In this article, we will discuss the 10 Most Undervalued Stocks to Buy Right Now.
S&P Global expects the US real GDP growth of 2% in 2025 and 2026, reflecting a marginal increase from its September forecast and slightly above its near-term potential growth. The firm expects that real consumer spending growth would hit a cycle low in the upcoming 2 years, with AI-related hard and soft infrastructure expected to continue to fuel investment growth.
What’s In Store for Investors in 2026?
UBS noted that expectations for the US Fed rate cut in December increased after the recent data releases hinted at some softening in the broader US economy. Notably, the firm expected 2 more rate cuts through Q1 2026, offering a favourable backdrop for equities, quality bonds, and gold. UBS further anticipates growth in the S&P 500 earnings of ~11% in 2025 and 10% in 2026.
Together with the additional cuts, the firm sees further market gains and keeps its price target for the S&P 500 to reach 7,300 by June 2026. The US economic growth is expected to be aided by fiscal policy measures and healthy consumer and corporate balance sheets, while the impacts of recent tariffs are expected to fade, added UBS.
Amidst such trends, we will now have a look at the 10 Most Undervalued Stocks to Buy Right Now.
Our Methodology
To list the 10 Most Undervalued Stocks to Buy Right Now, we used a screener to shortlist stocks that trade at a forward P/E of less than ~15.0x and have positive forward EPS diluted growth. Next, we chose the ones popular among hedge funds, as of Q3 2025. Finally, the stocks are arranged in ascending order of their hedge fund sentiment.
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 the data is as of December 5.
10 Most Undervalued Stocks to Buy Right Now
10. Toyota Motor Corporation (NYSE:TM)
Forward P/E: ~13.4x
Forward EPS Diluted Growth: ~62.6%
Number of Hedge Fund Holders: 21
Toyota Motor Corporation (NYSE:TM) is one of the Most Undervalued Stocks to Buy Right Now. On November 27, Reuters, while quoting Toyota Motor Corporation (NYSE:TM), highlighted that the company’s global production increased for the 5th consecutive month in October, thanks to the robust US demand for hybrid vehicles, mitigating the weaker sales in Japan and China. Toyota Motor Corporation (NYSE:TM)’s global output increased by 4% YoY to 926,987 cars, with worldwide sales increasing by 2% to 922,087 vehicles.
In the US, which is the top market, production went up by 26% for October 2025, showcasing its 5th straight double-digit rise, added Reuters. This was aided by strong hybrid demand and recovery of output from the previous year’s production stoppage of 2 models. In China, production fell by 6%, with sales dropping 7%. This was because of the end of subsidy programmes in some regions. Notably, output in Japan increased by 7%, but sales declined 4%.
In a different development, Toyota Motor Corporation (NYSE:TM) announced an additional investment of up to US$10 billion in the US over the upcoming 5 years, bringing the company’s total US investment to ~US$60 billion since it began operations in the US. Additionally, the company held an opening ceremony for Toyota Battery Manufacturing, North Carolina (TBMNC). This is the company’s 11th manufacturing facility in the US, reflecting an investment of ~$14 billion.
Hedge Fund Resource Center