In this article, we discuss the 10 Most Undervalued Value Stocks to Buy Now.
Expectations of easing inflation resulted in renewed hopes that the Federal Reserve could potentially cut interest rates as soon as next month. As a result, U.S. stocks surged to record highs on August 12, with the S&P 500 climbing 1.13% to 6,445.76 and the NASDAQ Composite rising 1.39% to 21,681.90. Both indices closed at their all-time highs. Meanwhile, the Dow experienced an uptick of 483 points, while small-cap stocks in the Russell 2000 led the charts. The Russell 2000 index gained three times as much as the S&P.
Meanwhile, the July Consumer Price Index recorded an increase of 2.7% year-over-year, which was slightly below forecasts. Core CPI, however, increased by 3.1%, which was just above expectations. The overall statistics eased market speculations about growing inflation due to President Donald Trump’s ongoing tariff policies. At the same time, the report reinforced the case for rate cuts. The probability of a rate cut occurring in September now sits at 94%, up from 85% before the data.
Thus, borrowing costs are heading lower and earnings momentum is improving, building the case for equities, particularly undervalued stocks poised to benefit from both economic resilience and monetary easing. With this backdrop in mind, let’s jump to our list of the 10 Most Undervalued Value Stocks to Buy Now.
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Methodology
To curate our list of the 10 Most Undervalued Value Stocks to Buy Now, we used the Finviz screener to extract a list of companies trading under a forward price-to-earnings multiple of 16x. Next, we ranked these stocks based on the number of hedge funds holding stakes in the respective stocks as of Q1 2025. To gauge hedge fund sentiment across these stocks, we relied on Insider Monkey’s hedge fund database, which tracks over 1,000 hedge funds.
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 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here).
10. QUALCOMM Incorporated (NASDAQ:QCOM)
Forward Price-to-Earnings: 12.22
Number of Hedge Fund Holders: 82
With strong hedge fund interest and a low price-to-earnings ratio, QUALCOMM Incorporated (NASDAQ:QCOM) secures a place on our list of the 10 Most Undervalued Value Stocks to Buy Now.
On July 31, 2025, Benchmark reaffirmed its ‘Buy’ rating and $200 price target on QUALCOMM Incorporated (NASDAQ:QCOM). This reiteration comes despite a dip in after-hours trading. The bullish stance is attributed to the company’s strong quarterly results, where the Automotive segment recorded 21% year-over-year growth. The IoT segment climbed 24%, while the Handsets segment recorded a 7% growth, thanks to strong Snapdragon 8 Elite demand in premium devices.
Despite the eventual loss of Apple business, the investment firm highlighted QUALCOMM Incorporated (NASDAQ:QCOM)’s diversification strategy, which resulted in the Automotive segment’s quarterly contribution of $1 billion and the IoT segment’s contribution of $1.7 billion. The analyst believes the after-hours dip was due to the company’s EPS guidance, which failed to surpass Street’s estimates.
Operating across Chipset, Technology Licensing, and Strategic Investment segments, QUALCOMM Incorporated (NASDAQ:QCOM) delivers foundational wireless technologies. It is included in our list of the most undervalued value stocks to buy.
9. AT&T Inc. (NYSE:T)
Forward Price-to-Earnings: 13.55
Number of Hedge Fund Holders: 87
AT&T Inc. (NYSE:T) is included in our list of the 10 Most Undervalued Value Stocks to Buy Now.
On August 11, 2025, AT&T Inc. (NYSE:T) announced that it was named No. 1 in Customer Satisfaction for Medium Business and Large Enterprise Internet Service in the J.D. Power 2025 Business Internet Satisfaction Study. This is the company’s eighth consecutive win for Large Enterprise and third consecutive win for Medium Business, highlighting its leading reputation for delivering high-performance fiber and 5G connectivity to over 2.5 million enterprises globally.
Meanwhile, on July 31, 2025, AT&T Inc. (NYSE:T) announced its dual listing on NYSE Texas, effective August 1, 2025. The company will retain its primary NYSE listing. This achievement enhances investor access in a pro-business market.
With its Communication and Latin America segments, AT&T Inc. (NYSE:T) offers telecommunications and technology services globally. It is included in our list of the most undervalued value stocks to buy.
