In this article, we will look at the 10 Most Undervalued Low Volatility Stocks to Buy Now.
On August 27, Cheryl Young, Rockefeller Global Family Office private advisor, appeared on CNBC’s ‘Closing Bell’ to talk about the current market sentiment, recent market performance, and more.
Young said that she has a cautious outlook for the market at present, reasoning that since she is a rock climber, she gets increasingly nervous as she goes higher and higher.
Applying the analogy to the stock market, she stated that the market has risen considerably this year, with many people corroborating this. For her, however, it isn’t the market that has gone up, but rather just a couple of stocks.
She further supported her cautious stance on the market by stating that data points support inflation will be passed on to consumers, and inflation may be stickier.
READ ALSO: 13 High Growth Low PE Stocks to Invest In Now and 15 Strong Buy Stocks Under $5 to Buy Now.
Young predicts a 25 bp cut in September, and said that if stocks were fairly valued in April, they shouldn’t be higher now with tariffs. Therefore, according to her, the market optimism might be misplaced.
With these trends in view, let’s look at the most undervalued low-volatility stocks to buy now.
Our Methodology
We used Finviz to compile a list of stocks with a forward P/E less than 20 and a beta below 1 and selected the top 10 with the highest number of hedge fund holders as of Q2 2025, sourcing the hedge fund sentiment data from Insider Monkey’s database. The list is sorted in ascending order of hedge fund sentiment.
Note: All data was recorded on August 27.
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 Low Volatility Stocks to Buy Now
10. Amgen Inc. (NASDAQ:AMGN)
Forward P/E: 13.74
Beta: 0.48
Number of Hedge Fund Holders: 62
Amgen Inc. (NASDAQ:AMGN) is one of the top most undervalued low volatility stocks to buy now. On August 25, Piper Sandler raised the firm’s price target on Amgen Inc. (NASDAQ:AMGN) to $342 from $328 while keeping an Overweight rating on the shares.
The rating update came after the company’s quarterly results, with the firm stating that Amgen Inc. (NASDAQ:AMGN) is well-positioned to go beyond its loss of exclusivity for denosumab, supported by continued strong execution across its commercial portfolio.
The firm added that Amgen Inc. (NASDAQ:AMGN) is experiencing continued pipeline advancement, which shows a strong case for multiple expansion from an EV/2026E EBITDA of around 13-times.
Amgen Inc. (NASDAQ:AMGN) is a biotechnology company that discovers, develops, manufactures, and markets human therapeutics. It delivers new therapies for patients with complex cancers, especially in areas with significant unmet needs.
9. PDD Holdings Inc. (NASDAQ:PDD)
Forward P/E: 12.81
Beta: 0.41
Number of Hedge Fund Holders: 65
PDD Holdings Inc. (NASDAQ:PDD) is one of the top most undervalued low volatility stocks to buy now. Analyst Joyce Ju from Bank of America Securities reiterated a Hold rating on PDD Holdings Inc. (NASDAQ:PDD) on August 26, but raised the price target to $141.00 from $120.00.
The analyst told investors that while PDD Holdings Inc.’s (NASDAQ:PDD) Q2 results surpassed expectations with a notable profit beat, concerns regarding the sustainability of the profits exist.
Management partly attributed the company’s solid performance to high seasonality, stating that it expects profitability fluctuations in the near term with continued heavy investments in merchant support and ecosystem upgrades by PDD Holdings Inc. (NASDAQ:PDD).
The analyst added that despite rapid overseas expansion and continued domestic market share gain, uncertainties such as competitive pressures and near-term margin expansion warrant a cautious outlook for PDD Holdings Inc. (NASDAQ:PDD).
PDD Holdings Inc. (NASDAQ:PDD) is a Chinese multinational online commerce group and retailer that owns and operates a range of diverse businesses. It also has a strong logistics, sourcing, and fulfillment capabilities network that supports its operations.
The company owns Pinduoduo, a popular online commerce platform in China, and also runs the fast-growing e-commerce marketplace Temu. Temu now operates in more than 50 countries worldwide.
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