In this article, we will look at the 10 Most Undervalued International Stocks According to Analysts.
On August 22, Ryan Detrick, Carson Group chief market strategist, joined CNBC for an interview to discuss the bull market run. He highlighted that over 90% of the S&P 500 stocks were higher on the day as the index reached an all-time high. He noted that this was not a concentrated bull run but a broad participation, which has happened only twice before, once in the early 1980s and then in 2013. Both of these times represented strong bull markets. Detrick noted that this is the result of the buying surge after the April lows, as the market witnessed a sharp reversal from seasonal weaknesses.
Detrick remains bullish and believes that investors should continue buying the dips. He also explained that the markets are priced in for an upcoming rate cut from the Federal Reserve, which is expected in the next four weeks. Historically speaking, Detrick highlighted that whenever there has been a pause of five months to a year between rate cuts, the S&P 500 has risen about 14% on median returns over the next year.
Thus, considering the similarity with the historic bull markets, he recommends sticking with sectors that have led the gains during the year. Detrick highlighted sectors like financials, industrials, and technology as go-to sectors for investment. He remains cautious regarding the small caps, but noted that he would be open to buying if the sector performs with the overall market strength. Lastly, Detrick stressed that he sees 2025 as a great year for diversified equity holders and advises investors to stay invested in quality stocks.
With that, let’s take a look at the 10 most undervalued international stocks according to analysts.
A graph plotting the trends and performance of stocks on the public equity markets.
Our Methodology
We used the Finviz stock screener, Seeking Alpha, and CNN as our sources. Using the screener, we aggregated a list of international stocks trading below a forward P/E of 15 and with an upside potential of more than 20%. Next, we cross-checked each stock’s P/E ratio from Seeking Alpha and its upside potential from CNN. Lastly, we ranked these stocks in ascending order of the number of hedge fund holders sourced from Insider Monkey’s Q2 2025 database. Please note that the data was recorded on August 22, 2025.
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 Most Undervalued International Stocks According to Analysts
10. Ambev S.A. (NYSE:ABEV)
Forward P/E Ratio: 12.07
Analyst Upside Potential: 28.54%
Number of Hedge Fund Holders: 23
Ambev S.A. (NYSE:ABEV) is one of the Most Undervalued International Stocks According to Analysts. On August 20, UBS analyst Rodrigo Alcantara lowered the firm’s price target on Ambev S.A. (NYSE:ABEV) from $2.50 to $2.20, while keeping a Neutral rating on the stock.
The rating follows the company’s release of its fiscal second-quarter results for 2025. The company delivered mixed results with revenue reaching $3.59 billion, after growing 2.65% year-over-year, but missed consensus by $250.95 million. Management noted the company continued to execute its growth plan effectively despite tough market conditions. The revenue growth was driven by strong demand for its brands and a smart pricing strategy. This also improved the gross margins by 80 basis points. The company remains optimistic for the second half of the year.
Ambev S.A. (NYSE:ABEV) is a Brazilian company that produces and sells beer, soft drinks, and other beverages. It operates across the Americas, including countries in Latin America and Canada.
9. Sanofi (NASDAQ:SNY)
Forward P/E Ratio: 11.01
Analyst Upside Potential: 20.93%
Number of Hedge Fund Holders: 24
Sanofi (NASDAQ:SNY) is one of the Most Undervalued International Stocks According to Analysts. On August 14, Sanofi (NASDAQ:SNY) announced receiving an orphan designation for its Rilzabrutinib by the European Medicines Agency.
Rilzabrutinib is a reversible inhibitor targeting Bruton’s tyrosine kinase. The designation is for treating IgG4-related disease, which is a rare condition affecting fewer than 5 in 10,000 people in Europe. The designation was given after the treatment showed promising results in a Phase 2 clinical study, where patients treated for 52 weeks had fewer disease flares and improved markers. Moreover, the treatment also allowed reduced use of glucocorticoids, which are steroids with side effects.
Rilzabrutinib is under review by regulatory agencies in the US, EU, and China for ITP. The US FDA decision is expected by August 29, 2025.
Sanofi (NASDAQ:SNY) is a French healthcare company that researches, develops, manufactures, and markets medicines and vaccines.
