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.
9. Royal Bank of Canada (NYSE:RY)
Forward P/E: ~14.3x
Forward EPS Diluted Growth: ~12.5%
Number of Hedge Fund Holders: 29
Royal Bank of Canada (NYSE:RY) is one of the Most Undervalued Stocks to Buy Right Now. On December 3, the company released its FY 2025 results, with total revenue rising by $9,261 million or 16% YoY. This was mainly because of increased net interest income and investment management, and custodial fees. Furthermore, higher trading revenue, mutual fund revenue, other revenue, securities brokerage commissions, and underwriting and other advisory fees also contributed to this rise.
Royal Bank of Canada (NYSE:RY)’s net income increased to C$20.3 billion in FY 2025, compared to C$16.2 billion in FY 2024. Its diluted EPS came in at $14.07, a rise of 25% over the prior year, demonstrating growth throughout each of its business segments. As of October 31, Royal Bank of Canada (NYSE:RY)’s CET1 ratio stood at 13.5%, reflecting an increase of 30 bps compared to last year.
This mainly reflects net internal capital generation and the favourable impact of fair value OCI adjustments, partially mitigated by increased RWA and share repurchases.
Turning to credit quality, total PCL (Provision for credit losses) of $1,007 million reflects an increase of $167 million, or 20% YoY, mainly due to higher provisions in Commercial Banking, Capital Markets, and Personal Banking.
Royal Bank of Canada (NYSE:RY) operates as a diversified financial service company worldwide.
8. Novartis AG (NYSE:NVS)
Forward P/E: ~14.4x
Forward EPS Diluted Growth: ~12.5%
Number of Hedge Fund Holders: 33
Novartis AG (NYSE:NVS) is one of the Most Undervalued Stocks to Buy Right Now. On November 24, the company announced that the US FDA approved Itvisma® (onasemnogene abeparvovec-brve) for treating children of 2 years and older, teens, and adults having spinal muscular atrophy (SMA) with a confirmed mutation in the survival motor neuron 1 (SMN1) gene. Novartis AG (NYSE:NVS) highlighted that Itvisma has been uniquely designed to address the genetic root cause of SMA with a one-time fixed dose that doesn’t require to be adjusted for age or body weight.
By replacing the SMN1 gene, Itvisma is capable of improving motor function, providing the potential to reduce need for chronically administered treatment associated with other available therapies for this population.
In a separate release, Novartis AG (NYSE:NVS) released its Q3 2025 results, with net sales coming at US$13.9 billion, up by 8% (7% in constant currency), and volume contributing 16 percentage points to growth. Furthermore, generic competition had a negative impact of 7 percentage points due to Promacta, Tasigna, and Entresto generics in the US.
Notably, Novartis AG (NYSE:NVS)’s operating income came in at US$4.5 billion, up by 24% (27% in constant currency), thanks to the increased net sales and lower impairments, partly mitigated by increased R&D investments.
Novartis AG (NYSE:NVS) is engaged in researching, developing, manufacturing, distributing, marketing, and selling pharmaceutical medicines.
7. Dell Technologies Inc. (NYSE:DELL)
Forward P/E: ~11.7x
Forward EPS Diluted Growth: ~17.1%
Number of Hedge Fund Holders: 51
Dell Technologies Inc. (NYSE:DELL) is one of the Most Undervalued Stocks to Buy Right Now. On November 25, the company released its Q3 2026 results, with record revenue of $27.0 billion, reflecting a rise of 11% YoY amidst the acceleration of AI momentum in H2 2026. This led to the record AI server orders of $12.3 billion and an unprecedented $30 billion in orders on a YTD basis.
Dell Technologies Inc. (NYSE:DELL)’s EPS increased by 17% to $2.59, driven by improved profitability in AI and storage and continued operational scaling. The company’s five-quarter pipeline is multiples of its $18.4 billion backlog with a mix of neocloud, sovereign, and enterprise customers. The company continues to win in AI due to its unique ability to engineer bespoke high-performance solutions, rapidly deploy large, complex clusters, and offer global support.
Dell Technologies Inc. (NYSE:DELL) shipped $5.6 billion in AI servers during Q3 2026 for a total of $15.6 billion on a YTD basis. The company’s operating income grew 11% YoY to $2.5 billion or 9.3% of revenue, with the rise stemming from increased revenue and reduced operating expenses, partially mitigated by the decline in gross margin rate. For FY 2026, the company expects revenue between $111.2 billion – $112.2 billion, up by 17% YoY at the midpoint of $111.7 billion.
6. General Motors Company (NYSE:GM)
Forward P/E: ~6.07x
Forward EPS Diluted Growth: ~14.4%
Number of Hedge Fund Holders: 71
General Motors Company (NYSE:GM) is one of the Most Undervalued Stocks to Buy Right Now. On December 8, Morgan Stanley upgraded the company’s stock to “Overweight” from “Equal Weight,” with a price objective of $90, up from the prior target of $54, as reported by The Fly. The firm cited execution gains, improvement in capital discipline as well as a more favorable mix shift towards high-margin trucks and SUVs for the upgrade.
As per the analyst, General Motors Company (NYSE:GM) exhibited healthy execution with industry-leading US inventory and incentive discipline. Furthermore, the reduced policy uncertainty and anticipated rate cuts in the second half of next year can help improve demand for its core ICE lineup, added the analyst.
In a different update, General Motors Company (NYSE:GM) highlighted investing $2.1 billion in capital projects, paying down $1.3 billion of balance sheet debt, and repurchasing $1.5 billion of stock in Q3 2025. Considering the product traction, ongoing disciplined execution as well as assuming that there will be minimal production disruption from the chip issue, General Motors Company (NYSE:GM) raised its CY 2025 guidance to EBIT-adjusted of $12 billion – $13 billion, EPS diluted adjusted of $9.75 – $10.50 per share and adjusted automotive FCF of $10 billion – $11 billion.
5. PDD Holdings Inc. (NASDAQ:PDD)
Forward P/E: ~9.5x
Forward EPS Diluted Growth: ~24.2%
Number of Hedge Fund Holders: 73
PDD Holdings Inc. (NASDAQ:PDD) is one of the Most Undervalued Stocks to Buy Right Now. On November 18, the company announced its unaudited financial results for Q3 2025, with total revenues coming at RMB108,276.5 million (or US$15,209.5 million), an increase of 9% YoY. This growth stemmed mainly from higher revenues from online marketing services and transaction services.
PDD Holdings Inc. (NASDAQ:PDD)’s operating profit in Q3 2025 amounted to RMB25,025.9 million (US$3,515.4 million), compared to RMB24,292.5 million in Q3 2024. Apart from higher revenues, the company saw lower sales and marketing, as well as general and administrative expenses. PDD Holdings Inc. (NASDAQ:PDD) announced that this year, it rolled out the first RMB 100 billion support program in the e-commerce industry to help merchants and farmers.
Through initiatives like Duo Duo Premium Produce, new quality supply, and logistics support to remote regions, it continues to fuel the high-quality development of the platform ecosystem.
PDD Holdings Inc. (NASDAQ:PDD)’s R&D expenses came in at RMB 3.7 billion in Q3 2025 on a non-GAAP basis and RMB 4.3 billion on a GAAP basis, reflecting 41% YoY growth. The company’s investment in R&D touched a new high this quarter, showcasing its focus on improving the core technology capabilities. The company is committed to investing in R&D in the long run to capture opportunities in supply chain innovation and consumer experience.
PDD Holdings Inc. (NASDAQ:PDD) is a multinational commerce group, owning and operating a portfolio of businesses. It built a network of sourcing, logistics, and fulfillment capabilities, which support its underlying businesses.
4. Newmont Corporation (NYSE:NEM)
Forward P/E: ~12.5x
Forward EPS Diluted Growth: ~66.3%
Number of Hedge Fund Holders: 74
Newmont Corporation (NYSE:NEM) is one of the Most Undervalued Stocks to Buy Right Now. On November 24, BofA analyst Lawson Winder lifted the price target on the company’s stock to $118 from $115, while keeping a “Buy” rating, as reported by The Fly. The analyst highlighted that the firm has been refreshing its price forecasts for North American Metals & Mining stocks that are under its coverage.
As per the firm, the macro backdrop remains challenging because of China’s slowing commodity demand. However, the analyst noted that this might get offset by a rebound in demand in the US and Europe.
In a different development, in Q3 2025, Newmont Corporation (NYSE:NEM) stated that attributable gold production fell 4% to 1,421 thousand ounces compared to the prior quarter due to the reduced gold grades and planned shutdowns at Peñasquito and Lihir, and the end of mining operations at the Subika open pit at Ahafo South in July.
Notably, these decreases were partially mitigated by higher production at Brucejack, Cerro Negro, and Yanacocha. In Q3 2025, Newmont Corporation (NYSE:NEM) saw sales of $5,524 million compared to $4,605 million in Q3 2024, with gold sales increasing to $4,669 million from $3,945 million.
Newmont Corporation (NYSE:NEM)’s net income was $1.8 billion or $1.67 per diluted share, reflecting a decline of $229 million compared to the previous quarter. This fall was mainly because of a gain on the sale of assets held for sale of $99 million compared to a gain of $699 million in the previous quarter.
Newmont Corporation (NYSE:NEM) is engaged in the production and exploration of gold properties.
3. Apollo Global Management, Inc. (NYSE:APO)
Forward P/E: ~13.8x
Forward EPS Diluted Growth: ~11%
Number of Hedge Fund Holders: 80
Apollo Global Management, Inc. (NYSE:APO) is one of the Most Undervalued Stocks to Buy Right Now. On November 24, Morgan Stanley analyst Michael Cyprys maintained a bullish stance on the company’s stock, giving a “Buy” rating. The analyst’s rating is backed by a combination of factors demonstrating the company’s healthy growth potential, mainly via its retirement services business, Athene. Furthermore, the analyst highlighted that the headwinds witnessed in 2024-2025 are anticipated to diminish, making the way for growth reacceleration in 2026 and 2027.
The recent business update in New York City focused on critical growth drivers and Apollo Global Management, Inc. (NYSE:APO)’s capability to witness 10% annual growth in spread-related earnings (SRE) through 2029. This optimism is helped by structural dynamics, including an aging population improving the demand for retirement products, and Athene’s competitive advantages revolving around origination scale, operating efficiency, and credit selection, added Cyprys.
Apollo Global Management, Inc. (NYSE:APO), in its 2025 retirement services business update, highlighted that it expects to produce ~$880 million of spread-related earnings in Q4 2025. With respect to the capital generation, Apollo Global Management, Inc. (NYSE:APO) noted that Athene happens to be a powerful capital generator, with $9 billion of deployable capacity.
This includes $3 billion of excess equity, $3 billion in undrawn ADIP capital via the sidecars, and ~$3 billion of untapped leverage.
Apollo Global Management, Inc. (NYSE:APO) is a private equity firm that specializes in investments in credit, private equity, infrastructure, secondaries and real estate markets.
2. Adobe Inc. (NASDAQ:ADBE)
Forward P/E: ~13.9x
Forward EPS Diluted Growth: ~13.1%
Number of Hedge Fund Holders: 88
Adobe Inc. (NASDAQ:ADBE) is one of the Most Undervalued Stocks to Buy Right Now. On November 19, Stifel Nicolaus analyst J. Parker Lane maintained a bullish stance on the company’s stock, giving a “Buy” rating. The analyst’s rating is backed by a combination of factors related to the company’s strategic acquisition of Semrush. The acquisition has been regarded as a forward-thinking move, enabling Adobe Inc. (NASDAQ:ADBE) to enhance capabilities in the emerging field of AI engine optimization (AEO), which continues to become critical as consumer behavior transitions towards AI-driven search and discovery.
In a different development, Citi reduced its price target on the company’s stock to $366 from $400, while keeping a “Neutral” rating on the shares. For Q4 2025, the firm expects the company to report a marginal beat compared to its estimates. That being said, the firm reduced its margin estimates to reflect increased investments. Notably, in Q3 2025, Adobe Inc. (NASDAQ:ADBE)’s total operating expenses increased to $3.17 billion from $2.86 billion in Q3 2024, reflecting 11% growth.
The rise was seen amidst a 15% increase in sales and marketing expenses, an 11% rise in general and administrative expenses, and 6% uplift in R&D expenses. The sales and marketing expenses rose in Q3 2025 and during the 9 months ended August 29, 2025 on a YoY basis mainly because of increases in advertising expenses and compensation costs.
1. Capital One Financial Corporation (NYSE:COF)
Forward P/E: ~10.7x
Forward EPS Diluted Growth: ~18.5%
Number of Hedge Fund Holders: 129
Capital One Financial Corporation (NYSE:COF) is one of the Most Undervalued Stocks to Buy Right Now. On November 26, analyst Moshe Orenbuch of TD Cowen maintained a “Buy” rating on the company’s stock, retaining the price objective of $261.00. The analyst’s rating is backed by a combination of factors, which include potential benefits from Capital One Financial Corporation (NYSE:COF)’s acquisition of Discover.
This deal is anticipated to enhance Capital One’s ROTE and EPS over time, added Orenbuch. Furthermore, Capital One Financial Corporation (NYSE:COF) is expected to benefit from an improvement in credit trends and a strong buyback cycle, aided by its substantial excess capital. Also, the acquisition is expected to bolster Capital One’s earnings capacity as it achieves targeted synergies, like debit migration and cost efficiencies.
Capital One Financial Corporation (NYSE:COF)’s Q3 2025 net interest margin stood at 8.36%, reflecting a rise of 74 bps compared to the previous quarter. In Q2 2025, the partial quarter benefit from the Discover acquisition was ~40 bps. The full quarter of Discover in Q3 2025 resulted in ~45 bps of incremental NIM. The remaining growth in NIM in Q3 2025 was mainly because of higher yield on legacy Capital One Domestic Card loans and 1 additional day.
Capital One Financial Corporation (NYSE:COF) opines that the long-term capital need of the combined company is 11%.
Capital One Financial Corporation (NYSE:COF) operates as the financial services holding company.
While we acknowledge the potential of COF 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 COF and that has 100x upside potential, check out our report about this cheapest AI stock.
READ NEXT: 13 Cheap AI Stocks to Buy According to Analysts and 11 Unstoppable Growth Stocks to Invest in Now.
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