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11 Oversold Financial Stocks to Buy According to Hedge Funds
Insider Monkeyยท2025-10-07 20:51

Market Overview - The market is currently overbought, a trend that has persisted since September 2025, with a need for a pull-back for long-term health [1] - The S&P 500 is projected to reach 7,000 by the end of the year and 7,200 by early 2026, indicating ongoing buying opportunities [1] - The bull market is primarily driven by advancements in AI and technology, with long-term growth projections for the S&P 500 ranging from 10,000 to 13,000 [2] Federal Reserve Insights - The Federal Reserve cutting rates in a healthy economy is unconventional, but such cuts could stimulate risk assets in the current market scenario [3] Investment Strategy - A list of 11 oversold financial stocks has been curated based on a decline of over 20% year-to-date, with analysts expecting more than 30% upside potential [5] - The methodology involved using the Finviz Stock Screener, CNN, and Insider Monkey's Q2 2025 database to identify these stocks [5][6] Company Highlights The Baldwin Insurance Group, Inc. (NASDAQ:BWIN) - Year-to-date decline of 22.73% with an analyst upside potential of 35.42% [8] - The company reported quarterly revenue of $378.81 million for FQ2 2025, an 11.47% year-over-year increase, and EPS of $0.42 [9] - Analysts maintain a bullish sentiment, with a price target reflecting a 35.42% upside from current levels [10] Banco BBVA Argentina S.A. (NYSE:BBAR) - Year-to-date decline of 61.78% with an analyst upside potential of 170.43% [12] - The company reported revenue of $527.39 million, missing consensus estimates, and an EPS of $0.21, which was also below expectations [13] - Despite recent underperformance, the volatility presents an attractive entry point for investors, with a robust long-term investment case for Argentine banks [14]