In this piece, we will take a look at the five oversold growth stocks to buy. If you want to check out our introduction to the stock market and growth investing, then head on over to 10 Oversold Growth Stocks To Buy.
5. Fortinet, Inc. (NASDAQ:FTNT)
Latest 14 Day RSI Reading: 21.01
Latest Trailing P/E Ratio: 48.11
Fortinet, Inc. (NASDAQ:FTNT) is a software company that enables firms to secure their digital properties, log and manage network reports, and protect networks from malicious actors. Despite being a technology firm, it has beaten analyst EPS estimates in all four of its latest quarters. However, the stock tanked by a massive 25% in August as it cut revenue guidance due to lower spending in the IT sector.
During Q1 2023, 45 of the 943 hedge funds part of Insider Monkey’s database had bought Fortinet, Inc. (NASDAQ:FTNT)’s shares. Andreas Halvorsen’s Viking Global is the largest investor out of these, through a $789 million stake.
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Follow Fortinet Inc. (NASDAQ:FTNT)
4. SolarEdge Technologies, Inc. (NASDAQ:SEDG)
Latest 14 Day RSI Reading: 18.39
Latest Trailing P/E Ratio: 54.36
SolarEdge Technologies, Inc. (NASDAQ:SEDG) provides power management systems for solar power systems. While it beat analyst EPS estimates for Q2 2023, the stock nevertheless dropped as it issued weak guidance for the current quarter.
Insider Monkey dug through 943 hedge funds for their first quarter of 2023 shareholdings and found out that 42 had held a stake in the firm. D. E. Shaw’s D E Shaw is SolarEdge Technologies, Inc. (NASDAQ:SEDG)’s largest shareholder with an investment that is worth $272 million.
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Follow Solaredge Technologies Inc. (NASDAQ:SEDG)
3. ResMed Inc. (NYSE:RMD)
Latest 14 Day RSI Reading: 17.59
Latest Trailing P/E Ratio: 30.64
ResMed Inc. (NYSE:RMD) makes and sells medical devices such as masks, respirators, and ventilators. The stock is rated Buy on average and has a strong $83 upside based on the average analyst share price target of $262.15. RBC Capital maintained an Outperform rating on the shares in August 2023.
After sifting through 943 hedge fund portfolios for their investments in 2023’s March quarter, Insider Monkey discovered that 32 had bought and invested in ResMed Inc. (NYSE:RMD)’s shares. The firm’s largest investor in our database is Ken Griffin’s Citadel Investment Group with a $460 million stake.
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Follow Resmed Inc (NYSE:RMD)
2. Harmonic Inc. (NASDAQ:HLIT)
Latest 14 Day RSI Reading: 16.30
Latest Trailing P/E Ratio: 38.14
Harmonic Inc. (NASDAQ:HLIT) sells video processing and broadband internet products. It missed analyst EPS estimates for its Q2 2023 earnings. However, the shares are rated Strong Buy on average and analysts have released optimistic notes about the stock in August.
By the end of March 2023, 25 of the 943 hedge funds part of Insider Monkey’s database had held a stake in the company. Out of these, Harmonic Inc. (NASDAQ:HLIT)’s largest shareholder is Douglas T. Granat’s Trigran Investments due to its $123 million investment.
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Follow Harmonic Inc (NASDAQ:HLIT)
1. Penumbra, Inc. (NYSE:PEN)
Latest 14 Day RSI Reading: 15.99
Latest Trailing P/E Ratio: 336.48
Penumbra, Inc. (NYSE:PEN) sells medical devices that are used in surgical procedures. It beat Q2 2023 analyst EPS estimates by a wide margin, and Truist rated the stock as Buy in August 2023.
19 of the 943 hedge funds surveyed by Insider Monkey had invested in Penumbra, Inc. (NYSE:PEN) during Q1 2023. Kris Jenner, Gordon Bussard, and Graham Mcphail’s Rock Springs Capital Management is the biggest hedge fund investor through a $120 million stake.
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Follow Penumbra Inc (NYSE:PEN)
Disclosure: None. You can also take a look at 14 Best Multibagger Stocks to Buy for 2024 and 10 Most Profitable Small Businesses in 2023.
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