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The ideas in this piece come from Joseph Hogue, who runs the Let’s Talk Money! channel with over 784,000 subscribers. He just put out new numbers on the software selloff. $1.6 trillion gone. People are scared of what AI will do to these companies.
That fear hit everyone. But not every company is in trouble. Some are stuck deep inside banks, hospitals, and government systems. You cannot rip them out overnight. Too much trust. Too many rules. Too many years of being the thing that just works.That disconnect between price and fundamentals is where he sees opportunity.
That’s where his list comes in.
Cellebrite builds digital intelligence tools used by thousands of law enforcement and intelligence agencies. Its software plays a key role in criminal investigations, helping extract and organize evidence across devices and platforms. In this kind of environment, accuracy and legal reliability are everything, which makes it difficult for AI tools to replace the platform.
The company is still growing revenue at about 18% with an 84% gross margin, yet the stock has dropped roughly 35%. Based on prior valuation levels, Hogue sees close to 60% upside from current levels, driven by a mismatch between market fear and actual demand.
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CCC operates a connected platform across the insurance ecosystem, linking insurers, repair shops, parts suppliers, and lenders. It processes over $200 billion in transactions each year, making it deeply embedded in how insurance claims are handled.
This level of integration creates strong lock-in. Businesses depend on the platform’s data and workflow, which makes switching costly and complex. The stock is down about 44%, even as the company maintains steady growth and strong profitability. Based on valuation assumptions, the upside could reach as high as 133% if sentiment improves.
Cybersecurity demand keeps rising as digital threats become more advanced. AI is actually increasing the number and complexity of attacks, which strengthens the case for companies providing protection. Palo Alto Networks serves over 80,000 customers with a platform that secures networks, cloud systems, and applications.
The stock hasn’t dropped as much as others, but it still trades below prior highs. With around 20% revenue growth and improving sentiment in the space, Hogue sees moderate upside as the market adjusts to the ongoing need for cybersecurity.
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AppFolio makes software for property managers. Rent collection. Maintenance requests. Talking to tenants. One place for all of it.
More than 9 million units run on it. Thousands of customers use it every day. Once you put this system in, you do not leave. Switching is a nightmare.
The company keeps growing. Revenue up 18%. Earnings are growing even faster than that. The stock dropped a little compared to others. Price says there is 67% upside.
CrowdStrike catches threats as they happen. On computers, servers, networks. Their system works in the cloud. Big companies use it. People don’t quit. They buy more. Customer retention sits above 115%.
The company is growing revenue at over 20%, and its strong position in cybersecurity keeps demand high. Even though the stock hasn’t fallen as much, it still trades below earlier peaks. Hogue estimates about 19% upside, with long-term growth supported by increasing digital threats.
The biggest thing happening in the market is AI infrastructure. Amazon, Microsoft, Meta, and Alphabet will spend over $800billion by 2028. Data centers alone will cost $700 billion in 2026. That means more chips. That helps Nvidia and Broadcom.
Earnings expectations are also improving across the board. The S&P 500 is projected to deliver around 17% earnings growth over the next year. Growth is no longer limited to large tech names, as financial companies are reporting stronger activity backed by investment banking demand and potential regulatory easing of about 4.8% in capital requirements.
There is also a clear rotation happening across sectors. Energy stocks are up 34% this year. Trouble in the Middle East between the US and Iran pushed oil prices up. Money left expensive tech stocks and went into energy. Small-cap stocks look cheap too. They trade 17% below what they are probably worth. People are buying them.
People are still spending money. Retail sales rose 0.6% in February. Wall Street expected 0.5%. Core sales came in at 0.5%. Forecasts said 0.3%. So spending is holding up. The Fed kept rates steady. If inflation cools, rates might come down later in 2026. That would help stocks.
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Investors are looking outside the US for deals. Japan is doing well. The Tokyo Stock Exchange pushed companies to clean up their act. They want better returns for shareholders. In 2022, about half of listed Japanese firms traded below book value. That number dropped to 29% in 2026. Big improvement.
Brazil is outperforming other emerging markets. Oil prices are up. Interest rates are expected to drop three percentage points there.
However, software stocks got crushed. Some of that selling was fear, not logic. Joseph Hogue looks for companies that own their industries or stand to win from AI. Not the ones that will get run over. Cheap prices plus good business strength. That is why these five stocks make sense going into May 2026.
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The post Here are 5 Insanely Cheap Stocks This Expert is Buying in May 2026 appeared first on CaptainAltcoin.