Finding oversold stocks to buy that show all the right signs of growth can be difficult. To help you decide on your top pick in the coming month, let’s look at three oversold stocks that show real promise.

Through strategic supply chain renewal services, a legendary company’s massive branding and product campaigns, and a well-known household brand with never-ending demand, you can find excellent opportunities to see profits in short-term and long-term buys this month. 

We’ll review the potential value these companies offer through the unique value their services and products bring to the table. Furthermore, we’ll discuss why you should buy them this month while they qualify as oversold. 

Alibaba (BABA) 

Alibaba (NYSE:BABA) brings a unique service to businesses and individuals anywhere in the world. While Alibaba still has yet to receive the full recognition it deserves, it will likely garner the praise it deserves in the near future. As a result, its stock price will also rise in value. 

In Q1 of the 2024 fiscal year, BABA experienced whopping 14% growth in year-over-year revenue. This is only the tip of the iceberg.

With the Chinese economy trending upwards and industrial output at a two-year high, Alibaba is bound to increase in price. On top of that, Alibaba is seeing amazing growth in other segments besides e-commerce, like cloud computing and apps for its business, providing amazing diversification.

Additionally, Alibaba has recently released an AI chatbot that puts Alibaba at a competitive advantage against other competitors. This proactive approach to technological advancements will power Alibaba’s future growth.

With even more anticipated revenue growth, there is no better time to take advantage of this stock while it remains oversold. 

Nike (NKE)

Nike (NYSE:NKE) is one of the few companies that fended against recent economic uncertainty, and it has remained the dominant global sneaker giant it always has been. It has brand recognition and loyalty that makes it the perfect company for long-term growth. We can only expect it to continue its innovation trend, making this stock profitable at a nearly unprecedented low price.

Nike recently fell short of its revenue target for the first time in a long time in 2023. Economic factors such as stagflation resulting from high interest rates and inflation are to blame. However, with higher-than-projected quarterly earnings of 94 cents per share instead of its projected 75 cents and increasing sales, there isn’t a better time to capitalize. 

On top of all this, you only have to pay three times the annual revenue for Nike stock right now, which makes this a once-in-a-lifetime opportunity to buy this stock.

3M (MMM)

3M (NYSE:MMM) is facing a slower price increase from economic and legal factors. However, it has an exceptional valuation and truly fundamental service available to customers everywhere. It is likely that MMM will only rise from here, meaning its current price is a fantastic entry point for buyers anywhere.

In recent news, there was a lawsuit against defective 3M earplugs that permanently damaged the hearing of U.S. military veterans. Courts ordered 3M to pay damages of $6 billion, and it has already begun these payments. 

This is relatively good news because analysts previously thought the estimated payments would be $10 billion. Furthermore, it puts the risk and uncertainty of the lawsuits aside for now. With 3M demonstrating its commitment to paying its dues, it will slowly gain more consumer acceptance and revenue will increase.

3M is known in almost any American household, and in this high-volatility market, it is marked in bullish territory now that its legal issues are behind it. 3M presents an opportunity to buy a stock with excellent prospects for a bargain, as it is trading well below its fair value. With this great potential future valuation, most analysts agree that the stock belongs in oversold territory.

On the date of publication, Joel Lim did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.