Looking for stocks that are oversold? Here are three worth checking out.

The definition of oversold

The technical definition of an oversold stock is one that has a ‘relative strength index’ or RSI of less than 30. The RSI is a technical analysis indicator that measures the magnitude of recent share price movements.

Now, one stock that fits the bill here is Salesforce (NYSE: CRM), which specialises in customer relationship management (CRM) solutions. Down 25% in a month, it currently has an RSI of 25.

Clearly, a lot of investors are worried that AI is going to disrupt this business. But could the fears here be overblown?

Personally, I think there’s a decent chance that Salesforce will continue to do well in the AI era. One reason I’m optimistic is that the company has launched a powerful AI agent service to help businesses automate their operations.

Note that analysts at Guinness Global Investors believe there’s clear evidence that AI momentum is growing. They point to the fact that six of the firm’s top 10 deals in the final quarter of 2025 were exclusively AI deployments.

So, I think this stock is worth a look right now. It’s certainly cheap – the forward-looking price-to-earnings (P/E) ratio is only 15.

Embedded in organisations globally

Another stock with a low RSI is ServiceNow (NYSE: NOW), which specialises in enterprise software. It’s also down about 25% in a month and sports an RSI of 29.

This is a stock I’ve had on my watchlist for a long time. I’ve never bought it though as it’s always been very expensive.

The set-up has changed dramatically recently, however. Today, the stock’s forward-looking P/E ratio is only 25 (falling to 21 using next year’s earnings forecast), so the valuation is now quite attractive.

One thing this company has going for it is that its software is really embedded in large businesses. Replacing it would be time consuming and costly.

Another is that it has launched agentic AI solutions. These should make its offering more valuable.

Of course, we can’t rule out AI disruption here. But on balance, I believe the stock is worth considering for a portfolio today after its huge fall.

Trading at a rock-bottom valuation

Finally, check out FactSet Research Systems (NYSE: FDS), which provides financial data to banks and investment managers. It currently has an RSI of just 19.

This stock is down about 30% in a month. Clearly, a lot of investors believe that FactSet’s offering is going to be less relevant in the AI era.

I’m not convinced the growth story is over, however. Because banks and investment managers aren’t going to blindly trust AI for their data (accuracy is vital).

It’s worth noting that earlier this year, FactSet signed a multi-year agreement with Barclays. This is designed to help Barclays deliver enhanced, data-driven solutions for its global client base.

Now, competition from rivals such as London Stock Exchange Group is a risk with this stock. However, with the P/E ratio now sitting at a very low 12, the risk-reward proposition looks attractive to me – I think it’s worthy of further research.

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Beazley

What it does: This speciality-risk insurance and reinsurance business operates across a host of sectors, including professional indemnity, directors and officers, crime, healthcare, property, environmental liability, marine and political risks.

By Harvey Jones. Lloyd’s of London insurer Beazley (LSE: BEZ) is one of the unsung heroes of the FTSE 100. Its shares are up 42.19% over 12 months and 91.92% over three years, but never quite get the attention they deserve.

So despite smashing the index, the Beazley share price still trades at a dirt-cheap valuation of just 4.82 times earnings.

One reason is that it’s risky. One or two big claims could hit annual profits, and such is the nature of insurance, they are totally unpredictable.

Beazley is also on the front line of climate change, as floods, storms and hurricanes are likely to drive up claims costs.

Yet on 8 August it announced that it had almost doubled its first-half profit to $728.9m, a record high. It also increased its combined ratio, a key measure of underwriting profitability.

Return on equity jumped from 18% to 28%. Beazley is also exploring a new opportunity in cyber liability insurance.

The yield is so-so at 1.89% but the board should complete a $325m share buyback by the end of the year. I’m keen to buy Beazley in August. At today’s low price, it would be rude not to.

Harvey Jones does not own shares in Beazley.

London Stock Exchange Group

What it does: London Stock Exchange Group is a leading financial markets infrastructure company and data provider.  

By Edward Sheldon, CFA. I’ve chosen London Stock Exchange Group (LSE: LSEG) as my top growth stock this month. There are a few reasons why. 

One is that the company is performing well at the moment. For the first half of 2024, adjusted earnings per share were up 8.1% year on year. On the back of this performance, the company hiked its interim dividend by 14.8%. 

Another is that the company is working with AI powerhouse Microsoft to enhance its financial data platform (which is used by thousands of banks and investment managers worldwide). Looking ahead, I believe the company may be able to capture market share from Bloomberg and FactSet. Microsoft CEO Satya Nadella has said that the products will allow banks to do “more with less”. 

Finally, the shares are in a strong uptrend at present. And with the stock trading on a reasonable mid-20s P/E ratio right now, I reckon the trend has legs. 

Of course, if the tech sector was to experience some weakness, this stock could experience a pullback. Taking a long-term view, however, I think it has a lot of potential. 

Edward Sheldon owns shares in London Stock Exchange Group and Microsoft.

S4 Capital

What it does: S4 Capital is a digital marketing agency network with a worldwide business serving a range of blue-chip clients

By Christopher Ruane. Over the past several years, my holding in S4 Capital (LSE: SFOR) has plummeted in value. That reflects a number of risks I think are still pertinent, from the key man risk of Sir Martin Sorrell’s critical role, to weak demand for advertising. The share, selling for pennies, continues to be risky in my view.

Still, although the formerly fast-growing company has seen declining revenues, I expect it to return to growth in the next year or two. It has signalled that it may also initiate a dividend.

Meanwhile, as advertising has proven more resilient in the current economy than some commentators expected, S4 could return to revenue growth sooner rather than later.

Interim results are due on 19 September. So we will know how well – or not – the business has been doing lately. An impressive client roster, strong digital marketing offering and unique talent pool are among the competitive advantages I see.  

Christopher Ruane owns shares in S4 Capital.

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