7 Oversold Stocks to Buy with Double-Digit ROE Growth

In this article, we will look at oversold names that offer double-digit ROE growth for investors across sectors. On April 3, markets were affected by political concerns once more after President Trump indicated that the war with Iran would continue for some weeks, sending oil prices soaring and affecting the stocks. The Dow Jones fell by 61 points or 0.13%, while the S&P500 and Nasdaq had small increases of 0.11% and 0.18%, respectively.

During the trading hours, markets reacted favorably to the news reported by the Iranian state-run media that the country is engaged with Oman to establish protocols for monitoring vessels transiting through the Strait of Hormuz. According to Todd Schoenberger, Chief Investment Officer at CrossCheck Management, this carries importance not just because of the oil but also helium. He emphasized the importance of helium given its significance in the production of semiconductors, since there is no alternative to it. Schoenberger stated:

Currently in our own domestic economy, helium is more valuable than foreign oil because it’s used to cool the processing of semiconductors and there is no substitute for it.

The bottom line for investors in such an environment is evident. Geopolitical events will continue to fuel market fluctuations, and investors must play their cards accordingly. The coming few days are likely to be volatile for the market as it processes numerous events, with oil prices and chip shortages remaining key issues.

With that background, let’s explore our 7 Oversold Stocks to Buy With Double-Digit ROE Growth.

Our Methodology

To identify relevant stocks for this article, we conducted a sector-agnostic screening of U.S.-listed companies with market capitalizations above $2 billion, an RSI indicator below 30, and forward ROE growth greater than 10%.

Also, we only shortlisted stocks with at least 65% upside potential, according to analyst consensus as of the April 10 close. Finally, we selected 7 stocks with the highest upside and ranked them in ascending order.

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 498.7% since May 2014, beating its benchmark by 303 percentage points (see more details here).

7. Boston Scientific Corp. (NYSE:BSX)

Boston Scientific Corp. (NYSE:BSX) is one of the 7 oversold stocks to buy with double-digit ROE growth.

On April 7, Joanne Wuensch from Citi reduced the price target on Boston Scientific Corp. from $98 to $87 while maintaining a Buy rating on the stock. This implies an adjusted upside potential of more than 40% despite the downward revision in price target.

Joanne noted that the medical technology segment is currently facing several compressions because of the uncertainties involved. Consequently, as part of the first quarter earnings preview, the firm revised its estimates across the group.

On March 30, Boston Scientific Corp. and Penumbra Inc. (NYSE:PEN) announced an updated regulatory timeline concerning their proposed corporate merger. Previously, both organizations submitted initial notification documents to both the FTC and the DOJ under the HSR Act on February 13.

The intervention prolongs the mandatory waiting period until 30 days after the organizations substantially satisfy all compliance demands, unless the parties voluntarily extend the timeline or regulators finish the evaluation early. Executive leadership expects to respond promptly while actively cooperating with federal authorities.

Boston Scientific Corp. specializes in medical devices for interventional specialties such as cardiovascular, endo-surgery, and neuro-modulation. The company operates through MedSurg and Cardiovascular segments, and offers a range of devices, including biliary stent systems, electrocautery enhanced delivery systems, direct visualization systems, and single-use duodeno-scopes.

6. Blue Owl Capital Inc. (NYSE:OWL)

Blue Owl Capital Inc. (NYSE:OWL) is one of the 7 oversold stocks to buy with double-digit ROE growth.

On April 7, Piper Sandler reduced the price target on Blue Owl Capital Inc. from $15 to $12.50 while maintaining an Overweight rating on the stock. The firm pointed out that the asset management segment experienced a tough beginning in 2026 compared to both the market and the finance industry.

This stems from increased pressure on private credit, redemption from direct lending wealth products, weak equities, and poor capital market visibility due to uncertainty and the Iran situation. While these macroeconomic factors will not vanish immediately, Piper thinks that catastrophic downsides are fully priced in much of its coverage universe.

On April 2, Blue Owl Capital Inc. announced increased requests for shareholder redemptions in two private credit portfolios in the first quarter. Withdrawal queries totaling 21.9% of outstanding shares were received by the firm’s flagship OCIC fund, which manages about $36 billion.

Concurrently, demand for withdrawals from the smaller technology-focused portfolio has risen to 40.7%. According to Jefferies, software enterprises account for approximately 20% of the overall portfolio of business development companies. What’s causing this withdrawal activity is the market’s increased anxiety over AI’s ability to upend the software sector. Due to the mandated 5% withdrawal limitations and robust gross inflows, there were relatively minor net outflows at the current level.

Blue Owl Capital Inc. is an alternative asset manager that offers capital solutions to mid-market companies. With an emphasis on credit, real assets, and GP strategic capital, it provides private financing, direct lending, opportunistic lending, equity financing, and leasing solutions. It is well-reputed for delivering a differentiated route to private markets and secular growth trends.

5. Insulet Corp. (NASDAQ:PODD)

Insulet Corp. (NASDAQ:PODD) is one of the 7 oversold stocks to buy with double-digit ROE growth.

On April 6, Evercore ISI reduced the price target on Insulet Corp. from $340 to $240, while maintaining an Outperform rating on the stock. Despite the downward revision to the target price, the stock still offers an adjusted upside of over 21% at the prevailing level.

The adjustment is part of the firm’s broader revisions across medical technologies and life science tools segments, in line with the first-quarter earnings preview.

Back on March 13, Insulet Corp. announced a voluntary medical device correction for specific Omnipod 5 batches distributed within the United States. This crucial safety measure comes on the back of a manufacturing flaw that involved ripped internal insulin delivery tubing. This structural damage causes the drug to leak internally rather than enter the body properly. It significantly increases the risk of fatal diabetic ketoacidosis and extremely high blood glucose levels.

The company confirmed 18 serious adverse events resulting in hospitalization, none of which were fatal. Additionally, the company has explained that this particular anomaly, which affects about 1.5% of yearly global production, has no effect whatsoever on continuous glucose monitoring devices. To ensure that new patients start and uninterrupted customer shipments continue to be fully supported at the current level, management successfully adjusted quality control processes to prevent repeat incidents.

Insulet Corp. focuses on manufacturing and selling insulin management systems through the Omnipod platform. It offers a disposable tubeless pump called Omnipod Insulin Management System, whose design is specific to insulin-dependent diabetes. The company’s strategy revolves around high-volume automated manufacturing in the US and Malaysia, and contract manufacturing in China.

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 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, 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 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.

3. Pony AI Inc. (NASDAQ:PONY)

Pony AI Inc. (NASDAQ:PONY) is one of the 7 oversold stocks to buy with double-digit ROE growth.

On April 8, Pony AI Inc. revealed that their robotaxi services in collaboration with Verne and Uber Technologies Inc. (NYSE:UBER) had kicked off commercially in Zagreb, Croatia. It represents the first commercial operation in Europe involving robotaxis, and customers can book and make payments for these services using the Verne app.

It is also possible to book these rides through the Uber app. The current operational coverage is approximately 90 square kilometers within important parts of Croatia’s capital, such as Zagreb Airport, and will soon extend across the whole city.

Earlier on April 7, Pony AI Inc. revealed that the company’s autonomous mobility solution, which was run with the cooperation of ComfortDelGro in Singapore, got the green light to start by-invite rides, marking the beginning of the final stage before opening to public usage.

The development marks progress in the company’s dual-engine growth model, which entails expanding the autonomous mobility solution in China as well as in other countries. The 12-kilometer-long route is operational in northeast Punggol and connects the residents of Punggol Northshore and Waterway Sunrise to facilities such as Oasis Terraces, Punggol Plaza, One Punggol, and Punggol Coast Mall while giving them access to the Punggol Coast MRT station and bus interchange.

Pony AI Inc. is involved in the autonomous mobility sector. It provides several services for AV, which include software deployment, vehicle engineering, and more. It also offers logistics platforms with transportation services, along with licensing and applications business that includes personally owned vehicle intelligent solutions, data analytics tools, and more.

2. Doximity Inc. (NYSE:DOCS)

Doximity Inc. (NYSE:DOCS) is one of the 7 oversold stocks to buy with double-digit ROE growth.

On April 8, Elizabeth Anderson from Evercore ISI downgraded Doximity Inc. to In Line from Outperform with a price target from $30 to $25. The reasons for the downgrade, as highlighted by the analyst, included lower-than-expected forecasted growth in the market for 2026, competitive risk, and a fair valuation.

Anderson further stated that there has been low organic growth in the high single digits in Doximity’s fiscal year 2026 due to a decline in pharmaceutical advertising, which has not kept pace with R&D spend.

On March 17, Doximity Inc. issued a detailed report examining how medical professionals throughout the United States are integrating AI into clinical practice. This report is the result of extensive research conducted between March 2025 and January 2026 with 3151 physicians from 15 different specialties.

According to the research, 94% of physicians either use these cutting-edge solutions now or are strongly inclined towards using them. Furthermore, 71% of practitioners stated that their primary operational concerns were accuracy and reliability. According to management, in order to successfully reduce administrative expenses, improve employee satisfaction, and increase direct patient care time at the existing level, strong physician engagement and transparent development are required.

Doximity Inc. is a digital platform offering online networking services to healthcare and medical professionals. The company has an extensive network currently covering around 80% of U.S.-based physicians. Their AI-powered application helps in efficient HIPAA-compliant communication among healthcare professionals.

1. Compass Inc. (NYSE:COMP)

Compass Inc. (NYSE:COMP) is one of the 7 oversold stocks to buy with double-digit ROE growth.

On April 8, Matthew Bouley from Barclays reduced the price target on Compass Inc. from $15 to $12 while maintaining the Overweight rating. This downward revision came after the first quarter earnings preview that included target adjustments across the homebuilding and building goods industry.

The analyst believes that material producers and distributors that possess clear pricing power in addition to vertical integration are highly favored at present. On the other hand, experts urge investors to stay away from residential construction stocks since 2026 appears to be a poor year for the whole sector.

On April 6, S&P Global Ratings placed a B+ rating on Compass Inc. after the company’s takeover of Anywhere Real Estate Inc. This all-stock deal involves Compass assuming about $2.6 billion of Anywhere’s debt. The company also issued $1 billion in convertible notes for debt repayments and to cover integration expenses.

The merger makes Compass the top residential brokerage in the US, with an 18% market share and a much larger presence in all fifty states. The stable outlook for the stock is based on the expectation that Compass will achieve integration synergies, preserve its agent base, and bring its leverage down to under 5x in the next year.

Compass Inc. is a technology-led residential real estate brokerage firm. It operates mobile apps and online platforms such as CIRE and Compass to deliver services such as cloud-based CRM, marketing, client service, and title & settlement services. It also enables consumer-grade user interfaces, insightful dashboards, and reporting.

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