In this article, we will take a detailed look at oversold growth stocks to buy now.
The growth stocks, primarily proxied by high and consistent revenue growth, have shown sluggish performance in 2025 so far despite strong gains during the 2023-2024 period. The growth factor has been muted year-to-date due to the Trump-induced turmoil and uncertainty, favoring the safer value stocks instead. This has led to many growth stocks being oversold and trading at attractive valuations. Despite this, investors are still reluctant to buy because the overall market is still in ‘fear’ territory as proxied by the CNN Fear & Greed Index being at a relatively low value of 36/100. The key question to answer in this article is the following: Will the US stock market finally return to stability and growth?
READ ALSO: 11 Oversold Blue Chip Stocks to Buy According to Hedge Funds
We believe there are some strong indicators that support the hypothesis that the market has bottomed and the outlook will shift bullish very soon. First, the market tends to bottom when there is peak pessimism in the news and among retail investors – this has happened last week as the Fear & Greed Index was in Extreme Fear territory and some notorious news portals like The Economist have published extremely bearish first-page stories suggesting that the dollar might be on the verge of collapse and so might the US stock and bond markets along with the US economy. Mainstream news portals tend to be late to the party and only acknowledge market depression after they have happened. From a contrarian perspective, this would mean that peak pessimism was already priced in sometime at the beginning of the month, and things could only get better from here.
Our hypothesis has already gotten some confirmation as the US stock market is up more than 5% since the beginning of the week, with the VIX index – a notorious proxy of investors volatility expectations – showing a score of 25, which is significantly below the peak of 60 around “Liberation Day” early this month. The VIX index score is thus close to its long-term moving average, which stands in the high teens, indicating that the market’s expectations are already normalizing. More certainty coming to the market is extremely bullish for stock prices and for the entire economy – it unmutes the Roaring 2020s economic tailwinds and gives clarity to CEOs and consumers to start spending again.
Another important indicator suggesting a potential return to growth for the stock market is the high-yield corporate bond spread declining from 461bps a few weeks ago to 348bps, as per Yardeni Research. High-yield bonds are usually related to smaller, high-growth companies, which resonate well with the growth factor we discussed earlier in the article. Declining yields for corporate bonds reflect less expectation of default, which tends to happen in anticipation of economic expansions.
Last but not least, the S&P index trades at a forward P/E of 19.5, which is significantly cheaper than the late 2024 peak of around 22.0. This means that there are more bargain prices to be found now than a few months ago, and if one expects the market to return to growth, then now is the best moment to find bargain deals. Many growth stocks are still in oversold territory from the effect of the tariff uncertainty, inflationary threats, and slowdowns across some industries. Given this landscape, we discuss below the most attractive oversold growth stocks to consider.
Our Methodology
To compile our list of oversold growth stocks, we used a screener to identify stocks with at least 20% revenue CAGR in the last 5 years, which are currently oversold by having an RSI below 40 and have significant average upside estimated by analysts. We rank them in descending order by the RSI value. For each stock, we also include the number of hedge funds that own the stock, as per Insider Monkey’s database of Q4 2024.
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).
11. Sweetgreen, Inc. (NYSE:SG)
RSI: 39.93
Estimated average analysts’ upside: 57.43%
Last 5 years revenue CAGR: 22.59%
Number of Hedge Fund Holders: 33
Sweetgreen, Inc. (NYSE:SG) is a fast-casual restaurant chain based in the US and focused on health-oriented meals. It offers customizable salads, warm bowls, and plates made from fresh ingredients. SG has a significant scale of over 240 locations across 22 states, and also generates more than half of its sales from digital orders.
Sweetgreen, Inc. (NYSE:SG) delivered strong financial results in 2024, with sales growing over 16% to $676.8 million and restaurant-level margin expanding more than 200 basis points to 19.6%. The company achieved its first full year of positive adjusted EBITDA at $18.7 million, marking a $21.5 million improvement over the prior year. Throughout 2024, SG expanded its footprint by opening 25 new restaurants, ending the year with 246 locations, including 12 Infinite Kitchens. The 2024 class of new restaurants demonstrated strong performance, tracking to hit $2.8 million in year 1 sales.
Looking ahead to 2025, Sweetgreen, Inc. (NYSE:SG) plans to accelerate unit growth by at least 15%, with plans to open at least 40 new restaurants, half of which will feature Infinite Kitchens. The company is implementing several strategic initiatives, including the launch of Ripple Fries, a new loyalty program, and increased menu innovation to drive traffic and expand margins. The Infinite Kitchen locations are delivering promising results with at least 7 percentage points in labor savings and 1 point improved COGS compared to similar restaurants. Despite facing near-term challenges from extreme weather and wildfires in early 2025, management remains confident in its long-term strategy and ability to execute. Furthermore, analysts estimate a large potential upside of 57.43%, making SG one of the best oversold stocks to buy now.
10. Clearwater Analytics Holdings, Inc. (NYSE:CWAN)
RSI: 39.79
Estimated average analysts’ upside: 55.78%
Last 5 years revenue CAGR: 21.89%
Number of Hedge Fund Holders: 48
Clearwater Analytics Holdings, Inc. (NYSE:CWAN) provides a cloud-based platform for automated investment accounting, performance measurement, compliance monitoring, and risk analytics. The company serves large financial and government institutions, managing more than $8 trillion in assets through its platform. The company also incorporated AI capabilities to improve client interactivity and data analysis. CWAN ranked seventh on our recent list of 10 Best Debt Free Mid Cap Stocks to Buy Now.
Clearwater Analytics Holdings, Inc. (NYSE:CWAN) delivered outstanding Q4 2024 results with revenue of $126.5 million, representing a 27.7% YoY growth, and achieved record-high annual recurring revenue (ARR) of $474.9 million, showing a robust 25.3% YoY increase. The company significantly improved its net revenue retention rate to 116%, achieved a record-high gross margin of 78.8% in Q4, and delivered strong EBITDA of $41.7 million with a 33% margin. These impressive results were driven by successful cross-selling initiatives, strong client retention at 98%, effective pricing strategies, and continued international expansion.
Looking ahead, Clearwater Analytics Holdings, Inc. (NYSE:CWAN)’s planned acquisition of Enfusion represents a strategic move to build a comprehensive front-to-back platform for the investment management industry, which is expected to close in Q2 2025. For 2025, management expects standalone revenue between $535.5 million to $542 million, representing approximately 19% to 20% YoY growth, with EBITDA projected at $182 million to $185 million, maintaining a strong 34% margin. The company continues to focus on multiple growth drivers, including new logo acquisition in North America, international expansion, back-to-base investments, and strategic partnerships, while maintaining its commitment to operational excellence and innovation. Despite negative year-to-date stock price performance, CWAN maintains a strong growth momentum and optimistic guidance, making it one of the best oversold stocks on our list.
9. Atlas Energy Solutions Inc. (NYSE:AESI)
RSI: 39.78
Estimated average analysts’ upside: 51.84%
Last 5 years revenue CAGR: 83.35%
Number of Hedge Fund Holders: 10
Atlas Energy Solutions Inc. (NYSE:AESI) is an energy services company specializing in proppant production and logistics for hydraulic fracturing operations, primarily in West Texas and New Mexico. It operates 14 proppant production facilities and manages its own logistics network. AESI also expanded into power solutions by adding a fleet of natural gas-powered generators to its offerings.
Atlas Energy Solutions Inc. (NYSE:AESI) has demonstrated significant growth since its IPO in March 2023, with its productive capacity increasing nearly 2.5x and now offering the largest wet sand operation in the Permian Basin. The company has successfully launched the Dune Express, making commercial deliveries off the second-longest conveyor ever built, and is pioneering the world’s first commercial driverless delivery operation in partnership with Kodiak Robotics.
Looking ahead, 2025 is positioned to be a transformational year for Atlas Energy Solutions Inc. (NYSE:AESI), with the company expecting to sell over 25 million tons compared to around 20 million tons in 2024. The company has closed the acquisition of Moser Energy Systems, providing a new avenue for growth in the rapidly expanding distributed power market. The company is also seeing early signs of healing in the Permian proppant market, with more rational behavior on pricing and expectations of a gradual return to normalcy in sand pricing later in the year. Despite experiencing negative returns due to softening oil prices, AESI is growing its operations at a rapid pace, making it one of the best oversold stocks to consider.
8. Pinterest, Inc. (NYSE:PINS)
RSI. 39.57
Estimated average analysts’ upside: 59.10%
Last 5 years revenue CAGR: 27.50%
Number of Hedge Fund Holders: 73
Pinterest, Inc. (NYSE:PINS) is known for its visual discovery platform with the same name, which enables users to post and explore visual ideas with fashion, home decor, travel, and other themes. The company’s advantage comes from its scale, with monthly active users exceeding 550 million people across the entire world. Similar to other media platforms, PINS generates revenue primarily through advertising. PINS ranked eighth on our recent list of 10 Most Undervalued Growth Stocks to Buy Now.
In 2024, Pinterest, Inc. (NYSE:PINS) achieved a record high of global users, surpassing 550 million monthly active users (MAU) globally, and more than doubled its full-year revenue growth rate from 2023. The company delivered over $1 billion in adjusted EBITDA, representing a roughly 50% increase while driving profitable growth. In Q4, PINS achieved its first $1 billion revenue quarter with 18% revenue growth and drove a record number of clicks during the critical holiday season. The platform’s weekly active to monthly active user ratio reached an all-time high of 62% in 2024, indicating stronger user engagement. With double-digit historical growth momentum and a whopping 59.10% average upside estimated by analysts, PINS is among the best oversold stocks to buy now.
Pinterest, Inc. (NYSE:PINS)’s success was driven by significant improvements in its advertising platform, with clicks to advertisers growing over 90% in Q4, even after lapping the initial launch of direct links from the previous year. PINS has transformed its user experience to focus on actionability, relevance, and curation, while distinguishing itself as a positive place online. Looking forward to 2025, management plans to leverage AI and its unique first-party signal to drive more personalized experiences, invest in curation experiences and platform shopability, and continue innovating its lower-funnel tools for advertisers.
7. Kinetik Holdings Inc. (NYSE:KNTK)
RSI: 39.41
Estimated average analysts’ upside: 31.61%
Last 5 years revenue CAGR: 92.80%
Number of Hedge Fund Holders: 34
Kinetik Holdings Inc. (NYSE:KNTK) is a midstream energy company that provides natural gas gathering, processing, compression, and transportation services. KNTK operates in the Delaware Basin of West Texas and New Mexico.
The year 2024 for Kinetik Holdings Inc. (NYSE:KNTK) was marked by strategic M&A activities and organic growth, including the expansion of its footprint across the Delaware basin. The company reported record volume growth with average gas processed volumes of 1.64 billion cubic feet per day, up 13% YoY, and adjusted EBITDA of $971 million, representing a 16% increase on a YoY basis. Notable achievements included the acquisition of Durango Permian, their largest transaction since February 2022, and a 15-year gas gathering and processing agreement in Eddy County, which helped reduce leverage to 3.4 times.
Looking ahead to 2025, Kinetik Holdings Inc. (NYSE:KNTK) provided guidance for adjusted EBITDA to grow 15% YoY at mid-point. The company expects approximately 20% growth in gas processed volumes across its system, outpacing broader Permian growth. Management has demonstrated confidence in long-term growth potential, targeting a 10% EBITDA CAGR over the next 5 years while maintaining their disciplined capital allocation framework. This growth trajectory, coupled with its strategic positioning in the Delaware Basin, reinforces KNTK’s position as one of the best oversold growth stocks on our list.
6. ICON Public Limited Company (NASDAQ:ICLR)
RSI: 39.12
Estimated average analysts’ upside: 43.74%
Last 5 years revenue CAGR: 28.75%
Number of Hedge Fund Holders: 46
ICON Public Limited Company (NASDAQ:ICLR) is a global contract research organization that provides development and commercialization services to pharmaceutical companies. In other words, the company helps pharma companies save costs by outsourcing some parts of the lengthy and cumbersome drug development process. ICLR’s competitive advantage consists of a large scale of operations in over 55 countries, and offering a wide range of services including clinical trial management, data analytics, regulatory consulting, and laboratory services. ICLR ranked 8th on our recent list of 10 Best Beaten Down Stocks to Buy According to Analysts.
ICON Public Limited Company (NASDAQ:ICLR)’s latest reported Q4 2024 performance aligned with expectations, with revenue and adjusted EPS results coming at the midpoint of their previous guidance range. The company achieved full-year revenue growth of 2% and adjusted earnings per share growth of 9.5% in 2024. They demonstrated strong business development performance in Q4 with gross bookings of $3.06 billion, increasing 8% sequentially and 3% YoY, though this was partially offset by elevated cancellations totaling $651 million. The company’s backlog grew to $24.7 billion at the end of 2024, representing an increase of 8.3% YoY.
Looking ahead, ICON Public Limited Company (NASDAQ:ICLR) is navigating through a transition period with mixed market conditions, where they’re seeing positive leading indicators alongside continuing cautiousness and volatility. The company is focusing on cost management and automation initiatives, which are expected to save over $100 million in total costs annually compared to what they would have been without these automations. Despite current market volatility, ICLR remains confident in its strategic position, particularly noting strength in its lab and early phase business, and continued growth in therapeutic areas such as cardiometabolic diseases and oncology. Management’s confidence is further reinforced by a large estimated upside of 43.74% and 46 hedge funds owning the stock, making ICLR one of the oversold stocks to consider in 2025.
5. Kanzhun Limited (NASDAQ:BZ)
RSI: 38.83
Estimated average analysts’ upside: 42.12%
Last 5 years revenue CAGR: 55.57%
Number of Hedge Fund Holders: 29
Kanzhun Limited (NASDAQ:BZ) operates China’s largest online recruitment platform by average monthly active users. The platform facilitates direct communication between job seekers and employers, utilizing AI-driven algorithms for efficient job matching. BZ emerged as a key player in China’s evolving recruitment industry.
Kanzhun Limited (NASDAQ:BZ) delivered strong financial results in Q4 2024, with revenues growing 15% YoY and adjusted net income increasing 15%. For the full year 2024, revenues grew 24% YoY while adjusted net income rose 26%. The company demonstrated robust user growth with average MAU reaching 52.7 million in Q4, up 28% YoY, and successfully added nearly 49.5 million newly verified users throughout 2024. Notably, the company achieved this while reducing marketing expenses compared to 2023, thanks to improved brand recognition and enhanced bilateral network effects.
Looking ahead, Kanzhun Limited (NASDAQ:BZ) is making significant strides in AI implementation, with the release of a new version of its app featuring AI-powered search functions and interview coaching capabilities. The recruitment market has shown positive momentum post-Chinese New Year, with key metrics including active users, active job postings, and new job postings all reaching historical highs. Manufacturing, logistics, automotive, healthcare, education, and professional services have exhibited strong performance, while AI-related job postings have surged by over 60% YoY. With a strong financial position and cash reserves, the current stock price dip positions BZ as one of the best oversold stocks to buy now.
4. Freshpet, Inc. (NASDAQ:FRPT)
RSI: 38.12
Estimated average analysts’ upside: 59.28%
Last 5 years revenue CAGR: 31.81%
Number of Hedge Fund Holders: 40
Freshpet, Inc. (NASDAQ:FRPT) is a pet food company that manufactures and markets fresh, refrigerated meals and treats for dogs and cats. Its products are notorious for being made of natural ingredients and no preservatives, thus appealing to pet owners in higher income brackets. FRPT’s products are distributed throughout North America and Europe in grocery, mass, and pet specialty retailer stores.
Freshpet, Inc. (NASDAQ:FRPT) demonstrated strong financial performance in 2024, achieving net sales of $975 million, representing a 27% YoY growth, and reaching positive net income for the first time with $0.94 per share. The company significantly improved its profitability metrics, with adjusted gross margin increasing by 650 basis points to 46.5% and adjusted EBITDA rising 143% to $161.8 million YoY. The growth was primarily driven by volume gains, with the company adding approximately 2 million households, including 800,000 super heavy and heavy users, while maintaining over 99% fill rates despite selling 27% more volume than the previous year. The spectacular results go against the recent price performance, making FRPT one of the best oversold growth stocks to buy right now.
Looking ahead, Freshpet, Inc. (NASDAQ:FRPT) has raised its 2027 margin targets, now expecting 48% adjusted gross margin (up from 45%) and 22% adjusted EBITDA margin (up from 18%). For 2025, the company projects net sales growth between 21% and 24%, and adjusted EBITDA of at least $210 million. The company’s long-term outlook remains robust, with expectations to be free cash flow positive by 2026 and potential for adjusted EBITDA margin to reach the mid-20s beyond fiscal year 2027. Notably, when fully built out, the company’s three existing kitchens are expected to support up to $3 billion in sales, almost three times higher than their current capacity.
3. nCino, Inc. (NASDAQ:NCNO)
RSI: 37.83
Estimated average analysts’ upside: 11.86%
Last 5 years revenue CAGR: 32.23%
Number of Hedge Fund Holders: 33
nCino, Inc. (NASDAQ:NCNO) is a financial technology company that provides a cloud-based operating system for banks and credit unions, aimed at improving efficiency, compliance, and customer experience. NCNO’s solutions cover loan origination, account opening, deposit operations, credit analysis, and portfolio management. NCNO ranked seventh on our recent list of 15 Best Small Cap AI Stocks to Buy Right Now.
nCino, Inc. (NASDAQ:NCNO) reported total revenue growth of 14% YoY in its latest reported quarter, while subscription revenues grew 16%. The company is transitioning from being a cloud banking leader to becoming a worldwide leader in AI banking, with a focus on leveraging data, analytics, and AI capabilities throughout its platform. Despite facing challenges, including slower-than-expected “Consumer Lending” product development and paused onboarding decisions, the company has taken decisive actions to address these issues, including completing platform integration of DocFox technology and making key leadership changes in European operations.
Looking ahead, nCino, Inc. (NASDAQ:NCNO) expects improved gross bookings growth as the year progresses, with subscription revenue growth reacceleration anticipated in fiscal 2027. The company is investing approximately $10 million in sales and marketing initiatives, including expanding its quota-carrying sales force for credit unions, emerging EMEA markets, and Japan. Management has implemented a more conservative guidance framework for fiscal 2026, projecting total revenues of $574.5-578.5 million and subscription revenues of $503-507 million, representing growth rates of 7% and 8%, respectively, at the midpoint. The strong guidance for the future amid the current RSI standing low at 37.83 persuaded us to include NCNO in the third place on our list of the oversold stocks to buy.
2. Enphase Energy, Inc. (NASDAQ:ENPH)
RSI: 34.55
Estimated average analysts’ upside: 33.49%
Last 5 years revenue CAGR: 25.50%
Number of Hedge Fund Holders: 39
Enphase Energy, Inc. (NASDAQ:ENPH) is an energy technology company specializing in microinverter-based solar-plus-storage systems. Its core products are centered around solar energy management for residential and commercial customers – think of microinverters and batteries. ENPH’s systems are compatible with most solar panels, which makes it one of the leaders in the market. The company also offers electric vehicle charging solutions through its ClipperCreek brand.
Enphase Energy, Inc. (NASDAQ:ENPH) reported Q1 2025 revenue of $356.1 million, representing 35% YoY growth. The company’s US and international revenue mix was 74% and 26%, respectively, with US revenue decreasing 13% QoQ due to seasonality and softening demand, while European revenue increased 7%, driven by FlexPhase battery shipments in Germany. The company faced challenges from new tariffs, particularly on batteries sourced from China, which is expected to impact gross margins by 2% in Q2 2025 and 6-8% in Q3 2025, though they plan to fully offset this impact by Q2 2026 through supply chain diversification efforts.
Looking ahead, Enphase Energy, Inc. (NASDAQ:ENPH) is focusing on several growth initiatives, including the launch of its fourth-generation battery system, which delivers the lowest installation cost of any ENPH solar plus battery solution to date. The company is expanding its served available market in Europe with the introduction of the FlexPhase battery with backup, IQ EV charger, and the upcoming IQ Balcony Solar Kit. Additionally, they are preparing to launch the IQ9 microinverter powered by GaN technology in Q4, which is expected to unlock a 10-gigawatt opportunity in commercial solar while driving cost per watt improvements across their residential business. With President Trump hinting towards potentially reversing previous tariffs on China, ENPH represents one of the oversold stocks to consider at currently depressed prices.
1. Goosehead Insurance, Inc (NASDAQ:GSHD)
RSI: 33.45
Estimated average analysts’ upside: 25.90%
Last 5 years revenue CAGR: 32.77%
Number of Hedge Fund Holders: 25
Goosehead Insurance, Inc. (NASDAQ:GSHD) is an independent personal lines insurance agency that operates in the US through a hybrid model of corporate agents and franchises. The company offers a broad range of insurance products – including homeowners, auto, flood, umbrella, and specialty lines – by partnering with over 140 insurance carriers. GSHD’s advantage is based on a proprietary digital platform to streamline policy quoting and enhance agent productivity and client experience.
Goosehead Insurance, Inc. (NASDAQ:GSHD) delivered solid financial performance in Q1 2025, with total revenue growing 17%, Core Revenue growing 17%, Premium growing 22%, and adjusted EBITDA growing 32% on a YoY basis. The company has built a vast distribution network, including more than 400 corporate agents, 1,000 franchises, 2,500 total licensed agents in 48 states, and 200-plus carriers, with a current premium base of approximately $4 billion. Despite operating in what experts consider the hardest product market in 50 years, the company has shown steady growth in Premium, Revenue, and Earnings over the past 3 years, using the challenging market conditions as an opportunity to strengthen every aspect of their operations.
Goosehead Insurance, Inc. (NASDAQ:GSHD) is seeing tangible improvements in product availability and price stability in many geographies, with auto carriers showing an aggressive rebound in product availability and new home products beginning to reenter multiple key markets. Management has implemented strategic initiatives, including narrowing its franchise owner criteria, focusing on selected geographies, and targeting business professionals with capital to build multi-agent, multi-location businesses. The company has also made significant technological advancements, including rolling out their mobile app and implementing new technologies that allow their systems to ingest lead flow from multiple partners and route it to the best available agents. These improvements, combined with their strong carrier relationships and diversified geographic footprint, position them well for meaningful improvement in both product availability and price stability over the next 6 to 24 months.
Overall, GSHD ranks first on our list of oversold growth stocks to buy now. While we acknowledge the potential of GSHD to grow, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. There is an AI stock that went up since the beginning of 2025, while popular AI stocks lost around 25%. If you are looking for an AI stock that is more promising than GSHD but that trades at less than 5 times its earnings, check out our report about this cheapest AI stock.
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