In this article, we will now discuss the 11 Most Undervalued Stocks Under $10 to Buy Now.
According to David Kostin (Chief US equity strategist in Goldman Sachs Research), apart from the improved outlook for interest rates, the strength of Q1 2025 earnings results strengthened the confidence that the largest stocks are expected to sustain current investor expectations for the long-term growth for at least the upcoming few quarters. This can help support valuation for the broader S&P 500 index.
What Can Investors Expect?
The projection for lower 10-Y Treasury yields by Goldman Sachs Research can fuel the stock market. As per their macro valuation model, every 50 bps fall in real bond yields is related to a ~3% rise in S&P 500 forward P/E, all else being equal. Furthermore, the research team of the firm increased its estimate for S&P 500 P/E to 22x from 20.4x.
Notably, the firm believes that shifting trade policy results in significant uncertainty associated with the earnings forecasts. Kostin’s team maintained the expectation for growth in S&P 500 stocks’ EPS at 7% in 2025 and 7% for the following year. Goldman Sachs opines that the healthy outlook for earnings growth in 2026, expectations of the rate cuts resuming, and neutral investor positioning tend to support the likelihood that the broader market would continue to increase, with the recent narrow rally broadening to the rest of the index.
Amidst such trends, let us now have a look at the 11 Most Undervalued Stocks Under $10 to Buy Now.
A large computer terminal full of complex calculations tracking the company’s cash flow and investment management decisions.
Our Methodology
To list the 11 Most Undervalued Stocks Under $10 to Buy Now, we used a screener to shortlist the stocks that trade at a price of less than $10. Next, we narrowed our list to the ones that have a forward P/E of less than 15.0x. We chose the ones popular among hedge funds. Finally, the stocks have been arranged in an ascending order of their hedge fund sentiments, as of Q1 2025.
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 Stocks Under $10 to Buy Now
11. OMS Energy Technologies Inc. (NASDAQ:OMSE)
Forward P/E as of July 11: ~6.7x
Stock Price as on July 11: $6.78
Number of Hedge Fund Holders: N/A
OMS Energy Technologies Inc. (NASDAQ:OMSE) is one of the Most Undervalued Stocks Under $10 to Buy Now. Roth Capital analyst Gerry Sweeney initiated coverage of the company’s stock with a “Buy” rating and a price objective of $10, as reported by The Fly. The research firm noted OMS Energy Technologies Inc. (NASDAQ:OMSE)’s strategic positioning in the broader oil and gas sector, highlighting that it offers equipment and services via 11 manufacturing and distribution centers throughout the Middle East/North Africa (MENA) and Southeast Asia regions.
As per the firm, the Saudi Aramco contract demonstrates the company’s capabilities. Roth/MKM also highlighted that OMS Energy Technologies Inc. (NASDAQ:OMSE)’s facilities, as well as its extensive product catalogue, remain well-positioned to leverage strategic investments in the regions. After the IPO, the company remains focused on accelerating its growth, aided by healthy operational capabilities as well as a commitment to engineering excellence. OMS Energy Technologies Inc. (NASDAQ:OMSE) is targeting deepening of the long-standing customer relationships and has been investing in advanced manufacturing and R&D to fuel innovation, efficiency, and sustainable growth. The average price target on the company’s stock is $10.
OMS Energy Technologies Inc. (NASDAQ:OMSE) has a solid base of long-term contracts and longstanding relationships across global and local oil companies, drilling contractors, E&P, and oilfield service providers.
10. Ring Energy, Inc. (NYSE:REI)
Forward P/E as of July 11: ~5.1x
Stock Price as on July 11: $0.818
Number of Hedge Fund Holders: 12
Ring Energy, Inc. (NYSE:REI) is one of the Most Undervalued Stocks Under $10 to Buy Now. Alliance Global Partners resumed coverage of the company’s stock with a “Buy” rating and a price objective of $2.50. The firm believes that Ring Energy, Inc. (NYSE:REI)’s stock trades at an attractive valuation based on its cash flow. Furthermore, the shares are attractive considering the Permian focus and straightforward operating strategy, added the firm’s analyst.
Ring Energy, Inc. (NYSE:REI) started 2025 with a robust first quarter, reflecting the flexibility, resilience, and strength of its proven, value-focused strategy amidst fluctuating oil prices. In Q1 2025, the company sold 12,074 barrels of oil per day and 18,392 barrels of oil equivalent per day. Furthermore, Ring Energy, Inc. (NYSE:REI) announced the closing of its acquisition of Lime Rock’s CBP assets in the Permian Basin. The majority of the assets remain similar to the conventional-focused CBP assets in the company’s core Shafter Lake operations, enabling it to integrate the assets into the operations quickly.
Ring Energy, Inc. (NYSE:REI) remains focused on generating FCF via cost reductions, divestitures of non-core assets, and acquisition of high-margin, low-break-even assets, utilising the excess cash to reduce debt as well as create value for stockholders throughout commodity price cycles.
9. AGNC Investment Corp. (NASDAQ:AGNC)
Forward P/E as of July 11: ~5.4x
Stock Price as on July 11: $9.40
Number of Hedge Fund Holders: 22
AGNC Investment Corp. (NASDAQ:AGNC) is one of the Most Undervalued Stocks Under $10 to Buy Now. In Q1 2025, the prospects of potential governmental policy actions impacting economic growth and accelerating inflationary pressures weighed on investor sentiments. Resultantly, there was a flight to high-quality assets, including US Treasuries, Agency MBS, and cash, from higher-risk assets like equities and corporate debt. Amidst these conditions, the company generated a favorable economic return of 2.4% in Q1 2025. Despite the decline in broader equity markets, AGNC Investment Corp. (NASDAQ:AGNC)’s total stock return with dividends reinvested for the quarter came in at 7.8%.
After the April tariff announcement, there was a substantial increase in financial market volatility. With AGNC Investment Corp. (NASDAQ:AGNC)’s conservative leverage profile and sufficient liquidity at quarter end, the company was well-placed for this instability. While the company’s NAV was negatively impacted due to the mortgage spread widening, the expected return on its portfolio was higher, reflecting these wider spread levels. Agency MBS provides investors an attractive fixed income alternative to corporate debt and other credit-sensitive instruments, mainly during a deteriorating economic outlook. Therefore, AGNC Investment Corp. (NASDAQ:AGNC)’s outlook for agency MBS remains favorable.
AGNC Investment Corp. (NASDAQ:AGNC) offers private capital to the housing market.
8. American Axle & Manufacturing Holdings, Inc. (NYSE:AXL)
Forward P/E as of July 11: ~14.3x
Stock Price as on July 11: $4.41
Number of Hedge Fund Holders: 28
American Axle & Manufacturing Holdings, Inc. (NYSE:AXL) is one of the Most Undervalued Stocks Under $10 to Buy Now. UBS upgraded the company’s stock to “Buy” from “Neutral” with a price objective of $7, up from the prior target of $4.50, as reported by The Fly. The upgrade comes off the back of several factors, including anticipations for the longer lifespan of core American Axle programs like General Motors’ full-size truck/SUV platform, aided by the relaxed U.S. emissions regulatory environment.
Furthermore, the firm noted that GM’s plans to add US manufacturing capacity reflect a positive development for American Axle & Manufacturing Holdings, Inc. (NYSE:AXL), which can improve future earnings potential beyond the current consensus estimates. American Axle & Manufacturing Holdings, Inc. (NYSE:AXL) delivered positive YoY operating cash flow performance, thanks to a combination of cost control and productivity. The net cash provided by operating activities for Q1 2025 came in at $55.9 million compared to $17.8 million for Q1 2024.
aThingz, which is a new generation Supply Chain as a Service (SCaaS) managed solution provider, announced that American Axle & Manufacturing Holdings, Inc. (NYSE:AXL) selected its DAKSA AI Platform to help the digital transformation strategy.
American Axle & Manufacturing Holdings, Inc. (NYSE:AXL) is engaged in designing, engineering, and manufacturing driveline and metal forming technologies supporting electric, hybrid, and internal combustion vehicles.
7. Valley National Bancorp (NASDAQ:VLY)
Forward P/E as of July 11: ~10.0x
Stock Price as on July 11: $9.51
Number of Hedge Fund Holders: 30
Valley National Bancorp (NASDAQ:VLY) is one of the Most Undervalued Stocks Under $10 to Buy Now. Morgan Stanley upgraded the company’s stock to “Overweight” from “Equal Weight” with a price objective of $11, up from the prior target of $10, as reported by The Fly. This upgrade reflects the company’s actions over the past 12 months to improve its balance sheet, reduce the commercial real estate concentration, increase reserve ratios, as well as build capital.
Notably, the firm also noted that Valley National Bancorp (NASDAQ:VLY) has successfully lowered its deposit costs to improve NIM, and additional improvement is anticipated when interest rates decrease further. Overall, the firm’s analyst opines that the balance sheet improvement and earnings growth story are not being reflected in the current valuation. In Q1 2025, Valley National Bancorp (NASDAQ:VLY) saw continued improvement in its funding base. The core deposit growth enabled it to further reduce its dependency on the indirect deposits, benefiting its revenue and NIM.
Furthermore, the company expects that additional core deposit growth can create a sustainable tailwind amidst the volatile current operating environment.
Valley National Bancorp (NASDAQ:VLY) operates as the holding company for Valley National Bank, which offers commercial, private banking, retail, insurance, and wealth management financial services products.
6. Crescent Energy Company (NYSE:CRGY)
Forward P/E as of July 11: ~4.4x
Stock Price as on July 11: $9.25
Number of Hedge Fund Holders: 34
Crescent Energy Company (NYSE:CRGY) is one of the Most Undervalued Stocks Under $10 to Buy Now. Piper Sandler analyst Mark Lear initiated coverage of the company’s stock with a “Buy” rating. The analyst’s rating is backed by a combination of factors demonstrating Crescent Energy Company (NYSE:CRGY)’s strategic positioning and growth potential. As per the analyst, the company continues to actively consolidate the Eagle Ford, which is a mature but fragmented oil shale basin, with significant acquisitions. This strategy enabled the company to expand its scale and enhance high-return inventory, placing it as a leading player in the region, possessing the potential to further double its size via M&As.
Furthermore, the firm noted that Crescent Energy Company (NYSE:CRGY)’s robust hedge book and cash-generative production base offer operational flexibility, enabling it to navigate commodity price volatility while, at the same time, maintaining FCF generation. Overall, considering the balanced capital return framework as well as disciplined balance sheet management, Crescent Energy Company (NYSE:CRGY) demonstrates an investment opportunity with a favorable risk-reward profile for investors planning oil-weighted exposure and embedded gas optionality, added the analyst.
Hotchkis & Wiley, an investment management company, released its Q4 2024 investor letter. Here is what the fund said:
“Crescent Energy Company (NYSE:CRGY) is an independent Exploration and Production (E&P) company operating in the Eagle Ford and Uinta Basin. The company has been a successful acquiror and integrator of E&P assets at attractive prices. The company’s shares moved higher in the quarter following solid Q3 earnings and the completion of the SilverBow acquisition. We continue to like the prospects for the company which trades at a very attractive valuation.”
5. The Western Union Company (NYSE:WU)
Forward P/E as of July 11: ~4.6x
Stock Price as on July 11: $8.35
Number of Hedge Fund Holders: 35
The Western Union Company (NYSE:WU) is one of the Most Undervalued Stocks Under $10 to Buy Now. Oppenheimer analyst Rayna Kumar initiated coverage of the company’s stock with a “Perform” rating. As per the firm, The Western Union Company (NYSE:WU) continues to make progress in protecting its market share via increased investments in digital capabilities, strategic pricing, and partnerships with Fintechs and card networks. That being said, the firm still remains on the sidelines until it sees clearer evidence of the sustained revenue growth turnaround.
Furthermore, The Western Union Company (NYSE:WU) has been facing headwinds due to the tightening US immigration policy, intensifying competition from digital-native players as well as aggressive pricing from legacy cash-to-cash money remittance providers, added the firm analyst. While The Western Union Company (NYSE:WU)’s digital strategy and partnerships are steps towards the right direction, the firm believes that such initiatives might not be sufficient to offset broad-based structural pressures.
Notably, in Q1 2025, The Western Union Company (NYSE:WU) saw its 8th consecutive quarter of double-digit transaction growth for its Branded Digital business, highlighting the momentum amidst an uncertain macroeconomic environment. In Q1 2025, the company’s Branded Digital revenue rose 7% on a reported basis, or 8% on an adjusted basis, while transaction growth was 14% as compared to the prior-year period.
4. ADT Inc. (NYSE:ADT)
Forward P/E as of July 11: ~10.5x
Stock Price as on July 11: $8.52
Number of Hedge Fund Holders: 36
ADT Inc. (NYSE:ADT) is one of the Most Undervalued Stocks Under $10 to Buy Now. During Q1 2025, the company delivered a record recurring monthly revenue balance and customer retention, highlighting the strong demand for its innovative offerings. ADT Inc. (NYSE:ADT) remains well-placed to achieve FY 2025 guidance with strong growth in cash flow and EPS, while making investments in expanded capabilities to grow. For FY 2025, the company expects total revenue of between $5,025 million – $5,225 million, and adjusted EBITDA of $2,650 million – $2,750 million.
ADT Inc. (NYSE:ADT) continues to roll out its new proprietary ADT+ platform, which is a next-generation smart home security offering integrating professional monitoring with Google Nest devices. The company has been increasing customer penetration as a percentage of new adds. ADT Inc. (NYSE:ADT) launched ADT+ Translator, converting signals from legacy sensors into a format that ADT+ can process. This offers a faster, lower-cost transition from older equipment that has been designed to function seamlessly with the ADT+ platform.
ADT Inc. (NYSE:ADT)’s total revenue in Q1 2025 came in at $1,267 million, up 7%. Monitoring and related services (M&S) revenue growth was mainly aided by higher average prices, partially offset by lower volume.
ADT Inc. (NYSE:ADT) offers security, interactive, and smart home solutions.
Ariel Investments, an investment management company, released its Q1 2025 investor letter. Here is what the fund said:
“Leading provider of automated security solutions ADT Inc. (NYSE:ADT) also traded higher on solid earnings results. Despite the challenging macro backdrop, the company is demonstrating pricing power, a historically low attrition rate and growing free cash flow generation. Notably, ADT continues to improve its balance sheet through significant debt reduction. Management expects to maintain this momentum into 2025 with strong cash flow growth as well as a new share repurchase plan. With ADT’s industry-leading brand and national presence, coupled with its Google and State Farm strategic partnerships, the company is well-positioned to be a prime beneficiary of growing demand for smart home technologies, including fully monitored residential security.”
3. Genworth Financial, Inc. (NYSE:GNW)
Forward P/E as of July 11: ~15.6x
Stock Price as on July 11: $7.29
Number of Hedge Fund Holders: 37
Genworth Financial, Inc. (NYSE:GNW) is one of the Most Undervalued Stocks Under $10 to Buy Now. During Q1 2025, the company’s net investment gains (net of taxes) rose net income by $21 million as compared to the net investment losses of $32 million in the prior quarter. In the current quarter, the investment gains were mainly aided by mark-to-market adjustments on limited partnerships. Genworth Financial, Inc. (NYSE:GNW) made a strong progress towards the expansion of CareScout Quality Network, enhancing coverage to 90% of the aged 65+ census population in the US.
Overall, the company’s Q1 2025 results demonstrate consistent execution throughout the strategic priorities, providing value through Enact, ensuring self-sustainability of the legacy insurance companies, as well as scaling CareScout as the growth engine. Notably, Enact Holdings is a leading provider of private mortgage insurance. Genworth Financial, Inc. (NYSE:GNW) increased shareholder value as Enact continues to grow market value. Since its IPO in 2021, the mortgage insurance subsidiary managed to return ~$980 million to Genworth, acting as a reliable and essential source of FCF.
Furthermore, Genworth Financial, Inc. (NYSE:GNW) highlighted that CareScout achieved strong growth in the number of matches between Genworth policyholders and CareScout quality network providers. During Q1 2025, the number of matches rose to 576 as compared to 52 in Q1 2024, over a 10x increase YoY.
Seven Corners Capital, an investment management company, released its Q3 2024 investor letter. Here is what the fund said:
“Genworth Financial, Inc. (NYSE:GNW), 15% position (Cost Basis: $3.75)
GNW increased 2.2% YTD in 2024, following a period of significant outperformance during the preceding 8 quarters vis-a-vis the S&P 500.
GNW trades at a discount to its 81% ownership stake in Enact Holdings (ticker ACT), which at the end of Q1 was valued at $4.6 billion (or 30% greater than GNW’s $3.5 billion aggregate enterprise value, up from 17% six months ago)…” (Click here to read the full text)
2. Alight, Inc. (NYSE:ALIT)
Forward P/E as of July 11: ~9.4x
Stock Price as on July 11: $5.68
Number of Hedge Fund Holders: 41
Alight, Inc. (NYSE:ALIT) is one of the Most Undervalued Stocks Under $10 to Buy Now. The company continues to benefit from a long-cycle recurring business model, which has insulated it from short-term market swings. This is because Alight, Inc. (NYSE:ALIT) already has 92% of the projected 2025 revenue under contract. The company remains focused on securing the remaining renewals in this cycle and commercial execution throughout both recurring and project revenue. While it is exposed to the market impacts, the company remains optimistic regarding the operational levers within its control and has reaffirmed its outlook basis the resilience of its model and visibility.
Alight, Inc. (NYSE:ALIT) expects revenue in the range of $2,318 million – $2,388 million, and adjusted EBITDA of between $620 million – $645 million in FY 2025. It expects FCF of between $250 million – $285 million. The company’s revenue declined 2.0% to $548 million as compared to $559 million in the prior-year period. This was mainly because of lower project revenue as well as net commercial activity. Furthermore, its recurring revenues were 94.9% of the total revenue.
Alight, Inc. (NYSE:ALIT) provides integrated, cloud-based human capital solutions, empowering clients and employees to manage health, wealth, and HR needs.
1. Viatris Inc. (NASDAQ:VTRS)
Forward P/E as of July 11: ~4.1x
Stock Price as on July 11: $9.12
Number of Hedge Fund Holders: 49
Viatris Inc. (NASDAQ:VTRS) is one of the Most Undervalued Stocks Under $10 to Buy Now. The company announced positive top-line results from VEGA-3, which is the second pivotal Phase 3 trial evaluating MR-141 (phentolamine ophthalmic solution 0.75%) in treating presbyopia. To give a brief overview, presbyopia happens to be a progressive loss of the ability to focus on close objects, which leads to blurred near vision and eye strain, mainly in dim lighting conditions.
As per Viatris Inc. (NASDAQ:VTRS)’s Chief R&D Officer, presbyopia is a very common condition that affects ~90% of adults in the US over the age of 45. Viatris Inc. (NASDAQ:VTRS) expressed optimism with the positive results from the second pivotal Phase 3 trial, which reinforce the company’s confidence in MR-141 and its benefit-risk profile as a potential, non-invasive option to help millions of patients. Furthermore, Viatris Inc. (NASDAQ:VTRS)’s growing pipeline, capital discipline, operational execution, and strong global scope provide confidence to navigate the periods of volatility and uncertainty.
Viatris Inc. (NASDAQ:VTRS) continues to generate strong cash flow. Its net cash provided by operating activities (US GAAP) came in at $535 million, and FCF was $493 million, which includes $43 million in transaction-related costs.
While we acknowledge the potential of VTRS 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 VTRS and that has 100x upside potential, check out our report about this cheapest AI stock.
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