In this article, we will look at the 10 Most Undervalued Long Term Stocks to Buy Right Now.
According to Charles Schwab’s (2026 Mid-Year Outlook) dated June 3, while economic growth continues to rebound, consumers are being strained by negative real wage growth, weak savings, and elevated energy costs. With inflation remaining sticky, the energy and Al-led capex continue to further supplement the already-high core services inflation. As per the firm, the bull market is backed by earnings momentum. That being said, the broader market leadership remains narrow and concentrated in the AI and energy-associated sectors.
Over the past few months, one key factor in the increase in inflation was the basket of goods and services tied to the Al buildout. Ranging from the computer equipment to software, the firm stated that it sees a strong momentum amidst a continued increase in the capex cycle.
As per Earnings Insight released by FactSet (dated June 5), the expected YoY earnings growth rate for the S&P 500 is 21.7% for Q2 2026. If this becomes the actual growth rate for Q2 2026, this will reflect the second-straight quarter of earnings growth of more than 20% for the index.
Amidst such trends, let us now have a look at the 10 Most Undervalued Long Term Stocks to Buy Right Now.
Our Methodology
To list the 10 Most Undervalued Long Term Stocks to Buy Right Now, we sifted through a screener to shortlist the stocks that trade at a forward P/E of less than ~17x and that have a 3-year EPS growth of at least ~10%. We also mentioned the hedge fund sentiments around each stock, as of Q1 2026. Finally, the stocks are arranged in an ascending order of their hedge fund sentiments.
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. Insider Monkey’s quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 599.2% since May 2014, beating its benchmark by 372 percentage points (see more details here).
Note: All the data is as of June 9
10. Willis Towers Watson Public Limited Company (NASDAQ:WTW)
Forward P/E: ~13.9x
3-Year Diluted EPS Growth: ~19.8%
Number of Hedge Fund Holders: 40
Willis Towers Watson Public Limited Company (NASDAQ:WTW) is one of the Most Undervalued Long Term Stocks to Buy Right Now. On June 2, the company announced the acquisition of Redefind, which is an end-to-end web-based platform. The investment demonstrates the company’s long-term strategy focused on expanding into next-generation protection solutions for clients that are exposed to digital finance, crypto ecosystems, as well as tokenised asset environments.
The proposition launches as a non-custodial, cost-of-recovery insurance solution, focused on supporting digital asset owners in case there is a theft or loss. The coverage will support expenses related to the forensic investigation, asset tracing, and legal recovery of stolen digital assets. The service will initially be rolled out in the UK. As and when capabilities continue to evolve, there are plans to broaden the market and for product expansion.
With the digital assets moving into the mainstream, there has been an increase in demand for credible regulated protection solutions.
Willis Towers Watson Public Limited Company (NASDAQ:WTW) operates as an advisory, broking, and solutions company.
9. Leidos Holdings, Inc. (NYSE:LDOS)
Forward P/E: ~10.1x
3-Year Diluted EPS Growth: ~30.8%
Number of Hedge Fund Holders: 44
Leidos Holdings, Inc. (NYSE:LDOS) is one of the Most Undervalued Long Term Stocks to Buy Right Now. On June 5, Jefferies downgraded Leidos Holdings, Inc. (LDOS)’s stock to “Hold” from “Buy” and reduced the price objective to $140 from $185. The firm highlighted limited organic growth prospects, along with concerns related to the company’s health business. The analyst lowered the EPS estimate for 2027.
As per the firm, the earnings revisions seem to be limited, and the stock’s multiple remains dependent on the sentiments associated with the health business. The new price objective is based on a ~11x P/E ratio for 2027.
The firm applied more conservative assumptions on the Veterans Benefits Administration health contract in the estimates, while noting that management was creative with capital allocation, including the security joint venture. However, this doesn’t incorporate meaningful changes to Leidos Holdings, Inc. (NYSE:LDOS)’s defense technology portfolio.
Notably, the company raised its revenue, earnings, and cash guidance for FY 2026, with non-GAAP diluted EPS now expected between $12.10 – $12.50 as compared to the previous expectation of $12.05 – $12.45.
Leidos Holdings, Inc. (NYSE:LDOS) offers services and solutions for government and commercial customers.
8. W. R. Berkley Corporation (NYSE:WRB)
Forward P/E: ~14.5x
3-Year Diluted EPS Growth: ~22.1%
Number of Hedge Fund Holders: 47
W. R. Berkley Corporation (NYSE:WRB) is one of the Most Undervalued Long Term Stocks to Buy Right Now. On June 8, Goldman Sachs upgraded W. R. Berkley Corporation (NYSE:WRB)’s stock to “Buy” from “Neutral”, lifting the price objective to $73 from the prior target of $71. As per the firm, the company’s underwriting margins and ROE are expected to be more sustainable than the previous expectations.
The firm raised its EPS estimates for 2027 and 2028. This upgrade comes off the back of price increases, ongoing litigation reforms, coupled with the signs of deceleration in casualty claims inflation throughout the overall industry.
Goldman Sachs added that W. R. Berkley Corporation (NYSE:WRB) remains well-placed to benefit from a softer market, mainly in the initial stages. Since the company is the most concentrated casualty insurer in the firm’s coverage basket, W. R. Berkley Corporation (NYSE:WRB) can see a reduction in claim cost trends due to the litigation reforms.
This can result in improvement in margins and lead to favorable reserve development in the bull case scenario, added the firm.
W. R. Berkley Corporation (NYSE:WRB) is an insurance holding company, which operates as the commercial line writer.
7. Super Micro Computer, Inc. (NASDAQ:SMCI)
Forward P/E: ~9.2x
3-Year Diluted EPS Growth: ~21.6%
Number of Hedge Fund Holders: 49
Super Micro Computer, Inc. (NASDAQ:SMCI) is one of the Most Undervalued Long Term Stocks to Buy Right Now. On June 11, Wolfe Research initiated coverage of the company’s stock with a “Peer Perform” rating. As per the firm, while the company remains well-placed to benefit from the elevated demand levels for the AI infrastructure, there are several operational, financial, and regulatory risks that can limit the upside momentum.
The firm believes that Super Micro Computer, Inc. (NASDAQ:SMCI) continues to be a key beneficiary of the broader AI server spending boom. As a result, it remains optimistic on the overall AI infrastructure market. The investors are underestimating the long-term size of this opportunity.
That being said, the analysts noted that consistent margin pressure remains the main concern. Super Micro Computer, Inc. (NASDAQ:SMCI) had earlier focused on revenue growth rather than profitability. The customer concentration among large AI infrastructure buyers, competitive pricing dynamics, etc., are some of the factors that can impact the earnings.
Super Micro Computer, Inc. (NASDAQ:SMCI) is engaged in developing and selling server and storage solutions based on modular and open-standard architecture.
6. PDD Holdings Inc. (NASDAQ:PDD)
Forward P/E: ~8.31x
3-Year Diluted EPS Growth: ~36.15%
Number of Hedge Fund Holders: 66
PDD Holdings Inc. (NASDAQ:PDD) is one of the Most Undervalued Long Term Stocks to Buy Right Now. On May 27, Bank of America Securities analyst Joyce Ju maintained a “Hold” rating on the company’s stock, setting a price objective of $140.00. The analyst’s rating was backed by several factors, such as PDD Holdings Inc. (NASDAQ:PDD)’s softer‑than‑expected top‑line and profit performance in the recent quarter.
The company’s revenue grew by low-double digits, while key online marketing services income increased slightly, falling short of market expectations and the broader industry. This might signal that there is a loss of momentum in PDD Holdings Inc. (NASDAQ:PDD)’s core domestic e‑commerce business. Notably, in Q1 2026, the company’s total revenues came in at RMB106.2 billion (US$15.4 billion), implying 11% growth from RMB95.7 billion in Q1 2025.
However, the analyst believes that the underlying operations were sound as non‑GAAP operating profit expanded at a strong pace, thanks to healthy transaction‑service growth and stable margins.
PDD Holdings Inc. (NASDAQ:PDD) is a multinational commerce group, which is engaged in owning and operating a portfolio of businesses.
While we acknowledge the potential of PDD 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 PDD and that has 100x upside potential, check out our report about the cheapest AI stock.
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