In this article, we talk about the 10 most undervalued stocks to buy and hold for 5 years.
The ability to pick undervalued stocks is a valuable skill to have for investing in equities, because it helps you maximize their earning potential from market upswings like the one that Ed Yardeni, the president of Yardeni Research, is anticipating for this earnings season. Speaking in an interview on CNBC, Yardeni stated that despite market shocks since the beginning of the 2020s, the U.S. economy remained resilient. According to Yardeni, who expects stronger GDP growth for the rest of 2026, this economic resilience will likely result in stronger earnings, which in turn will lead to a stock market melt-up as investors rush to buy more shares. He also added that geopolitical crises are often buying opportunities.
While Yardeni is bullish on stocks and their earnings this year, other market experts are more measured in their optimism, such as Aureus Asset Management co-founder Kari Firestone, who also spoke on CNBC Television. During a recent interview, Firestone noted that while the U.S. economy remains strong, it will be an uphill battle to achieve another year of double-digit stock market gains after a streak of 25%, 25%, and 18% over the past three years. She noted that the current expectation among some observers of an 8% to 10% rise might be too high, given that the Magnificent 7 tech giants have driven growth in recent years. It will likely be difficult for the rest of the S&P 500 to deliver double-digit gains this year, especially given that the bottom 300 names in the index collectively have the same market size as NVIDIA, a testament to how much of the past years’ stock rallies have been driven by the largest companies.
That being said, we’re here with a list of the 10 most undervalued stocks to buy and hold for 5 years.
Our Methodology
To identify the most undervalued stocks to buy and hold for 5 years, we used screeners to compile a list of stocks with a forward P/E ratio under 18. Then, we further narrowed our pool to stocks with an average expected EPS growth rate of at least 20% over the next 5 years. Finally, we selected the top 10 stocks based on the number of hedge funds holding stakes in them, according to Insider Monkey’s hedge fund database as of Q3 2025, and ranked them in ascending order.
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 427.7% since May 2014, beating its benchmark by 264 percentage points (see more details here).
Note: All pricing data is as of market close on January 30, 2026.
10. V2X Inc. (NYSE:VVX)
Forward P/E Ratio as of January 30: 12.17
Number of Hedge Fund Holders: 27
V2X Inc. (NYSE:VVX) is one of the most undervalued stocks to buy and hold for 5 years. On January 29, V2X Inc. (NYSE:VVX) entered into a strategic partnership with online retail giant Amazon. As part of the partnership, Amazon’s warehouse automation technology and computer-vision AI models will be deployed in V2X-managed government warehouses, streamlining workflows and inventory management across government supply chains.
“When strategically combined with Amazon’s smart warehousing technologies and AI applications, V2X will be able to provide federal agencies with unparalleled system readiness,” Jeremy Wensinger, President and CEO at V2X Inc. (NYSE:VVX), said in the partnership announcement.’
Meanwhile, on January 14, Truist downgraded V2X Inc. (NYSE:VVX) to Hold from Buy while leaving its $65 price target unchanged. Truist analysts noted that the downgrade was driven by the company’s current valuation, particularly after the 20% increase in V2X’s share price over the past month. The analysts added that V2X is less exposed to potential One Big Beautiful Bill upside compared to its peers.
V2X Inc. (NYSE:VVX) is a defense contractor that provides services and support in the fields of operations and logistics, aerospace, training, and technology markets to national security, defense, civilian, and international clients.
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