In this article, we will take a look at the 5 most oversold S&P 500 stocks right now. To read our analysis of the recent market activity, you can go to the 10 Most Oversold S&P 500 Stocks Right Now.
5. Verisign, Inc. (NASDAQ:VRSN)
14-day RSI as of July 28: 29.33
Number of Hedge Fund Holders: 37
Verisign, Inc. (NASDAQ:VRSN), based in Reston, Virginia, is a leading global provider of domain name registry services and internet infrastructure. It enables the security, stability, and resiliency of key internet infrastructure and services, including providing root zone maintainer services, operating two of the 13 global internet root servers, and providing registration services.
Verisign, Inc. (NASDAQ:VRSN) recorded another solid quarterly performance in Q2 2023 with revenue up by 6% y-o-y to $372 million and net income up by 11% y-o-y to $186 million. The Board of Directors of the company also approved an additional $1.14 billion share repurchase authorization which brings the total amount of authorized share repurchase program to $1.5 billion.
As of Q1 2023, 37 of the 943 hedge funds tracked by Insider Monkey owned shares of Verisign, Inc. (NASDAQ:VRSN), valued at $4.6 billion. Its largest hedge fund shareholder was Warren Buffett’s Berkshire Hathaway with ownership of 12.8 million shares valued at $2.7 billion.
4. Equifax Inc. (NYSE:EFX)
14-day RSI as of July 28: 29.00
Number of Hedge Fund Holders: 30
Based in Atlanta, Georgia, Equifax Inc. (NYSE:EFX) is a leading data analytics and technology company that provides credit reporting, risk assessment, and identity verification services with operations in 24 countries across North America, Central and South America, Europe, and the Asia Pacific region.
Equifax Inc. (NYSE:EFX) has been on an acquisition spree as part of its 2025 growth priorities. On February 19, the company announced an agreement to acquire the second largest credit bureau in Brazil, Boa Vista Serviços (BOAS3:SAO) in a transaction valuing the target company at $596 million. The transaction marked the 14th acquisition that the company had signed or completed in the 24 months up till February, totaling $4.1 billion.
Equifax Inc. (NYSE:EFX) has paid cash dividends for more than 100 consecutive years. On May 4, the Board of Directors of the company declared a quarterly dividend of $0.39 per share which represents a dividend yield of 0.77% based on the share price on July 28.
3. HCA Healthcare, Inc. (NYSE:HCA)
14-day RSI as of July 28: 28.84
Number of Hedge Fund Holders: 65
Founded in 1968, HCA Healthcare, Inc. (NYSE:HCA) is a leading healthcare provider. It owns and operates 182 hospitals and approximately 2,300 ambulatory sites of care, including surgery centers, free standing emergency rooms, urgent care centers and physician clinics in 20 states and the United Kingdom.
On July 27, HCA Healthcare, Inc. (NYSE:HCA) released its financial results for Q2 2023 which showed a solid performance. Its revenue increased by 7% y-o-y to $15.9 billion while net income increased by 2% y-o-y to $1.4 billion. At $4.29, its normalized EPS for the quarter surpassed consensus estimates by $0.05.
Earlier on May 18, HCA Healthcare, Inc. (NYSE:HCA) had announced an agreement to acquire 41 urgent care centers in Texas from FastMed to augment its existing urgent care operations in the state. Terms of the transaction were not disclosed.
HCA Healthcare, Inc. (NYSE:HCA) ranks 2nd on our list of 10 most undersold S&P 500 stocks right now based on the hedge fund shareholders as of March 31. Its shares were owned by 65 hedge funds with a total value of $2.8 billion. With ownership of 4.9 million shares valued at $1.3 billion, Harris Associates was the largest hedge fund shareholder.
2. Willis Towers Watson Public Limited Company (NASDAQ:WTW)
14-day RSI as of July 28: 24.75
Number of Hedge Fund Holders: 42
London-based Willis Towers Watson Public Limited Company (NASDAQ:WTW), is a leading global advisory, broking and solutions company that provides data-driven, insight-led solutions in the areas of people, risk, and capital.
On May 18, the Board of Directors of Willis Towers Watson Public Limited Company (NASDAQ:WTW) approved a regular quarterly cash dividend of $0.84 per share which represents a 1.61% dividend yield based on the share price on July 28.
On July 28, Raymond James lowered the price target on Willis Towers Watson Public Limited Company (NASDAQ:WTW) shares to $260 and changed the rating on the shares to ‘Outperform’ from ‘Strong Buy’. The target price represents a 24.34% potential upside based on the share price on 28 July.
As of Q1 2023, Willis Towers Watson Public Limited Company (NASDAQ:WTW) shares were held by 42 hedge funds. First Eagle Investment Management was the largest hedge fund shareholder with ownership of 4.9 million shares valued at $1.1 billion.
1. Lamb Weston Holdings, Inc. (NYSE:LW)
14-day RSI as of July 28: 23.77
Number of Hedge Fund Holders: 49
Eagle, Idaho-based, Lamb Weston Holdings, Inc. (NYSE:LW) is a leading supplier of frozen potato, sweet potato, appetizer and vegetable products to restaurants and retailers around the world. Its products are sold in more than 100 countries worldwide.
On February 28, Lamb Weston Holdings, Inc. (NYSE:LW) completed the acquisition of the remaining 50% stake in its European joint venture with Meijer Frozen Foods B.V. for a €525 million cash and €175 million stock consideration. The acquisition adds five additional manufacturing facilities to the company’s footprint worldwide.
On July 20, Barclays raised the price target on Lamb Weston Holdings, Inc. (NYSE:LW) shares to $125 from $120 and maintained an ‘Equal Weight’ rating for the shares. The target price represents a potential upside of 22.45% based on the share price on July 28.
Lamb Weston Holdings, Inc. (NYSE:LW) has made it to the top of our list of 10 most oversold S&P 500 stocks right now based on its 14-day RSI. In addition to being oversold, the shares of the company were also favored by some of the leading hedge funds. As of March 31, the stock featured in the portfolios of 49 of the 943 hedge funds tracked by Insider Monkey with the total value of shares held by these hedge funds amounting to $2.4 billion.
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