In this article, we will look at the 10 Best Undervalued Stocks to Buy Under $100.
On May 5, the Investment Committee at CNBC Television debated how to navigate the market as strong earnings continue to push markets higher. The committee highlighted Keith Lerner’s comments from Truist Financials. Lerner’s note suggests that the bull market still deserves the benefit of doubt, given the economic conditions, earnings growth, valuations, and market price trends. He added that record highs are characteristics of a bull market and highlighted that the recent bull rally is driven by strong fundamentals and earnings revisions.
The committee also invited Josh Brown from Ritholtz Wealth Management to discuss his take on the markets. He highlighted that the standout growth performers of the current earnings season are mostly companies strongly tied to the AI capital expenditure theme. Brown added that the AI capital expenditure story has been leading the economy and the markets higher. He believes that this theme will continue to lead the S&P 500 higher throughout the year.
With that, let’s take a look at the 10 Best Undervalued Stocks to Buy Under $100.
Our Methodology
To curate the list of Best Undervalued Stocks to Buy Under $100, we used screeners to identify stocks that are trading below a forward P/E of 15, and 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 Best Undervalued Stocks to Buy Under $100
10. Fifth Third Bancorp (NASDAQ:FITB)
Price: $50.30
Fwd P/E Ratio: 12.02
Number of Hedge Fund Holders: 46
The Street is bullish on Fifth Third Bancorp (NASDAQ:FITB) since the company posted its fiscal Q1 2026 earnings on April 17. The stock currently trades at a forward price to earnings ratio of 12.02, significantly below the average ratio of the S&P 500. The company also ranks among our Best Undervalued Stocks to Buy Under $100.
Recently, on May 7, Jason Goldberg from Barclays reiterated a Buy rating on the stock and raised the price target from $61 to $63. Earlier, on April 30, Vivek Juneja from J.P. Morgan also reiterated a Buy rating on Fifth Third Bancorp (NASDAQ:FITB) and raised the price target from $53 to $54.5.
The positive sentiment comes despite the company missing earnings estimates during the first quarter. The company posted $2.83 billion in revenue, reflecting more than 32.68% year-over-year growth but below the consensus of $4.47 million. The GAAP EPS of $0.15 also fell short of the consensus by $0.07.
During the earnings transcript, management noted that the integration of the Comerica acquisition is progressing as per the schedule. The company has raised its net interest income guidance to a range of $8.7 billion to $8.8 billion for the full year, based on improved realized synergy capture, favorable deposit response, and new market expansion success.
Analyst at J.P. Morgan noted that the firm has increased its price target in the large-cap bank space following the Q1 results.
Fifth Third Bancorp (NASDAQ:FITB) is a diversified financial services company and serves as the indirect holding company of Fifth Third Bank, National Association.
9. The Kroger Co. (NYSE:KR)
Price: $66.92
Fwd P/E Ratio: 12.89
Number of Hedge Fund Holders: 49
The Kroger Co. (NYSE:KR) is one of the Best Undervalued Stocks to Buy Under $100. The company is set to release its fiscal Q1 2026 results next month on June 2. The Street expects the company to post revenue of around $45.35 billion, up significantly from the previous quarter’s revenue of $34.73 billion. The GAAP EPS is also expected to be higher at $1.61 compared to the previous quarter’s EPS of $1.35.
Separately, on April 27, Erste Group downgraded The Kroger Co. (NYSE:KR) from Buy to Hold without disclosing any price targets. Earlier, on March 9, BofA had reiterated a Buy rating on the stock with a price target of $85.
Analysts at Erste Group noted that while the valuation of the company is significantly low, they expect it to remain low over the medium term. As a result, the firm finds limited upside for the stock, hence the downgrade. On the other hand, BofA likes the company better under the leadership of CEO Greg Foran. The firm pointed to the company’s digital and in-store execution and value offerings. BofA also highlighted that the company’s brands continue to outperform national brands and also noted that the firm sees private label products as a significant advantage.
The Kroger Co. (NYSE:KR) operates food and drug retail stores across the U.S., including combination food and drug stores, multi-department stores, marketplace stores, and price-impact warehouses.
8. Kimberly-Clark Corporation (NASDAQ:KMB)
Price: $97.20
Fwd P/E Ratio: 12.7
Number of Hedge Fund Holders: 56
Kimberly-Clark Corporation (NASDAQ:KMB) trades at a discounted forward price to earnings ratio of 12.7, below the sector average of 15.12. As a result, the stock ranks as one of the Best Undervalued Stocks to Buy Under $100.
Kimberly-Clark Corporation (NASDAQ:KMB) recently came into focus with its fiscal Q1 2026 earnings. The company posted results on April 28. Revenue for the quarter came in at $4.16 billion, ahead of expectations by $69.14 million. Moreover, the GAAP EPS of $2 also topped expectations by $0.27.
Management noted 3% volume plus mix growth, which was driven by innovation and reflects consecutive quarterly gains. Moreover, the company also achieved 6% gross productivity during the quarter, which matches the annual rate of the last 2 years. Management noted that the planned integration of Kenvue has been intensified with 40 teams preparing for immediate post-close synergies.
Following the release, on April 29, UBS raised the firm’s price target on the stock from $105 to $106, while maintaining a Neutral rating on the shares. The firm noted that while the fiscal Q1 results were impressive, they find the future path as uncertain, hence a Hold rating.
Kimberly-Clark Corporation (NASDAQ:KMB) is a global company focused on products and solutions for personal care. It operates through two segments: North America and International Personal Care.
7. U.S. Bancorp (NYSE:USB)
Price: $55.60
Fwd P/E Ratio: 10.83
Number of Hedge Fund Holders: 57
U.S. Bancorp (NYSE:USB) is one of the Best Undervalued Stocks to Buy Under $100. Recently, on May 5, Jason Goldberg from Barclays reiterated a Buy rating on the stock with a price target of $67. Earlier on April 30, Vivek Juneja reiterated a Sell rating on U.S. Bancorp (NYSE:USB) and lowered the price target from $58 to $57.5.
The ratings come after the company posted fiscal Q1 2026 earnings results on April 16. During the quarter, the company reported $7.29 billion in revenue, reflecting 4.74% year-over-year growth and ahead of expectations by $1.50 million. The GAAP EPS of $1.18 also topped expectations by $0.04.
Management noted that total net revenue, fee revenue, and noninterest expenses all topped previous guidance and remain in line with the company’s medium-term targets. The company added that revenue remains strong, driven by growth in business lines and fee categories. Looking ahead, at Q2, the company expects total net interest income and fee revenue to grow by 6% to 7% year-over-year.
J.P. Morgan noted that the slight reduction in the price target reflects the firm’s overall price adjustment for large-cap banks following Q1 results.
U.S. Bancorp (NYSE:USB) is a Minneapolis-based financial services holding company and the parent of U.S. Bank National Association. It provides diversified banking, investment, mortgage, trust, and payment services to consumers, businesses, and institutions through over 2,000 branches, digital platforms, and ATM networks.
6. Altria Group, Inc. (NYSE:MO)
Price: $72.79
Fwd P/E Ratio: 12.96
Number of Hedge Fund Holders: 59
Altria Group, Inc. (NYSE:MO) is one of the Best Undervalued Stocks to Buy Under $100. On May 4, Damian McNeela from Deutsche Bank reiterated a Hold rating on Altria Group, Inc. (NYSE:MO) and raised the price target on the stock from $60 to $66. Earlier, on May 1, Morgan Stanley raised its price target on the stock from $62 to $71, while maintaining an Equal Weight rating.
The ratings follow the company’s fiscal Q1 2026 earnings reported on April 30. During the quarter, the company posted $4.76 billion in revenue, up 5.29% year-over-year and ahead of expectations by $180.45 million. Moreover, the GAAP EPS of $1.30 also topped expectations by $0.06. Management noted that the company’s smokeable products segment generated strong income growth, and the Marlboro brand maintains its position in the premium segment. The company also maintained its full-year guidance of diluted EPS in the range of $5.56 to $5.72, representing a growth rate of 2.5% to 5.5% from a base of $5.42 in 2025.
Following the release, Morgan Stanley raised its fiscal 2026-27 earnings per share estimates by approximately 2.5%, and Deutsche Bank cited improved smokeable products performance as a reason behind the improved price target.
Altria Group, Inc. (NYSE:MO) is a prominent American company that produces and markets tobacco, cigarettes, and related products globally. The firm has also ventured into next-generation nicotine products, such as oral nicotine pouches and electronic vaping devices.
While we acknowledge the potential of MO to grow, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than MO and that has 100x upside potential, check out our report about the cheapest AI stock.
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