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.
9. CarGurus Inc. (NASDAQ:CARG)
Forward P/E Ratio as of January 30: 13.61
Number of Hedge Fund Holders: 31
CarGurus Inc. (NASDAQ:CARG) is one of the most undervalued stocks to buy and hold for 5 years, despite tempering 2026 margin forecasts. During the Needham Growth Conference on January 13, executives from CarGurus Inc (NASDAQ:CARG) stated that the company has discussed ramping up its investments, likely resulting in “a slight step down in margin” because of those investments. The executives said, “We’re doing that to maintain a higher growth rate than we otherwise would have,” adding that the company is aiming for long-term sustainable growth through deepening its relationship with dealers.
Following the conference, on January 16, J.P. Morgan analyst Rajat Gupta retained his Hold rating on CarGurus Inc. (NASDAQ:CARG) and set a price target of $43.00. Meanwhile, on December 30, 2025, BTIG raised its price target on CarGurus Inc (NASDAQ:CARG) to $44 from $39, while maintaining a Buy rating, estimating that the company’s emerging solutions business is currently worth $100 million, or roughly $1 per share.
CarGurus Inc. (NASDAQ:CARG) is an online automotive platform for buying and selling vehicles. The company’s car listings marketplace features digital retail solutions and the CarOffer digital wholesale platform. CarGurus operates through segments, including the customer-facing U.S. Marketplace and the Digital Wholesale division, which provides dealer-to-dealer services and products sold on the CarOffer platform.
8. Coeur Mining Inc (NYSE:CDE)
Forward P/E Ratio as of January 30: 11.27
Number of Hedge Fund Holders: 36
Coeur Mining Inc (NYSE:CDE) is one of the most undervalued stocks to buy and hold for 5 years. On January 27, Coeur Mining Inc (NYSE:CDE) announced that it had gained shareholder support for the proposed merger with New Gold Inc. The two companies voted on the merger during their respective special meetings, in which 99.22% of New Gold shareholders supported the transaction. As a result, New Gold shareholders will receive 0.4959 shares of Coeur common stock for each New Gold share they hold.
The merger, expected to close in the first half of 2026 pending final approval from regulators and the Supreme Court of British Columbia, will result in the formation of a combined company, in which Coeur and New Gold shareholders will own 62% and 38% of the new company, respectively. The merged company will operate as a North American precious metals producer that combines New Gold’s New Afton copper-gold mine and Rainy River gold mine in Canada with Coeur’s existing operations.
Coeur Mining Inc (NYSE:CDE) is a gold and silver producer in the U.S., Canada, and Mexico. The company explores for gold, silver, zinc, lead, and other related metals. It markets and sells its concentrates to third-party customers, including refiners and smelters, under off-take agreements.
7. Southwest Airlines Co (NYSE:LUV)
Forward P/E Ratio as of January 30: 17.76
Number of Hedge Fund Holders: 40
Southwest Airlines Co (NYSE:LUV) is one of the most undervalued stocks to buy and hold for 5 years. On January 29, Southwest Airlines Co (NYSE:LUV) reported an EPS of $0.58 for the fourth quarter of 2025, slightly above its $0.57 guidance for the period, as well as $7.4 billion in revenues, slightly missing its $7.5 billion target. Looking ahead, Southwest Airlines Co (NYSE:LUV) is bullish on 2026, projecting significantly higher earnings, with full-year adjusted EPS guidance of at least $4, which is well above its 2025 adjusted EPS of $0.93.
During its earnings call, Southwest Airlines Co (NYSE:LUV) also announced it expects 66 Boeing 737-8 deliveries and the retirement of 60 aircraft in 2026. Full-year net capital spending is expected to be between $3 billion and $3.5 billion. Southwest Airlines Co (NYSE:LUV) ended the quarter with $3.2 billion in cash and a gross leverage ratio of 2.4 times, both within the company’s targets. The company also reported that it repurchased $2.6 billion in shares and paid $399 million in dividends.
Southwest Airlines Co (NYSE:LUV) is a passenger airline that provides scheduled air transportation services in the United States and nearby international markets, along with in-flight entertainment, connectivity, and websites and apps for booking flights.
6. Incyte Corp (NASDAQ:INCY)
Forward P/E Ratio as of January 30: 13.32
Number of Hedge Fund Holders: 46
Incyte Corp (NASDAQ:INCY) is one of the most undervalued stocks to buy and hold for 5 years. On January 27, Bank of America Securities analyst Tazeen Ahmad assigned a Buy rating to Incyte and set a $118 price target. This bullish ratings action stands in contrast to Wells Fargo’s downgrade of Incyte Corp (NASDAQ:INCY) to Equal Weight from Overweight on January 20. According to Wells Fargo, which also lowered the stock’s price target to $107 from $116, the downgrade reflects the company’s current valuation and limited near-term growth drivers.
Earlier this month, two analysts offered contrasting views on Incyte Corp (NASDAQ:INCY), particularly regarding its myelofibrosis medication Jakafi. On January 6, TD Cowen analyst Marc Frahm affirmed his Buy rating on the stock, citing the company’s transition beyond relying on Jakafi. However, on January 14, William Blair analyst Matt Phipps gave a hold rating on Incyte Corp (NASDAQ:INCY), noting that while the company seeks growth beyond Jakafi, it remains to be seen whether its next wave of products can offset the anticipated peak and decline of Jakafi revenues toward the end of the 2020s.
Incyte Corp (NASDAQ:INCY) is a biopharmaceutical company that discovers, develops, and commercializes proprietary therapeutics in hematology and oncology, as well as in inflammation and autoimmunity.
5. BP Plc (NYSE:BP)
Forward P/E Ratio as of January 30: 13.35
Number of Hedge Fund Holders: 47
BP Plc (NYSE:BP) is one of the most undervalued stocks to buy and hold for 5 years. On January 28, Trinidad and Tobago energy minister Roodal Moonilal disclosed that BP Plc (NYSE:BP) and fellow oil giant Shell are seeking licenses from the U.S. Office of Foreign Assets Control to extract natural gas from fields in Trinidad and Tobago and Venezuela. The two companies aim to gain access to develop Loran-Manatee, a new field that contains about 10 trillion cubic feet (tcf) of natural gas. About 7.3 tcf is located in Venezuela, while the remaining 2.7 tcf is in Trinidad and Tobago.
During the Indian Energy Week conference, Moonilal told reporters that BP Plc (NYSE:BP) is seeking a license to develop the Cocuina-Manakin field, the Venezuelan portion of which is part of Plataforma Deltana, an inactive offshore gas project with 1 tcf of proven gas reserves.
BP Plc (NYSE:BP) is a global energy company engaged in oil and gas production, marketing, and trading. The company also engages in a wide variety of businesses, including aviation fuel products and services, convenience and retail fuel, EV charging, Castrol lubricants and fluids, midstream, crude oil production, refining and oil trading, and bioenergy, among others.
4. LYFT Inc (NASDAQ:LYFT)
Forward P/E Ratio as of January 30: 14.66
Number of Hedge Fund Holders: 51
Lyft Inc. (NASDAQ:LYFT) is one of the most undervalued stocks to buy and hold for 5 years. On January 27, Bloomberg reported that Lyft Inc. (NASDAQ:LYFT) is attempting to launch a rideshare service for teenagers. Lyft Teen, which mirrors a similar service debuted by rival Uber in 2023, will match teenage passengers with highly rated drivers and include several safety features, such as PIN authentication, audio recording during trips, and parental supervision of their teen’s ride, among others. Before the anticipated launch of Lyft Teen, Lyft Inc. (NASDAQ:LYFT) had prohibited teens from ridesharing on its platform without an accompanying adult, in contrast to Uber, which had allowed users aged 13-17 to use its rideshare service over the past three years.
Meanwhile, on January 22, TD Cowen reaffirmed its Buy rating on Lyft Inc. (NASDAQ:LYFT) and set a $32 price target, citing projections for double-digit revenue and bookings growth for the company following its acquisition of Freenow in July 2025.
Lyft Inc. (NASDAQ:LYFT) operates a peer-to-peer ridesharing marketplace in the U.S. and Canada. Its platform provides a ridesharing marketplace that connects drivers with riders, a car rental program for drivers, and a network of shared bikes and scooters in various cities to meet riders’ needs for short trips.
3. Qorvo Inc (NASDAQ:QRVO)
Forward P/E Ratio as of January 30: 11.59
Number of Hedge Fund Holders: 51
Qorvo Inc. (NASDAQ:QRVO) is one of the most undervalued stocks to buy and hold for 5 years. On January 27, Qorvo Inc. (NASDAQ:QRVO) reported healthy Q3 FY 2026 results, with revenue of $993.0 million, up 8.4% year over year but down 6.2% sequentially and modestly ahead of consensus. Adjusted EPS of $2.17 also came in ahead of the Street’s $1.86 estimate.
The company issued its revenue guidance for the fiscal fourth quarter, which fell short of analysts’ current expectations. The company expects to report between $775.00 million and $825.00 million in revenue, below analysts’ $903.8 million forecast, and per-share profit of $1.05 to $1.35, just shy of the $1.37 Wall Street is projecting.
Qorvo Inc. (NASDAQ:QRVO) supplies radio-frequency chips to Apple, its largest customer, which accounts for about half of the company’s total revenue. Lower revenue expectations hint at a “seasonal” decline in demand from the iPhone maker, according to Qorvo CEO Bob Bruggeworth. The company is in the midst of a $22 billion cash-and-stock transaction to merge with its larger rival, Skyworks Solutions Inc., a deal announced in October 2025.
Qorvo Inc. (NASDAQ:QRVO) develops and sells technologies and products for wireless, wired, and power markets in the U.S., Asia, and Europe. The company’s services cater to fields such as defense and aerospace, 5G and 6G infrastructure, and connectivity and sensor technology, among others.
2. Antero Resources Corp (NYSE:AR)
Forward P/E Ratio as of January 30: 11.21
Number of Hedge Fund Holders: 70
Antero Resources Corp (NYSE:AR) is one of the most undervalued stocks to buy and hold for 5 years. On January 28, Antero Resources Corp (NYSE:AR) completed a $750 million underwritten public offering of 5.4% senior unsecured notes due 2036 to help fund the company’s planned acquisition of HG Energy II Production Holdings LLC. The company is also selling its Utica Shale oil and gas assets to help fund the acquisition.
Several analysts have also expressed diverse opinions on Antero Resources Corp. (NYSE:AR) this month. On January 26, Siebert Williams Shank & Co analyst Gabriele Sorbara affirmed the stock’s current Buy rating and $48 price target. On January 23, Morgan Stanley lowered its price target on Antero Resources Corp (NYSE:AR) to $46 from $48 while retaining its Overweight rating. Barclays also lowered its price target on the company’s shares to $41 from $46, maintaining an Equal Weight rating in a January 21 report that advised investors to “tread carefully” amid near-term commodity uncertainty.
Antero Resources Corp (NYSE:AR) is an independent oil and natural gas company that develops, produces, explores, and acquires natural gas, natural gas liquids (NGLs), and oil properties in the U.S.
1. EQT Corporation (NYSE:EQT)
Forward P/E Ratio as of January 30: 13.35
Number of Hedge Fund Holders: 82
EQT Corporation (NYSE:EQT) is one of the most undervalued stocks to buy and hold for 5 years. On January 29, EQT Corporation (NYSE:EQT) announced that it anticipates gaining $114 million in total from derivatives for the fourth quarter of 2025, as well as $35 million in net cash settlements to be received on derivatives.
In addition, EQT Corporation (NYSE:EQT) said it expects to receive $44 million in net cash settlements from its NYMEX natural gas hedge positions, as well as $9 million in net cash settlements paid on the basis and liquids hedge positions, all within the fourth quarter of 2025. Premiums paid for settled derivatives for the quarter are expected to reach $45 million.
Meanwhile, three analysts affirmed their current ratings on EQT Corporation (NYSE:EQT), all on January 26. Piper Sandler analyst Mark Lear maintained a Hold rating and a $50 price target on EQT, while Siebert Williams Shank & Co analyst Gabriele Sorbara also kept the current Hold rating on the stock, this time with a $62 price target. Morgan Stanley analyst Devin McDermott assigned a Buy rating and a $69 price target to the stock.
EQT Corporation (NYSE:EQT) produces, gathers, and transmits natural gas. It sells natural gas and natural gas liquids to marketers, utilities, and industrial customers located in the Appalachian Basin.
While we acknowledge the potential of EQT as an investment, 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 EQT and that has 100x upside potential, check out our report about the cheapest AI stock.
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