5 Oversold Software Stocks to Buy According to Wall Street Analysts

3. Wix.com Ltd. (NASDAQ:WIX)

Stock Upside: 89.72%

RSI: 27.74

Number of Hedge Fund Holders: 45

Wix.com Ltd. (NASDAQ:WIX) is one of the oversold software stocks to buy according to Wall Street analysts. On May 13, Scotiabank analyst Nat Schindler cut the firm’s price target on Wix.com Ltd. (NASDAQ:WIX) to $110 from $135 while keeping a Sector Outperform rating on the stock.

The move followed Wix’s Q1 2026 earnings release, which showed that bookings and revenue grew 15% and 14% year over year respectively. Analysts had expected the revenue to be around $530 million. On why the revenue grew, Wix’s executives explained that Base44, the no-code app-building platform the company acquired last year, drove about 46% of the growth in new user cohort bookings. Also, Wix Harmony, the company’s AI-powered website builder, boosted new user conversions to paid subscriptions and pushed users toward higher-tier plans.

However, the company’s reported diluted EPS of $0.68 versus the $1.22 consensus estimate. There was a $1.6 billion share buyback completed in early April, which caused a large one-time step-up in expenses. Wix also spent heavily on sales and marketing, including roughly $24 million on Super Bowl ads promoting Base44 and Wix Harmony. Also, the acquisition-related costs tied to Base44 added $37.9 million in one-time charges.

Schindler, the Scotiabank analyst, told investors that these Q1 results were in-line with expectations and that the selloff that followed the release was significantly overdone. His only concern is whether Wix can successfully absorb the high costs of building and scaling Base44 while keeping its core web-creation business healthy.

Wix.com Ltd. (NASDAQ:WIX) is a cloud-based software company that provides website development, e-commerce, and business management solutions for individuals and enterprises. Its platform enables users to create, manage, and scale websites through drag-and-drop design tools, AI-powered website creation features, payment processing, marketing applications, and online business services.