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.
11. Tenable Holdings, Inc. (NASDAQ:TENB)
Three-Month Share Price Decline: 29.72%
Number of Hedge Fund Holders: 32
Upside Potential: 77.50%
On February 4, 2026, Tenable Holdings, Inc. (NASDAQ:TENB) announced strong fourth-quarter and full-year results. The results reflect continued adoption of Tenable One and AI-driven security solutions.
During the quarter, the company recorded a revenue growth of 11% year-over-year (YoY) to $260.50 million, driven by an 8% growth in current billings to $327.80 million. As a result of strong top-line growth, the company’s non-GAAP net income rose 13% YoY to $57.30. While the company added 502 enterprise customers and expanded its share repurchase program by $150 million during the quarter, the company closed the period with a GAAP net loss of $0.70 million.
On the other hand, Tenable Holdings, Inc. (NASDAQ:TENB) reported full-year 2025 revenue of $999.4 million, up 11% YoY. The non-GAAP net income for the full year stood at $194.40 million, and unlevered free cash flow grew to $277.00 million. During the year, Tenable repurchased 7.90 million shares for $247.50 million.
Moving on to 2026 guidance, Tenable Holdings, Inc. (NASDAQ:TENB) expects revenue to lie between $1.065-$1.075 billion, while non-GAAP EPS is projected to fall within the $1.81-$1.90 range. Management’s optimism stems from strong platform adoption, AI integration, and operational efficiency.
Tenable Holdings, Inc. (NASDAQ:TENB) focuses on developing cybersecurity solutions. Its portfolio includes tenable.io, tenable.sc, and Nessus Professional, serving finance, healthcare, energy, cloud, and retail sectors.
10. Paycom Software, Inc. (NYSE:PAYC)
Three-Month Share Price Decline: 28.62%
Number of Hedge Fund Holders: 35
Upside Potential: 46.30%
On February 3, 2026, Paycom Software, Inc. (NYSE:PAYC) traded at its 52-week low of $124.08, down significantly from its 52-week high of $267.76. Currently trading at $131.41, the stock is just 7% above its 52-week low.
Amid weak investor momentum, Paycom Software, Inc. (NYSE:PAYC) received Guggenheim’s attention on January 30, 2026. The firm reduced its price target from $245 to $210, reiterating its ‘Buy’ rating. The firm’s bullish sentiment reflects expectations for Recurring and Other revenue to grow approximately 10% in 2026. Meanwhile, the firm’s revised target reflects a valuation adjustment relative to HCM peers ahead of the fourth-quarter earnings release on February 11.
On the previous day, Cantor Fitzgerald revisited Paycom Software, Inc. (NYSE:PAYC), reducing its target from $170 to $135, while reiterating a ‘Neutral’ rating. Ahead of Q4 results, the firm outlined its expectations, projecting in-line Q4 revenue and a slight EBITDA beat. While citing 2026 guidance as a key focus point, the firm noted subdued sentiment in the payroll sector. However, the analyst was positive on the company’s long-term HCM opportunity and underlying product strength.
Paycom Software, Inc. (NYSE:PAYC) delivers cloud-based human capital management SaaS solutions. The firm’s services cover the full employment lifecycle.
9. Blue Owl Capital Inc. (NYSE:OWL)
Three-Month Share Price Decline: 25.37%
Number of Hedge Fund Holders: 35
Upside Potential: 70.00%
On February 5, 2026, Reuters reported that Blue Owl Capital Inc. (NYSE:OWL) co-CEO Mark Lipschultz said AI could not temper software and technology-linked businesses. His comments came following a global selloff that wiped out over $800 billion from the S&P 500 software and services index since January 28. With the firm’s software segment representing only 8% of total assets under management (AUM), Lipschultz cited stable performance and minimal losses in the post-earnings call for the fourth-quarter results. Declining by over 9% at the start of the session, the company’s shares closed the day 2.4% lower.
For the fourth quarter, Blue Owl Capital Inc. (NYSE:OWL) reported adjusted EPS of $0.24, surpassing forecasts of $0.22, thanks to strong credit and real assets performance. The company’s new capital commitments hit $17.3 billion, while its total AUM went past the $300-billion mark. Oppenheimer’s analysts expressed optimism about the company’s steady absolute growth and resilience in private credit demand despite tighter lending conditions
Blue Owl Capital Inc. (NYSE:OWL), a New York-based alternative asset manager, offers direct lending and GP capital solutions to institutional and high-net-worth investors.
8. Five9, Inc. (NASDAQ:FIVN)
Three-Month Share Price Decline: 25.68%
Number of Hedge Fund Holders: 36
Upside Potential: 87.10%
On February 3, 2026, Five9, Inc. (NASDAQ:FIVN)’s shares reached their 52-week low of $16.10, marking a sharp decline from its 52-week high of $49.90. This follows a challenging year for the company, during which its stock fell by over 60% amid broader SaaS sector headwinds.
Among recent company developments is Five9, Inc. (NASDAQ:FIVN)’s January 12 announcement of an expanded partnership with Google Cloud. A joint Enterprise CX AI solution was unveiled that integrates Five9’s AI-Infused Intelligent CX Platform with Google’s Gemini Enterprise and Vertex AI. The platform not only allows enterprises to deliver seamless, personalized, AI-driven customer experiences but also improves operational agility. At the same time, it supports end-to-end workflows for agents, supervisors, and administrators.
Three days earlier, Five9, Inc. (NASDAQ:FIVN) saw Morgan Stanley reduce its price target from $30 to $26, while reiterating an ‘Equal Weight’ rating. While the firm cited the SaaS sector’s underperformance, it expects AI-related risks to be lower in 2026. Morgan Stanley advises investors to remain selective within the sector amid limited broad corporate spending revisions.
Five9, Inc. (NASDAQ:FIVN), a San Ramon-based cloud software provider, specializes in AI-driven contact center solutions, including routing, analytics, workforce management, and reporting for enterprises.
7. Pagaya Technologies Ltd. (NASDAQ:PGY)
Three-Month Share Price Decline: 30.87%
Number of Hedge Fund Holders: 38
Upside Potential: 115.00%
On February 4, 2026, a $800 million AAA-rated personal loan ABS transaction, PAID 2026-1, was closed by Pagaya Technologies Ltd. (NASDAQ:PGY). Thanks to strong institutional demand, the deal value exceeded the initial $600 million target by 33%. With 32 investors participating, most returned from prior transactions due to confidence in the company’s AI-driven consumer credit platform. Pagaya has issued over $34.5 billion across 85 ABS deals since 2018.
Meanwhile, on January 26, 2026, Pagaya Technologies Ltd. (NASDAQ:PGY) made an announcement, finalizing a forward flow agreement with Sound Point Capital Management to acquire up to $720 million in point-of-sale loans. With the first POS forward flow transaction, the company employs scalable, repeatable capital solutions across its growing product portfolio. Using predictive AI-powered credit decisioning, the company will facilitate high-quality consumer credit across personal loan, auto, and POS verticals. By combining public ABS programs with private capital partnerships, the company aims to build a multi-channel funding platform to drive growth and resilience in 2026.
Pagaya Technologies Ltd. (NASDAQ:PGY), a New York-based AI fintech company, develops data-driven solutions for consumer credit. The company enables real-time evaluation across personal loans, auto, and point-of-sale products for institutional investors.
6. Magnite, Inc. (NASDAQ:MGNI)
Three-Month Share Price Decline: 28.81%
Number of Hedge Fund Holders: 40
Upside Potential: 126.80%
On January 22, 2026, Magnite, Inc. (NASDAQ:MGNI) and MNTN partnered to enable MNTN advertisers to target audiences across live sports, breaking news, and other high-engagement streaming content for the first time. As 97% of MNTN’s advertisers are new to TV, this collaboration aims to provide in-stream placements, home screen ads, and pause ads. With this, premium inventory and real-time targeting will be unlocked, as management eyes measurable results and new revenue opportunities for publishers.
Meanwhile, on January 6, 2026, Magnite, Inc. (NASDAQ:MGNI) announced a partnership with Cognitiv, integrating deep learning models into Magnite’s ClearLine solution to enhance real-time curation of premium video inventory. Furthermore, the move will allow media buyers to optimize omnichannel campaigns with improved intelligence, flexibility, and operational efficiency, enabling next-generation decision-making.
Together, these moves solidify Magnite, Inc. (NASDAQ:MGNI)’s positioning at the forefront of performance-driven advertising across streaming platforms by combining premium content access with AI-powered targeting and analytics.
Magnite, Inc. (NASDAQ:MGNI), a New York-based digital advertising technology company, offers automated solutions for buyers and sellers across web, mobile, and other media platforms.
5. BellRing Brands, Inc. (NYSE:BRBR)
Three-Month Share Price Decline: 30.54%
Number of Hedge Fund Holders: 45
Upside Potential: 61.10%
On February 5, 2026, Barclays analyst Andrew Lazar revisited BellRing Brands, Inc. (NYSE:BRBR), reducing the firm’s price target from $30 to $27 while reiterating an ‘Overweight’ rating. The analyst update came as the company’s management narrowed the upper end of its fiscal 2026 net sales and adjusted EBITDA guidance amid elevated promotional activity from insurgent protein shake brands.
On February 3, 2026, BellRing Brands, Inc. (NYSE:BRBR) announced its fiscal Q1 results, which featured net sales of $537.30 million, up 1% YoY. Meanwhile, adjusted EBITDA was down to $90.30 million from $125.30 million. Accordingly, net income also marked a decline from $76.90 million to $43.70 million. Top-line growth was driven by Dymatize sales growth of 7.50%, which was partially offset by an RTD sales decline of 2.20%. Heightened whey costs and input inflation kept margins tight, with gross margins contracting to 29.90%. During the quarter, the company repurchased $97 million worth of shares.
Moving on to full-year guidance, BellRing Brands, Inc. (NYSE:BRBR) projects net sales of $2.41-$2.46 billion, growth of 4-6%, adjusted EBITDA of $425-$440 million, and capital expenditures of $8 million amid expectations for second-half accelerations.
BellRing Brands, Inc. (NYSE:BRBR) focuses on providing protein shakes, powders, RTD beverages, and nutrition bars under the Premier Protein and Dymatize brands.
4. Dave Inc. (NASDAQ:DAVE)
Three-Month Share Price Decline: 32.08%
Number of Hedge Fund Holders: 45
Upside Potential: 85.50%
Investor sentiment in the stock has been mixed in the past year, with the stock declining ~35% over six months and gaining over 50% in the last year. As of February 5, 2026, the stock enjoys the confidence of 100% of analysts covering it, with a consensus price target of $302.50.
On January 20, 2026, Dave Inc. (NASDAQ:DAVE) made key changes to its Board of Directors. Firstly, the company appointed Nima Khajehnouri, an AI and data engineering leader. He brings 20 years of experience, having worked at organizations such as Meta, Google, and Snap. By joining the company’s Board and Audit Committee, he will help scale the company’s innovation capabilities as it continues deploying AI-driven solutions for millions of Americans.
Further Board changes included the appointment of Mike Pope as Lead Independent Director and Andrea Mitchell as Chair of the Nominating and Corporate Governance Committee. With these changes, the company aims to advance its governance evolution and technical oversight strategy.
Dave Inc. (NASDAQ:DAVE), a Los Angeles-based digital banking service, offers budgeting tools, cash advances, side hustles, and modern checking accounts.
3. Waystar Holding Corp. (NASDAQ:WAY)
Three-Month Share Price Decline: 35.21%
Number of Hedge Fund Holders: 47
Upside Potential: 91.70%
As of February 5, 2026, analyst sentiment on Waystar Holding Corp. (NASDAQ:WAY) remains bullish, with nearly all analysts covering the stock maintaining that view. The consensus price target of $46.00 implies 91.70% upside.
The recent analyst update came on February 2, 2026, from Leerink, which initiated coverage on Waystar Holding Corp. (NASDAQ:WAY) with an ‘Outperform’ rating and $43 price target. The firm’s bullish stance reflects the company’s broad market reach, which acts as a driver for growth and cross-selling opportunities. While pointing toward the recent Iodine acquisition, the investment firm highlighted Waystar’s expanding AI capabilities and strengthening end-to-end platform for healthcare organizations.
Meanwhile, investor sentiment toward Waystar Holding Corp. (NASDAQ:WAY) appears cautiously optimistic as of the end of January.
On January 28, 2026, Waystar Holding Corp. (NASDAQ:WAY) reached its 52-week low of $28.08, after facing significant pressure. Over the past year, the stock has declined 30.68%, reflecting a gap between market valuation and the potential upside from technology-led expansion and customer penetration.
Waystar Holding Corp. (NASDAQ: WAY) provides healthcare organizations with cloud-based software to streamline payments, improve reimbursement, and enhance the experience for providers, patients, and payers.
2. GoDaddy Inc. (NYSE:GDDY)
Three-Month Share Price Decline: 29.11%
Number of Hedge Fund Holders: 49
Upside Potential: 56.70%
Analyst sentiment toward GoDaddy Inc. (NYSE:GDDY) remains cautiously optimistic. As of February 5, 2026, over 60% of analysts covering the stock remain bullish. The consensus price target of $150.00 implies a 56.70% upside.
A recent analyst update came on January 15, 2026, when Morgan Stanley reduced its price target on GoDaddy Inc. (NYSE:GDDY) from $159 to $145, while reiterating an ‘Equal Weight’ rating. While the SaaS sector underperformed in 2025 compared to broader software and tech sectors, the firm believes AI-related risks may now be less than initially feared. Accordingly, the firm maintained a cautiously constructive outlook for 2026.
Meanwhile, on January 8, 2026, Cantor Fitzgerald revisited GoDaddy Inc. (NYSE:GDDY), cutting its price target from $150 to $130, while reiterating a ‘Neutral’ rating. The firm expects Global Internet stocks to benefit in 2026, as AI enters a synergistic phase, with companies seeing accelerating revenue growth, improved value capture, and enhanced long-term returns on capex.
GoDaddy Inc. (NYSE:GDDY) focuses on providing domain registration, website hosting, and software-based commerce productivity tools through its Applications & Commerce and Core Platform segments.
1. DocuSign, Inc. (NASDAQ:DOCU)
Three-Month Share Price Decline: 35.99%
Number of Hedge Fund Holders: 60
Upside Potential: 71.10%
The past year has been challenging for DocuSign, Inc. (NASDAQ:DOCU), with investor sentiment remaining cautious. The stock reached its 52-week low of $51.63 on February 2 and has declined 52% over the past twelve months, as of February 5.
While broader momentum remains weak, DocuSign, Inc. (NASDAQ:DOCU) continues to innovate.
On January 13, 2026, DocuSign, Inc. (NASDAQ:DOCU) unveiled AI-powered eSignature enhancements via its Intelligent Agreement Management (IAM) platform, with the new features simplifying dense legal language for signers, reducing document preparation errors, and accelerating agreement completion. Meanwhile, Iris, a contract-specific AI, offers clear summaries, answers signer questions, and automates signature field placement. This addresses widespread confusion and signer hesitation. While these updates are already live in the U.S., U.K., and Australia, additional automated agreement creation tools will roll out in the U.S.
As enterprises increasingly adopt digital solutions, DocuSign, Inc. (NASDAQ:DOCU) appears to be positioning itself to regain momentum by addressing persistent workflow inefficiencies.
DocuSign, Inc. (NASDAQ:DOCU) provides cloud-based electronic solutions and workflow automation tools. With this, the company enables secure contract execution, data management, and document collaboration for individuals and enterprises globally.
While we acknowledge the potential of DOCU 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 DOCU and that has 100x upside potential, check out our report about this cheapest AI stock.
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