In this article, we will discuss the 8 Oversold Software Stocks to Buy According to Wall Street Analysts.
Orlando Bravo, founder and managing partner of Thoma Bravo, sat down with CNBC’s Scott Wapner at his first-ever Sohn Conference appearance on May 12 to share his thoughts on a number of topics, including those touching the software industry. Wapner opened by asking Bravo whether software stocks have hit a bottom, given that they were on a four-week rebound going into the interview. Bravo was careful not to predict the market, but stated that the worst is over for software stocks.
“I really think so… many of them are great leaders, in an excellent position for this AI wave, and they’re pretty cheap. I do think we’re pretty close to a bottom,” he said.
His remarks came on the heels of one of the most severe selloffs the sector has endured in recent memory. On February 3, as fears mounted that emerging agentic artificial-intelligence tools would erode the business models of established software vendors, public software companies shed $300 billion in market value in a single session.
By mid-February, the North American Tech Software Index had declined roughly 30% from its September 2025 peak, according to data from S&P Capital IQ. A Jefferies note published in early February found that approximately 73% of software stocks had crossed into oversold territory, which was the highest reading the firm had ever recorded.
Even so, the same Jefferies analysts argued that the selloff was overblown. For Morgan Stanley’s Keith Weiss, the selloff was a moment of peak uncertainty. Weiss argued that the market’s bearish attitude towards software stocks deeply underestimates the ability of incumbent software vendors to participate in the current AI innovation cycle. In fact, Weiss pointed out, generative AI could add approximately $400 billion to the broader enterprise software total addressable market by 2028.
With that backdrop in mind, this article identifies 8 oversold software stocks that Wall Street analysts believe are well-positioned to capitalize on this recovery.
Our Methodology
To create this list, we used Finviz and Yahoo Finance screeners to shortlist US-listed software companies. We filtered for names with a Relative Strength Index (RSI) below 30 and ensured that the stocks had at least 30% upside potential based on consensus analyst price targets as of May 15. We also considered the hedge fund sentiment around each stock as of Q4 2025. This list is presented in ascending order by stock upside.
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).
Oversold Software Stocks to Buy According to Wall Street Analysts
8. EVERTEC, Inc. (NYSE:EVTC)
Stock Upside: 32.54%
RSI: 29.05
Number of Hedge Fund Holders: 27
EVERTEC, Inc. (NYSE:EVTC) is one of the oversold software stocks to buy according to Wall Street analysts. On May 6, EVERTEC, Inc. (NYSE:EVTC) reported Q1 2026 results, with total revenue rising 8% year over year to $247.9 million and exceeding consensus estimates by 3.47%. Mac Schuessler, President and CEO of the company, said that the revenue growth came on the back of organic growth across most of the company’s business segments and the full-quarter revenue contribution from Tecnobank. EVERTEC acquired Tecnobank in October last year.
Schuessler added that Latin America posted standout numbers, with segment revenue surging 32% year over year on a reported basis to $110.3 million. This jump was helped by Tecnobank, a reacceleration in Brazil, and a $6.8 million foreign exchange tailwind from the appreciation of the Brazilian real.
However, this growth was partially offset by the Business Solutions segment, whose revenue fell 9% to $59.5 million. The reason for this decline, according to Karla Cruz-Jusino, the CFO, was a 10% price discount that EVERTEC had agreed to give to Popular, Inc., its largest client. The discount took effect in Q4 2025. Another reason, as per the CFO, was the absence of a one-time hardware and software sale that had boosted Q1 2025.
The earnings aside, EVERTEC disclosed that it closed the Dimensa acquisition on April 30, 2026. This transaction cost EVERTEC about R$981 million (roughly $181 million). Dimensa is a B2B financial software provider serving over 15,000 financial institutions in Brazil. It has dominant positions in insurance, about 65% market share, and risk management, which are two verticals where EVERTEC had no prior presence.
EVERTEC, Inc. (NYSE:EVTC) is a financial technology and software company. It provides electronic payment processing, business solutions, and transaction management services across Latin America and the Caribbean.
7. ZoomInfo Technologies Inc. (NASDAQ:GTM)
Stock Upside: 51.28%
RSI: 23.26
Number of Hedge Fund Holders: 43
ZoomInfo Technologies Inc. (NASDAQ:GTM) is one of the oversold software stocks to buy according to Wall Street analysts. On May 13, Mizuho downgraded ZoomInfo Technologies Inc. (NASDAQ:GTM) from Neutral to Underperform and slashed its price target from $10 to $3. The firm cited ZoomInfo’s deteriorating revenue outlook and the growing risks tied to its business model overhaul.
The downgrade was a response to ZoomInfo’s Q1 2026 financial report, which came out on May 11. In the earnings report, ZoomInfo said that revenue reached $310.2 million, a 1.5% increase year over year. The growth came from the ongoing shift in how the company prices and packages its products.
ZoomInfo’s adjusted earnings per share for the quarter was $0.28, which was well ahead of the $0.26 consensus estimate. Management said during the earnings call that this beat was driven in large part by disciplined cost management. The strategy pushed the adjusted operating margin up 240 basis points year over year to 35%.
Despite the assuring performance, ZoomInfo’s management cut the company’s full-year 2026 revenue outlook to $1.185-$1.205 billion. They had previously guided for $1.247-$1.267 billion. This downward revision was one of the reasons Mizuho downgraded the stock, although the core concern was ZoomInfo’s plan to shift from a subscription-based pricing model to one based on consumption. Mizuho said it views this shift as a path forward, but the analysts are worried that revenue from the new model may not grow fast enough to replace the revenue being lost as customers cancel their existing subscriptions.
ZoomInfo Technologies Inc. (NASDAQ:GTM) is a software and data intelligence company. It provides sales, marketing, recruiting, and operations teams with cloud-based go-to-market intelligence platforms. Its products use artificial intelligence, automation, and proprietary business databases to help enterprises identify prospects, generate leads, and improve customer engagement.
