In this article, we discuss the 10 Most Undervalued Foreign Stocks to Buy According to Analysts.
The dominance of U.S. stocks within the investment landscape has existed for years, with the S&P 500 index leading with an impressive 14.20% annualized return over the last 15 years. Meanwhile, the MSCI ACWI ex-USA index, which tracks international stocks, has returned 6.5% during the same period. However, the trend seems to be shifting.
In 2025, international stocks have outpaced their U.S. counterparts. So far this year, the ACWI ex-USA index has returned 15.7%, while the S&P 500 index is trailing behind with just a 1.5% return. This reflects the growing investor trend of embracing an “ABUSA” mentality-“Anywhere But the USA.”
Analysts believe that this shift is driven by concerns over U.S. market volatility and the uncertainty surrounding U.S. policies. Amid this, international stocks are showing signs of catching up despite the historical dominance of U.S. stocks. Although investors must exercise caution and avoid drastic portfolio changes, analysts believe that diversifying into foreign stocks could offer long-term benefits.
With this backdrop in mind, let’s discuss the 10 Most Undervalued Foreign Stocks to Buy According to Analysts that may outperform in the coming years.
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Our Methodology
To curate our list of the 10 Most Undervalued Foreign Stocks to Buy According to Analysts, we used the Finviz screener to extract foreign stocks, trading on the U.S. exchanges under a price-to-earnings ratio of 16x. We then assessed analyst sentiment on these stocks and shortlisted stocks based on their upside potential. The 10 Most Undervalued Foreign Stocks to Buy According to Analysts are presented in ascending order of the upside potential. Furthermore, we also considered the hedge fund interest in these stocks, using Insider Monkey’s database that tracks over 1,000 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 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here).
10. New Oriental Education & Technology Group Inc. (NYSE:EDU)
Forward Price-to-Earnings: 13.07
Upside Potential: 31.81%
Number of Hedge Fund Holders: 32
New Oriental Education & Technology Group Inc. (NYSE:EDU) is included in our list of the 10 Most Undervalued Foreign Stocks to Buy According to Analysts.
On June 27, 2025, Citi upgraded its rating on New Oriental Education & Technology Group Inc. (NYSE:EDU) from ‘Neutral’ to ‘Buy’ rating, while reducing its price target from $77 to $50. The analyst cited strong domestic growth potential as the reason for the upgrade.
Furthermore, Citi projected upside potential for New Oriental Education & Technology Group Inc. (NYSE:EDU) due to the expansion of its high-margin segments, K9 and Senior High. These segments, expanding at 35% and 11% annually, are expected to grow from 45% to 55% of revenue by FY26.
Meanwhile, the company’s cost discipline, particularly rent reductions and controlled hiring, is driving structural margin expansion. According to analysts’ projections, a 1% revenue shift to domestic operations results in an 8-10 basis-point increase in New Oriental Education & Technology Group Inc. (NYSE:EDU)’s margins. With a low forward P/E ratio and a $4.7 billion net cash reserve, there is strong room for capital gains, the analyst notes.
New Oriental Education & Technology Group Inc. (NYSE:EDU), a China-based educational services provider, offers test preparation, tutoring, online learning, and overseas study consulting. It remains on our list of the most undervalued stocks.
9. XP Inc. (NASDAQ:XP)
Forward Price-to-Earnings: 9.8
Upside Potential: 37.54%
Number of Hedge Fund Holders: 29
XP Inc. (NASDAQ:XP) is included in our list of the 10 Most Undervalued Foreign Stocks to Buy According to Analysts.
On June 20, 2025, UBS increased its price target on XP Inc. (NASDAQ:XP) from $17 to $24, maintaining a ‘Buy’ rating. Previously, on June 4, 2025, Goldman Sachs upgraded the stock from ‘Neutral’ to ‘Buy’, with a $23 price target. The analyst attributed the upgrade to the company’s strong operating leverage, a resilient revenue mix, and possible interest rate cuts.
This analyst’s optimism surrounding XP Inc. (NASDAQ:XP)’s outlook follows the R$1 billion share repurchase program in May. The same day, the company canceled over 12 million treasury shares, which decreased its total share count by 2.2%. The cancellation is expected to enhance the company’s shareholder value.
Looking ahead, Goldman Sachs projects a double-digit revenue growth for XP Inc. (NASDAQ:XP) due to consistent fixed income revenue and reduced reliance on equity markets.
XP Inc. (NASDAQ:XP) serves retail, high-net-worth, and institutional clients with its broad range of investment, brokerage, and banking products. It remains on our list of the most undervalued stocks.
8. Globant S.A. (NYSE:GLOB)
Forward Price-to-Earnings: 15.22
Upside Potential: 38.75%
Number of Hedge Fund Holders: 31
Globant S.A. (NYSE:GLOB) is included in our list of the 10 Most Undervalued Foreign Stocks to Buy According to Analysts.
On July 21, 2025, Scotiabank upgraded its rating on Globant S.A. (NYSE:GLOB) to ‘Outperform’. Maintaining a $115 price target, the analyst cited the company’s industry-leading capabilities and increased capacity to meet the growing demand for AI-driven enterprise solutions. Scotiabank also considers the company’s Service-as-a-Software (SaaS) model that integrates AI-led workflows across business operations.
This upgrade from the analyst follows a challenging 2025 so far. A 54% YoY decline in Globant S.A. (NYSE:GLOB)’s shares was noted in Alger Mid Cap Focus Fund’s Q2 2025 investor letter, following weaker-than-expected Q1 results. The company attributed its weak Q1 performance to project delays, especially in North America, amid ongoing macroeconomic uncertainty.
Globant S.A. (NYSE:GLOB), a Luxembourg-based technology services firm, leverages AI, cloud, software development, and enterprise solutions to help businesses transform digitally. It remains on our list of the most undervalued stocks.
7. LivaNova PLC (NASDAQ:LIVN)
Forward Price-to-Earnings: 11.90
Upside Potential: 38.93%
Number of Hedge Fund Holders: 40
Offering strong upside potential, LivaNova PLC (NASDAQ:LIVN) earns a spot on our list of the 10 Most Undervalued Foreign Stocks to Buy According to Analysts.
On June 5, 2025, LivaNova PLC (NASDAQ:LIVN) reported the completion of its landmark CORE-VNS study. More than 800 real-world patients with drug-resistant epilepsy were tracked under this study. The results were positive. Significant and lasting seizure reductions were noted, confirming VNS Therapy’s effectiveness in both children and adults. In some cases, a 100% reduction was noted.
In response to the positive results, Jefferies reaffirmed its ‘Buy’ rating the following day, with a $79 price target. The analyst attributed it to strong product cycles, including upgrades to the company’s Essenz platform and growing oxygenator market share. Previously, in May, Wolfe Research also upgraded the stock to ‘Outperform’, highlighting the improved legal clarity in Italy and high growth potential in its depression and sleep apnea treatment pipelines.
Through its Cardiopulmonary and Neuromodulation segments, LivaNova PLC (NASDAQ:LIVN) develops products and therapies for neurological and cardiac patients worldwide. It remains on our list of the most undervalued stocks.
6. Methanex Corporation (NASDAQ:MEOH)
Forward Price-to-Earnings: 12.32
Upside Potential: 39.45%
Number of Hedge Fund Holders: 28
Methanex Corporation (NASDAQ:MEOH) is included in our list of the 10 Most Undervalued Foreign Stocks to Buy According to Analysts.
On July 15, 2025, Raymond James increased its price target on Methanex Corporation (NASDAQ:MEOH) from $45.00 to $40.00, maintaining an ‘Outperform’ rating. The analyst aligned its target with broader analyst sentiment. Due to long-lasting supply concerns in major methanol-producing regions, particularly Iran, methanol prices have been doing better, driving positive market sentiment. Both spot and contract prices have benefited from the global supply disruptions.
Looking ahead, Raymond James raised its 2025 and 2026 earnings estimates for Methanex Corporation (NASDAQ:MEOH), reflecting the favorable pricing environment. Furthermore, its acquisition of OCI Global’s international methanol business positions the company for continued growth.
Methanex Corporation (NASDAQ:MEOH) is a methanol producer, operating in Asia-Pacific, North America, Europe, and South America. It remains on our list of the most undervalued stocks.
5. PagSeguro Digital Ltd. (NYSE:PAGS)
Forward Price-to-Earnings: 5.88
Upside Potential: 41.19%
Number of Hedge Fund Holders: 29
Offering strong upside potential, PagSeguro Digital Ltd. (NYSE:PAGS) earns a spot on our list of the 10 Most Undervalued Foreign Stocks to Buy According to Analysts.
On July 16, 2025, JPMorgan increased its price target on PagSeguro Digital Ltd. (NYSE:PAGS) from $12 to $13, maintaining a ‘Neutral’ rating. The analyst expects the company to achieve the high end of its 11-15% EPS growth guidance. The analyst maintains the same trend from February, when the target was lifted from $11. The continued optimism is driven by the company’s efforts to reprice products, reduce financial costs, and manage costs amid macroeconomic uncertainty.
The analyst’s discussions with PagSeguro Digital Ltd. (NYSE:PAGS)’s management revealed a strategic focus on margin improvements and diversification, particularly within its banking segment. This banking segment now accounts for 20% of the company’s gross profit. Meanwhile, the company’s credit segment is expected to drive its future growth. With the stock trading at a low valuation and expectations of a 15% return on equity (ROE), the analyst projects a strong outlook for PAGS.
PagSeguro Digital Ltd. (NYSE:PAGS), a Brazilian fintech company, offers financial and payment solutions for a diverse range of customers. It remains on our list of the most undervalued stocks.
4. Burford Capital Limited (NYSE:BUR)
Forward Price-to-Earnings: 9.68
Upside Potential: 44.01%
Number of Hedge Fund Holders: 31
Burford Capital Limited (NYSE:BUR) is included in our list of the 10 Most Undervalued Foreign Stocks to Buy According to Analysts.
On July 11, 2025, Burford Capital Limited (NYSE:BUR) bolstered its financial health with the successful issuance of $500 million in senior notes. The company’s leadership cited the move as a critical step in its growth. It highlighted that high investor demand allowed the company to increase the deal size, while securing its best-ever interest rate to date-7.50% on an eight-year period, compared to U.S. government bonds.
This capital raise positions Burford Capital Limited (NYSE:BUR) to repay 2025 maturing bonds and achieve its broader corporate goals, including the potential early retirement of 2026 debt.
Burford Capital Limited (NYSE:BUR) is a global finance and asset management firm, specializing in litigation finance, asset recovery, and legal risk management solutions. It continues to be on our list of the most undervalued stocks.
3. Playtika Holding Corp. (NASDAQ:PLTK)
Forward Price-to-Earnings: 8.57
Upside Potential: 57.92%
Number of Hedge Fund Holders: 31
Offering strong upside potential, Playtika Holding Corp. (NASDAQ:PLTK) earns a spot on our list of the 10 Most Undervalued Foreign Stocks to Buy According to Analysts.
Analysts hold mixed sentiment surrounding Playtika Holding Corp. (NASDAQ:PLTK)’s outlook, amid broader macroeconomic uncertainties and following the strong Q1 2025 performance of the company.
On July 1, 2025, Wedbush reaffirmed its ‘Buy’ rating with an $11.50 price target. The analyst attributed this to the company’s strong momentum as demonstrated through its Q1 results. Playtika Holding Corp. (NASDAQ:PLTK) reported $706 million in revenue, which was an increase of 8.6% sequentially and 8.4% year-over-year (YoY). Meanwhile, its direct-to-consumer platforms reported a 4.5% increase YoY. While its GAAP net income fell by 42.3%, adjusted net income rose by 34.1% sequentially, highlighting the company’s operational resilience.
Meanwhile, in April, Morgan Stanley reduced its price target on Playtika Holding Corp. (NASDAQ:PLTK) from $7.25 to $5.75, maintaining an ‘Equal Weight’ rating, amid tariff pressures and a cautious outlook for internet stocks. While there is a mixed short-term outlook, the company remains on track with its topline growth and improving adjusted earnings.
Operating in the United States, Europe, the Middle East, Africa, the Asia-Pacific, and internationally, Playtika Holding Corp. (NASDAQ:PLTK) develops mobile games, distributing them through various channels. It remains on our list of the most undervalued stocks.
2. Jazz Pharmaceuticals plc (NASDAQ:JAZZ)
Forward Price-to-Earnings: 14.47
Upside Potential: 58.59%
Number of Hedge Fund Holders: 52
Jazz Pharmaceuticals plc (NASDAQ:JAZZ) is included in our list of the 10 Most Undervalued Foreign Stocks to Buy According to Analysts.
Despite early-year challenges, Jazz Pharmaceuticals plc (NASDAQ:JAZZ) remains a ‘Buy’.
On July 22, 2025, Morgan Stanley maintained its ‘Buy’ rating on JAZZ. However, the analyst lowered its price target slightly from $165 to $166. The analyst attributes its bullish stance to its expectation that the company will bounce back in the second half of the year, following a 10% miss in its Q1 net product sales. This expectation is driven by an extra shipping week in the Oncology segment, stronger demand for Rylaze due to pediatric protocol shifts, and seasonal strength in sleep disorder medication.
Meanwhile, Jazz Pharmaceuticals plc (NASDAQ:JAZZ) is expected to experience major clinical developments with HERIZON-GEA-01 data and the anticipated dordaviprone FDA decision. Furthermore, the upcoming leadership change boosts optimism. Looking ahead, the analyst’s oncology revenue estimate exceeds the street’s estimates.
On the other hand, Wells Fargo reinforced this outlook, maintaining a ‘Buy’ rating on July 18 with a price target of $170.
Operating in the United States, Europe, and other global markets, Jazz Pharmaceuticals plc (NASDAQ:JAZZ) develops and commercializes pharmaceutical products. It remains on our list of the most undervalued stocks.
1. Qfin Holdings, Inc. (NASDAQ:QFIN)
Forward Price-to-Earnings: 4.53
Upside Potential: 61.69%
Number of Hedge Fund Holders: 33
Offering strong upside potential, Qfin Holdings, Inc. (NASDAQ:QFIN) earns a spot on our list of the 10 Most Undervalued Foreign Stocks to Buy According to Analysts.
Qfin Holdings, Inc. (NASDAQ:QFIN) has recently been drawing attention from analysts.
On July 2, 2025, JPMorgan initiated coverage on Qfin Holdings, Inc. (NASDAQ:QFIN) with an ‘Overweight’ rating and a $65 price target. The analyst believes that QFIN is a top pick in China’s evolving fintech market, calling it a ‘leading consumer finance platform’.
The analysts are particularly compelled by the company’s lending services to the retail segment, which is often overlooked by traditional banks. Relative to the current market cap of Qfin Holdings, Inc. (NASDAQ:QFIN), the analyst projects total shareholder returns at 17%, 14%, and 12% for 2025 through 2027, respectively. This positions Qfin Holdings, Inc. (NASDAQ:QFIN) for future growth, while staying a compelling stock in terms of shareholder returns.
With the Qifu Jietiao brand, Qfin Holdings, Inc. (NASDAQ:QFIN) operates an AI-driven fintech platform. It remains on our list of the most undervalued stocks.
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