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11 Most Undervalued Small-Cap Stocks to Buy According to Analysts

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On July 2, Joe Amato, President and Chief Investment Officer at Neuberger Berman, joined ‘Squawk Box’ on CNBC to discuss the latest market trends. Amato believes that there’s better value in small-cap stocks in H2 2025. There was a market rotation on July 1, where there was an unwind from higher-multiple sectors, such as tech and AI, into lower-multiple sectors. Amato explained that H1 2025 started with a market broadening out, where value and non-US equities began performing well, putting pressure on large-cap tech. However, the market then bounced back due to resilient economic data, improved trade, and better earnings, leaving behind sectors like value and small caps. This rotation was now occurring again. Neuberger Berman’s view is that true value lies in rotating into value and small-cap stocks, both of which had underperformed in H1.

On balancing exposure to large-cap tech, which had performed strongly, with the desire to invest in undervalued sectors, especially given the S&P 500 being around 6200, Amato acknowledged that the large-cap market was discounting a lot of good news, making them more cautious there. Consequently, their firm was at target allocation for large-cap stocks but was overweight in small-cap and non-US equities. These areas have underperformed for several years and offer better value for H2.

That being said, we’re here with a list of the 11 most undervalued small-cap stocks to buy according to analysts.

A Traders Desk showing different stocks, with traders hands hovering above the screen.

Methodology

We sifted through the Finviz stock screener to compile a list of top stocks that had a forward P/E ratio under 20 and were trading between $300 million and $2 billion. We then selected the 11 stocks with an upside potential of over 25%. The stocks are ranked in ascending order of their upside potential. We have also added the hedge fund sentiment for each stock, as of Q1 2025, which was sourced from Insider Monkey’s database.

Note: All data was collected on July 8. 

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 Most Undervalued Small-Cap Stocks to Buy According to Analysts

11. Pacira BioSciences Inc. (NASDAQ:PCRX)

Forward P/E Ratio as of July 8: 8.02

Market Capitalization as of July 8: $1.07 billion

Number of Hedge Fund Holders: 27

Average Upside Potential as of July 8: 25.11%

Pacira BioSciences Inc. (NASDAQ:PCRX) is one of the most undervalued small-cap stocks to buy according to analysts. On June 11, Pacira BioSciences announced new long-term follow-up data from its Phase 1 clinical trial of PCRX-201 (enekinragene inzadenovec), which is an investigational gene therapy for osteoarthritis of the knee.

The results were presented at the 2025 European Alliance of Associations for Rheumatology/EULAR Congress in Barcelona, Spain, and showed that a single intra-articular injection of PCRX-201 was well tolerated and led to sustained improvements in pain, stiffness, and function for up to 156 weeks in patients with moderate-to-severe osteoarthritis of the knee.

PCRX-201 utilizes Pacira’s proprietary high-capacity adenovirus (HCAd) gene therapy vector platform. It works by locally injecting into the knee joint to boost cellular production of interleukin-1 receptor antagonist (IL-1Ra), thereby blocking interleukin-1 pathway activation to alleviate chronic inflammation, pain, and improve function.

Pacira BioSciences Inc. (NASDAQ:PCRX) develops, manufactures, markets, distribution, and sells non-opioid pain management and regenerative health solutions to healthcare practitioners in the US.

10. Great Lakes Dredge & Dock Corporation (NASDAQ:GLDD)

Forward P/E Ratio as of July 8: 11.99

Market Capitalization as of July 8: $765.53 million

Number of Hedge Fund Holders: 24

Average Upside Potential as of July 8: 28.66%

Great Lakes Dredge & Dock Corporation (NASDAQ:GLDD) is one of the most undervalued small-cap stocks to buy according to analysts. On June 30, Great Lakes Dredge & Dock Corporation announced that it has received 4 new work awards.

One of the awarded projects includes the Woodside Louisiana LNG project, for which the amount was undisclosed. Dredging operations for the project are expected to begin in early 2026. Another one is the Galveston Entrance Channel & Houston Ship Channel from Bolivar to Redfish maintenance project in Texas, valued at $36.2 million. Work for this is anticipated to commence in Q3 and conclude in Q4.

The Mississippi River Hopper Dredge Contract No. 3 for rental in Louisiana is valued at $17.6 million and is anticipated to commence in Q3 and conclude in Q4 as well. The Charleston Entrance Channel maintenance project in South Carolina is valued at $10.8 million. Work on this contract began in May earlier this year.

Great Lakes Dredge & Dock Corporation (NASDAQ:GLDD) provides dredging services in the US.

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AI, Tariffs, Nuclear Power: One Undervalued Stock Connects ALL the Dots (Before It Explodes!)

Artificial intelligence is the greatest investment opportunity of our lifetime. The time to invest in groundbreaking AI is now, and this stock is a steal!

AI is eating the world—and the machines behind it are ravenous.

Each ChatGPT query, each model update, each robotic breakthrough consumes massive amounts of energy. In fact, AI is already pushing global power grids to the brink.

Wall Street is pouring hundreds of billions into artificial intelligence—training smarter chatbots, automating industries, and building the digital future. But there’s one urgent question few are asking:

Where will all of that energy come from?

AI is the most electricity-hungry technology ever invented. Each data center powering large language models like ChatGPT consumes as much energy as a small city. And it’s about to get worse.

Even Sam Altman, the founder of OpenAI, issued a stark warning:

“The future of AI depends on an energy breakthrough.”

Elon Musk was even more blunt:

“AI will run out of electricity by next year.”

As the world chases faster, smarter machines, a hidden crisis is emerging behind the scenes. Power grids are strained. Electricity prices are rising. Utilities are scrambling to expand capacity.

And that’s where the real opportunity lies…

One little-known company—almost entirely overlooked by most AI investors—could be the ultimate backdoor play. It’s not a chipmaker. It’s not a cloud platform. But it might be the most important AI stock in the US owns critical energy infrastructure assets positioned to feed the coming AI energy spike.

As demand from AI data centers explodes, this company is gearing up to profit from the most valuable commodity in the digital age: electricity.

The “Toll Booth” Operator of the AI Energy Boom

  • It owns critical nuclear energy infrastructure assets, positioning it at the heart of America’s next-generation power strategy.
  • It’s one of the only global companies capable of executing large-scale, complex EPC (engineering, procurement, and construction) projects across oil, gas, renewable fuels, and industrial infrastructure.
  • It plays a pivotal role in U.S. LNG exportation—a sector about to explode under President Trump’s renewed “America First” energy doctrine.

Trump has made it clear: Europe and U.S. allies must buy American LNG.

And our company sits in the toll booth—collecting fees on every drop exported.

But that’s not all…

As Trump’s proposed tariffs push American manufacturers to bring their operations back home, this company will be first in line to rebuild, retrofit, and reengineer those facilities.

AI. Energy. Tariffs. Onshoring. This One Company Ties It All Together.

While the world is distracted by flashy AI tickers, a few smart investors are quietly scooping up shares of the one company powering it all from behind the scenes.

AI needs energy. Energy needs infrastructure.

And infrastructure needs a builder with experience, scale, and execution.

This company has its finger in every pie—and Wall Street is just starting to notice.

Wall Street is noticing this company also because it is quietly riding all of these tailwinds—without the sky-high valuation.

While most energy and utility firms are buried under mountains of debt and coughing up hefty interest payments just to appease bondholders…

This company is completely debt-free.

In fact, it’s sitting on a war chest of cash—equal to nearly one-third of its entire market cap.

It also owns a huge equity stake in another red-hot AI play, giving investors indirect exposure to multiple AI growth engines without paying a premium.

And here’s what the smart money has started whispering…

The Hedge Fund Secret That’s Starting to Leak Out

This stock is so off-the-radar, so absurdly undervalued, that some of the most secretive hedge fund managers in the world have begun pitching it at closed-door investment summits.

They’re sharing it quietly, away from the cameras, to rooms full of ultra-wealthy clients.

Why? Because excluding cash and investments, this company is trading at less than 7 times earnings.

And that’s for a business tied to:

  • The AI infrastructure supercycle
  • The onshoring boom driven by Trump-era tariffs
  • A surge in U.S. LNG exports
  • And a unique footprint in nuclear energy—the future of clean, reliable power

You simply won’t find another AI and energy stock this cheap… with this much upside.

This isn’t a hype stock. It’s not riding on hope.

It’s delivering real cash flows, owns critical infrastructure, and holds stakes in other major growth stories.

This is your chance to get in before the rockets take off!

Disruption is the New Name of the Game: Let’s face it, complacency breeds stagnation.

AI is the ultimate disruptor, and it’s shaking the foundations of traditional industries.

The companies that embrace AI will thrive, while the dinosaurs clinging to outdated methods will be left in the dust.

As an investor, you want to be on the side of the winners, and AI is the winning ticket.

The Talent Pool is Overflowing: The world’s brightest minds are flocking to AI.

From computer scientists to mathematicians, the next generation of innovators is pouring its energy into this field.

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By investing in AI, you’re essentially backing the future.

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A New Dawn is Coming to U.S. Stocks

I work for one of the largest independent financial publishers in the world – representing over 1 million people in 148 countries.

We’re independently funding today’s broadcast to address something on the mind of every investor in America right now…

Should I put my money in Artificial Intelligence?

Here to answer that for us… and give away his No. 1 free AI recommendation… is 50-year Wall Street titan, Marc Chaikin.

Marc’s been a trader, stockbroker, and analyst. He was the head of the options department at a major brokerage firm and is a sought-after expert for CNBC, Fox Business, Barron’s, and Yahoo! Finance…

But what Marc’s most known for is his award-winning stock-rating system. Which determines whether a stock could shoot sky-high in the next three to six months… or come crashing down.

That’s why Marc’s work appears in every Bloomberg and Reuters terminal on the planet…

And is still used by hundreds of banks, hedge funds, and brokerages to track the billions of dollars flowing in and out of stocks each day.

He’s used this system to survive nine bear markets… create three new indices for the Nasdaq… and even predict the brutal bear market of 2022, 90 days in advance.

Click to continue reading…