5 Oversold Stocks to Buy with Double-Digit ROE Growth

4. Tencent Music Entertainment Group (NYSE:TME)

Tencent Music Entertainment Group (NYSE:TME) is one of the 7 oversold stocks to buy with double-digit ROE growth.

On March 19, Barclays reduced the price target on Tencent Music Entertainment Group (NYSE:TME) from $28 to $20, which still yields a lucrative upside potential of more than 113% at the current level. The firm also maintained an Overweight rating on the stock.

Barclays pointed out that there is now more intense competition because of the presence of artificial intelligence-produced content availability on competing platforms. The firm expects the company to be on the defensive during fiscal 2026 amid such growing competition.

On March 18, Fawne Jiang from Benchmark downgraded the rating from Buy to Hold on Tencent Music Entertainment Group (NYSE:TME), while no change was made to the price target. Despite solid fourth-quarter financial results, the stock rating has been downgraded due to an increasingly uncertain outlook for fiscal year 2026.

Jiang noted that growing industry competitiveness will have a major impact on the growth of subscriptions overall. Furthermore, new structural issues are brought about by the quick changes in consumer consumption and content development brought about by artificial intelligence.

Tencent Music Entertainment Group (NYSE:TME) is an entertainment provider that offers online music, streaming, and virtual karaoke services. The company runs online music platforms that allow members to discover and share music, talk shows, audiobooks, podcasts, and other audio content.