We recently published a list of 12 Most Oversold Large Cap Stocks to Invest in Now. In this article, we are going to take a look at where T. Rowe Price Group, Inc. (NASDAQ:TROW) stands against other most oversold large cap stocks to invest in now.
Impact of Tariff Uncertainty on Wall Street and the Future of US Stocks
Wall Street is being impacted by the uncertainty surrounding the tariff news. The broader has dropped a lot since Trump took office on January 20, and investors are mostly worried about tariffs because they think they could hurt economic growth and cause inflation. Investors think trade policies can reduce consumer confidence and restrict businesses’ ability to invest capital, while Trump believes tariffs can boost national revenue, promote broad-based growth, and be used as a negotiation weapon with other nations.
According to Franklin Templeton, the Magnificent Seven’s supremacy in AI has allowed US stocks to generate significant returns over the last few years, with the broader market frequently hitting all-time highs. The outlook for the market as a whole is favorable, notwithstanding high valuations. Sales growth has been accelerating, innovation and investment are still happening at a rapid pace, and this year’s earnings are predicted to increase by double digits. Additionally, the administration of the US economy is more business-friendly. However, there are concerns, primarily associated with US trade policy and the anticipated effects of tariffs on important industries, such as technology.
Franklin Templeton thinks that despite these risks, investor confidence in US stocks should continue to be high. The new administration’s policy reforms are anticipated to finally produce long-term benefits for the larger US economy, notwithstanding the possibility of increased dangers.
Franklin Templeton also stated that although the Mag 7 stocks are positioned for long-term success, market leadership is anticipated to expand as and when innovation accelerates. According to the investment firm, active management is crucial. The transition from AI platforms to infrastructure is still in progress. Consequently, it is anticipated that the success of investments will depend on the ability to select the appropriate companies at the right time—those that have the technology, strategy, and flexibility to continue and sustain long-term growth.
Thanks to innovation and investment, US stocks—mostly large-cap stocks—have been doing well. Notably, the Dow index has increased by more than 4.5% in the last six months. The investment business sees expanding chances beyond such market leaders, even though the Mag 7 stocks still sustain the market momentum. The competitive landscape is still dynamic and has been generating new development sectors as a result of the ongoing AI-driven cycle.
Our Methodology
For our methodology, we screened for stocks with a market capitalization exceeding $10 billion and a relative strength index (RSI) below 40. We then ranked these stocks based on the lowest RSI as of March 23, 2025. An RSI below 40 suggests that the stock is oversold.
At Insider Monkey, we are obsessed with hedge funds. 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 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here).
A venture capitalist analyzing investment opportunities in late-stage transactions.
T. Rowe Price Group, Inc. (NASDAQ:TROW)
Relative Strength Index: 28.22
The seventh stock on our list of the 12 most oversold large cap stocks to invest in now is T. Rowe Price Group, Inc. (NASDAQ:TROW). It is a global investment management firm that offers financial services like investment funds, retirement plans, and advisory services to individuals, institutions, and financial intermediaries. The company generates revenue by charging fees based on a percentage of assets under management (AUM).
Wells Fargo analyst Michael Brown kept the stock at a Hold rating on March 13 and set a price target of $116. The company’s difficulties and the varying market conditions are reflected in this decision, especially the 1.4% drop in assets under management (AUM) in February 2025. The analyst pointed out that a sluggish US equity market and net outflows of $4.7 billion, including large outflows from US mutual funds—a crucial component of T. Rowe Price Group, Inc. (NASDAQ:TROW)’s operations—were the main causes of the decline. Furthermore, the company’s substantial exposure to equities, particularly growth-oriented funds, has been a challenge amid recent market volatility, although some encouraging indicators, such as robust inflows into ETFs and target date funds.
Lindsell Train stated the following regarding T. Rowe Price Group, Inc. (NASDAQ:TROW) in its Q3 2024 investor letter:
“T. Rowe Price Group, Inc. (NASDAQ:TROW) is the only asset manager held in your Fund. The headwinds to this industry, notably the long-term shift to passive and resultant fee pressures, are well known, leading to mouthwatering valuations for what can be extremely profitable companies. In our view T. Rowe stands out with its trillion-dollar scale, exceptional margins, and a long track record of headwind-defying growth, affording it a place in our portfolio since inception. Its shares, however, have not been stellar performers over this four-year+ period, returning just c.30% in USD vs. the MSCI North America’s c.120%. In this month’s update, we outline our reasons for continued optimism.
Founded back in 1937 by renowned growth investor Thomas Rowe Price Jr. (a pioneer of basing fees on assets), the eponymous T. Rowe Price is now one of the biggest active managers in the US with $1.6tn under management. This gives it the rare attributes of heritage, a resonant brand, and a vast scale. With costs generally fixed (excepting c.30% of variable compensation) asset management thrives on operating leverage, with T. Rowe no exception, leveraging its scale to deliver at least 30% operating margins every year for three decades. Returns to equity bound between 20-and 30%, and with over $2bn of net cash on the balance sheet, almost all earnings are returned to shareholders via buybacks and a generous 4.5% dividend yield…” (Click here to read the full text).
Overall, TROW ranks 7th on our list of most oversold large cap stocks to invest in now. While we acknowledge the potential of TROW, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for an AI stock that is more promising than TROW but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires.
Disclosure: None. This article is originally published at Insider Monkey.