In this article, we will discuss the 10 Most Undervalued NASDAQ Stocks to Buy Right Now.
On July 1, Palantir CEO Alex Karp joined CNBC’s ‘Squawk Box’ to discuss Palantir’s deal with NVIDIA. Karp then later explained that there is a growing level of discomfort and loss of trust among enterprises and battlefield users toward Frontier Labs. He suggested that many companies feel that they are wasting time and resources on tokens while receiving no real value and risking the loss of their proprietary data and IP. Karp clarified that his criticism is based on reporting and what he observed across the industry, noting that while he personally profits from the current AI landscape, his clients (who operate critical infrastructure in places like America, Ukraine, and Israel) are frustrated.
Karp also questioned the security of outsourcing critical national functions, such as battlefield applications, to the consensus view in Silicon Valley. He characterized the idea of outsourcing defense technology as insane, claiming that enterprise leaders across the country are livid about paying for tokens that offer no value and stealing business alpha. He contended that AI models have been irresponsibly ‘overselled’, creating a wealth tax that punishes businesses without providing the promised utility. Karp maintained that he is not speaking out of personal anger, but rather channeling the voice of American business. He concluded by urging investors who believe that the current trajectory of AI adoption is working to carefully test these claims, reiterating his conviction that current industry practices are unsustainable and detrimental to the country’s technological edge.
Amid this backdrop, undervalued NASDAQ stocks with established operations and long-term catalysts may offer a way for investors to gain a more balanced exposure to the market. In this article, we look at some of the most undervalued NASDAQ stocks to buy right now.
Our Methodology
We used screeners to identify NASDAQ stocks that are trading below a forward P/E of 15, and limited our final selection to companies that have recently reported noteworthy developments likely to impact investor sentiment. These stocks are also popular among analysts and elite hedge funds.
Note: All data was sourced on July 3.
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).
10 Most Undervalued NASDAQ Stocks to Buy Right Now
10. Arch Capital Group Ltd. (NASDAQ:ACGL)
Number of Hedge Fund Holders: 40
Arch Capital Group Ltd. (NASDAQ:ACGL) is one of the 10 Most Undervalued NASDAQ Stocks to Buy Right Now. On June 17, Arch Capital announced the promotions of Jerome Halgan to CEO of Arch Global Reinsurance Group and Michael Schmeiser to CEO of Arch Global Mortgage Group. Both executives, who have held senior leadership roles within the company for several years, will continue to report to Arch President Maamoun Rajeh.
Halgan joined Arch Capital Group Ltd. (NASDAQ:ACGL) in 2009 and has served as President and Chief Underwriting Officer of Arch Reinsurance Group, while Schmeiser, a member of the team since 2017, previously led Arch U.S. Mortgage as President and CEO. Their appointments are intended to reinforce Arch’s existing underwriting culture and promote consistent execution across its global insurance and reinsurance platforms.
In their new roles, Halgan and Schmeiser will focus on deepening client relationships, applying disciplined underwriting standards, and managing market cycles effectively. By using their extensive experience, the company aims to continue delivering long-term value to its shareholders and providing specialized solutions to its global client base.
Arch Capital Group Ltd. (NASDAQ:ACGL) is a Bermuda-based insurance and reinsurance company. It provides property, casualty, and mortgage insurance solutions worldwide. The firm operates through three main segments: Insurance, Reinsurance, and Mortgage, with a strong presence in the US, Europe, and Bermuda.
9. Willis Towers Watson (NASDAQ:WTW)
Number of Hedge Fund Holders: 40
Willis Towers Watson (NASDAQ:WTW) is one of the 10 Most Undervalued NASDAQ Stocks to Buy Right Now. On July 1, Willis, a WTW business, announced the expansion of its CyMax Facility, a cyber insurance solution tailored for SMEs and middle-market companies across the EMEA region. Developed in partnership with insurers including AXA XL, Beazley, HDI Global, and Markel, the facility provides broader capacity, higher limits, and faster execution to address complex risks like ransomware, data breaches, and supply chain disruptions.
The updated offering streamlines the insurance process for brokers and clients through a simplified one-page application form and pre-agreed pricing grids, which significantly reduce administrative friction. The facility utilizes Willis Towers Watson’s (NASDAQ:WTW) proprietary wording (fully aligned with regulatory standards such as GDPR, NIS2, and DORA) to provide comprehensive financial protection, including coverage for business interruption and evolving threats such as social engineering and invoice manipulation.
Beyond financial coverage, the facility provides clients with access to specialized cyber expertise and pre- and post-breach services, including threat intelligence and crisis exercises. By shifting to a panel-based capacity model and offering more inclusive eligibility for companies with varying security controls, Willis aims to enhance cyber resilience and accessibility for businesses operating within a rapidly evolving threat landscape.
Willis Towers Watson (NASDAQ:WTW) provides advisory, broking, and risk solutions. The company’s service offerings include actuarial support, broking, strategy consulting, and plan management support. It also offers administrative support for life, medical, disability, voluntary, and other benefit programs.
8. Diamondback Energy Inc. (NASDAQ:FANG)
Number of Hedge Fund Holders: 52
Diamondback Energy Inc. (NASDAQ:FANG) is one of the 10 Most Undervalued NASDAQ Stocks to Buy Right Now. On July 1, Viper Energy, a subsidiary of Diamondback Energy, announced the completion of its acquisition of Riverbend Oil & Gas IX, LLC. The transaction involved the transfer of mineral and royalty interests to Viper in exchange for $337 million in cash and ~3.7 million shares of Viper’s Class A common stock, subject to customary post-closing adjustments.
The cash portion of the acquisition was financed through a mix of existing cash reserves and new borrowings under the company’s credit facility. By integrating these assets, Viper continues to execute its strategy of owning and exploiting oil-weighted properties, with a primary focus on the Permian Basin.
This acquisition marks a significant expansion of Viper’s mineral and royalty holdings in North America. As a corporation formed by Diamondback Energy Inc. (NASDAQ:FANG), Viper remains dedicated to acquiring and developing high-value energy interests to enhance its portfolio within its targeted oil-weighted basins.
Diamondback Energy Inc. (NASDAQ:FANG) is an independent American oil and natural gas company. It focuses on the exploration, acquisition, development, and production of unconventional onshore oil and gas reserves, operating exclusively in the Permian Basin in West Texas.
7. Northern Trust Corporation (NASDAQ:NTRS)
Number of Hedge Fund Holders: 52
Northern Trust Corporation (NASDAQ:NTRS) is one of the 10 Most Undervalued NASDAQ Stocks to Buy Right Now. On June 22, Northern Trust announced its appointment by TirNua Capital Partners to provide fund administration, depositary, and banking services for the firm’s inaugural infrastructure fund. The fund, which recently secured €340 million in commitments at its first close, is dedicated to financing projects that support the transition to a low-carbon economy, with a primary focus on Ireland and other OECD markets.
TirNua, a Dublin-based private markets manager, is an independent joint venture between Irish Life Investment Managers and a global private markets firm. The fund plans to target various infrastructure sectors, including renewable power, energy efficiency, clean transportation, and renewable fuels, leveraging Northern Trust’s extensive experience in managing alternative asset classes and specialized investment structures.
Northern Trust Corporation (NASDAQ:NTRS) will support the fund throughout the investment lifecycle, providing a full suite of asset servicing solutions as TirNua works to deploy capital into critical infrastructure projects that promote sustainable economic growth.
Northern Trust Corporation (NASDAQ:NTRS) is a financial holding company that operates through its subsidiaries, including The Northern Trust Company (Bank). It offers wealth management, asset servicing, asset management, and banking solutions to corporations, institutions, families, and individuals.
6. Zoom Communications Inc. (NASDAQ:ZM)
Number of Hedge Fund Holders: 60
Zoom Communications Inc. (NASDAQ:ZM) is one of the 10 Most Undervalued NASDAQ Stocks to Buy Right Now. On July 2, Zoom Communications announced a definitive agreement to acquire Common Room, an AI-native Go-to-Market intelligence platform. This acquisition aims to unify fragmented customer data and buying signals, providing revenue teams with person-level buyer intelligence that can be activated through specialized AI agents.
Common Room’s technology integrates data from CRMs, product usage, and marketing platforms to create a continuous view of buyers, while its “RoomieAI” agents automate prospecting and research. By incorporating this intelligence into Zoom Communications Inc.’s (NASDAQ:ZM) existing revenue orchestration platform, the company intends to help sales representatives identify high-priority accounts and personalize outreach before calls occur.
The integration is designed to streamline the revenue journey, allowing teams to move away from using multiple disjointed tools toward a single, unified system. The transaction is expected to close in the coming weeks, though financial terms of the deal were not disclosed.
Zoom Communications Inc. (NASDAQ:ZM) provides an AI-first collaboration platform including video, voice, and chat services. The California-based company empowers modern hybrid work by offering seamless communication and collaboration capabilities to global enterprises and individuals.
While we acknowledge the potential of ZM 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 ZM and that has 100x upside potential, check out our report about the cheapest AI stock.
Click to continue reading and see the 5 Most Undervalued NASDAQ Stocks to Buy Right Now.
Disclosure: None. None. Follow Insider Monkey on Google News.
