11 Best Undervalued Stocks to Invest in According to Reddit

In this article, we will discuss the 11 Best Undervalued Stocks to Invest in According to Reddit.

According to US Bank, the 2025 YTD results demonstrate broader industry participation. Unlike 2023 and 2024, when information technology and communication services stocks fueled most of the gains of the S&P 500, there are other sectors that are now among this year’s top performers. On the YTD basis, the index’s top 5 performing sectors include industrials, utilities, and financials. These sectors touched new all-time highs in July, August, and September, respectively, noted the US Bank.

What Lies Ahead for the US Market? 

Merrill, A Bank of America Company, remains overweight on equities with a preference for the US compared to the rest of the world. As per the firm, the profit cycle is expected to be extended by tailwinds from fiscal stimulus and deregulation, all favourable for economic growth and risk assets. The productivity has been stronger than reported, and the environment is supportive of earnings growth and risk-asset prices. As per the firm, there needs to be a focus on large-cap equities, AI beneficiaries, and rate-sensitive sectors, which are expected to benefit due to the renewed Fed easing.

Amidst this outlook, let us now have a look at the 11 Best Undervalued Stocks to Invest in According to Reddit.

Our Methodology

To list the 11 Best Undervalued Stocks to Invest in According to Reddit, we checked the trending stocks on Reddit. After getting an extensive list, we chose the ones that trade at a forward P/E of less than ~15x. Next, we finally shortlisted the ones popular among hedge funds, as of Q2 2025. The stocks are arranged in ascending order of their hedge fund sentiments.

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).

11 Best Undervalued Stocks to Invest in According to Reddit

11. Cracker Barrel Old Country Store, Inc. (NASDAQ:CBRL)

Number of Hedge Fund Holders: 22

Forward P/E: ~13.1x

Cracker Barrel Old Country Store, Inc. (NASDAQ:CBRL) is one of the Best Undervalued Stocks to Invest in According to Reddit. On September 18, Truist reduced the price target on the company’s stock to $58 from $62, while keeping a “Buy” rating. The firm noted Cracker Barrel Old Country Store, Inc. (NASDAQ:CBRL)’s Q4 2025 earnings miss, but also recommends buying, considering that the core drivers of the brand turnaround remain intact and that sales might start to recover from the rebranding backlash soon, with the resumption of the Fall Menu marketing.

As per the analyst, the initial FY 2026 guidance is far lower than anticipated, but also appears to include increased marketing and labor spend in a bid to help sales recovery. For FY 2026, Cracker Barrel Old Country Store, Inc. (NASDAQ:CBRL) expects total revenue of between $3.35 billion – $3.45 billion, which assumes the comparable store traffic decline of 4% – 7%. It expects adjusted EBITDA of between $150 million – $190 million.