10 Oversold Midcap Stocks to Buy Right Now

7. XP Inc. (NASDAQ:XP)

Forward P/E: 10.22

Analysts Upside Potential as of November 14: 36.90%

Year to date performance as of November 14: -34.32%

XP Inc. (NASDAQ:XP) is a financial services company that provides products and services. While down by about 34.32% year to date, growth in the core business depicted by solid financial results should support a bounce back from the current slump.

The company is enjoying successful cross-selling of new product offerings such as insurance and cards. Additionally, XP Inc. (NASDAQ:XP) is benefiting from improving economic conditions in Brazil as the central bank lowers interest rates. Management has also embarked on a cost control drive, with expenses decreasing as a revenue percentage, fueling better gross margins. With the better-than-expected financial results, XP remains on track to meet its fiscal 2026 financial targets.

XP Inc. (NASDAQ:XP) is one of the best mid-cap stocks to buy, boasting a solid balance sheet with a net asset value of over $1.5 billion. Consequently, it has started returning value to shareholders through buybacks. It is also on course to pay a special dividend in the fourth quarter. While trading at a price-to-earnings multiple of 10.22, the stock is rated as a buy with an average price target of $23, implying a 36.90% upside potential as of November 14, 2024.