11 Oversold NASDAQ Stocks To Buy Right Now

In this article, we will be taking a look at 11 oversold NASDAQ stocks to buy right now.

NASDAQ Leads The Market

On March 12, the Nasdaq Composite Index was up by 1.5%, spearheaded by the technology stocks that have been leading the tech-heavy index ever higher for a long time now. While being heavily focused on the tech sector, the NASDAQ is also known for its exposure to other sectors, such as the consumer discretionary, healthcare, and financial sectors, all of which contribute to the index’s success. As a result of these market leaders, the NASDAQ has steadily become an attractive marketplace for budding and seasoned investors alike.

Many investors today are thinking about current market dynamics in terms of the future outlook for the upcoming months and what that may mean for investors. On March 12, Gabriela Santos, chief market strategist at JPMorgan, joined CNBC’s “Closing Bell” to discuss her thoughts on the current outlook and market. Here’s what she had to say:

“We do sound positive, first on the fundamentals. For the economy, we see growth normalizing this year 2%, but zero recession in our base case. We see inflation also moderating towards 2% by the end of the year, so you still have a pretty resilient nominal growth backdrop for companies, so resilient revenue growth. At the same time, it seem to us that the big takeaway from fourth-quarter earnings was a bottoming in the margin contraction from last year.”

The highlights above show that a positive trend for stocks should continue as we move forward into 2024, which should be encouraging for investors looking to buy into the market. Considering the upside gains in the NASDAQ being seen so far, this index may be a good place to start for those looking to buy. This is especially the case considering the fact that the index compromises of some of the most influential and profitable names in the market right now, most notably NVIDIA Corporation (NASDAQ:NVDA), Apple Inc. (NASDAQ:AAPL), and Amazon.com, Inc. (NASDAQ:AMZN).

Diversifying Outside of Tech in 2024

For investors, one thing to note at present is that big tech isn’t the only area to keep an eye on when it comes to the Nasdaq Composite Index. Santos, on CNBC’s “Closing Bell,” highlights the fact that several other names within the tech sector and outside of it are now also beginning to rake in the gains. Here’s what she said:

“It’s actually a healthy sign. For example, within mega-cap tech, the ‘Magnificent Seven’ that dominated so much of returns last year, there was dispersion within the group but they were all up. This year, you’re seeing quite substantial dispersion within the group. Some are up double digits, some are performing in line with the market, and some are down double digits. That’s very healthy to see, thinking of the actual companies as individuals. You’re also seeing other parts of the tech sector participate, and other sectors. Things like healthcare, which we had talked a lot about last year as being one of our favorite sectors, contributing as well. So I think it’s a very healthy appreciation, that it’s not just AI, it’s not just about the initial beneficiaries of that theme, it’s also about resilient earnings.”

In light of the above, we believe that while tech is definitely an area to keep track of this year, investors should not just put all their eggs in the tech basket. As such, we have compiled a list of oversold stocks listed on the NASDAQ to buy right now. Our list compromises both oversold stocks in the tech sector and in other sectors, such as healthcare, to give a more holistic set of options to investors looking to buy right now. You’ll thus find that we have quite a few options below to choose from, ranging from cheap healthcare stocks to buy to oversold tech stocks to buy.

A trader in a financial institution using fundamentals analysis to select stocks for a portfolio.

Our Methodology

We used the Relative Strength Index (RSI) indicator to pick oversold stocks listed on the Nasdaq Composite Index for our list. The RSI indicator is a momentum indicator used in the technical analysis of stocks by measuring the speed and magnitude of a security’s recent price changes to evaluate whether the price of that security is overvalued or undervalued. Stocks with RSI values of over 70 are traditionally considered overbought, while those with RSI values under 30 are oversold. We thus used a stock screener to find oversold stocks listed on the NASDAQ with RSI values under 30 and then ranked them based on this metric, from the highest to the lowest RSI value. We also mentioned the number of hedge funds holding stakes in each stock, using Insider Monkey’s hedge fund data for the fourth quarter. Hedge funds’ top 10 consensus stock picks outperformed the S&P 500 Index by over 140 percentage points over the last 10 years (see the details here). That’s why we pay very close attention to this often-ignored indicator.

Oversold NASDAQ Stocks To Buy Right Now

11. Axsome Therapeutics, Inc. (NASDAQ:AXSM)

Number of Hedge Fund Holders: 31

14-day RSI as of March 13: 29.58

Based in New York, Axsome Therapeutics, Inc. (NASDAQ:AXSM) is a pharmaceutical company. It develops novel therapies for central nervous system disorders in the US.

A Buy rating and a $180 price target were reiterated on Axsome Therapeutics, Inc. (NASDAQ:AXSM) on March 4 by analysts at HC Wainwright & Co.

There were 31 hedge funds long Axsome Therapeutics, Inc. (NASDAQ:AXSM) in the fourth quarter, with a total stake value of $968.4 million.

Biotechnology Value Fund / BVF Inc was the most prominent shareholder in Axsome Therapeutics, Inc. (NASDAQ:AXSM) at the end of the fourth quarter, holding 1.9 million shares in the company.

While Axsome Therapeutics, Inc. (NASDAQ:AXSM) is on our list of oversold stocks, it has the potential to be a great NASDAQ stock, like NVIDIA Corporation (NASDAQ:NVDA), Apple Inc. (NASDAQ:AAPL), and Amazon.com, Inc. (NASDAQ:AMZN).

10. Pacific Biosciences of California (NASDAQ:PACB)

Number of Hedge Fund Holders: 28

14-day RSI as of March 13: 29.54

On February 16, analysts at UBS maintained a Buy rating and a $12 price target on Pacific Biosciences of California (NASDAQ:PACB).

Pacific Biosciences of California (NASDAQ:PACB) is a life sciences tools and services company based in Menlo Park, California. The company designs, develops, and manufactures sequencing solutions to resolve genetically complex problems.

A total of 28 hedge funds were long Pacific Biosciences of California (NASDAQ:PACB) in the fourth quarter, with a total stake value of $646 million.

ARK Investment Management was the largest shareholder in Pacific Biosciences of California (NASDAQ:PACB) at the end of the fourth quarter, holding 34.5 million shares in the company.

9. Aurora Innovation Inc. (NASDAQ:AUR)

Number of Hedge Fund Holders: 16

14-day RSI as of March 13: 28.99

Aurora Innovation Inc. (NASDAQ:AUR) was spotted in the 13F holdings of 16 hedge funds at the end of the fourth quarter, with a total stake value of $160.7 million.

Aurora Innovation Inc. (NASDAQ:AUR) is an application software company based in Pittsburgh, Pennsylvania. The company develops the Aurora Driver platform, which combines a suite of self-driving hardware, software, and data services to adapt and interoperate vehicles.

8. Seres Therapeutics, Inc. (NASDAQ:MCRB)

Number of Hedge Fund Holders: 20

14-day RSI as of March 13: 28.92

Seres Therapeutics, Inc. (NASDAQ:MCRB) is a biotechnology company based in Cambridge, Massachusetts on our list of oversold stocks to buy right now. The company develops a novel class of biological drugs designed to treat by modulating the microbiome to restore health by repairing the function of a disrupted microbiome to a non-disease state.

We saw 20 hedge funds long Seres Therapeutics, Inc. (NASDAQ:MCRB) in the fourth quarter, with a total stake value of $22.3 million.

Oppenheimer analysts reiterated an Outperform rating and a $5 price target on Seres Therapeutics, Inc. (NASDAQ:MCRB) on March 6.

7. Digital Turbine, Inc. (NASDAQ:APPS)

Number of Hedge Fund Holders: 19

14-day RSI as of March 13: 28.14

D E Shaw was the largest shareholder in Digital Turbine, Inc. (NASDAQ:APPS) at the end of the fourth quarter, holding 1.9 million shares in the company.

Based in Austin, Texas, Digital Turbine, Inc. (NASDAQ:APPS) is another application software company on our list of oversold stocks to buy right now. The company operates a mobile growth platform for advertisers, publishers, carriers, and device original equipment manufacturers. 

Digital Turbine, Inc. (NASDAQ:APPS) was spotted in the portfolios of 19 hedge funds in the fourth quarter, with a total stake value of $56.4 million.

A Neutral rating and a $4.5 price target were maintained on Digital Turbine, Inc. (NASDAQ:APPS) on February 8 by Roth MKM analysts.

Greenhaven Road Capital mentioned Digital Turbine, Inc. (NASDAQ:APPS) in its second-quarter 2023 investor letter:

“It is an understatement to say that the past year-plus has been frustrating for Digital Turbine, Inc. (NASDAQ:APPS) shareholders (us). It has become a smaller position through price declines and sales of shares as uncertainty increased on both the potential for new initiatives as well as their timing.

I often reflect on what went wrong. How did this go from a growth stock to a value stock? There have been two causes, in my opinion. The first is that their product delivering content (not apps) on phones lost T-Mobile as a customer – sometimes we are one day closer to a bad outcome: the loss of a customer. The second, and bigger issue was with their SingleTap product. SingleTap is a technology that “enables smartphone users to instantly install an app to their Android device with a single tap…bypassing the noise of the app store environment, and dramatically increasing conversions.” The higher conversion rates mean lower costs per app install or app opening…” (Click here to read the full text)

6. Caribou Biosciences Inc. (NASDAQ:CRBU)

Number of Hedge Fund Holders: 23

14-day RSI as of March 13: 28.13

At the end of the fourth quarter, 23 hedge funds were long Caribou Biosciences Inc. (NASDAQ:CRBU), with a total stake value of $146.9 million.

On March 12, analysts at RBC Capital maintained an Outperform rating and a $19 price target on Caribou Biosciences Inc. (NASDAQ:CRBU).

Based in Berkeley, California, Caribou Biosciences Inc. (NASDAQ:CRBU) is another biotech company on our list of oversold stocks. It engages in developing genome-edited allogeneic cell therapies to treat hematologic malignancies in the US and internationally.

Caribou Biosciences Inc. (NASDAQ:CRBU) is a name on our list of oversold stocks that is highly popular among hedge funds today, just like NVIDIA Corporation (NASDAQ:NVDA), Apple Inc. (NASDAQ:AAPL), and Amazon.com, Inc. (NASDAQ:AMZN).

5. Extreme Networks, Inc. (NASDAQ:EXTR)

Number of Hedge Fund Holders: 36

14-day RSI as of March 13: 28.13

Extreme Networks, Inc. (NASDAQ:EXTR) is a communications equipment company based in Morrisville, North Carolina. The company provides software-driven networking solutions worldwide.

As of February 1, Needham analysts maintain a Buy rating and a $16.5 price target on Extreme Networks, Inc. (NASDAQ:EXTR).

In total, 36 hedge funds were long Extreme Networks, Inc. (NASDAQ:EXTR) in the fourth quarter, with a total stake value of $276.2 million.

Fred Alger Management mentioned Extreme Networks, Inc. (NASDAQ:EXTR) in its fourth-quarter 2023 investor letter:

“Extreme Networks, Inc. (NASDAQ:EXTR) specializes in comprehensive, cloud-native networking solutions, combining the design and production of network infrastructure equipment with its exclusive cloud management platform and a wide range of applications. We consider their Wi-Fi and switching equipment and software to be among the top choices for enterprises, managed efficiently over the cloud. Their latest offering, universal equipment, now integrates computing, security, and Al capabilities directly at the enterprise level. This expands their Total Addressable Market (TAM) significantly. During the quarter, the company reported strong fiscal first quarter results, where revenues beat analyst estimates, resulting in margin expansion and higher than expected free cash flow generation. However, management lowered their fiscal full year revenue guidance, citing macroeconomic weakness as enterprises continue to delay network upgrades. As a result, shares detracted from performance.”

4. Immunocore Holdings plc (NASDAQ:IMCR)

Number of Hedge Fund Holders: 22

14-day RSI as of March 13: 27.79

HC Wainwright & Co. analysts maintained a Buy rating and a $90 price target on Immunocore Holdings plc (NASDAQ:IMCR) on March 6.

Based in Abingdon, United Kingdom, Immunocore Holdings plc (NASDAQ:IMCR) is a commercial-stage biotech company. It develops immunotherapies to treat cancer and infectious and autoimmune diseases.

Immunocore Holdings plc (NASDAQ:IMCR) had 22 hedge funds long its stock in the fourth quarter, with a total stake value of $624.6 million.

3. The Bancorp, Inc. (NASDAQ:TBBK)

Number of Hedge Fund Holders: 23

14-day RSI as of March 13: 27.71

Our hedge fund data shows that in the fourth quarter, 23 hedge funds were long The Bancorp, Inc. (NASDAQ:TBBK), with a total stake value of $84.1 million.

The Bancorp, Inc. (NASDAQ:TBBK) is a regional banking company. It is the holding company of The Bancorp Bank, National Association, which provides banking products and services in the US.

An Outperform rating and a $52 price target were maintained on The Bancorp, Inc. (NASDAQ:TBBK) by analysts at Keefe, Bruyette & Woods on March 8.

2. ACADIA Pharmaceuticals Inc. (NASDAQ:ACAD)

Number of Hedge Fund Holders: 33

14-day RSI as of March 13: 27.4

Citigroup analysts maintained a Buy rating and a $30.19 price target on ACADIA Pharmaceuticals Inc. (NASDAQ:ACAD) on March 12.

There were 33 hedge funds long ACADIA Pharmaceuticals Inc. (NASDAQ:ACAD) in the fourth quarter, with a total stake value of $1.9 billion.

ACADIA Pharmaceuticals Inc. (NASDAQ:ACAD) is a biotech company. It develops innovative medicines for central nervous system disorders and rare diseases.

1. AN2 Therapeutics Inc. (NASDAQ:ANTX)

Number of Hedge Fund Holders: 17

14-day RSI as of March 13: 15.38

AN2 Therapeutics Inc. (NASDAQ:ANTX) is a pharmaceutical company. It develops treatments for rare, chronic, and serious infectious diseases.

In the fourth quarter, 17 hedge funds were long AN2 Therapeutics Inc. (NASDAQ:ANTX), with a total stake value of $252.1 million.

A Market Perform rating and a $7 price target were placed on AN2 Therapeutics Inc. (NASDAQ:ANTX) on February 13 by analysts at Leerink Partners.

See also 15 Best NASDAQ Dividend Stocks To Buy and 13 Best NASDAQ Penny Stocks To Invest In.

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Disclosure: None. 11 Oversold NASDAQ Stocks To Buy Right Now is originally published on Insider Monkey.