We recently released a list Buy 11 Oversold Growth Stocks Now. In this article, we will explore the location where Atlas Energy Solutions Inc. (NYSE: AESI) buy Atlas Energy Solutions Inc. (NYSE: AESI) now.
Despite strong growth over the 2023-2024 period, the stock was represented primarily by high and consistent revenue growth, showing slow performance in 2025. Due to the turmoil and uncertainty caused by Trump, growth factors have gradually faded and changed to value stocks that are conducive to safer. This has resulted in many growth stocks being oversold and traded at attractive valuations. Still, investors are reluctant to buy because agents of the CNN Fear & Greed index are still in the “fear” realm with a relatively low value of 36/100. The key questions to be answered in this article are as follows: Will the U.S. stock market eventually return to stability and growth?
Please read also: 11 oversold blue chip stocks purchased by hedge funds
We believe there are some strong indicators that support the assumption that the market bottom is bottoming out, and the outlook will change soon. First, when there is a peak pessimism in the news and among retail investors, the market tends to drop – this happened last week as the fear and greed index is in the extreme fear field, with some infamous news portals, and some infamous news portals publishing extremely bearish front page stories that suggest the dollar may collapse and may be with U.S. stocks and Bond markets, and therefore may be with our stocks and Bond markets. Mainstream news portals are often late for the party and can only acknowledge the market depression after the party occurs. From a counter-trend perspective, this means peak pessimism has been priced sometime earlier this month, and things can only get better from here.
U.S. stock markets have risen more than 5% since the beginning of the week, and our assumptions have been somewhat confirmed, with the VIX index (notorious investor expectations agent) scoring 25, which was the 60-peak score around Freedom Day earlier this month. Therefore, the VIX index score is close to its long-term moving average, which is located in adolescence, indicating that market expectations have normalized. More certainty in the market is very optimistic about stock prices and the economy as a whole - it keeps the roaring economic headwinds of the 2020s from emitting and makes it clearer for CEOs and consumers to start spending again.
Another important indicator suggests the possibility of potential growth in the stock market is that, according to Yardeni's research, bond spreads for high-yield companies fell from 461bps a few weeks ago to 348bps. High yield bonds are often associated with smaller, high-growth companies, which resonates well with the growth factors we discussed earlier in the article. A decline in yields on corporate bonds reflects less expectations for defaults, which tend to occur in economic growth.
Last but not least, the S&P index trades at a forward PE ratio of 19.5, which is much cheaper than its peak at about 22.0 at the end of 2024. This means that there are more cheap prices now than you would have found a few months ago, and if people expect market growth to resume, it is the best time to find a cheap deal. Many growth stocks remain in oversold territory due to tariff uncertainty, inflation threats and slowing in certain industries.
Aerial view of the Permian Basin oil rig, illustrating the vast action in West Texas and New Mexico.
To compile our oversold stock list, we use filters to identify stocks with a CAGR of at least 20% revenue over the past 5 years, currently stocks with RSI below 40 and have a large average overhead estimated by analysts. We rank them in descending order by RSI values. For each stock, we also include the number of hedge funds that own the stock, according to Insider Monkey's database (Q4 2024).
Why are we interested in stocks that hedge funds to accumulate? The reason is simple: Our research shows that we can beat the market by mimicking the top stocks of the best hedge funds. Our strategy for quarterly newsletters selects 14 small and large stocks every quarter, returning 373.4% since May 2014, beating its benchmark by 218 percentage points (See more details here).
RSI: 39.78
Estimated average analyst upside: 51.84%
Revenue compound annual growth rate in the last 5 years: 83.35%
Number of hedge fund holders: 10
Atlas Energy Solutions Inc. (NYSE: AESI) is an energy services company specializing in the production and logistics of proppant for hydraulic fracturing operations, mainly in West Texas and New Mexico. It operates 14 proppant production facilities and manages its own logistics network. AESI also expands to power solutions by adding a large number of natural gas generators to its products.
Since its March 2023 IPO, Atlas Energy Solutions Inc. (NYSE: AESI) has shown significant growth, with its production capacity increasing by nearly 2.5 times, now providing the largest wet sand operation in the Permian Basin. The company has successfully launched Dune Express, making commercial delivery the second longest conveyor belt ever and pioneered the world's first commercial driverless delivery business in partnership with Kodiak Robotics.
Looking ahead, in 2025, the company expects sales of more than 25 million tons in 2024, about 20 million tons in 2024. The company has closed the acquisition of Moser Energy Systems, providing a new Avenue for the rapidly expanding distributed power market. The company also saw early signs of recovery in the Permian proppant market, with prices on pricing and expectations gradually returning to normal expectations later this year. Although AESI's operating speed has grown rapidly due to lower oil prices, this makes it one of the best oversold stocks due to lower oil prices.
Overall, Aesi Ranked 9 Among the oversold stocks we are buying now. Although we acknowledge the potential for AESI growth, our belief is that AI stocks have greater returns in a shorter time frame and offer greater hope in this. AI stocks have risen since the beginning of 2025, while popular AI stocks have lost about 25%. If you are looking for AI stocks that are more promising than AESI but have less than 5 times its earnings, check out our report Cheapest AI stocks.
Read the next article: Buy 20 Best AI Stocks Now and According to the billionaire, there are now 30 best stocks.
Disclosure: None. This article was originally published in Internal monkey.