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.
8. Sanofi (NASDAQ:SNY)
Forward P/E ratio: 10.04
Number of Hedge Fund Holders: 32
Analyst Upside Potential: 25.16%
Sanofi (NASDAQ:SNY) is one of the Most Undervalued Foreign Stocks to Buy According to Analysts. On January 20, Berenberg Bank reiterated a Buy rating on the stock with a $62 price target. Earlier on January 16, UBS downgraded Sanofi (SAN:Euronext Paris Listing) from Buy to Neutral and lowered the price target from €105 to €88.
Analysts at UBS noted that the cautious rating and lower price target are mainly due to the company’s recent clinical trial failures. The firm finds Sanofi’s pipeline to be weak to offset the loss of Dupixent, one of its blockbuster drugs. UBS noted that the company’s inability to replace its pipeline with a better drug suggests a strategic risk. As a result, the firm lowered its mid-term earnings estimates by 8% and also reduced the core earnings estimates by 8.1% for 2027-2030.
The rating came after Sanofi’s Tolebrutinib failed to meet its primary endpoints in treating progressive multiple sclerosis. Moreover, the FDA also delayed approval for the indication due to the risk of serious liver injury. UBS analysts note that meaningful M&A might only be the realistic option for the company.
Sanofi (NASDAQ:SNY) is a global healthcare company engaged in the research, development, manufacture, and marketing of therapeutic solutions across pharmaceuticals, vaccines, and consumer healthcare.
7. JBS N.V. (NYSE:JBS)
Forward P/E ratio: 7.87
Number of Hedge Fund Holders: 38
Analyst Upside Potential: 31.06%
JBS N.V. (NYSE:JBS) is one of the Most Undervalued Foreign Stocks to Buy According to Analysts. On January 22, Reuters reported that JBS N.V. (NYSE:JBS) is set to double production at its chicken processing plant in Jeddah by the end of 2026.
According to Reuters, the company built this plant last year in Saudi Arabia. The plant has allowed the company to almost quadruple its production in the country. This step is seen as a strategic measure by the company to increase local food production and get ahead of its Brazilian competitor in the region.
In addition, JBS N.V. (NYSE:JBS) has also been expanding its partnerships in the region. According to the report, in October 2025, the company also signed an investment deal with Halal Products Development Company to help them list on the Riyadh stock exchange. The company is building one of the biggest units in Jeddah with a capacity of roughly 40,000 tons of meat products per year.
That said, Wall Street also has a bullish sentiment on the stock, with analysts’ 12-month price target reflecting more than 31% upside from the current level.
JBS N.V. (NYSE:JBS) is a food company that sells pork, beef, lamb, and poultry products. The company offers its products to club stores, supermarkets, other retail distributors, and foodservice companies.
6. JD.com, Inc. (NASDAQ:JD)
Forward P/E ratio: 11.25
Number of Hedge Fund Holders: 55
Analyst Upside Potential: 34.44%
JD.com, Inc. (NASDAQ:JD) is one of the Most Undervalued Foreign Stocks to Buy According to Analysts. On January 16, Lei Yang CFA from CGS-CIMB reiterated a Buy rating on the stock (9618:HK listing) with a HK$140.00 price target. Earlier on January 7, Benchmark also reiterated a Buy rating on JD.com, Inc. (NASDAQ:JD) with a $38 price target.
Lei Yang, CFA at CIMB, expects Q4 2025 profitability for JD retail to be low due to a tough year-over-year comparison. Last year, the company enjoyed significant appliance subsidies. Moreover, consumers are also expected to delay purchasing to wait for the 2026 incentives. The analyst noted that this is a positive for JD.com, as the decline in profitability is not due to structural factors but to seasonal ones.
In addition, Yang expects strong growth in general merchandise, including supermarket and fashion items, to offset declines in home appliances. The analyst also found that the losses in the company’s emerging business, such as food delivery, are shrinking due to better subsidy efficiency, higher average order values, and optimized delivery operations. Yang expects fiscal 2026 revenue to accelerate along with margin expansion, driven by a premium product mix.
JD.com, Inc. (NASDAQ:JD) is an e-commerce company that operates online retail and marketplace platforms through its retail website and mobile application. Its operations are divided into four segments: JD Retail, JD Logistics, Dada, and the New Businesses segment.
5. Turkcell Iletisim Hizmetleri A.S. (NYSE:TKC)
Forward P/E ratio: 11.23
Number of Hedge Fund Holders: 13
Analyst Upside Potential: 37.13%
Turkcell Iletisim Hizmetleri A.S. (NYSE:TKC) is one of the Most Undervalued Foreign Stocks to Buy According to Analysts. Wall Street is bullish on the stock, with all 9 analysts covering the stock having a Buy rating. Analysts’ 12-month price target reflects more than 27% upside from the current levels.
Recently, on January 12, Bank of America Securities maintained a Buy rating on Turkcell Iletisim Hizmetleri A.S. (NYSE:TKC) with a $7.56 price target. BofA noted that it expects the company to grow revenue by 7% and maintain margins at 43% throughout 2026. The firm noted that the company is set to commercially launch 5G in April this year, which is expected to act as a tailwind for its future performance.
Moreover, the firm highlighted that Turkcell Iletisim Hizmetleri A.S. (NYSE:TKC) differentiates from its competitors due to its exposure to the data centers. This segment is expected to account for roughly 10% of the company’s total revenue within the next 5 years.
Turkcell Iletisim Hizmetleri A.S. (NYSE:TKC) is a Turkish provider of converged telecommunication and technology services. The company’s core offerings include tower and satellite services, fixed data services, international roaming services, and voice services.
4. Vista Energy, S.A.B. de C.V. (NYSE:VIST)
Forward P/E ratio: 7.81
Number of Hedge Fund Holders: 21
Analyst Upside Potential: 41.14%
Vista Energy, S.A.B. de C.V. (NYSE:VIST) is one of the Most Undervalued Foreign Stocks to Buy According to Analysts. On January 11, UBS upgraded the stock from Hold to Buy and raised the price target from $50 to $65. Earlier, on December 17, Goldman Sachs also reiterated a Buy rating on Vista Energy, S.A.B. de C.V. (NYSE:VIST) but lowered the price target from $59.6 to $53.2.
Analysts at UBS noted that the updated rating and price target reflect the firm’s positive outlook for the company’s production growth. The firm sees Vista Energy, S.A.B. de C.V. (NYSE:VIST) growing its production at a CAGR of 14% through 2025 to 2028. UBS highlighted that this production outlook exceeds that of other Latin American Companies.
UBS likes the company’s proven execution, the resolution of past infrastructure bottlenecks, such as outflow capacity, and its flexible capital spending. Moreover, the company has also demonstrated high efficiency with a 79.81% gross profit margin.
That said, Vista Energy, S.A.B. de C.V. (NYSE:VIST) is set to release its fiscal Q4 2025 results on February 27. Wall Street expects the company to post revenue of approximately $5.75 billion and GAAP EPS of $2.40.
Vista Energy SAB de CV (NYSE:VIST), through its subsidiaries, engages in the exploration and production of oil and gas in Latin America.
3. Trip.com Group Limited (NASDAQ:TCOM)
Forward P/E ratio: 9.48
Number of Hedge Fund Holders: 37
Analyst Upside Potential: 41.66%
Trip.com Group Limited (NASDAQ:TCOM) is one of the Most Undervalued Foreign Stocks to Buy According to Analysts. On January 22, Lei Yang, CFA, from CGS International, reiterated a Buy rating on the stock (9961:HK listing) with a price target of HK$551. Earlier on January 14, Alex Yao from J.P. Morgan reiterated a Buy rating on Trip.com Group Limited (NASDAQ:TCOM) and raised the price target from $75 to $90.
The ratings came after the company, on January 14, announced receiving a formal notice of investigation from the State Administration for Market Regulations of the People’s Republic of China for involvement in Anti-Monopoly practices. The share price has fallen more than 16.9% since the announcement.
Analysts at J.P. Morgan noted that the State Administration for Market Regulations cited prior verification as the basis of the case. The firm believes the share price will fall further in the short term as investors factor in fines and regulatory uncertainty. Moreover, analysts expect ongoing price pressure over several trading sessions, potentially leading to a 4 to 6-month period of range-bound trading until the regulatory office issues a penalty decision.
Trip.com Group Limited (NASDAQ:TCOM) provides end-to-end solutions for the corporate travel, lodging, tour, and transportation sectors.
2. PDD Holdings Inc. (NASDAQ:PDD)
Forward P/E ratio: 9.76
Number of Hedge Fund Holders: 73
Analyst Upside Potential: 41.86%
PDD Holdings Inc. (NASDAQ:PDD) is one of the Most Undervalued Foreign Stocks to Buy According to Analysts. On January 21, Reuters reported that PDD Holdings Inc. (NASDAQ:PDD) was fined 100,000 yuan, approximately $14,359, by the Shanghai district taxation bureau due to failure in submitting tax information as per the requirements.
The company has been facing challenges from regulators and increased competition, due to which management has warned of slowing growth in the coming quarters. As reported earlier, on January 19, Bloomberg said Chinese regulators had sent various investigators to PDD Holdings Inc.’s (NASDAQ:PDD) headquarters in recent weeks to investigate alleged misconduct.
Regardless, Wall Street remains bullish on the stock. Recently, on January 20, Alicia Yap from Citi assigned a Buy rating to the stock with a $170 price target. Earlier, on January 15, Eddy Wang from Morgan Stanley reiterated a Buy rating on PDD Holdings Inc. (NASDAQ:PDD) with a $148 price target.
Morgan Stanley removed PDD Holdings Inc. (NASDAQ:PDD) from its list of top picks due to increased regulatory concerns. The firm cited the latest anti-monopoly investigation into TCOM, noting that the regulatory environment in China is becoming tough for the internet retail sector.
PDD Holdings Inc. (NASDAQ:PDD) is a leading e-commerce group with a range of businesses. Pinduoduo and Temu are among the company’s main platforms, among others. It has built a network of logistics, sourcing, and fulfillment capabilities to connect businesses with people.
1. NICE Ltd. (NASDAQ:NICE)
Forward P/E ratio: 9.21
Number of Hedge Fund Holders: 22
Analyst Upside Potential: 43.83%
NICE Ltd. (NASDAQ:NICE) is one of the Most Undervalued Foreign Stocks to Buy According to Analysts. On January 20, NICE Ltd. (NASDAQ:NICE) announced the launch of Cognigy Simulator, which is an AI performance lab tool.
Management noted that the tool is designed to enable enterprises to test, deploy, and scale AI agents that handle customer interactions. The simulator addresses key challenges, including in AI-driven CX, and helps ensure that agents perform reliably in real-world scenarios. This allows companies to test their AI agents and tools rigorously before deployment to identify weaknesses or compliance-related issues.
That said, Wall Street is bullish on the stock, with analysts’ 12-month price target indicating more than 43.8% upside from current levels. Recently, on January 13, Rishi Jaluria from RBC Capital reiterated a Buy rating on the stock with a $175 price target. Earlier on January 9, Arjun Bhatia from William Blair also reiterated a Buy rating on NICE Ltd. (NASDAQ:NICE) without disclosing any price targets.
NICE Ltd. (NASDAQ:NICE) offers AI-powered cloud platforms for digital business solutions worldwide. Its services include CXone for customer experience, the Enlighten AI engine, and smart self-service solutions.
While we acknowledge the potential of NICE 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 NICE and that has 100x upside potential, check out our report about this cheapest AI stock.
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