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.
8. Vale S.A. (NYSE:VALE)
Forward P/E Ratio: 5.68
Analyst Upside Potential: 23.46%
Number of Hedge Fund Holders: 32
Vale S.A. (NYSE:VALE) is one of the Most Undervalued International Stocks According to Analysts. On August 14, Bernstein analyst Bob Brackett raised the firm’s price target on Vale S.A. (NYSE:VALE) from $10.8 to $11.5, while maintaining a Hold rating on the stock.
The cautious rating follows the company’s release of mixed second-quarter results. The company delivered revenue of $8.80 billion for the quarter, reflecting an 11.25% year-over-year decrease and short of expectations by $71.04 million. However, the EPS of $0.50 exceeded expectations by $0.14. Management noted that this was mainly due to improved operational and cost performance. Moreover, the sales of Copper and Nickel also aided the performance by improving 17% and 21%, respectively. The company remains on track to meet its 2025 targets.
Vale S.A. (NYSE:VALE) is a Brazil-based mining company that mainly produces iron ore and nickel. It also mines other metals like copper, gold, silver, and platinum group metals.
7. Petróleo Brasileiro S.A. – Petrobras (NYSE:PBR)
Forward P/E Ratio: 4.19
Analyst Upside Potential: 21.64%
Number of Hedge Fund Holders: 39
Petróleo Brasileiro S.A. – Petrobras (NYSE:PBR) is one of the Most Undervalued International Stocks According to Analysts. On August 22, Luiz Carvalho from UBS reduced the firm’s price target on Petróleo Brasileiro S.A. – Petrobras (NYSE:PBR) from $15.8 to $14.4, while maintaining a Buy rating on the stock.
Moreover, the company on August 20, reported paying the first installment of shareholder remuneration based on the company’s balance sheet as of March 31, 2025. The payments made in the form of interest on equity amounted to R$0.45 per common and preferred share.
The reduced price target by Luiz Carvalho of UBS reflects the company’s weak performance in the fiscal second quarter of 2025. The company delivered $21.18 billion in revenue, reflecting a 4.44% year-over-year decrease, and falling short of the consensus by $195.36 million. In addition, the EPS of $0.64 also missed the target by $0.22.
Petróleo Brasileiro S.A. – Petrobras (NYSE:PBR) is a major Brazilian company specializing in the oil, natural gas, and energy industry. It is engaged in the exploration, production, refining, processing, and transportation of crude oil and natural gas.
6. Cenovus Energy Inc. (NYSE:CVE)
Forward P/E Ratio: 13.46
Analyst Upside Potential: 25.54%
Number of Hedge Fund Holders: 41
Cenovus Energy Inc. (NYSE:CVE) is one of the Most Undervalued International Stocks According to Analysts. On August 22, Cenovus Energy Inc. (NYSE:CVE) announced that it will acquire MEG Energy Corp in a deal worth $7.9 billion, including debt.
As per the transaction details, the purchase price for each MEG share is $27.25, which will be paid 75% in cash and 25% in Cenovus stock. MEG shareholders can choose all cash, all shares, or a mix, with limits on the total cash and shares offered. Management noted that this deal creates a leading producer of SAGD oil sands with combined output over 720,000 barrels per day. The company expects to gain more than $400 million in annual cost savings by 2028 through synergies in operations and corporate functions.
Cenovus Energy Inc. (NYSE:CVE) is a Canadian integrated energy company involved in oil and natural gas production. It operates oil sands, conventional, and offshore projects in Canada and the Asia Pacific region.
5. Canadian Natural Resources Limited (NYSE:CNQ)
Forward P/E Ratio: 12.27
Analyst Upside Potential: 27.52%
Number of Hedge Fund Holders: 44
Canadian Natural Resources Limited (NYSE:CNQ) is one of the Most Undervalued International Stocks According to Analysts. Wall Street is bullish on the stock after the company released earnings for the fiscal second quarter of 2025. Analysts’ consensus price target of $37.79 implies an upside of 21% from current levels.
Recently, on August 8, Raymond James raised its price target on Canadian Natural Resources Limited (NYSE:CNQ) to C$54 from C$52 and kept an Outperform rating on the shares.
The company reported neutral results with revenue for the quarter reaching $6.33 billion, reflecting a 3% decrease year-over-year and below consensus by $98.58 million. However, the EPS of $0.52 exceeded expectations by $0.02. Management noted that they completed the planned turnaround at its Athabasca Oil Sands Project five days early and on budget.
Despite this maintenance downtime reducing production by about 120,000 barrels per day, total production was still high at around 1.42 million barrels of oil equivalent per day. The company plans to drill more wells than initially planned, benefiting from low operating costs that enhance returns.
Canadian Natural Resources Limited (NYSE:CNQ) is a major crude oil and natural gas producer. It operates in Western Canada, the North Sea, and Offshore Africa.
4. Novo Nordisk A/S (NYSE:NVO)
Forward P/E Ratio: 14.07
Analyst Upside Potential: 42.16%
Number of Hedge Fund Holders: 45
Novo Nordisk A/S (NYSE:NVO) is one of the Most Undervalued International Stocks According to Analysts. On August 19, TD Cowen analyst Michael Nedelcovych lowered the firm’s price target on Novo Nordisk A/S (NYSE:NVO) from $105 to $70, while keeping a Buy rating on the stock.
The analyst noted that their firm recently met with the company’s management, where they found that the current GLP-1 drug portfolio faces challenges. As a result, the management’s guidance now includes possible downside scenarios. Management also noted that they are not interested in competing through price cuts and instead are excited about the oral semaglutide for obesity. The firm believes that this new drug has strong potential, and the management expects this drug to provide better cash flow for the company.
Novo Nordisk A/S (NYSE:NVO) is a global healthcare company focused on diabetes and obesity care. It develops and sells insulin, GLP-1 drugs, and other diabetes-related products.
3. JD.com, Inc. (NASDAQ:JD)
Forward P/E Ratio: 12.2
Analyst Upside Potential: 34.64%
Number of Hedge Fund Holders: 54
JD.com, Inc. (NASDAQ:JD) is one of the Most Undervalued International Stocks According to Analysts. On August 18, Shyam Patil from Susquehanna reduced the firm’s price target on JD.com, Inc. (NASDAQ:JD) from $40 to $32, while keeping a Hold rating on the stock.
The price rating was reduced by the firm after the company released its fiscal second-quarter results for 2025. Although the results came in above expectations, the net income decreased year-over-year. The company delivered a quarterly revenue of $49.68 billion, up 22.2% year-over-year and ahead of expectations by $2.99 billion. The EPS of $0.69 also exceeded expectations by $0.20.
While the revenue growth shows strong sales figures across the company. The net income attributable to ordinary shareholders came in at RMB 6.2 billion and was down from RMB 12.6 billion a year ago.
JD.com, Inc. (NASDAQ:JD) is a Chinese e-commerce company that operates online retail and marketplace services through its website and mobile apps.
2. lululemon athletica inc. (NASDAQ:LULU)
Forward P/E Ratio: 13.47
Analyst Upside Potential: 38.30%
Number of Hedge Fund Holders: 55
lululemon athletica inc. (NASDAQ:LULU) is one of the Most Undervalued International Stocks According to Analysts. On August 19, William Blair analyst Sharon Zackfia maintained a Buy rating on lululemon athletica inc. (NASDAQ:LULU) without disclosing any price target.
The reiterated bullish sentiment for the company comes in as the company is set to release its fiscal second-quarter results on September 4, 2025. The analyst notes that he expects the company to hit the higher end of its revenue and earnings targets. Moreover, Zackfia highlights that the company is forecasted to grow revenue by 8%, driven by a high-single-digit rise in physical store sales and a mid-single-digit increase in e-commerce sales.
The comparable sales are also expected to improve, with China and the Americas being the key drivers. Lastly, July sales are predicted to have sped up as well, being supported by clearance activities that led to a small rise in markdowns.
lululemon athletica Inc. (NASDAQ:LULU) designs and sells technical athletic apparel, footwear, and accessories. Its products include shorts, tops, and jackets made for activities such as yoga, running, and training.
1. Alibaba Group Holding Limited (NYSE:BABA)
Forward P/E Ratio: 13.8
Analyst Upside Potential: 25.47%
Number of Hedge Fund Holders: 101
Alibaba Group Holding Limited (NYSE:BABA) is one of the Most Undervalued International Stocks According to Analysts. On August 21, Alibaba Group Holding Limited (NYSE:BABA) announced the launch of Qoder, a new AI-powered coding platform aimed at improving software development.
The platform combines advanced AI models and specialized engineering to improve developer productivity. It offers two main modes, including the Agent Mode, which acts as a smart assistant for simpler coding tasks, and the Quest Mode, which works autonomously, handling end-to-end coding by breaking down tasks. Management noted that the platform uses a unique Next-Edit-Suggestion model that supports deep code searches, multi-line edits, code refactoring, and automated testing through natural language commands.
Developers can now access this platform for free in public preview; however, flexible pricing plans are expected to be introduced soon.
Alibaba Group Holding Limited (NYSE:BABA) is a leading Chinese technology company providing a wide range of services, including e-commerce, cloud computing, digital media, and logistics.
While we acknowledge the potential of BABA 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 BABA and that has 100x upside potential, check out our report about this cheapest AI stock.
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