In this piece, we discuss the 14 Oversold Value Stocks to Invest in Right Now.
On January 13, 2026, Ari Wald, Head of Technical Analysis at Oppenheimer, spoke with CNBC, noting that technical indicators suggest U.S. equity markets will remain strong in 2026 despite rising volatility. He justified the firm’s S&P 500 target of 7,700 by attributing it to technical signals rather than fundamentals, stating that while the market is in a mature stage, the usual signs that typically appear before a major top are not yet evident.
Furthermore, participation stretched beyond mega-cap technology. He pointed to improving market breadth, with smaller stocks such as the Russell 2000 breaking through long-standing resistance.
Meanwhile, Morgan Stanley held a similarly constructive stance as of the end of last year. Recommending an overweight position in U.S. equities, the firm projected a 14% rise in the S&P 500 over the next 12 months, citing earnings growth, expected Federal Reserve rate cuts, and corporate tax reductions.
The bullish sentiment at the broader level is accompanied by the sharp selloff that recently occurred. On February 4, 2026, business software stocks continued to decline sharply, with investors selling across software, information services, and adjacent sectors. This comes amid investor concerns that rapidly advancing AI tools could wipe away established business models.
On February 5, 2026, the S&P 500 software and services index noted a decline for a seventh straight session. The index is trading about 21% below its 200-day moving average, its deepest such drop since June 2022.
This indiscriminate selloff has taken several value stocks into oversold territory. This sets the stage for our list of 14 oversold value stocks to invest in right now.
Stocks chart
Our Methodology
To curate our list of oversold value stocks to invest in right now, we used the screener to identify stocks with a forward P/E below 16 (at least 25% below the S&P 500 at 21.8x) and a three-month share price decline of 20%-40%. We also assessed their ability to bounce back from declines and, for this purpose, measured each stock’s upside potential as of February 5, 2026, ensuring each stock had significant analyst coverage. Additionally, these stocks have a Relative Strength Index of below 40.
Finally, we ranked the stocks in ascending order based on the number of hedge funds that are bullish on each stock as of Q3 2025. To assess hedge fund sentiment, we relied on Insider Monkey’s hedge fund database, which tracks 978 stocks.
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 427.7% since May 2014, beating its benchmark by 264 percentage points (see more details here).
14. eToro Group Ltd. (NASDAQ:ETOR)
Three-Month Share Price Decline: 22.94%
Number of Hedge Fund Holders: 26
Upside Potential: 103.5%
eToro Group Ltd. (NASDAQ:ETOR) continues to retain strong analyst sentiment as of February 5, 2026, with over 70% analysts bullish on the stock. The consensus target of $54 implies 103.50% upside.
Most recently, eToro Group Ltd. (NASDAQ:ETOR) drew Goldman Sachs analyst James Yaro’s attention on January 20, 2026, who reduced the firm’s price target on the stock from $39 to $35, while reiterating a ‘Neutral’ rating. The revision was made after the analyst made slight adjustments to Q4 M&A fees (+8% on average) and updated crypto market trends for the first quarter of 2026. The firm’s revised target now reflects pull-forward revenue analysis across investment banks, brokers, and crypto-related platforms.
Meanwhile, on January 16, 2026, Mizuho’s Dan Dolev reduced the firm’s price target on eToro Group Ltd. (NASDAQ:ETOR) from $65 to $60, reiterating an ‘Outperform’ rating. The firm made a bullish commentary on the fintech & payments sector this year, citing favorable political, macro, and product catalysts. The firm also highlighted rate caps, which it believes may favor networks and BNPL (Buy Now Pay Later) platforms. As a result, the firm expects an increase in incremental debit volumes.
Additionally, on January 14, 2026, TD Cowen reduced its price target on eToro Group Ltd. (NASDAQ:ETOR) from $54 to $50. While retaining its ‘Buy’ rating on the stock, the firm cited Traditional Asset Managers and alternatives, a “higher for longer” interest rate environment, and tactical positioning.
eToro Group Ltd. (NASDAQ:ETOR) focuses on developing and managing online trading software. With this, the company enables retail and non-professional investors to access financial markets previously accessible only to professionals.
13. Certara, Inc. (NASDAQ:CERT)
Three-Month Share Price Decline: 34.11%
Number of Hedge Fund Holders: 27
Upside Potential: 57.70%
Certara, Inc. (NASDAQ:CERT) enjoys the confidence of 60% of analysts as of February 5, 2026, who remain bullish on the stock. The consensus price target of $12.00 implies a 57.70% upside potential.
Certara, Inc. (NASDAQ:CERT) drew attention from KeyBanc on January 8, 2026. The firm reduced its price target on the stock from $13 to $12 and reiterated its ‘Overweight’ rating. While highlighting the volatile year the Healthcare Information Technology industry faced, the firm believes Certara is showing a year of inflection, citing fundamental momentum that is expected to continue. Although the firm said valuation multiples are under pressure amid competition and regulatory headwinds, it projects upside once market conditions cool.
Meanwhile, on January 6, 2026, Leerink upgraded Certara, Inc. (NASDAQ:CERT) from ‘Market Perform’ to ‘Outperform’, while keeping the $13 price target unchanged. The firm’s bullish stance stems from the company’s leadership role in the broad-based biosimulation market. The company’s shares faced pressure in late 2025 amid softer Q3 services bookings, biopharma budget delays, and the CEO change. However, the firm described the selloff as an overreaction, expecting improving market dynamics to accelerate the company’s growth in 2026.
Certara, Inc. (NASDAQ:CERT) focuses on offering software and technology-enabled services for drug developers. The services include modeling, decision analytics, clinical pharmacology, complex biologics, and regulatory strategy solutions.
12. Enovis Corporation (NYSE:ENOV)
Three-Month Share Price Decline: 27.31%
Number of Hedge Fund Holders: 31
Upside Potential: 97.30%
Enovis Corporation (NYSE:ENOV) underwent a challenging period in 2025 amid macro headwinds. With the stock down 50% over the past year, the shares ended-up hitting their 52-week low on January 29, 2026, closing at $21.00.
Amid weak investor momentum, Enovis Corporation (NYSE:ENOV) drew attention from Evercore ISI analyst Vijay Kumar on January 12, who reiterated the firm’s ‘Outperform’ rating with a $40 price target. The firm’s update came in response to the company’s Q4 pre-announcement.
Evercore ISI shed light on the company’s revenue miss, roughly 3% below analyst expectations. However, the firm acknowledged the positive angle, highlighting the implied 11% EPS beat driven by higher-margin reconstructive operations. The firm remains bullish, projecting that FY26 cash flow will improve, with free cash flow conversion exceeding 25% in the fourth quarter.
Furthermore, on January 6, 2026, Enovis Corporation (NYSE:ENOV) saw BTIG analyst Ryan Zimmerman initiate coverage on the stock with a ‘Buy’ rating and a $41 price target. The firm’s bullish stance reflects ENOV’s multi-segment orthopedic strategy and ability to outperform end markets. Right now, the firm sees an attractive entry point for investors despite concerns surrounding scale, tariffs, and cash flow.
Enovis Corporation (NYSE:ENOV) develops clinically differentiated orthopedic solutions across the Prevention & Recovery and Reconstructive segments.
