In this article, we discuss the 13 Oversold Value Stocks to Invest in Now.

Amid Wall Street’s latest pullback, opportunities have emerged beyond the high-priced tech companies that have dominated the market in 2025. On August 20, 2025, both the Nasdaq and S&P 500 fell, driven by a reduction in investor positions in richly valued technology stocks ahead of Federal Reserve Chair Jerome Powell’s speech at Jackson Hole. While the S&P 500 tech index closed the day lower, more defensive and value-focused stocks, including energy, healthcare, and consumer staples, ended the day higher.

Analysts see the move not as a massive selloff, but as a strategic shift in investments. Allspring’s senior portfolio manager, Bryant van Cronkhite, made the following  comment:

“A broader lens tells you it’s more of a rotation than a true selloff. Tech valuations look extended in the context of inflated spending today. Number two, I would say that there are a lot of pockets of the market that look very attractive from a valuation standpoint and they’ve been broadly ignored.”

This adjustment occurs as investors are becoming increasingly cautious about AI-driven euphoria. Sam Altman, OpenAI’s CEO, warned that AI stocks might be overvalued, indicating a possible bubble. Meanwhile, MIT research shows that most companies see limited short-term returns from AI investments.

With this backdrop, we shift our focus to oversold value stocks, which are trading at appealing valuations, positioned in sectors with stable fundamentals and less hype-driven risk.

Our Methodology

To curate our list of the 13 Oversold Value Stocks to Invest in Now, we used the Finviz screener to extract a list of stocks with a forward price-to-earnings (P/E) multiple under 15 and with a share price decline of at least 30% on a year-to-date (YTD) basis. Furthermore, we made sure that these stocks displayed a Relative Strength Index (RSI) below 40. Finally, we ranked the stocks in descending order based on the RSI of the respective stocks as of Q1 2025. We also considered the hedge fund sentiment surrounding each stock, using Insider Monkey’s hedge fund database, which tracks over 1,000 hedge funds.

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).

13. Owens & Minor, Inc. (NYSE:OMI)

Number of Hedge Fund Holders: 31

Forward Price-to-Earnings: 6.41

Relative Strength Index: 37.75

With a price-to-earnings multiple under 15x and its relative strength index below 40, Owens & Minor, Inc. (NYSE:OMI) secures a spot on our list of the 13 Oversold Value Stocks to Invest in Now.

On August 13, 2025, UBS reduced its price target on Owens & Minor, Inc. (NYSE:OMI) from $13 to $7, keeping a ‘Buy’ rating. The price revision follows the company’s weaker Q2 results and a cautious outlook.

Furthermore, the downgrade is associated with the company’s short-term dissynergies from the Patient & Healthcare Services sale and the loss of Kaiser. As a result of these dissynergies, the investment firm expects dampened EBIT for Owens & Minor, Inc. (NYSE:OMI) in 2026.

Yet UBS expects $700 million in potential proceeds from the P&HS sale, which could help Owens & Minor, Inc. (NYSE:OMI) reduce its debt. On the positive side, the analyst highlighted growth catalysts, such as diabetes recovery, sleep therapy momentum, improved capital efficiency, and reduced exposure to struggling hospital purchasing. UBS expects the company to return to profitability in 2025, projecting FY2025 EPS of $1.24.

Through its Products & Healthcare Services and Patient Direct segments, Owens & Minor, Inc. (NYSE:OMI) delivers healthcare solutions globally. It is one of the oversold stocks.

12. Align Technology, Inc. (NASDAQ:ALGN)

Number of Hedge Fund Holders: 52

Forward Price-to-Earnings: 13.73

Relative Strength Index: 37.74

Align Technology, Inc. (NASDAQ:ALGN) is one of the 13 Oversold Value Stocks to Invest in Now.

Align Technology, Inc. (NASDAQ:ALGN) filed patent infringement lawsuits against Shanghai-based Angelalign Technology for alleged patent violations across the U.S., Europe, and China. The company claims that Angel’s aligner products and software infringe key Align patents, which cover multilayer materials, treatment planning, and advanced aligner features.

Align Technology, Inc. (NASDAQ:ALGN) has invested over $2 billion in R&D since 2001. Thus, it emphasized its commitment to protect innovations that underpin its leadership in digital orthodontics. With this move, the company seeks injunctive relief and damages to safeguard years of investment and ensure fair competition in the rapidly growing global aligner market.

With its Invisalign System, iTero scanners, and exocad software, Align Technology, Inc. (NASDAQ:ALGN) enables digital orthodontic and restorative workflows for patients globally. It is one of the oversold stocks.