In this article, we will look at the 10 Most Undervalued Foreign Stocks to Buy According to Analysts.
On January 1, Todd Gordon from Inside Edge Capital appeared on CNBC to discuss the state of global markets. Todd said that he plans to add global assets to his portfolio in 2026. He noted that a rotation is occurring in the markets, shifting away from expensive technology stocks towards those with better valuations. He particularly likes the South American markets, which he believes have secular tailwinds, including the recent US move on Venezuela. Todd believes that it gives the impression that America is trying to stabilize the region, which is good for the markets. He noted that one of the reasons why it is important to add international exposure to your portfolio is the continued weakness of the dollar. Todd highlighted that the ICE US Dollar Index has been in decline since 2011. This weakness persists despite the Federal Reserve’s moves to lower interest rates to boost international holdings.
That said, earlier in October, Tony Coniaris, Oakmark co-CIO of international equities, had appeared on a CNBC television interview. He noted that according to his firm’s research, an average American investor has around 8% to 9% international exposure in their portfolio, and after watching the performance of international equities, they are looking to increase their exposure. Tony highlighted that academic research suggests that, for an average American investor, around 30% of their portfolio should be non-US stocks.
With that, let’s look at some of the Most Undervalued Foreign Stocks to Buy According to Analysts to diversify your portfolio with international exposure.
Our Methodology
To compile the list of 10 Most Undervalued Foreign Stocks to Buy According to Analysts, we used the Finviz Stock Screener, Seeking Alpha, CNN, and Insider Monkey’s Q3 2025 database as our sources. Using the screener, we compiled a list of U.S.-listed, foreign-domiciled stocks with more than 20% upside potential and a forward P/E ratio below 15. Next, we cross-checked the upside from CNN and forward P/E ratios from Seeking Alpha. Later, we ranked the stocks in ascending order of analysts’ upside potential. Lastly, we have added hedge fund sentiment for each stock, sourced from Insider Monkey’s database. Please note that the data is as of January 23, 2026.
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 427.7% since May 2014, beating its benchmark by 264 percentage points (see more details here).
10 Most Undervalued Foreign Stocks to Buy According to Analysts
10. XP Inc. (NASDAQ:XP)
Forward P/E ratio: 10.61
Number of Hedge Fund Holders: 22
Analyst Upside Potential: 21.20%
XP Inc. (NASDAQ:XP) is one of the Most Undervalued Foreign Stocks to Buy According to Analysts. On January 20, Jefferies initiated coverage of XP Inc. (NASDAQ:XP) with a Buy rating and a $22 price target. Earlier, on December 16, Thiago Batista from UBS also reiterated a Buy rating on the stock and raised the price target from $23 to $25.
Analysts at Jefferies noted that the stock’s positive outlook is based on XP Inc.’s strong competitive position in the Brazilian market. The firm noted that XP operates through its multi-brand ecosystem, which allows investors to access digital platforms along with personalized advisory services.
The investment bank views XP Inc. as a broker that is democratizing investments in Brazil through its multi-brand ecosystem that combines a digital platform with personalized advisory services. Jefferies noted that some key strengths of the bank include its 26% return on equity, a solid CET1 capital ratio of about 18.5%, and its control over distribution, where roughly 50% of Brazil’s independent financial advisors partner with XP.
The firm also finds the company to be attractively placed due to its cheap valuation, particularly due to peak interest rates. Jefferies identifies XP as among the top gainers from rate cuts. The firm expects 15% CAGR in revenue and earnings through 2030, with ROE rising from 24% in 2025 to 28% by 2030.
XP Inc. (NASDAQ:XP) is a technology-enabled platform offering a range of investment, credit, and pension products at low fees. They deliver wealth management, investment funds, and private pension services, covering diverse asset classes including equities, fixed income, and alternatives across both public and private markets.
9. Joint Stock Company Kaspi.kz (NASDAQ:KSPI)
Forward P/E ratio: 6.75
Number of Hedge Fund Holders: 40
Analyst Upside Potential: 23.84%
Joint Stock Company Kaspi.kz (NASDAQ:KSPI) is one of the Most Undervalued Foreign Stocks to Buy According to Analysts. Wall Street remains bullish ahead of the company’s fiscal Q4 2025 results to be released on February 24. Analysts’ 12-month price target suggests more than 23.8% upside, with 67% analysts keeping a Buy rating.
Recently, on January 15, Citi reiterated a Buy rating on Joint Stock Company Kaspi.kz (NASDAQ:KSPI) with a $100 price target. Earlier on December 4, J.P. Morgan analyst Reginald Smith reiterated a Hold rating on the stock but lowered the price target from $96 to $88.
Smith from J.P. Morgan noted that the reduced price target and a cautious rating are part of the firm’s outlook for the fintech sector in 2026. The analyst expects real growth within the sector to slow down mainly due to a weaker labor market and the impact of tariffs. However, the slower growth is expected to be offset by tax rate cuts in 2026.
As the company gets closer to fiscal Q4 2025 earnings, Wall Street expects the Joint Stock Company Kaspi.kz (NASDAQ:KSPI) to post revenue around $2.31 billion and GAAP EPS around $3.12.
Joint Stock Company Kaspi.kz (NASDAQ:KSPI), together with its subsidiaries, provides payments, marketplace, and fintech solutions for consumers and merchants in Kazakhstan, Azerbaijan, and Ukraine. It operates in three segments: Payments, Marketplace, and Fintech.
