In this article, we will look at the 10 All-Time High But Still Undervalued Stocks to Invest In.
Stocks trading near all-time highs are often assumed to be expensive, but that is not always the case. A stock can keep setting new highs and still look undervalued if earnings, cash flow, or business quality are improving faster than the market is recognizing. That is especially relevant in a market where investors are trying to separate real fundamental strength from simple momentum. Franklin Templeton puts it plainly, saying “Value is not a low multiple,” and points to “Undervalued quality,” “pricing power, competitive advantage and management discipline,” and cash-flow strength that may be “not fully reflected in the share price.”
BlackRock says that after a strong market performance, few markets are priced at a discount, but it still sees “pockets of value” and an “opportunity for stock selection.” That matters for stocks at record highs because the headline price chart can hide valuation gaps that remain at the company level. AllianceBernstein adds that “earnings and cash flows are still the best predictor of equity returns over long time horizons,” while noting that “quality stocks could become even more valuable in a portfolio.” In summary, stocks near highs can still be attractive when the move is supported by earnings power rather than just multiple expansion.
Against this backdrop, all-time-high stocks with low earnings multiples deserve a closer look. With that in mind, let’s take a look at the 10 All-Time High But Still Undervalued Stocks to Invest In.
Our Methodology
We used the Finviz screener to identify stocks trading near their all-time highs and forward PE ratios less than 15x. We then limited our final selection to companies that have recently reported noteworthy developments likely to impact investor sentiment. These stocks are also popular among analysts and elite hedge funds.
Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 498.7% since May 2014, beating its benchmark by 303 percentage points (see more details here).
10. Diamondback Energy, Inc. (NASDAQ:FANG)
On May 5, 2026, Barclays raised its price target on Diamondback Energy, Inc. (NASDAQ:FANG) to $225 from $190 previously and maintained an Overweight rating after the company posted Q1 results. The firm said production came in ahead of expectations while capital expenditures were in line, adding that efficiency gains and well performance could continue driving upside production surprises.
A day earlier, Diamondback Energy, Inc. (NASDAQ:FANG) reported Q1 adjusted EPS of $4.23 versus $3.75 consensus and revenue of $4.24B compared to $3.93B expected. Average oil production during the quarter was 521 MBO/d. The company also raised its FY26 capital expenditures outlook to $3.9B from $3.75B and increased its FY26 oil production forecast to at least 520 MBO/d from 500-510 MBO/d. For Q2, Diamondback Energy, Inc. (NASDAQ:FANG) expects capital expenditures of $825M to $1.03B and oil production of 515-525 MBO/d.
Diamondback Energy, Inc. (NASDAQ:FANG) also announced a 5% increase in its base cash dividend to $1.10 per common share for Q1 2026, payable on May 21 to shareholders of record on May 14.
Diamondback Energy, Inc. (NASDAQ:FANG) is an independent oil and natural gas company focused on the Permian Basin in West Texas.
9. Valero Energy Corporation (NYSE:VLO)
On May 1, 2026, Morgan Stanley analyst Joe Laetsch raised the price target on Valero Energy Corporation (NYSE:VLO) to $232 from $222 and maintained an Equal Weight rating. Joe Laetsch said Q1 results came in ahead of expectations, supported by stronger refining throughput and margins, while Renewable Diesel improved on higher throughput and lower operating expenses, and Ethanol benefited from stronger margins and cost controls.
On April 30, 2026, Valero Energy Corporation (NYSE:VLO) reported Q1 adjusted EPS of $4.22 versus $3.16 consensus and revenue of $32.38B compared to $29.87B expected. CEO Lane Riggs said the company delivered an “excellent first quarter,” citing strong execution across operations, commercial activity, and financial management during a volatile commodity market environment.
Prior to the earnings release, Scotiabank analyst Betty Zhang raised the price target on Valero Energy Corporation (NYSE:VLO) to $226 from $178 and maintained an Outperform rating as part of a broader sector update.
Valero Energy Corporation (NYSE:VLO) manufactures and markets petroleum-based and low-carbon transportation fuels and petrochemical products globally.
