In this article, we will discuss the 10 Most Profitable Undervalued Stocks to Invest In.
On June 18, Kelsey Berro, JPMorgan Asset Management Fixed Income Portfolio Manager, appeared on CNBC’s ‘Squawk Box’ to explain the market’s reaction to the Fed’s recent monetary policy decisions and the emergence of a new leadership regime under Chair Kevin Warsh. Berro noted that the bond market responded to the press conference with a significant move higher in the front end of the yield curve, even though the market had already priced in a rate hike. Conversely, the long end of the yield curve, specifically the 30-year yield, moved lower. She interpreted this as a sign that the market trusts the Fed’s credibility in fighting inflation, particularly as five-year inflation expectations have declined to levels below where they were at the start of the conflict in the Middle East. She emphasized that the bond market prefers a Fed that acts decisively rather than one that falls behind the curve as it did in 2022, which forced more aggressive hiking.
Regarding the new leadership, Berro noted that Warsh’s primary focus is clearly price stability, a stance consistent with his history and his association with figures like Stan Druckenmiller, who view price stability as the central bank’s sole mandate. During his press conference, Warsh avoided providing forward guidance and notably did not submit a dot to the Fed’s dot plot, making him a mystery on the committee where the other members are evenly split between hiking, holding, or cutting rates. However, Berro highlighted several Easter eggs from his comments, specifically his description of a cruel trade-off. Warsh does not believe the Fed must choose between fighting inflation and weakening the labor market. She suggested that if May marked the peak for inflation and if labor market growth moderates, the Fed might avoid further hikes.
Our Methodology
We used screeners to identify stocks trading below a forward P/E of 15 that have grown revenue by at least 20% over the past 3 years and have reported high TTM net income (at least $500 million) and TTM net income margin (at least 15%). 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. The stocks are ranked in ascending order of their net income.
Note: All data was sourced on June 19.
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. Insider Monkey’s quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 599.2% since May 2014, beating its benchmark by 372 percentage points (see more details here).
10 Most Profitable Undervalued Stocks to Invest In
10. Innoviva Inc. (NASDAQ:INVA)
TTM Net Income: $504 million
Innoviva Inc. (NASDAQ:INVA) is one of the most profitable undervalued stocks to invest in. On June 16, Innoviva Specialty Therapeutics entered an exclusive licensing and distribution agreement with Dr. Reddy’s Laboratories to bring XACDURO to South and Central America, the Caribbean, Russia, and the CIS region. The partnership aims to address a critical health challenge, as carbapenem-resistant Acinetobacter infection rates in these areas exceed 70%.
Under the deal, Dr. Reddy’s will manage the development, regulatory approval, and commercialization of the antibiotic within these territories. Innoviva retains rights in all other regions and is set to receive an upfront payment, along with milestone payments and tiered royalties based on future net sales.
XACDURO, which is FDA-approved for treating hospital-acquired and ventilator-associated bacterial pneumonia caused by Acinetobacter, is considered a vital tool against this “critical threat” pathogen. By using Dr. Reddy’s regional expertise, Innoviva Inc. intends to broaden global access to this specialized treatment while maintaining its strategic focus.
Innoviva Inc. is a diversified holding company that manages a portfolio of biopharmaceutical royalties and invests in, develops, and commercializes healthcare assets. Its core business focuses on royalties from respiratory products (RELVAR/BREO and ANORO ELLIPTA) partnered with GSK, alongside a specialized therapeutic platform, Innoviva Specialty Therapeutics, focused on critical care and infectious diseases.
9. UMB Financial Corporation (NASDAQ:UMBF)
TTM Net Income: $882 million
UMB Financial Corporation (NASDAQ:UMBF) is one of the most profitable undervalued stocks to invest in. On May 11, UMB Bank’s Institutional Custody division reached $250 billion in assets under custody as of March 31, marking a 19% year-over-year increase. Since becoming a standalone business in 2019, the division has experienced significant growth of 298%, driven by increased demand from municipal governments, insurance providers, and asset managers for specialized middle-office services.
Growth is fueled by the rising complexity of institutional portfolios, which now require advanced solutions like collateral management, risk monitoring, and treasury support. UMB has responded by expanding its service offerings, including new foreign exchange capabilities, collective investment trustee services, and integrated liquidity solutions such as committed reverse repo facilities and lines of credit.
The division’s success is highlighted by major partnerships, including providing custodial services for the City of Fort Worth and integrating custody and credit facilities for ReFlow Fund, LLC. Led by Amy Small, the team continues to invest in technology and process automation to maintain its momentum and adapt to the evolving needs of its institutional client base.
UMB Financial Corporation is a financial services company, offering commercial banking, personal banking, and institutional banking products and services. The company serves business clients nationwide in the US and institutional clients in several countries.
8. IAMGOLD Corporation (NYSE:IAG)
TTM Net Income: $1.00 billion
IAMGOLD Corporation (NYSE:IAG) is one of the most profitable undervalued stocks to invest in. On June 17, IAMGOLD amended its senior secured revolving credit facility, increasing the total commitment from $650 million to $850 million. The maturity date has been extended to June 17, 2030, and the agreement now includes a $250 million accordion feature to provide additional liquidity potential if approved by lenders. The facility currently remains undrawn.
IAMGOLD Corporation secured improved pricing on the facility, with the interest margin reduced to a range of 1.875% to 2.875% over SOFR, down from the previous 2.75% to 3.75%. Additionally, the maximum total net leverage ratio covenant was increased to 4.0x, and standby fees were lowered, allowing for higher availability without increasing standby costs.
CEO Renaud Adams stated that these changes strengthen the company’s financial position, lower its cost of capital, and offer greater flexibility to support the company’s operating portfolio and growth initiatives. The amended terms were supported by a syndicate of lenders led by the National Bank of Canada and RBC Capital Markets.
IAMGOLD Corporation is a mining company engaged in the exploration, development, and production of gold.
7. Alamos Gold Inc. (NYSE:AGI)
TTM Net Income: $1.06 billion
Alamos Gold Inc. (NYSE:AGI) is one of the most profitable undervalued stocks to invest in. On June 18, Alamos Gold issued an operational update for its Young-Davidson and Island Gold operations, revising its second-quarter guidance due to challenges at Young-Davidson. Recent seismic events and power outages caused by storms have limited mining access and resulted in three days of unplanned downtime. Consequently, the company lowered its Q2 production guidance to 130,000–135,000 ounces, a 12% decrease from previous estimates, and expects full-year costs to exceed original projections.
In contrast, the Island Gold District is performing well, with underground mining rates reaching a record 1,500 tonnes per day and the Magino mill throughput averaging ~9,800 tonnes per day in June. The company anticipates stronger production in the second half of the year, driven by this growth, with updated 2026 consolidated guidance to be released in late July.
Additionally, Alamos Gold Inc. eliminated all remaining 2026 legacy Argonaut gold hedges at a cost of $92.3 million to capture upside from higher gold prices. The company also remains active in its capital return program, having repurchased $30 million in shares under its Normal Course Issuer Bid during May 2026.
Alamos Gold Inc. is a Canadian-based intermediate gold producer. The company’s operations are divided into the following operations: Young-Davidson, Mulatos, and Island Gold, with the three segments representing its three operating mine sites.
6. First Citizens BancShares Inc. (NASDAQ:FCNCA)
TTM Net Income: $2.26 billion
First Citizens BancShares Inc. (NASDAQ:FCNCA) is one of the most profitable undervalued stocks to invest in. On June 17, Corgi Insurance and Silicon Valley Bank/SVB, a fully operational commercial banking division of First Citizens BancShares, announced a new partnership to provide SVB’s innovation-focused clients with streamlined access to Corgi’s digital insurance products and AI-native risk management solutions. By integrating these services, SVB aims to help founders and operators scale their businesses more efficiently while meeting the complex insurance requirements often needed for fundraising, hiring, and customer acquisition.
The collaboration offers startups and growth-stage companies in sectors like SaaS, AI, and healthcare access to faster, tailored underwriting and simplified application processes. According to SVB, this initiative is designed to provide the modern financial infrastructure that high-growth companies require to manage risk while maintaining their operational speed.
This partnership combines SVB’s long-standing expertise in the innovation economy with Corgi’s automated, full-stack insurance platform. As part of this effort, SVB clients can now utilize coverage options specifically engineered for high-growth firms, reflecting the shared commitment of both companies to support the next generation of technology and healthcare businesses.
First Citizens BancShares Inc. is a North Carolina-based financial holding company that operates through First Citizens Bank. The bank provides retail and commercial banking services, including lending, deposits, wealth management, and treasury solutions.
5. RenaissanceRe Holdings Ltd. (NYSE:RNR)
TTM Net Income: $2.81 billion
RenaissanceRe Holdings Ltd. (NYSE:RNR) is one of the most profitable undervalued stocks to invest in. On May 14, RenaissanceRe Holdings announced that Chief Financial Officer Robert Qutub and Chief Portfolio Officer Ross Curtis will retire on December 31. To ensure a smooth transition, both executives will serve as strategic advisors to the company following their retirements.
Matthew Neuber, currently Senior Financial Officer and Corporate Treasurer, will succeed Qutub as CFO effective January 1, 2027. Neuber has been with RenaissanceRe since 2014 and has overseen capital management, financial planning, and forecasting during his tenure. Concurrently, Group Chief Underwriting Officer David Marra will assume the responsibilities currently held by Ross Curtis.
President and CEO Kevin O’Donnell thanked the outgoing executives for their long-term contributions, highlighting Qutub’s role in managing the company’s financial growth and acquisitions since 2016, and Curtis’s 27-year impact on the company’s underwriting culture and portfolio construction. The leadership changes reflect the firm’s ongoing commitment to succession planning and internal talent development.
RenaissanceRe Holdings Ltd. operates as a global provider of reinsurance and insurance, focusing on matching risk with capital. The company offers property, casualty, and specialty reinsurance, along with selected insurance solutions, mainly through intermediaries. It reports through two segments: Property and Casualty and Specialty.
4. Prudential plc (NYSE:PUK)
TTM Net Income: $3.98 billion
Prudential (NYSE:PUK) is one of the most profitable undervalued stocks to invest in. On June 18, Prudence Foundation, the community investment arm of Prudential, launched Levela, a free educational app designed to improve financial literacy among young adults in Asia and Africa. Aimed at Gen Z users and early-career professionals, the app offers bite-sized lessons on essential topics such as budgeting, debt management, insurance, and fraud prevention. To ensure accessibility, the platform is available in six languages and includes an offline version for underserved communities.
The initiative builds on the foundation’s decade-long success with its “Cha-Ching” program for children. Developed in partnership with the Center for Financial Inclusion at Accion, Levela’s modules are research-backed and designed to help users build lifelong financial habits and confidence. A Shariah-compliant version is also available in Bahasa Malaysia.
Levela will debut in the Philippines before expanding to seven additional markets (including Indonesia, Malaysia, Thailand, Vietnam, Cambodia, Ghana, and Zambia) later this year. By combining digital education with community engagement, the foundation aims to address the global financial literacy gap and help young adults navigate the complexities of today’s financial landscape.
Prudential is a financial services group that provides life insurance, health insurance, and asset management services. Operating primarily across Asia and Africa, the company offers long-term savings, protection solutions, and wealth management to help individuals secure their financial futures.
3. Trip.com Group Limited (NASDAQ:TCOM)
TTM Net Income: $4.76 billion
Trip.com Group Limited (NASDAQ:TCOM) is one of the most profitable undervalued stocks to invest in. On June 2, Trip.com Group and Tourism Tasmania signed a one-year strategic MoU to accelerate the growth of Tasmanian tourism in global markets. Announced at the Envision Conference in Shanghai, the partnership aims to promote Tasmania’s nature-based travel experiences to international tourists by using Trip.com’s extensive network and marketing expertise.
The agreement focuses on enhancing the visibility of Tasmanian travel products (including accommodations and signature attractions) on Trip.com’s platform while providing specialized training for Trip.com staff to improve service quality. Additionally, the collaboration will use data-driven insights to launch targeted marketing campaigns across the Chinese Mainland, Hong Kong, Southeast Asia, and Australia.
This MoU builds on a successful history of cooperation, following previous recovery initiatives launched in the Chinese market in 2022 and subsequent expansions into Hong Kong and Singapore. Both organizations intend to utilize the new framework to showcase the island’s unique cultural and natural offerings more effectively to a global audience.
Trip.com Group Limited is a one-stop travel platform, operating through its portfolio of brands: Ctrip, Qunar, Trip.com, and Skyscanner.
2. Bank of New York Mellon Corp. (NYSE:BNY)
TTM Net Income: $5.96 billion
Bank of New York Mellon Corp. (NYSE:BNY) is one of the most profitable undervalued stocks to invest in. On June 12, the Bank of New York Mellon Corporation announced that it will redeem all outstanding shares of its Series H Noncumulative Perpetual Preferred Stock and the corresponding 582,500 depositary shares. The redemption is scheduled for June 20, with payments to be issued on June 22.
Each depositary share will be redeemed for $1,000, excluding the final dividend payment. Following the redemption date, these shares will no longer be considered outstanding, and dividends will cease to accrue.
The redemption will be processed through The Depository Trust Company/DTC in book-entry form. Investors holding a beneficial interest in these shares are advised to contact their respective banks or brokers to facilitate the receipt of their redemption payments.
Bank of New York Mellon Corp. is a global financial services company that provides investment management and investment services, including custody, asset servicing, treasury services, and wealth management to institutional clients, corporations, and governments worldwide.
1. Newmont Corporation (NYSE:NEM)
TTM Net Income: $8.46 billion
Newmont Corporation (NYSE:NEM)is one of the most profitable undervalued stocks to invest in. On June 19, Newmont received key regulatory approvals from the Province of British Columbia for its Red Chris Block Cave project, enabling the transition of the Red Chris Mine from open-pit operations to block caving. This move extends the mine’s operational life into the mid-2040s and marks a critical milestone as the company works toward a final investment decision later this year.
The approvals include an amended Environmental Assessment Certificate, achieved through a consent-based process with the Tahltan Nation, and an amended Mines Act permit. CEO Natascha Viljoen highlighted the project’s long-term potential, noting that the development benefits from clean hydroelectric power and strong Indigenous economic leadership, and could increase Canada’s total copper production by ~15 percent.
Currently, Newmont Corporation is finalizing a Definitive Feasibility Study and detailed cost estimates for the project. Once operational, the block cave transition is expected to support ~1,500 peak-season operating roles and create over 1,800 construction jobs. Newmont operates the mine in northwest British Columbia as a majority owner in partnership with Imperial Metals.
Newmont Corporation is one of the world’s biggest gold mining companies, making significant amounts of copper, silver, zinc, and lead as byproducts.
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