12 Most Oversold Large Cap Stocks to Invest in Now

7. 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).