We recently compiled a list of the 10 Oversold NASDAQ Stocks To Invest In Now. In this article, we are going to take a look at where Walgreens Boots Alliance, Inc. (NASDAQ:WBA) stands against the other oversold NASDAQ stocks.

The NASDAQ soared to an all-time high on October 7, getting a boost from tech and mega-cap stocks. In an interview with CNBC on October 26, Nick Colas, Co-Founder at DataTrek Research Nick shared his insights on the current market trends and the potential for the tech-heavy index to continue its upward momentum. Colas discussed the historical data on the index’s performance in the third year of a bull market, highlighting that in six out of ten instances, the index continued to rally, while in four instances, it did not.

Colas noted that the overall churn for the index in the third year of a bull market is 4.4%, which is not impressive, but attributed this to the four losing years of 1984, 1987, 1990, and 2011, which were marked by significant events such as the 1987 crash and the 1990 invasion of Iraq. However, when these numbers are excluded, the average return for the index in the third year of a bull market is 13.3%. Colas expressed his optimism that as long as there are no major catalytic events, the momentum is likely to continue, and the NASDAQ could see at least a 10% return, if not better.

Colas argued that the index’s performance has not been uniform, with other groups and small caps taking leadership occasionally, indicating a healthier market than in the 1990s, when tech stocks dominated. He also pointed out that while the NASDAQ is up 45% over the past 12 months, its three-year returns, including the 2022 bear market, are more modest, suggesting that the index still has room to run.

Colas acknowledged that valuations are high, but emphasized that valuations are notoriously bad at timing the market. He believes despite the high valuations, the NASDAQ’s momentum and the overall market trend could continue to drive the index higher.

The NASDAQ’s recent surge to an all-time high has sparked optimism about its future performance, with some experts predicting continued growth despite high valuations. While there are always uncertainties and potential risks, the current trend suggests that the index may have further room to run. With that in context, let’s take a look at the 10 oversold NASDAQ stocks to invest in now.

A businessman in a boardroom, monitoring the stock performance of the company.

Our Methodology

To compile our list of the 10 oversold NASDAQ stocks to invest in now, we used the Finviz and Yahoo stock screeners to find the largest NASDAQ stocks that have fallen significantly on a YTD basis and have a forward P/E of less than 15, as of October 23. We then narrowed our choices to 10 stocks according to their hedge fund sentiment, which was taken from our database of 912 elite hedge funds as of Q2 of 2024. The list is sorted in ascending order of their hedge fund sentiment, as of the second quarter.