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A lot of tech stocks in the S&P 500 index have been hammered recently. Some have fallen more than 25% in the space of a month.
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.
