10 Oversold Midcap Stocks to Buy Right Now

1. Cosan S.A. (NYSE:CSAN)

Forward P/E: 6.47

Analysts Upside Potential as of November 14: 105.49%

Year to date performance as of November 14: -49.81%

Cosan S.A. (NYSE:CSAN) is an energy company that engages in the fuel distribution business. While the stock has shed about 49.81% in market value year to date, it remains one of the oversold stocks to buy owing to the company’s exposure to expanding demands for renewable energy and a diversified business model.

Cosan S.A. (NYSE:CSAN) is expected to benefit from the rising demand for biofuels, with its Raízen Energia division producing ethanol, raw sugar, and energy from sugarcane, while Raízen Combustíveis manages fuel distribution. As one of Brazil’s largest lubricant companies, Cosan’s long-term prospects are promising. Management is also focused on cost restructuring to improve profit margins, counteract high interest rates, ensure safety compliance, guarantee dividends, and enhance debt service coverage.

Cosan S.A. (NYSE:CSAN) stands out as one of the best oversold mid-cap stocks to buy, as it has maintained dividend payments for 15 consecutive years, affirming its commitment to returning value to shareholders. It is trading at a price-to-earnings multiple of 6.47, a discount to the broader market. Cosan is rated as a Buy with an average price target of $16.07, implying a 105.49% upside potential as of November 14, 2024.

While we acknowledge the potential of CSAN as an investment, our conviction lies in the belief that some 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 CSAN but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

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