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. 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. 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. 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. 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.
6. Donnelley Financial Solutions, Inc. (NYSE:DFIN)
Stock Upside: 59.6%
RSI: 25.11
Number of Hedge Fund Holders: 22
Donnelley Financial Solutions, Inc. (NYSE:DFIN) is one of the oversold software stocks to buy according to Wall Street analysts. On May 5, Donnelley Financial Solutions, Inc. reported its first-quarter 2026 financial results, where it posted total revenue of $205.5 million, up 2.2% year over year. The revenue growth was powered mainly by the company’s software solutions segment, which brought in $91.7 million, an 8.4% year over year. Management said on the earnings call that this segment now accounts for 44.6% of total revenue, up from 42.1% a year earlier.
The company said that the standout performer within the software solutions segment was ActiveDisclosure. ActiveDisclosure is Donnelley’s financial reporting and compliance platform, which grew approximately 21% year over year.
The quarter’s adjusted EPS came in at $1.45, as compared to $1.24 in Q1 2025. According to David A. Gardella, the company’s Executive VP and CFO, the improvement was driven by the growing share of higher-margin software revenue and permanent reductions in the company’s cost structure. These two expanded the company’s adjusted EBITDA margin by 50 basis points year over year to 34.4%.
The Board of Directors found these results to be good enough to support a new $150 million share repurchase program. This program replaced the prior authorization that had $25.5 million remaining. During Q1, the company bought back approximately 595,000 shares for $28.3 million at an average price of $47.58 per share.
Donnelley Financial Solutions, Inc. is a financial software and regulatory compliance company. It provides cloud-based and technology-enabled solutions for capital markets transactions, investment reporting, and regulatory filings. Its platform supports public and private companies, investment firms, and financial institutions with SEC filings, earnings reports, virtual data rooms, and compliance management tools.
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. 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. 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. 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. 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. 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. 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. 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. 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.
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