Investors have just recovered from the shock of the software sell-off from earlier this month and are now weighing their options in a world where Artificial Intelligence is quite clearly going to disrupt many industries. On February 10, UBS also issued a warning about the Information Technology sector, advising investors to diversify away from it.
The importance of this diversification was also stressed by Edison Byzyka, Chief Investment Officer at Credent Wealth Management. While talking to Schwab Network, the CIO stressed that other sectors offered opportunities worth exploring:
”Playing the long-term valuation game, we know that in the current large-cap space, companies are sitting on a 23x-24x forward earnings multiple, which implies pretty weak large cap returns over the next 5 years… stepping into that smaller space for those companies that have those expectations that are looking healthier, for us those reside in the consumer discretionary sector, the industrials, and the financial sector.”
As software earnings are set to take a hit, investors are seeking more stock ideas, especially those that will survive the AI disruption. One way to identify companies that could weather this storm is to look at those expected to grow revenue over the long term while sustaining short-term earnings growth. To dig out these stocks, we decided to come up with a list of 10 undervalued growth stocks for the next 5 years.
Our Methodology
To compile the list of 10 undervalued growth stocks for the next 5 years, we looked at companies with a market cap of at least $2 billion and a forward PE of less than 15. We then filtered out companies with positive earnings growth in 2026 and expected revenue growth over 15% for the next 5 years. We then selected 10 stocks with the best upside potential, as assessed by Wall Street analysts, and ranked them accordingly. The number of hedge funds that hold the stock as of Q3 2025 is also included in our list.
Why do we care about what hedge funds do? 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 share price data in the article is as per market close on February 10.
10. DoubleVerify Holdings, Inc. (NYSE:DV)
Potential Upside: 5.8%
Number of Hedge Fund Holders: 40
As of February 10, analyst opinions on DoubleVerify Holdings Inc. (NYSE:DV) are divided: around 52% of analysts covering the stock assign a Buy rating, 43% a Hold rating, and 5% a Sell rating. Despite these mixed views, the consensus 1-year median price target of $14.0 still implies a nearly 46% upside.
Among the latest updates, Matthew Cost, an analyst at Morgan Stanley, increased the firm’s price target on DoubleVerify Holdings, Inc. (NYSE:DV) from $15 to $15.50 while keeping a Hold rating on January 13. The firm’s adjusted price target implies a further 57% upside from the current levels.
The analyst, in a research note to investors focused on the North American internet sector, said the setup for 2026 is expected to closely resemble that of 2025. The firm anticipates that the market will favor companies that demonstrate sustained, meaningful returns on invested capital, driven by GenAI or GPU-enabled technologies. However, sub-sectors facing greater disruption risk, including ridesharing from autonomous vehicles, as well as parts of e-commerce, travel, and smaller or less established advertising platforms, are expected to remain under pressure and trade at lower valuation multiples due to ongoing uncertainty.
In contrast to Morgan Stanley, Barclays downgraded DoubleVerify Holdings, Inc. (NYSE:DV) from Buy to Hold on January 12, while maintaining its $12 price target. The adjustment was made as part of the firm’s broader 2026 outlook for the software sector. The firm said that it remains positive on the broader software space heading into 2026. Barclays cited consistent IT spending trends, stable macroeconomic conditions, and valuation multiples that remain relatively low as the sector has fallen out of favor. This development, however, occurred before the software stocks selloff driven by AI developments.
DoubleVerify Holdings, Inc. (NYSE:DV) is a provider of media effectiveness platforms in the United States and internationally. The company offers DV Authentic Ad, DV Authentic Attention, Scibids AI, DV Pinnacle, Custom Contextual solution, and DV Publisher suite. It was incorporated in 2008 and is based in New York, New York.
9. Stewart Information Services Corporation (NYSE:STC)
Potential Upside: 14.06%
Number of Hedge Fund Holders: 11
On February 5, Stewart Information Services Corporation (NYSE:STC) reported strong financial results for the fourth quarter. The company posted revenue of $790.6 million for the quarter, beating consensus estimates of $774.95 million. Its Title segment drove much of the growth, with operating revenues rising 19%, supported by gains across both direct and agency title operations. This contributed to a 28% increase in title pretax income.
Domestic commercial revenues jumped 38%, led by growth in data centers and energy. The average fee per domestic commercial file surged 39% to roughly $27,000, compared to about $20,000 in the previous year. Agency operations also remained strong, generating $334 million in gross revenue, a 20% increase from last year. The company ended the quarter with approximately $480 million in total cash and investments, above statutory premium reserve requirements.
CEO Frederick Eppinger commented on the outlook by saying:
”For the full year ’26, we fully expect to improve margins and deliver in the low teen range for this segment, and expect that our recent acquisition of MCS will help us improve our historical margin outlook.”
Earlier, on February 2, Citizens JMP initiated coverage of Stewart Information Services Corporation (NYSE:STC) with a Buy rating and a $80 price target. The firm’s price target suggests a further 11.98% upside from the current levels.
Analysts Matthew Carletti, Karol Chmiel, and David Samar said:
”With a refreshed and driven management team and an oligopolistic marketplace for title insurance, we believe Stewart has taken the necessary actions to drive strong growth and expand margins for the foreseeable future, even without the help of an improved housing market backdrop.”
Stewart Information Services Corporation (NYSE:STC) provides title insurance and real estate transaction-related services across the United States and internationally. It is engaged in examining, searching, closing, and insuring the title to real property.
8. Super Micro Computer, Inc. (NASDAQ:SMCI)
Potential Upside: 17.01%
Number of Hedge Fund Holders: 42
Super Micro Computer (NASDAQ:SMCI) is up over 10% since the earnings report on February 3. A major factor driving this sentiment is the CEO’s comment on the earnings call regarding the company’s $40 billion revenue target. He called the target a ‘conservative’ estimate and mentioned the supply chain as the major factor that could drive the revenue target upward.
In the second quarter, customer demand remained stronger, driven by larger data center operators and enterprise clients across global markets. One major data center customer contributed roughly 63% of the company’s total quarterly revenue. Revenue from the U.S. made up 82% of Q2 sales, indicating a sharp 184% year-over-year increase.
Management provided updated guidance pointing to continued momentum in the third quarter. Super Micro Computer, Inc. (NASDAQ:SMCI) expects Q3 net sales to reach at least $12.3 billion and increased its full-year 2026 revenue outlook to a minimum of $40 billion. CEO Charles Liang said that he is confident in delivering on the guidance.
Liang outlined the steps the company is taking to enhance profitability by stating:
”We are also sharpening our focus on traditional enterprise, cloud, and edge IoT customers to further diversify revenue with higher margin.”
Super Micro Computer, Inc. (NASDAQ:SMCI) is a seller and developer of server and storage solutions based on modular, open-standard architecture across Europe, the United States, Asia, and internationally. It provides liquid and air-cooled AI servers; SuperStorage systems; embedded (5G/IoT/Edge) systems; SuperBlade, MicroBlade, FlexTwin, GrandTwin, and BigTwin blade and multi-node systems; Hyper, CloudDC, and WIO and rackmount systems; and MicroCloud server systems.
7. EQT Corporation (NYSE:EQT)
Potential Upside: 17.35%
Number of Hedge Fund Holders: 82
According to a Bloomberg report released on February 3, BlackRock’s Global Infrastructure Partners (PIG) has joined forces with EQT Corporation (NYSE:EQT) in a potential bid to acquire power producer AES Corporation. AES operates as a supplier of renewable electricity to the large technology companies.
People familiar with the matter said that the two investment firms could finalize an agreement to buy AES within the next few weeks. However, no final decision has been made, the talks remain ongoing, and there is still a chance that the discussions could take longer or fail to result in a deal. According to Bloomberg reports from last year, AES had been considering strategic options, including a potential sale, after drawing takeover interest from infrastructure investors, including GIP.
Scott Hanold, an analyst at RBC Capital, reaffirmed a Hold rating on EQT Corporation (NYSE:EQT) along with the price target of $62 on January 30. The firm’s price target reflects a further 11.6% upside from the current levels.
EQT Corporation (NYSE:EQT) is involved in transportation, gathering, and production of natural gas. It sells natural gas liquids and natural gas to utilities, marketers, and industrial customers across the Appalachian Basin. The company offers contractual pipeline capacity management services and marketing services.
6. Alamos Gold Inc. (NYSE:AGI)
Potential Upside: 19.52%
Number of Hedge Fund Holders: 35
Scotiabank analyst Ovais Habib raised Alamos Gold’s (NYSE:AGI) price target from $55 to $60 on February 6. This development comes after the company reported results from its Island Gold District (IGD) Expansion Study on February 3, highlighting a major growth initiative expected to significantly improve the company’s long-term growth outlook. The study shows a 30% increase in mineral reserves and an expansion of the Magino mill to 20,000 tonnes per day, supporting a higher processing rate of 3,000 tpd. This expansion is projected to boost production, establishing one of Canada’s largest and most profitable gold operations.
Following the expansion, the average annual gold output is expected to exceed 530,000 ounces starting in 2028, representing a 27% increase from the previous life-of-mine plan. Costs are also set to fall sharply, with mine-site all-in sustaining costs estimated at $1,025 per ounce over the first 10 years.
Just a day prior to this development, analyst Ovais Habib had reiterated his $55 price target, which he has now raised by 9.09%.
Alamos Gold Inc. (NYSE:AGI) operates as a gold producer company across the United States, Canada, and Mexico. It mainly focuses on the exploration for gold deposits. The company was incorporated in 2003 and is headquartered in Toronto, Canada.
5. Equinox Gold Corp. (NYSE:EQX)
Potential Upside: 20.45%
Number of Hedge Fund Holders: 30
CIBC analyst Anita Soni upgraded Equinox Gold Corp. (NYSE:EQX) from Neutral to Outperformer on February 4. She also raised the firm’s price target on the stock from C$21.50 to C$31. The upgrade reflects CIBC’s more bullish outlook on the gold market, as the firm increased its gold price assumptions to $6,000 per ounce in 2026, $6,500 per ounce in 2027, and $6,000 per ounce in 2028. The firm believes the same demand drivers that supported gold prices in 2025 are likely to carry over into 2026.
On February 2, Equinox Gold Corp. (NYSE:EQX) released updated results from its 2025 diamond drilling program at the Valentine Gold Mine in Newfoundland & Labrador, Canada. The update highlights a newly identified gold discovery, along with continued success in expanding mineralization across the property. The company said drilling confirmed the discovery of the Minotaur Zone, a new gold zone located roughly 8 km northwest of the mill, where results revealed broad intervals of high-grade mineralization. Looking ahead, the company plans an expanded exploration effort in 2026, targeting about 100 kilometers of drilling across the Valentine property.
Darren Hall, Chief Executive Officer of Equinox Gold, said:
”These latest drill results continue to strengthen our confidence in the scale and quality of the Valentine Gold District. At the Frank Zone, located outside of current Resources, we are seeing consistent, high-grade gold mineralization over broad widths, supporting the potential for a new open pit capable of contributing to both production growth and mine life extension beyond the current 14-year mine plan.”
Equinox Gold Corp. (NYSE:EQX) is involved in the exploration, operation, acquisition, and development of mineral properties in the Americas. It mainly explores silver and gold deposits. The company was founded in 2007 and is based in Vancouver, Canada.
4. Orla Mining Ltd. (NYSE:ORLA)
Potential Upside: 30.31%%
Number of Hedge Fund Holders: 33
On February 4, CIBC analyst Cosmos Chiu increased the firm’s price target on Orla Mining Ltd. (NYSE:ORLA) from C$27 to C$32 while reaffirming an Outperformer rating. After revising its gold price outlook higher to $6,000 per ounce in 2026 and $6,500 in 2027, the firm increased price targets across the broader precious metals sector. In addition to gold, CIBC also raised its assumptions for copper prices. The analyst told investors that the major demand drivers supporting the sector in 2025 are expected to carry over into 2026.
In addition to CIBC, BMO Capital also raised its price target on Orla Mining Ltd. (NYSE:ORLA) on January 26. Andrew Mikitchook from BMO Capital Markets kept his Buy rating on the stock while increasing the firm’s price target from C$22 to C$30. The firm’s revised price target suggests a further 27% upside from the current levels. This upside is consistent with the median Wall Street analyst upside of 24.26% based on 10 analysts covering the stock.
Orla Mining Ltd. (NYSE:ORLA) develops, acquires, and explores mineral properties. The company explores copper, gold, zinc, silver, and lead deposits. It owns 100% interests in the Camino Rojo project and holds an interest in the acquisition of the Musselwhite Gold Mine project. Orla Mining was founded in 2007 and is based in Vancouver, Canada.
3. Silvercorp Metals Inc. (NYSE:SVM)
Potential Upside: 41.03%
Number of Hedge Fund Holders: 21
Silvercorp Metals Inc. (NYSE:SVM) announced its earnings on February 9 and reported a quarterly EPS of $0.22 per share. The revenue came in at $126.11 million, $3.56 million above Wall Street estimates.
On February 4, Silvercorp Metals Inc. (NYSE:SVM) said that it had revised the construction budget for the El Domo project to $284 million. The revision reflects a $44 million increase from the previous estimate of $240 million released on 31 March 2025, citing several contributing factors. The company said that the value-added tax rate has been increased to 15% from 10%, lifting the VAT component of the budget to $35 million from $19 million. This adjustment alone adds $16 million to the overall cost, representing about 36% of the total rise in the project budget.
According to the company, the VAT amount is anticipated to be recovered as a tax credit during the first year of operations, once concentrate exports begin. Moreover, the company said that the costs related to equipment and material purchases for the process plant have risen by $15 million, further contributing to the higher overall budget. Before the budget update, Canaccord Genuity had raised its price target on Silvercorp Metals Inc. (NYSE:SVM) from $10.98 to $14.64 while maintaining a Buy rating on January 23.
Silvercorp Metals Inc. (NYSE:SVM) operates as an explorer, acquirer, developer, and miner of mineral properties in China. The company explores for gold, copper, zinc, silver, and lead. It is based in Vancouver, Canada.
2. Opera Limited (NASDAQ:OPRA)
Potential Upside: 82.65%
Number of Hedge Fund Holders: 18
Piper Sandler analyst James Callahan reiterated a Buy rating on Opera Limited (NASDAQ:OPRA) and set a $24 price target on February 3. The firm’s price target implies an additional 82.4% upside from the current levels.
On February 2, Opera Limited (NASDAQ: OPRA) raised its fourth-quarter revenue outlook, driving a surge in its share price. The browser and AI agent company now expects Q4 revenue to surpass $170 million, an increase from its previous guidance of $162 million to $165 million. This also exceeds the consensus analyst estimate of $164.55 million. Additionally, Opera increased its full-year revenue expectations, and it now expects total revenue for 2025 to surpass $608 million. It reflects more than 26% growth compared to last year.
Lin Song, CEO of Opera Limited (NASDAQ:OPRA), highlighted:
”The Opera browser has always been tailored for the most demanding users. This position is already benefiting us as an increasing number of people consider what browser is best suited to be their gateway and point of integration across web content, services, and the AI-powered tools that they increasingly rely on. Our high-ARPU Western user base increased by approximately 2M users sequentially from the third to the fourth quarter, providing a powerful tailwind for our monetization engines.”
Opera Limited (NASDAQ:OPRA) provides web browsers and related products for PCs and mobile devices, serving customers in Norway and internationally. The company’s mobile offerings include Opera Mini, Opera GX for PCs & Mobile, and Opera browser for Android & iOS. Its PC browsers include Opera for Computers and Opera GX.
1. Super Group (SGHC) Limited (NYSE:SGHC)
Potential Upside: 103.16%
Number of Hedge Fund Holders: 31
On February 2, Canaccord Genuity analyst Jason Tilchen reaffirmed a Buy rating and a $18 price target on Super Group (SGHC) Limited (NYSE:SGHC). The firm’s price target suggests a further 99% upside from the current levels. This upside is similar to the median Wall Street analyst estimate, based on 8 analysts covering the stock.
Earlier, on January 21, Super Group (SGHC) Limited (NYSE:SGHC) disclosed that it remains on track to deliver both full-year revenue and adjusted EBITDA within its previously issued guidance ranges. The company continues to forecast revenue between $2.17 billion and $2.27 billion, broadly in line with the Wall Street consensus of $2.22 billion, while adjusted EBITDA is projected to be between $555 million and $565 million.
Looking ahead, management said that it anticipates healthy growth to continue into 2026, highlighting that its core business drivers remain solid and should support continued momentum. In addition to the updated outlook, Super Group (SGHC) Limited’s board declared a special cash dividend of $0.25 per ordinary share.
Super Group (SGHC) Limited (NYSE:SGHC) is an online sports betting and gaming company. It provides Spin, a multi-brand online casino, and Betway, an online sports betting and casino offering. The company operates across the Middle East, North America, Africa, the Asia-Pacific, South/Latin America, and Europe.
While we acknowledge the potential of SGHC 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 SGHC and that has 100x upside potential, check out our report about this cheapest AI stock.
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