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.
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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.
9. Matador Resources Company (NYSE:MTDR)
Forward P/E Ratio as of June 25: 7.49
Number of Hedge Fund Holders: 38
Average Upside Potential as of June 25: 29.98%
Matador Resources Company (NYSE:MTDR) is one of the most undervalued US stocks according to analysts. As May was coming to an end, Matador Resources and its midstream affiliate, called San Mateo Midstream, announced several corporate developments. These include the successful startup of the expanded Marlan cryogenic natural gas processing plant in Eddy County, New Mexico.
The expansion of San Mateo’s Marlan Plant was completed on time and within budget, and added an incremental 200 million cubic feet per day (MMcf/d) of natural gas processing capacity. This increases the plant’s total designed inlet capacity to 260 MMcf/d, which is up from the previous 60 MMcf/d.
The expansion will support Matador’s development activities in Eddy and northern Lea Counties, New Mexico, as well as existing third-party producer development plans. With this expansion, San Mateo’s midstream system now supports a total gas processing capacity of 720 MMcf/d across Eddy and Lea Counties, New Mexico.
Matador Resources Company (NYSE:MTDR) is an independent energy company that acquires, explores, develops, and produces oil & natural gas resources in the US.
8. WillScot Holdings Corporation (NASDAQ:WSC)
Forward P/E Ratio as of June 25: 18.15
Number of Hedge Fund Holders: 46
Average Upside Potential as of June 25: 34.16%
WillScot Holdings Corporation (NASDAQ:WSC) is one of the most undervalued US stocks according to analysts. On June 4, WillScot Holdings announced the launch of Solar Power by WillScot. This is a proprietary solar energy and battery storage solution that is designed to provide clean, reliable power wherever WillScot’s temporary space solutions are deployed.
This changes how energy is delivered to job sites. Solar Power by WillScot is the first solar energy solution specifically built for and fully integrated with WillScot’s modular space and storage products. It’s capable of serving as a standalone energy source or supplementing generators or the grid.
The system allows customers to power their temporary spaces sustainably, reduce costs compared to alternative power generation methods, and maintain efficiency and comfort. Solar Power by WillScot is currently available in select WillScot branch locations across the US.
WillScot Holdings Corporation (NASDAQ:WSC) provides turnkey temporary space solutions in the US, Canada, and Mexico.
7. Meritage Homes Corporation (NYSE: MTH)
Forward P/E Ratio as of June 25: 7.69
Number of Hedge Fund Holders: 40
Average Upside Potential as of June 25: 36.01%
Meritage Homes Corporation (NYSE:MTH) is one of the most undervalued US stocks according to analysts. Towards the end of May, Meritage Homes announced the extension of its partnership with Operation Homefront’s Permanent Homes for Veterans Program. This year marks the company’s 12th year of collaboration with the organization, bringing their total donations to 22 mortgage-free homes.
As part of this extended partnership, Meritage Homes will donate two brand-new, mortgage-free homes to veteran families. One home will be located in the Lorson Ranch community in Colorado Springs, Colorado, and the other in the River Glen community in Angier, North Carolina.
These newly constructed homes feature open-concept floor plans with designer-curated interiors and a suite of energy-efficient features. This includes ENERGY STAR appliances, a multispeed HVAC system, and spray-foam insulation, contributing to lower utility costs for the families. Each home is also equipped with a smart home suite for convenient control of the thermostat and security devices via a mobile app. The military families to receive these homes will be announced in September this year.
Meritage Homes Corporation (NYSE:MTH) designs and builds single-family attached and detached homes in the US. It operates through two segments: Homebuilding and Financial Services.
6. Halliburton Company (NYSE:HAL)
Forward P/E Ratio as of June 25: 7.89
Number of Hedge Fund Holders: 54
Average Upside Potential as of June 25: 37.19%
Halliburton Company (NYSE:HAL) is one of the most undervalued US stocks according to analysts. On June 24, Halliburton Company (NYSE:HAL) announced that it has secured a contract to support GeoFrame Energy’s direct lithium extraction/DLE and geothermal project in East Texas. Halliburton will be responsible for planning and designing the first demonstration wells in the Smackover Formation, with operations anticipated to commence in late 2025.
The project in East Texas is expected to be the first in the US to deliver battery-grade lithium carbonate from the Smackover Formation, which is a geological unit known for its lithium-rich brines. GeoFrame Energy aims to produce ~83,500 metric tons of battery-grade lithium carbonate annually, which is projected to be enough to fully meet current US demand. The initiative is expected to support domestic lithium production and reduce the country’s reliance on foreign supply chains.
Halliburton will play a central role in the drilling phase by designing, constructing, and operating the demonstration wells, and eventually scaling the project to full field development. Beyond lithium production, GeoFrame Energy’s project is designed as a model for sustainable mining. The company plans to use geothermal brine to generate zero-emission electricity through binary cycle generators.
Halliburton Company (NYSE:HAL) provides products and services to the energy industry worldwide. GeoFrame Energy is a leader in green lithium carbonate and geothermal energy production.
5. KBR Inc. (NYSE:KBR)
Forward P/E Ratio as of June 25: 12.67
Number of Hedge Fund Holders: 55
Average Upside Potential as of June 25: 39.41%
KBR Inc. (NYSE:KBR) is one of the most undervalued US stocks according to analysts. On June 20, 2025, KBR announced from Houston that its Joint Venture, HomeSafe Alliance, received notification on June 18 from the US Transportation Command (TRANSCOM) regarding the termination of HomeSafe’s involvement in the Global Household Goods Contract.
The contract was specifically designed to enhance the moving system for military service members and their families. Despite this development, KBR stated that it does not foresee a material impact on its adjusted EBITDA outlook for the year 2025.
This is because the program was not initially expected to contribute to the company’s profits during this initial year of move activity. KBR affirmed its commitment to continue collaborating with HomeSafe to ensure all obligations to TRANSCOM, military service members, and their families are met.
KBR Inc. (NYSE:KBR) provides scientific, technology, and engineering solutions to governments and commercial customers worldwide.
4. United Therapeutics Corporation (NASDAQ:UTHR)
Forward P/E Ratio as of June 25: 10.48
Number of Hedge Fund Holders: 43
Average Upside Potential as of June 25: 40.98%
United Therapeutics Corporation (NASDAQ:UTHR) is one of the most undervalued US stocks according to analysts. On June 24, United Therapeutics Corporation and Intermountain Health announced a medical breakthrough: the world’s first patient treated in a clinical study with a bioengineered external liver assist product called miroliverELAP.
This historic procedure marked the first human clinical trial of a manufactured organ alternative and was performed at Intermountain Medical Center in Murray, Utah, by a team led by Christopher J. Danford, MD, who is a transplant hepatologist at Intermountain Health. The patient treated was experiencing liver failure and was not eligible for a liver transplant.
MiroliverELAP was developed by Miromatrix Medical Inc., which is a subsidiary of United Therapeutics and is an external liver assist combination product. It comprises a single-use MIRO-001 bioengineered liver and an extracorporeal blood circuit, designed to provide temporary liver support for patients with acute liver failure/ALF. ALF is a severe condition characterized by a rapid loss of liver function, often in individuals with no prior history of liver disease.
United Therapeutics Corporation (NASDAQ:UTHR) is a biotechnology company that develops and commercializes products to address the unmet medical needs of patients with chronic and life-threatening diseases internationally.
3. Six Flags Entertainment Corporation (NYSE:FUN)
Forward P/E Ratio as of June 25: 14.33
Number of Hedge Fund Holders: 48
Average Upside Potential as of June 25: 52.07%
Six Flags Entertainment Corporation (NYSE:FUN) is one of the most undervalued US stocks according to analysts. As May began, Six Flags Entertainment Corporation announced its decision to close Six Flags America and Hurricane Harbor in Bowie, Maryland, after the 2025 operating season. The property spans ~500 acres and will be put on the market for redevelopment as part of Six Flags’ ongoing portfolio optimization program.
The President & CEO of Six Flags, Richard A. Zimmerman, stated that the decision was made after determining that Six Flags America and Hurricane Harbor do not align with the company’s long-term growth plan. Six Flags America currently employs ~70 full-time associates and will provide severance and other benefits to all eligible employees affected by the closure. The park’s final day of operation will be November 2 this year.
The closure is not expected to materially impact the company’s financial results in 2025. All 2025 season passes and tickets for Six Flags America and Hurricane Harbor will be honored throughout the final operating season.
Six Flags Entertainment Corporation (NYSE:FUN) operates amusement parks and resort properties in North America.
2. Lantheus Holdings Inc. (NASDAQ:LNTH)
Forward P/E Ratio as of June 25: 11.74
Number of Hedge Fund Holders: 43
Average Upside Potential as of June 25: 61.31%
Lantheus Holdings Inc. (NASDAQ:LNTH) is one of the most undervalued US stocks according to analysts. On June 20, Lantheus Holdings announced its participation in the newly launched FIBRE Consortium, which is a collaborative initiative with Pfizer Inc. (NYSE:PFE) and Lumina Pharmaceuticals. The consortium’s primary goal is to revolutionize the treatment of fibrotic diseases by using advanced imaging biomarkers.
The FIBRE (Fibrosis Imaging Biomarker Research & Evaluation) Consortium aims to accelerate biomarker validation and reduce the costs of clinical trials for fibrotic diseases through innovative imaging technologies. Lantheus’s contribution includes supplying LNTH-1363S, which is a PET tracer targeting Fibroblast Activation Protein/FAP. FAP is a protein expressed exclusively by activated fibroblasts.
This biomarker, along with Lumina’s [⁶⁸Ga]CBP8 PET/MRI tracer for Collagen Type I, will enable the quantification of fibrosis burden and treatment response within weeks, and potentially reduce trial durations by 60% and costs by ~$400 million. Initial studies will focus on Metabolic Dysfunction-Associated Steatohepatitis/MASH, with potential expansion into other fibrotic conditions.
Lantheus Holdings Inc. (NASDAQ:LNTH) develops, manufactures, and commercializes diagnostic and therapeutic products that assist in the diagnosis and treatment of heart, cancer, and other diseases.
1. BioMarin Pharmaceutical Inc. (NASDAQ:BMRN)
Forward P/E Ratio as of June 25: 12.82
Number of Hedge Fund Holders: 59
Average Upside Potential as of June 25: 78.24%
BioMarin Pharmaceutical Inc. (NASDAQ:BMRN) is one of the most undervalued US stocks according to analysts. On June 24, BioMarin Pharmaceutical Inc. presented new 5-year data from its Phase 3 GENEr8-1 trial at the 33rd Congress of the International Society on Thrombosis and Haemostasis/ISTH in Washington, D.C., which took place from June 21 to 25.
The data reinforced the long-term efficacy and safety of ROCTAVIAN (valoctocogene roxaparvovec-rvox) as a gene therapy for severe hemophilia A. The GENEr8-1 trial is the longest and largest hemophilia gene therapy study to date, and demonstrated sustained Factor VIII (FVIII) expression and durable bleed control 5 years after a single treatment with ROCTAVIAN.
FVIII activity remained consistent with previously reported results. Importantly, no new safety signals were observed over the 5-year study period. Across all 134 participants who received ROCTAVIAN in the study, there were no cases of FVIII inhibitors or thromboembolic events, and no treatment-related malignancies were observed.
BioMarin Pharmaceutical Inc. (NASDAQ:BMRN) is a biotechnology company that develops and commercializes therapies for life-threatening rare diseases and medical conditions internationally.
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