In this article, we will discuss the 10 Most Undervalued Stocks to Buy and Hold for 2 Years.
On May 27, Kathleen Entwistle, Managing Director & Private Wealth Advisor at Morgan Stanley Private Wealth Management, joined CNBC’s ‘Fast Money’ to discuss buying opportunities in the current market. Entwistle noted that while the market has been on a significant upward trajectory, clients who have participated are currently satisfied. While she believes opportunities remain, she advised investors to be mindful and cautious. If a larger market pullback occurs, she views it as an ideal entry point. Regarding diversification for clients seeking to move beyond the concentrated tech trade, such as chips and Meta, the firm is currently placing clients into real assets, including energy and infrastructure, with a specific focus on the digital space. Simultaneously, the firm is looking to reduce the duration of bonds due to recent developments in the interest rate market. The current strategy involves maintaining positions in US and emerging markets while beginning to explore the small-cap arena.
Entwistle highlighted that the energy trade is performing well and noted that SLBs are trading at levels last seen three years ago. She emphasized that energy is a crucial holding, particularly because it tends to hold up well during inflationary environments. Given the signals from Fed futures suggesting rates might be increased rather than cut, she advises that it is time to consider adding a sleeve of serious commodities and real assets to portfolios. When defining real assets, she included both market-based and non-market investments, specifically mentioning hedge funds, gold, silver, and energy as assets that respond well to the current market climate.
Our Methodology
We used screeners to identify stocks that are trading below a forward P/E of 15 and are expected to grow their earnings by at least 25% over the next 5 years. We 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 June 5.
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 Stocks to Buy and Hold for 2 Years
10. Pan American Silver Corp. (NYSE:PAAS)
Number of Hedge Fund Holders: 50
Pan American Silver Corp. (NYSE:PAAS) is one of the most undervalued stocks to buy and hold for 2 years. On June 1, Pan American Silver advanced the first phase of the “Timmins Camp Project” to extend the life and production capacity of its Ontario operations. This initiative uses existing infrastructure at the Bell Creek mine and processing plant, supported by a $146 million investment to advance new mineral resources.
Key developments include a 625-meter shaft extension at the Bell Creek mine to access deeper mineralization and the creation of underground access drifts at the Vogel and Samson satellite deposits. These projects, combined with extensive ongoing drilling programs, aim to integrate these deposits into a long-life, district-scale production platform.
The company is actively advancing engineering studies, metallurgical evaluations, and resource conversion to optimize its Timmins facilities. With ongoing exploration and positive drill results across the Bell Creek, Vogel, Samson, and Gold River properties, Pan American is positioning its Timmins operations for sustained, long-term growth.
Pan American Silver Corp. (NYSE:PAAS) is a premier Canadian-based mining company that explores, extracts, and produces silver and gold, along with base metals like zinc, lead, and copper, primarily in the Americas. It operates high-margin mines and aims to be the world’s leading silver producer, with operations in Canada, Mexico, Brazil, Argentina, and Peru.
9. Hewlett Packard Enterprise Company (NYSE:HPE)
Number of Hedge Fund Holders: 58
Hewlett Packard Enterprise Company (NYSE:HPE) is one of the most undervalued stocks to buy and hold for 2 years. On May 14, HPE announced a transition to a unified global distribution model, selecting Ingram Micro and TD SYNNEX as its primary worldwide partners. This strategic move aims to simplify the partner experience, improve operational support, and provide consistent enablement resources across HPE’s comprehensive portfolio.
The new structure leverages the scale of these global distributors, alongside specialized regional partners, to enhance cross-selling opportunities for networking, cloud, and AI solutions. By unifying the distribution network, HPE intends to help partners more effectively sell, deliver, and service complex solutions tailored to diverse customer needs.
Building on the foundation established by the acquisition of Juniper Networks, this model is designed to increase efficiency and accelerate market adoption. HPE plans to finalize country-specific distribution lineups in the coming months, ensuring regional requirements are met while maintaining global alignment throughout the transition.
Hewlett Packard Enterprise Company (NYSE:HPE) operates as a global technology provider focused on intelligent solutions. Its platforms help customers capture, analyze, and act on data from edge to cloud. The customer base ranges from small and medium-sized businesses to large enterprises and government organizations.
Hedge Fund Resource Center