8 Most Oversold Large Cap Stocks to Buy

In this article, we will be taking a look at the 8 Most Oversold Large Cap Stocks to Buy.

Investors are increasingly focusing on identifying better entry points in high-quality companies that may have lost popularity rather than mindlessly pursuing market leaders following a robust run in stocks. Stock selection and price discipline are becoming more important in predicting future returns as valuation expansion becomes more difficult to maintain. In this context, the crucial question is whether the selloff has caused a gap between price and long-term fundamentals, rather than whether a stock has just dropped.

In institutional critique, this overarching idea is becoming increasingly apparent. According to J.P. Morgan Asset Management, many of its best prospects are currently found in “out-of-favor quality stocks,” implying that mispriced laggards rather than the market’s greatest winners may provide future gains. Additionally, Franklin Templeton has stressed that sporadic declines are a typical aspect of market cycles and can present chances to acquire solid companies at more appealing prices. In a similar vein, Fidelity Investments contends that rather than responding emotionally to transient weakness, volatility might offer investors the opportunity to purchase high-quality equities at reduced rates.

When considered together, the main asset managers’ message is generally consistent. Particularly in a more selective investing environment, market weakness is insufficient justification for purchasing a stock. For patient investors, however, brief declines in businesses with strong fundamentals, strong earnings potential, and long-term growth drivers could present alluring prospects. Finding undervalued quality brands may become increasingly important in producing returns in the future as wider market gains grow more difficult to get.

With that said, let’s take a look at the most oversold stocks.

Our Methodology

For our methodology, we screened for large-cap stocks with market capitalizations between $10 billion and $200 billion and an RSI below 35. From this list, we selected companies with the most recent news and developments and ranked them based on their RSI values.

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).

Here is our list of the 8 most oversold large-cap stocks to buy.

8. Arthur J. Gallagher & Co. (NYSE:AJG)

RSI Value: 33.38

Market Capitalization: $51.10 billion

Arthur J. Gallagher & Co. (NYSE:AJG) is one of the most oversold stocks.

TheFly reported on May 7 that AJG saw its valuation outlook adjusted as Morgan Stanley reduced the price target to $265 from $275 while maintaining an Overweight rating on the stock.

In recent news, on May 11, Arthur J. Gallagher & Co. (NYSE:AJG) announced that its subsidiary Gallagher Bassett, which provides claims and risk management services, has acquired Mays Brown Limited, also known as Mays Brown Solicitors, based in London, United Kingdom. The financial terms of the transaction were not disclosed. Mays Brown Solicitors is a specialized boutique law firm focused on shipping and maritime legal services.

Its client base includes shipowners, vessel operators, charterers, protection and indemnity (P&I) clubs, insurers, and shipyards serving global maritime operations. The acquisition expands Gallagher Bassett’s legal and risk management capabilities within the marine and shipping sector, strengthening its service offerings for international clients in a highly specialized area of insurance and maritime law.

Arthur J. Gallagher & Co. (NYSE:AJG) is a global insurance brokerage and risk management firm based in Rolling Meadows. It provides insurance, consulting, and claims services for commercial, industrial, and public sector clients worldwide.

7. GFL Environmental Inc. (NYSE:GFL)

RSI Value: 32.85

Market Capitalization: $13.27 billion

GFL Environmental Inc. (NYSE:GFL) is among the most oversold stocks.

TheFly reported on May 4 that GFL had its valuation outlook adjusted as Scotiabank reduced its price target to $52 from $56 while maintaining an Outperform rating on the stock. The revision reflects updates to the firm’s valuation model in connection with the expected acquisition of SECURE Waste Infrastructure, which is being incorporated into its outlook for the company’s future performance and earnings profile.

In addition to that, earlier on April 29, GFL Environmental Inc. (NYSE:GFL) reported its first quarter 2026 financial performance along with updated full-year guidance. Revenue for the quarter reached $1.64 billion, reflecting 5.4% growth, supported by strong core pricing contributions. Adjusted EBITDA rose 12.3% to $478.5 million, with margins improving year over year to 29.1%, indicating stronger operational efficiency.

The company reported a net loss from continuing operations of $219.2 million, slightly wider than the prior-year period, while adjusted free cash flow was negative $24.3 million. Separately, GFL raised its full-year 2026 outlook, increasing expected revenue to approximately $7.32–$7.34 billion, driven primarily by completed acquisitions. Adjusted EBITDA and free cash flow guidance were also revised upward, while capital expenditure and interest expectations were maintained. The update reflects incremental contributions from recent acquisitions while keeping underlying assumptions unchanged.

GFL Environmental Inc. (NYSE:GFL) is a North American environmental services company based in Vaughan. It provides waste management, recycling, and environmental services across Canada and the U.S., serving millions of residential and commercial customers.

6. Lockheed Martin Corporation (NYSE:LMT)

RSI Value: 30.07

Market Capitalization: $116.78 billion

Lockheed Martin Corporation (NYSE:LMT) is one of the most oversold stocks on this list.

TheFly reported on April 26 that LMT saw its valuation outlook revised as Jefferies reduced its price target to $595 from $640 while maintaining a Hold rating on the stock. The firm noted that the company’s first quarter performance was in line with expectations, describing results as broadly as anticipated.

Separately, in recent news, on May 8, Lockheed Martin Corporation (NYSE:LMT) received a $407.16 million contract modification under the Aegis Ballistic Missile Defense Weapon Systems program, awarded through the Missile Defense Agency. The modification continues ongoing engineering, development, and certification work focused on integrating advanced air and missile defense capabilities into the Aegis BMD system, including applications for the Aegis Guam configuration.

The effort will be carried out in Moorestown, New Jersey, and Guam, with performance extending through December 2029. Initial funding includes allocations from fiscal 2026 research, development, testing, evaluation, and procurement budgets. The adjustment increases the overall contract value from approximately $1.53 billion to $1.94 billion, reflecting expanded scope and continued investment in missile defense system enhancement and deployment capabilities.

Lockheed Martin Corporation (NYSE:LMT) is a global aerospace and defense company based in Bethesda. It develops advanced defense systems and aircraft, including the F-35 Lightning II.

5. Insulet Corporation (NASDAQ:PODD)

RSI Value: 28.87

Market Capitalization: $10.68 billion

Insulet Corporation (NASDAQ:PODD) is one of the most oversold stocks.

TheFly reported on May 7 that PODD saw its valuation outlook revised as Goldman Sachs reduced its price target to $237 from $277 while maintaining a Buy rating on the shares. The firm noted that the company’s first-quarter results and updated guidance initially appeared strong, but concerns emerged regarding the growth trajectory after second-quarter U.S. revenue guidance came in below full-year expectations, and annual targets were only reiterated despite a first-quarter beat. Management also attributed the slower-than-expected start to the year to stronger seasonality effects linked to insurance deductible resets, which impacted early demand trends.

Moreover, earlier, on May 4, Insulet Corporation (NASDAQ:PODD) reported the enrollment of the first participant in its EVOLVE study evaluating a fully closed-loop automated insulin delivery system for individuals with type 2 diabetes. The study represents an important step in advancing next-generation diabetes management technology. The system is designed to automatically adjust insulin dosing through an advanced algorithm trained on both real-world and simulated patient data, aiming to improve safety and glucose control while reducing the burden on patients and healthcare providers. The development reflects PODD’s continued focus on innovation in diabetes care solutions.

Insulet Corporation (NASDAQ:PODD) is a medical device company based in Acton. It develops the Omnipod tubeless insulin delivery system, including Omnipod 5, which helps people with diabetes manage insulin more easily and effectively.

4. L3Harris Technologies, Inc. (NYSE:LHX)

RSI Value: 26.90

Market Capitalization: $55.82 billion

L3 Harris Technologies, Inc. (NYSE:LHX) is among the most oversold stocks.

TheFly reported on May 4 that LHX saw its valuation outlook adjusted as Bernstein reduced the price target to $405 from $435 while maintaining an Outperform rating on the shares. The revision came after the company’s April 30 first-quarter earnings release, which exceeded expectations on both earnings and revenue. Earnings per share came in at $2.72 compared with consensus estimates of $2.53, while revenue reached $5.7 billion versus expected $5.4 billion.

On April 30, L3 Harris Technologies, Inc. (NYSE:LHX) disclosed that it has confidentially filed a draft Form S-1 registration statement with the U.S. Securities and Exchange Commission. The filing relates to a potential initial public offering of common stock for its missile solutions business segment. Key details such as the number of shares to be offered and the expected price range have not yet been determined.

The company noted that the proposed offering remains subject to market conditions, regulatory review, and completion of the SEC review process. The move represents an early step in evaluating a possible separation or public listing of the business unit, depending on future approvals and market environment.

L3 Harris Technologies, Inc. (NYSE:LHX) is a U.S. aerospace and defense company based in Melbourne. It provides communication, surveillance, electronic warfare, and mission systems across air, land, sea, and space for government and commercial customers.

3. Brown & Brown, Inc. (NYSE:BRO)

RSI Value: 26.23

Market Capitalization: $19.13 billion

Brown & Brown, Inc. (NYSE:BRO) is among the best oversold stocks to invest in.

TheFly reported on May 7 that BRO was upgraded by Citigroup from Neutral to Buy, while the price target remained unchanged at $70. The firm also raised its outlook on several insurance brokerage companies, pointing to valuation as the primary driver behind the change. It noted that current cyclical pressures affecting growth are expected to moderate over the coming quarters, which could create broader upside potential across the sector as conditions normalize and support improved investor returns.

Separately, earlier, on April 28, Brown & Brown, Inc. (NYSE:BRO) reported first-quarter results showing earnings per share of $1.39, slightly above analyst expectations of $1.36. Revenue for the quarter came in at $1.90 billion, also modestly ahead of consensus estimates of $1.89 billion. Management highlighted that employees continued to support clients effectively despite a challenging environment for growth across the insurance sector. The results reflected steady operational performance, with both top and bottom line figures exceeding market forecasts, indicating resilience in the company’s core brokerage operations during the period.

Brown & Brown, Inc. (NYSE:BRO) is a global insurance brokerage based in Daytona Beach. It provides insurance, reinsurance, and risk management solutions for businesses, governments, and individuals through a decentralized network of offices worldwide.

2. Stryker Corporation (NYSE:SYK)

RSI Value: 22.06

Market Capitalization: $109.33 billion

Stryker Corporation (NYSE:SYK) is one of the most oversold stocks to invest in.

TheFly reported on May 4 that SYK saw its valuation outlook revised as Truist reduced the price target to $330 from $380 while maintaining a Hold rating on the stock. The adjustment followed updates to the firm’s financial model after the company’s first quarter results. The revision also reflected disruptions from a cyber-related incident in the first quarter, which affected the timing and flow of earnings. Additionally, the lowered target incorporated broader valuation pressure, with reduced multiples across large-cap medical technology peers contributing to the updated outlook for the stock.

Moreover, previously, on April 30, Stryker Corporation (NYSE:SYK) reaffirmed its fiscal 2026 outlook, keeping adjusted earnings per share guidance in the range of $14.90 to $15.10, slightly above consensus expectations. The company also maintained its projection for organic net sales growth between 8.0% and 9.5%, supported by modestly positive pricing trends. Management noted that foreign exchange is expected to provide a slight tailwind to both revenue and adjusted earnings per share, assuming current currency levels persist, indicating stable operational expectations for the year ahead.

Stryker Corporation (NYSE:SYK) is a global medical technology company based in Portage. It develops products in orthopaedics, surgical equipment, and neurotechnology, serving patients worldwide with innovative healthcare solutions.

1. Alcon Inc. (NYSE:ALC)

RSI Value: 21.89

Market Capitalization: $30.77 billion

Alcon Inc. (NYSE:ALC) is one of the most oversold stocks on this list.

TheFly reported on May 8 that ALC saw its valuation outlook revised as Barclays reduced the price target to $78 from $90 while reiterating an Equal Weight rating on the shares.

Separately, on May 5, Alcon Inc. (NYSE:ALC) reported its first-quarter 2026 performance, showing strong underlying momentum across its eye care portfolio. Sales reached $2.7 billion, increasing 10% on a reported basis and 6% in constant currency compared with the prior year period. Growth was supported by new product launches in both surgical and vision care segments, including advanced intraocular lens platforms and contact lens innovations, along with strength in dry eye treatments.

The corporation’s core operating income rose year over year, reflecting improved efficiency and higher sales volumes, although reported operating income declined due to investments in new product commercialization, tariffs, and restructuring-related costs. Core earnings per share increased to $0.85, while reported EPS was $0.39, affected by prior-year investment gains. Cash generation remained stable, with operating cash flow improving modestly. The company also maintained shareholder returns through a dividend and authorized a new $1.5 billion share repurchase program.

Alcon Inc. (NYSE:ALC) is a global eye care company based in Geneva and the world’s largest in ophthalmic devices. It provides surgical and vision care products for conditions like cataracts, glaucoma, and retinal diseases, serving patients in over 140 countries.

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