On June 26, Noah Blackstein, Dynamic Funds senior portfolio manager, joined CNBC’s ‘Squawk Box’ to discuss the current market and economic conditions. He noted that while the S&P 500 had pulled back from its recent highs and potentially reached as low as 4,800, it had also nearly recovered to new highs. However, for the current year, the S&P 500 was only up about 3.5%, which showed minimal year-to-date progress. Blackstein believes that the market can move higher and pointed out that even though it’s slower than before, the economic growth is still satisfactory.
Blackstein believes that the Fed’s current interest rate level is excessive, particularly given the state of the labor market. He anticipates at least two rate cuts this year. He emphasized that residential investment will be crucial for overall GDP growth, as current CapEx spending in the US is almost entirely driven by AI and tech. Still, he maintains that the economy is on a good path and the Fed should be more accommodative. He thinks markets can continue to rise as economic confidence grows and deregulation progresses, especially now that the most difficult aspects of tariffs have been navigated. Blackstein also clarified that he believes there is no real inflation. He argued that by holding real rates and allowing inflation to decline, the Fed is continuing to raise real rates and reduce its balance sheet, which he sees as a de facto tightening that doesn’t make any sense. He believes there are opportunities within the broader market. While market broadening was temporarily derailed in the first quarter, it is now starting again.
That being said, we’re here with a list of the 11 most undervalued US stocks according to analysts.
An investor with a portfolio of stocks, highlighting the importance of diversified indexing investment approach.
Methodology
We first used the Finviz stock screener to compile a list of undervalued US stocks that had a forward P/E ratio under 20. 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.
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 US Stocks According To Analysts
11. Wyndham Hotels & Resorts Inc. (NYSE:WH)
Forward P/E Ratio as of June 25: 16.86
Number of Hedge Fund Holders: 49
Average Upside Potential as of June 25: 29.56%
Wyndham Hotels & Resorts Inc. (NYSE:WH) is one of the most undervalued US stocks according to analysts. On June 18, Elavon announced an expanded collaboration with Wyndham Hotels & Resorts. The partnership makes Elavon’s Cloud Payments Interface/CPI available to 6,000+ Wyndham franchisees across the US and Canada. The initiative represents a significant advancement in hospitality payments processing.
Elavon’s CPI is a cloud-based solution that eliminates the need for hotels under Wyndham’s 25 brands to purchase or maintain expensive on-site hardware for their property management systems. This reduces operational overhead, minimizes hardware-related security concerns, and enhances the simplicity and security of mobile check-in.
With CPI, Wyndham franchisees can benefit from scalable payment services, seamless integration with other cloud-based third-party software, and advanced encryption & tokenization technologies to safeguard transactions.
Wyndham Hotels & Resorts Inc. (NYSE:WH) is a hotel franchisor in the US and internationally. Elavon is a global payments processor that is owned by US Bank (NYSE:USB), the fifth-largest US bank.
10. Biogen Inc. (NASDAQ:BIIB)
Forward P/E Ratio as of June 25: 8.52
Number of Hedge Fund Holders: 52
Average Upside Potential as of June 25: 29.60%
Biogen Inc. (NASDAQ:BIIB) is one of the most undervalued US stocks according to analysts. On June 25, Biogen announced positive topline results from an interim analysis of its Phase 1 study for salanersen (BIIB115/ION306), which is an investigational antisense oligonucleotide/ASO for treating spinal muscular atrophy/SMA. Based on these encouraging findings, Biogen is engaging with global health authorities to advance salanersen into registrational (Phase 3) studies.
Salanersen was discovered by Ionis Pharmaceuticals Inc. (NASDAQ:IONS) and licensed to Biogen. It uses the same mechanism of action as SPINRAZA (nusinersen) but is designed for greater potency, with the potential to achieve high efficacy and allow for once-yearly dosing. The Phase 1 study was a single ascending dose trial aimed to evaluate the safety, tolerability, and pharmacokinetics of salanersen. It consisted of two parts: Part A was a randomized and placebo-controlled segment involving healthy adult male volunteers, and Part B was an open-label segment with pediatric SMA participants.
The interim results, specifically from Part B (n=24), focused on individuals who had previously received ZOLGENSMA (onasemnogene abeparvovec) and had reported suboptimal clinical status. Both tested dose levels, 40 mg and 80 mg, administered once a year, were generally well-tolerated. The cumulative safety data indicate that salanersen was generally well-tolerated at both dose levels, with most adverse events being mild to moderate in severity.
Biogen Inc. (NASDAQ:BIIB) discovers, develops, manufactures, and delivers therapies for treating neurological and neurodegenerative diseases internationally. Ionis Pharmaceuticals Inc. (NASDAQ:IONS) is a commercial-stage biotechnology company that provides RNA-targeted medicines in the US.
