In this article, we will list the 5 Oversold Software Stocks to Buy According to Wall Street Analysts. Please visit 8 Oversold Software Stocks to Buy According to Wall Street Analysts if you would like to see the extended list and the methodology behind it.
5. Intellicheck, Inc. (NASDAQ:IDN)
Stock Upside: 64.11%
RSI: 22.83
Number of Hedge Fund Holders: 12
Intellicheck, Inc. (NASDAQ:IDN) is one of the oversold software stocks to buy according to Wall Street analysts. On May 12, Intellicheck, Inc. (NASDAQ:IDN) announced its Q1 2026 financial results, reporting record quarterly revenue of $5.52 million, up 13% year over year. Virtually all of that revenue, $5.51 million, came from SaaS subscriptions, also up 13% year over year.
Adam Sragovicz, the CFO, said on the earnings call that this growth in SaaS revenue underscores how thoroughly the company has transitioned to a recurring revenue model built around its identity verification platform. The platform, which processes identity transactions for close to half the adult population in the US and Canada annually, uses a proprietary analysis of DMV-issued IDs to authenticate identities in under a second with 99.975% accuracy, noted management.
Intellicheck posted diluted EPS of $0.03 for the quarter, which is a substantial swing from the $0.02 loss per share recorded in Q1 2025. Net income came in at $636,000, a flip from a net loss of $318,000 in the same quarter last year. The CFO said that this turnaround was driven by higher revenue and a 5.4% reduction in operating expenses.
CEO Bryan Lewis framed the results as confirmation of an inflection point the company has been working toward. In other words, the business has now reached a size where each additional dollar of revenue flows significantly to the bottom line, rather than being absorbed by fixed costs.
Intellicheck, Inc. (NASDAQ:IDN) is a software and identity verification company. It develops authentication solutions for fraud prevention, age verification, and customer identity validation.
4. nCino, Inc. (NASDAQ:NCNO)
Stock Upside: 64.27%
RSI: 29.34
Number of Hedge Fund Holders: 47
nCino, Inc. (NASDAQ:NCNO) is one of the oversold software stocks to buy according to Wall Street analysts. On May 7, nCino, Inc. (NASDAQ:NCNO) announced that Vision Credit Union, Alberta’s second-largest credit union, had selected the company’s platform to modernize its agricultural and commercial lending operations.
nCino said the credit union had selected the company’s Commercial Lending, Banking Advisor, and Automated Spreading products. It added that the credit union made the choice because agricultural and commercial loans make up nearly 70% of Vision’s loan portfolio. The credit union believes that nCino’s products will make their lending operations efficient and intelligent, said nCino.
To be specific, the Commercial Lending solution will take over Vision’s existing lending workflows end-to-end. It will replace what had been largely manual, paper-heavy processes. The Banking Advisor platform, on the other hand, will surface real-time recommendations and insights directly within lenders’ workflows at the moment decisions are being made. Vision anticipates that this platform will cut down the time staff spend digging for information and freeing them to focus on client engagement. Lastly, Vision will leverage the Automated Spreading product to allow its agricultural specialists to extract accurate, usable data from financial documents faster.
Vision’s CEO Dan Hautzinger commented on the deal and stated that its lending staff work embedded in rural communities and farm operations across Alberta. As such, the credit union’s competitive advantage lies in those deep personal relationships, and that nCino is meant to remove the administrative burden so lenders can spend more time on those relationships.
nCino, Inc. (NASDAQ:NCNO) is a cloud software company that provides banking and financial services institutions with digital solutions for loan origination, account opening, compliance, and customer relationship management. Its software helps banks and credit unions automate workflows, improve operational efficiency, and manage lending processes through a unified cloud-based system.
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.
2. StoneCo Ltd. (NASDAQ:STNE)
Stock Upside: 106.24%
RSI: 29.27
Number of Hedge Fund Holders: 24
StoneCo Ltd. (NASDAQ:STNE) is one of the oversold software stocks to buy according to Wall Street analysts. On May 14, StoneCo Ltd. (NASDAQ:STNE) shared its Q1 2026 results, reporting that total revenue rose 6.5% year over year to R$3.58 billion (about $679 million), which exceeded the R$3.55 billion that analysts expected. Adjusted EPS reached R$2.19, which although grew 15% year over year, it fell short of the R$2.28 consensus estimate.
StoneCo stated that the revenue growth was driven primarily by its expanding credit business. The business generated R$297 million in credit revenues, up 25% quarter on quarter and 186% year on year. Healthy profitability in payments also contributed, noted StoneCo. It added that these gains more than offset a planned decline in deposit floating revenues, which the company had already begun redirecting as a lower-cost funding source in early 2025.
However, the company noted that the credit growth meant that provisions for credit losses surged and pushed the cost of risk to 21.9%. It also compressed the adjusted gross profit margin from 44.4% in Q1 2025 to 41.6% this quarter.
Because of this performance, StoneCo’s Board of Directors approved the payment of an extraordinary cash dividend of $2.53 per share. Only holders of Class A and Class B shares were eligible for the payment, which the company disbursed on May 4.
StoneCo Ltd. (NASDAQ:STNE) is a financial technology and software company. It provides payment processing, digital banking, and business management solutions for merchants in Brazil.
1. NIQ Global Intelligence plc (NYSE:NIQ)
Stock Upside: 143.90%
RSI: 27.35
Number of Hedge Fund Holders: 26
NIQ Global Intelligence plc (NYSE:NIQ) is one of the oversold software stocks to buy according to Wall Street analysts. On May 14, Stifel acknowledged that NIQ Global Intelligence plc (NYSE:NIQ) reported Q1 2026 results that beat its own guidance across revenue, adjusted EBITDA, and adjusted EPS.
NIQ’s total revenue came in at $1.07 billion for the quarter, up 11.1% year over year, and above the $1.05 billion analysts had expected. If you strip out the impact of acquisitions and foreign exchange movements, the revenue grew 5.1%. Adjusted EBITDA was $224.8 million, up 19.1% year over year, and margins expanded by 150 basis points to 21.0%. Adjusted EPS came in at $0.15, well above the consensus estimate of $0.05.
The company also said in the report that it landed 17 seven-figure client wins during the quarter. These span renewals, upsells, and competitive wins, which the company cited as evidence that its integrated data capabilities and client relationships are resonating in a competitive market.
However, these results were not sufficient to convince Stifel not to cut its price target on the stock. Stifel trimmed the target from $20 to $16 and maintained a Buy rating. The firm stated that it has concerns over NIQ’s sequential revenue growth, which actually decelerated in the Intelligence segment. Stifel added that it is concerned that AI represents a long-term disruption risk to the traditional consumer intelligence and data subscription business model.
NIQ Global Intelligence plc (NYSE:NIQ) is a consumer intelligence and analytics software company. It provides data measurement, market research, and AI-driven insights to retailers and consumer packaged goods companies worldwide.
While we acknowledge the potential of NIQ 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 NIQ and that has 100x upside potential, check out our report about the cheapest AI stock.
READ NEXT: Billionaire Steve Cohen’s 10 Large-Cap Stock Picks with Highest Upside Potential and 12 Best Uranium Stocks to Buy According to Wall Street Analysts.
Disclosure: None. Insider Monkey focuses on uncovering the best investment ideas of hedge funds and insiders. Please subscribe to our free daily e-newsletter to get the latest investment ideas from hedge funds’ investor letters by entering your email below.
