12 Oversold Growth Stocks to Buy According to Analysts

Core Viewpoint - The article discusses the positive outlook for the stock market based on recent economic data, particularly focusing on inflation and GDP growth estimates, while also highlighting 12 oversold growth stocks recommended by analysts for potential investment opportunities [2][4][5]. Economic Indicators - The latest PCE report shows year-over-year inflation at 2.9%, aligning with expectations and indicating tame inflation based on month-over-month data [2][3]. - Strong economic indicators, such as a lower trade deficit and increased durable goods orders, have led to raised GDP growth estimates for the third quarter, suggesting decent growth in the mid to high single-digit range [4]. Federal Reserve Insights - The Federal Reserve should focus on underlying inflation driven by real demand rather than inflation influenced by tariffs, which do not reflect strong demand for goods [3]. Stock Recommendations - A list of 12 oversold growth stocks is compiled, which have declined over 30% year-to-date but are expected to have more than 30% upside according to analysts [7]. - The methodology for selecting these stocks includes using the Finviz Stock Screener and cross-referencing data from CNN and hedge fund databases [7][8]. Individual Stock Highlights - EPAM Systems, Inc. (NYSE:EPAM): Year-to-date performance of -34.55% with an analyst upside potential of 41.68%. The company focuses on AI-driven digital experiences and has recently rebranded its digital agency [9][10][11][12]. - SPS Commerce, Inc. (NASDAQ:SPSC): Year-to-date performance of -42.59% with an analyst upside potential of 42.93%. The company is a leader in retail supply chain solutions and is expected to improve revenue recovery through enhanced sales targeting and relationship management [13][14][15][16].