11 Most Oversold S&P 500 Stocks Heading into 2026

Core Viewpoint - The article discusses the 11 most oversold S&P 500 stocks as of late 2025, highlighting the potential investment opportunities in these stocks as the market approaches record highs [1][3]. Investment Insights - Tom Sosnoff, CEO of LossDog, advises retail investors to focus on buying oversold and cheap stocks instead of chasing hyped companies, indicating a cautious market outlook [1][2]. - David Katz, Chief Investment Officer at Matrix Asset Advisors, supports the idea of investing in oversold businesses and believes the market correction is nearing its end [3]. Stock Analysis Methodology - The analysis identifies stocks with a Relative Strength Index (RSI) below 40 and a share price decline of at least 20% from their 52-week high, using data as of December 9 [7]. - The article ranks 11 stocks based on the largest declines in share price and includes hedge fund holdings data from Q3 2025 to gauge investor interest [7][8]. Individual Stock Highlights - Air Products and Chemicals, Inc. (NYSE:APD): - Share price decline of 32.36% with an RSI of 28.07 and 51 hedge fund holders [10]. - Analysts have lowered price targets, with Argus Research reducing it to $265 from $317, citing macroeconomic headwinds but expecting improvements in EBITDA and revenue in 2026 [11]. - UBS downgraded the stock to Neutral, cutting the price target to $250, while Deutsche Bank also lowered its target to $255 but maintained a Hold rating [12][13]. - Verisk Analytics, Inc. (NASDAQ:VRSK): - Share price decline of 33.10% with an RSI of 38.81 and 55 hedge fund holders [15]. - Analysts have a consensus Moderate Buy rating, with a one-year average price target of $251.29, indicating a 17% upside [15]. - The company faced a revenue miss due to fewer severe weather events, leading to a trimmed annual revenue forecast [17][18]. - Verisk announced an expansion of its partnership with KYND to enhance cyber resilience for the insurance market [19].