%
Analyst Upside: 177.11%
Number of Hedge Fund Holders: 55
Ultragenyx Pharmaceutical Inc. (NASDAQ:RARE) is one of the best oversold NASDAQ stocks to buy now. On July 14, William Blair analyst Sami Corwin maintained a bullish stance on Ultragenyx Pharmaceutical Inc. (NASDAQ:RARE), giving it a Buy rating without a price target.
The analyst gave a positive rating based on the company’s potential despite recent setbacks. Ultragenyx Pharmaceutical Inc. (NASDAQ:RARE) received a complete response letter from the FDA about UX111 for the treatment of Sanfilippo syndrome type A, citing concerns associated with chemistry, manufacturing, and controls (CMC).
Ultragenyx Pharmaceutical Inc. (NASDAQ:RARE), however, maintains that the complications are not directly related to the quality of the product and are manageable.
The analyst also reasoned that the FDA acknowledged the supportive nature of the clinical data for UX111, which includes biomarker evidence and strong neurodevelopmental outcomes. He stated that while the FDA requested updated clinical data, the existing data package does not have issues, which is a positive sign.
Ultragenyx Pharmaceutical Inc. (NASDAQ:RARE) plans to promptly address the concerns put forth by the FDA and is planning resubmission and potential approval in 2026.
Ultragenyx Pharmaceutical Inc. (NASDAQ:RARE) develops, acquires, and commercializes novel products to treat genetic diseases. Its product portfolio includes Crysvita, Mepsevii, Dojolvi, and Evkeeza.
2. Viking Therapeutics, Inc. (NASDAQ:VKTX)
YTD Decline: -21.40%
Analyst Upside: 216.16%
Number of Hedge Fund Holders: 41
Viking Therapeutics, Inc. (NASDAQ:VKTX) is one of the best oversold NASDAQ stocks to buy now. On June 30, H.C. Wainwright analyst Joseph Pantginis reiterated a Buy rating on Viking Therapeutics, Inc. (NASDAQ:VKTX) and set a price target of $102.00.
On June 25, Viking Therapeutics, Inc. (NASDAQ:VKTX) announced the initiation of the VANQUISH Phase 3 clinical program for VK2735, which is a dual agonist of the glucagon-like peptide 1 (GLP-1) and glucose-dependent insulinotropic polypeptide (GIP) receptors.
Management reported that VK2375 is under development in both subcutaneous and oral formulations to potentially treat metabolic disorders such as obesity.
The VANQUISH Phase 3 program encompasses two studies evaluating VK2735: one in obese or overweight adults with type 2 diabetes and one in adults with obesity.
Viking Therapeutics, Inc. (NASDAQ:VKTX) is a clinical-stage company that develops therapies for metabolic and endocrine disorders.
1. Vaxcyte, Inc. (NASDAQ:PCVX)
YTD Decline: -55.56%
Analyst Upside: 288.95%
Number of Hedge Fund Holders: 45
Vaxcyte, Inc. (NASDAQ:PCVX) is one of the best oversold NASDAQ stocks to buy now. On June 20, Mizuho analyst Salim Syed commented on Vaxcyte, Inc. (NASDAQ:PCVX), on which the firm maintained an Outperform rating. Syed’s comment followed reports that Health and Human Services Secretary Kennedy was considering a review of licensed vaccines containing aluminum adjuvants.
The analyst told investors in a research note that this development is significant for Vaxcyte, Inc. (NASDAQ:PCVX), as its pneumococcal vaccine candidates contain aluminum adjuvant at levels similar to those found in Merck’s Vaxneuvance and Pfizer’s Prevnar 20.
The firm stated that aluminum adjuvants are present in several vaccines recommended by the Centers for Disease Control and Prevention for infants and children and have been used widely since the 1930s.
It added that the FDA’s work shows that aluminum exposure from vaccines is safe, and sees the “preponderance of evidence” as supporting the use of aluminum adjuvants in vaccines. Mizuho thus stated that if a review of licensed vaccines containing aluminum adjuvant is carried out, it “will prove this out.”
Vaxcyte, Inc. (NASDAQ:PCVX) is a clinical-stage vaccine innovation company that develops high-fidelity vaccines. It develops broad-spectrum conjugate and novel protein vaccines to prevent or treat bacterial infectious diseases. The company re-engineers the creation of highly complex vaccines through advanced chemistry and modern synthetic techniques.
While we acknowledge the potential of PCVX 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 PCVX and that has 100x upside potential, check out our report about this cheapest AI stock.
READ NEXT: The Best and Worst Dow Stocks for the Next 12 Months and 10 Unstoppable Stocks That Could Double Your Money.
Disclosure: None. Insider Monkey focuses on uncovering the best investment ideas of hedge funds and insiders. Please subscribe to our free daily e-newsletter to get the latest investment ideas from hedge funds’ investor letters by entering your email address below.
