In this piece, we will take a look at five oversold financial stocks to buy. If you want to take a look at what’s been happening in the finance industry lately, then head on over to 10 Oversold Financial Stocks to Buy.
5. Affiliated Managers Group, Inc. (NYSE:AMG)
Number of Hedge Fund Investors in Q1 2023: 37
Latest 14-Day RSI Reading: 32.19
Affiliated Managers Group, Inc. (NYSE:AMG) is an American investment management and counseling firm with an operational presence in most of the world’s financial centers across Europe, Asia, and Oceania. The firm has been doing well as of late, surpassing analyst EPS estimates in four of its latest quarters, including the one that ended in July.
During March 2023, 37 of the 943 hedge funds part of Insider Monkey’s database had invested in the firm. John W. Rogers’ Ariel Investments is Affiliated Managers Group, Inc. (NYSE:AMG)’s biggest shareholder, through its $155 million investment.
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Follow Affiliated Managers Group Inc. (NYSE:AMG)
4. RenaissanceRe Holdings Ltd. (NYSE:RNR)
Number of Hedge Fund Investors in Q1 2023: 33
Latest 14-Day RSI Reading: 39.15
RenaissanceRe Holdings Ltd. (NYSE:RNR) sells a wide variety of property, casualty, and specialty insurance products that cover tens of different scenarios, events, and segments. It managed to beat analyst EPS estimates in Q2 2023 despite the fact that the estimates were higher than in the previous quarters.
As of Q1 2023, 33 of the 943 hedge funds polled by Insider Monkey had held a stake in the company. RenaissanceRe Holdings Ltd. (NYSE:RNR)’s largest hedge fund investor is Brian Ashford-Russell and Tim Woolley’s Polar Capital with a stake worth $204 million.
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Follow Renaissancere Holdings Ltd (NYSE:RNR)
3. Ryan Specialty Holdings, Inc. (NYSE:RYAN)
Number of Hedge Fund Investors in Q1 2023: 13
Latest 14-Day RSI Reading: 39.78
Ryan Specialty Holdings, Inc. (NYSE:RYAN) serves the needs of insurance professionals by providing underwriting and other services. Analysts have set a 34 cent EPS estimate for its second quarter results, which is roughly 26% higher than the figures for the year ago quarter.
Insider Monkey scoured through 943 hedge funds for this year’s March quarter and discovered that 13 had invested in Ryan Specialty Holdings, Inc. (NYSE:RYAN). Stuart J. Zimmer’s Zimmer Partners is the largest shareholder among these through owning $201 million worth of shares.
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2. Willis Towers Watson Public Limited Company (NASDAQ:WTW)
Number of Hedge Fund Investors in Q1 2023: 42
Latest 14-Day RSI Reading: 24.75
Willis Towers Watson Public Limited Company (NASDAQ:WTW) is the largest firm on our list in terms of both its market capitalization and share price. It is a British brokerage and insurance services provider whose shares are down 14.7% year to date after a late July 2023 dip that came after the firm lowered earnings targets for 2024 and earnings missed estimates. The stock has the lowest RSI score on our list.
Insider Monkey’s first quarter of 2023 survey covering 943 hedge funds revealed that 42 had bought Willis Towers Watson Public Limited Company (NASDAQ:WTW)’s shares. Out of these, the firm’s largest investor is Jean-Marie Eveillard’s First Eagle Investment Management with a stake worth $1.1 billion.
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Follow Willis Towers Watson Plc (NYSE:WTW)
1. Discover Financial Services (NYSE:DFS)
Number of Hedge Fund Investors in Q1 2023: 54
Latest 14-Day RSI Reading: 38.74
Discover Financial Services (NYSE:DFS) is a digital bank that provides cards, lending, and other products. Its latest earnings report saw the firm miss analyst EPS estimates, and the shares sank as it paused buybacks as well. Discover Financial Services (NYSE:DFS) also disclosed that it is under regulatory scrutiny for having misclassified credit card accounts in 2007. Out of the ten analyst notes covering the shares in July, most rated the shares at Equal Weight – sticking to earlier ratings.
Hedge fund sentiment in the shares was strong as of March 2023, with 54 of the 943 hedge funds part of Insider Monkey’s database having held a stake in the company. Discover Financial Services (NYSE:DFS)’s largest hedge fund shareholder is John Smith Clark’s Southpoint Capital Advisors through an investment of $247 million.
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Follow Discover Financial Services (NYSE:DFS)
Disclosure: None. You can also take a look at 10 Cheap Food Stocks to Buy and 10 Best Stocks To Invest In For Financial Stability.
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