In this article, we will look at the 11 Undervalued Stocks with Biggest Upside Potential.
On December 13, Katerina Simonetti, Private Wealth executive vice president at Morgan Stanley, appeared on a CNBC Television interview to discuss her stock market outlook. Earlier, she had released a note stating that she expects the US stock market to significantly outperform other international markets into 2026. She elaborated that she is cautiously optimistic about the stock market, mainly due to the technology sector and some new market challenges that are expected to arise in 2026.
Simonetti noted that there is no way to hide the excitement regarding the AI revolution and its potential. However, the market is now entering a new phase in the AI trade as the focus is shifting from AI infrastructure development to applicability and return on investment. She expects 2026 to be the “show me the money” year, which she believes requires a pinch of caution amidst the excitement.
Much like the general consensus, Simonetti also expects the Fed to cut rates in 2026. She expects 3 rate cuts next year. However, she also pointed out that the Federal Reserve’s decision to cut the rates would be based on the economy and the labor market. Some of the most influential factors that can alter these decisions include the impact of tariffs, as Simonetti believes the economy is yet to realize the true impact of the tariff policies. She added that the Fed deciding not to cut in 2026 can result in a downward surprise for the market, considering the premium valuations of the technology sector and the stock market in general.
Now that we have discussed the market outlook, let’s take a look at the 11 Undervalued Stocks with Biggest Upside Potential.
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Our Methodology
To curate the list of 11 Undervalued Stocks with Biggest Upside Potential, we used the Finviz stock screener, Seeking Alpha, CNN, and Insider Monkey’s Q3 2025 hedge fund database as our sources. Using the screener, we aggregated a list of stocks trading below the forward price to earnings ratio of 15 for which analysts see more than 30% upside. Next, we cross-checked the upside potential from CNN and P/E ratios from Seeking Alpha. Lastly, we ranked the stocks in ascending order of the upside potential. We have also added the hedge fund sentiment around each stock sourced from Insider Monkey’s database. Please note that the data was recorded on December 14.
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 427.7% since May 2014, beating its benchmark by 264 percentage points (see more details here).
11 Undervalued Stocks with Biggest Upside Potential
11. EOG Resources, Inc. (NYSE:EOG)
Forward P/E Ratio: 10.35
Number of Hedge Fund Holders: 61
Analyst Upside Potential: 30.27%
EOG Resources, Inc. (NYSE:EOG) is one of the Undervalued Stocks with Biggest Upside Potential. On December 15, Leo Mariani from Roth MKM reiterated a Hold rating on the stock with a $114 price target. Earlier on December 12, Josh Silverstein from UBS reiterated a Buy rating on EOG Resources, Inc. (NYSE:EOG), but lowered the price target from $144 to $141.
Leo Mariani of Roth MKM noted that they expect the next few quarters to be soft for the oil sector. Despite a cautious view on the sector, the analyst noted that EOG Resources, Inc. (NYSE:EOG) is optimistic on the natural gas market in 2026 and expects to deliver higher prices. Moreover, the company also raised its preliminary fiscal 2026 organic volume slightly up from the previously flat outlook.
On the other hand, Silverstein has a more optimistic view of the energy sector. He sees the sector as strongly positioned to perform well in 2026, driven by improved oil and natural gas outlook, emerging OFS opportunities, attractive valuations, and M&A-driven value creation among other factors.
That said, earlier on December 3, Raymond James had also maintained a Buy rating on EOG Resources, Inc. (NYSE:EOG) with a $153 price target. The analyst noted that the company exceeded expectations on most of its operating metrics during the fiscal Q3 2025. He added that the company’s total production exceeded expectations by 2%, along with oil volumes remaining in-line with the firm’s expectations. The firm also likes the 5% increase in free cash flow guidance for 2025, which is driven by lower operating costs of $10.10 per barrel of oil equivalent versus the previous cost of $10.35.
EOG Resources, Inc. (NYSE:EOG), a U.S.-based oil and gas producer, operates large-scale shale assets across the Permian, Eagle Ford, Utica, and domestic gas resources.
10. XP Inc. (NASDAQ:XP)
Forward P/E Ratio: 9.81
Number of Hedge Fund Holders: 22
Analyst Upside Potential: 30.55%
XP Inc. (NASDAQ:XP) is one of the Undervalued Stocks with Biggest Upside Potential. On December 12, Mario Pierry from Bank of America Securities reiterated a Hold rating on XP Inc. (NASDAQ:XP) with a $22 price target.
Pierry from Bank of America Securities noted that while the CEO Thiago Maffra has outlined key strategic priorities for 2026, the earnings for the year are only expected to grow by around 8%. Maffra noted that the company will be focusing on standardizing Independent Financial Advisors’ services, developing alternative distribution channels, and expanding premium services to lower-tier customers. Despite these efforts, the earnings growth is expected to be limited mainly due to limited growth in revenue yield and an expected increase in investment in the B2C channel.
Moreover, the analyst expects that these efforts will lead to increased engagement and enhanced customer experience, which will help earnings in the long term. However, in the short term, earnings are expected to stay limited due to elevated interest rates and essential investments.
That said, XP Inc. (NASDAQ:XP) grew its fiscal Q3 2025 revenue by 17.04% year-over-year to $875.65 million and surpassed estimates by $11.84 million. Moreover, the EPS of $0.46 also came in slightly ahead of the consensus by $0.01. The growth was mainly driven by a 12% year-over-year increase in total client assets, which reached R$1.4 trillion in Q3.
XP Inc. (NASDAQ:XP) is a technology-driven financial services platform that operates primarily in Brazil, offering a wide range of low-fee products and services to both retail and institutional clients. The company’s business includes wealth management, securities brokerage, investment management, and corporate and issuer services, such as M&A advisory.
9. Carnival Corporation & plc (NYSE:CUK)
Forward P/E Ratio: 12.38
Number of Hedge Fund Holders: 12
Analyst Upside Potential: 32.73%
Carnival Corporation & plc (NYSE:CUK) is one of the Undervalued Stocks with Biggest Upside Potential. Wall Street is bullish on Carnival Corporation & plc (NYSE:CUK) ahead of its fiscal Q4 2025 earnings release, expected to be announced on December 19.
Recently, on December 15, Goldman Sachs reiterated a Buy rating on the stock with a price target of $31. Earlier on December 12, Citi also maintained a Buy rating on the stock with a £27 price target.
Analysts at Goldman Sachs noted that the travel industry is faced with Caribbean oversupply issues in the cruise sector. However, Carnival Corporation & plc (NYSE:CUK) is expected to perform better in these challenges due to its relatively lower exposure to the Caribbean market. The firm expects the company’s fourth quarter to be largely in-line with the consensus. Goldman Sachs forecasts guidance for about 2.75% net yield growth and 3.25% cost growth. The firm cautioned regarding some volatility in Q4. However, it remains optimistic about the overall potential of the company driven by capital returns, company’s spring investors day, and portfolio diversification.
That said, management during its fiscal Q3 2025 released its fourth quarter outlook. Carnival Corporation & plc (NYSE:CUK) expects net yields to increase 4.3% compared to record 2024 levels along with adjusted net income up over 60% compared to Q4 2024.
Carnival Corporation & plc (NYSE:CUK) is a global cruise company that operates through various cruise brands and other travel-related services. The company has a fleet of more than 90 ships spanning across 9 major cruise brands.
8. Uber Technologies, Inc. (NYSE:UBER)
Forward P/E Ratio: 12.99
Number of Hedge Fund Holders: 143
Analyst Upside Potential: 34.38%
Uber Technologies, Inc. (NYSE:UBER) is one of the Undervalued Stocks with Biggest Upside Potential. Uber Technologies, Inc. (NYSE:UBER) has been expanding its autonomous vehicle footprint with strategic partnerships and launches around the world. As a result, Wall Street maintains a Bullish sentiment on the stock.
Recently, on December 12, Brad Erickson from RBC Capital reiterated a Buy rating on the stock with a $110 price target. Earlier on December 10, Lloyd Walmsley from Mizuho Securities reiterated a Buy rating on the stock with a $130 price target.
Analyst Erickson of RBC Capital noted that they maintained their bullish sentiment following a meeting with the company’s CFO. The analyst noted that Uber Technologies, Inc. (NYSE:UBER) remains committed to its autonomous vehicle by maintaining its competitive edge through its partnership and financing strategy. Moreover, the firm also indicated increased market expansion for Uber through partnerships in 2026.
Similarly, Lloyd Walmsley of Mizuho also noted the autonomous vehicle strategy of the company as one of the key reasons behind his Buy rating. The analyst noted that Uber Technologies, Inc. (NYSE:UBER) continues to believe that autonomous driving will eventually come up as a safer and cheaper mode of communication, particularly in labor-expensive markets including the United States and the United Kingdom. Moreover, the analyst also likes the company’s expanded partnerships with key players including Waymo, WeRide, and PonyAI. He believes that these collaborations position the company in an emerging market.
That said, Uber Technologies, Inc. (NYSE:UBER) on December 12, launched autonomous robotaxi rides in Dubai. The service was launched in collaboration with WeRide and aligns with Dubai’s Self-Driving Transport Strategy to achieve 25% autonomous journeys by 2030.
Uber Technologies Inc. (NYSE:UBER) is a global technology platform that connects consumers with transportation, delivery, and logistics services. The company operates through its Mobility, Delivery, and Freight segments, offering ride-hailing, meal delivery, and freight brokerage solutions.
7. Matador Resources Company (NYSE:MTDR)
Forward P/E Ratio: 7.56
Number of Hedge Fund Holders: 32
Analyst Upside Potential: 35.59%
Matador Resources Company (NYSE:MTDR) is one of the Undervalued Stocks with Biggest Upside Potential. On December 12, Peyton Dorne from UBS reiterated a Hold rating on the stock but raised the price target from $46 to $50. Earlier on December 8, Zach Parham from J.P. Morgan also reiterated a Buy rating on the stock but lowered the price target from $57 to $52.
Zach Parham of J.P. Morgan noted that the reduced price target reflects the firm’s updated 2026 outlook on the exploration and production space. He added that 2026 is characterized by supply-side risks for oil and liquids as the long-awaited demand inflection for natural gas. Moreover, Parham believes that the crude oil sector faces challenges from a significant oversupply and a potential end to the Russia-Ukraine conflict in 2026, both pressuring prices lower.
That said, the company made two positive financing announcements on December 11. Firstly, the company announced the successful unanimous redetermination by its 19-bank group at $3.25 billion, under Matador’s reserves-based loan credit facility. Secondly, management also announced that 16 lenders under San Mateo Midstream, LLC’s revolving credit facility also unanimously agreed to increase their commitments by $1.10 billion, reflecting an increase of $250 million from the previous commitment of $850 million.
Notably, management noted paying off $311 million in RBL debt during the first 9-months of 2025, bringing its balance to $285 million as of September 30. As a result, the company lowered its Debt-to-EBITDA to under 1.0x.
Matador Resources Company (NYSE:MTDR) is an energy firm focused on oil and natural gas exploration, development, and production in the U.S. with an emphasis on oil and natural gas shale and other unconventional plays.
6. California Resources Corporation (NYSE:CRC)
Forward P/E Ratio: 11.33
Number of Hedge Fund Holders: 43
Analyst Upside Potential: 37.62%
California Resources Corporation (NYSE:CRC) is one of the Undervalued Stocks with Biggest Upside Potential. On December 12, Josh Silverstein from UBS reiterated a Buy rating on the stock but lowered the firm’s price target from $68 to $64. Earlier on December 9, Sam Margolin also lowered the firm’s price target on California Resources Corporation (NYSE:CRC) from $58 to $56, while reiterating a Buy rating.
Despite a slight price target reduction, Silverstein of UBS remains optimistic on the energy sector. He noted that the sector has seen three years of limited gains; however, 2026 appears to be promising for the sector, driven by improving oil and natural gas outlooks. He added that the sector is also anticipated to benefit from cost and capex efficiencies, emerging OFS opportunities, and improved value creation from M&A.
On the other hand, Margolin of Wells Fargo noted that the price reduction reflects a slight power adjustment in the firm’s valuation model. The analyst added they expect slight adjustments in California Resources Corporation’s (NYSE:CRC) power segment projections. However, regardless, Margolin views the company’s valuation as being conservative, suggesting room for upside.
Margolin sees potential development in three areas for the company, including resource delineation in exploration and production, a datacenter joint venture in the Power segment, and permits plus contracts for carbon capture, utilization, and storage.
California Resources Corporation (CRC) is an independent energy company focused on oil and natural gas exploration, development, and production, primarily in California’s San Joaquin, Los Angeles, and Sacramento basins.
5. PG&E Corporation (NYSE:PCG)
Forward P/E Ratio: 10.11
Number of Hedge Fund Holders: 79
Analyst Upside Potential: 38.52%
PG&E Corporation (NYSE:PCG) is one of the Undervalued Stocks with Biggest Upside Potential. On December 12, Aidan Kelly from J.P. Morgan reiterated a Buy rating on PG&E Corporation (NYSE:PCG), but lowered the firm’s price target from $22 to $21. Earlier on December 4, TD Cowen also reiterated a Buy rating on the stock with a $21 price target.
Kelly from J.P. Morgan noted the slight price reduction to be based on the firm’s updated model for the North American utilities group. Analysts at TD Cowen find PG&E Corporation (NYSE:PCG) to be a compelling recovery story considering the wildfires that happened earlier this year. The firm noted the company has outperformed its peers, and the performance is expected to be boosted further, driven by electrification trends and wildfire mitigation opportunities. TD Cowen also likes the company’s cheap valuation and anticipates 3% revenue growth for fiscal 2025, along with an EPS of $1.50.
That said, PG&E Corporation (NYSE:PCG) on December 11 announced the successful launch of a technology demonstration project using Dynamic Line Rating and Asset Health Monitoring tools. Management noted that these tools combine sensors, real-time data analytics, and partner software to boost the capacity of existing power lines and monitor equipment health. The project has reached the trial deployment phase and aligns with the company’s plan to expand transmission capacity amid California’s extreme weather and rising demand.
PG&E Corporation (NYSE:PCG) generates, transmits, and distributes natural gas and electricity to customers. The company specializes in utility, electricity, energy, power, solar, gas, and sustainability.
4. JBS N.V. (NYSE:JBS)
Forward P/E Ratio: 7.5
Number of Hedge Fund Holders: 38
Analyst Upside Potential: 38.89%
JBS N.V. (NYSE:JBS) is one of the Undervalued Stocks with Biggest Upside Potential. JBS N.V. (NYSE:JBS) has gained more than 9.59% since its fiscal Q3 2025 earnings were released on November 13. Wall Street remains bullish on the stock, with analysts’ 12 month price target reflecting 38.89% upside from the current level.
Recently, on December 11, Guilherme Palhares from Banco Santander upgraded the stock from Hold to Buy with a price target of $17. Earlier on December 8, Benjamin Theurer from Barclays also reiterated a Buy rating on the stock with a $22 price target.
During the fiscal Q3 2025, JBS N.V. (NYSE:JBS) grew its revenue by 21.91% year-over-year to $23.24 billion, surpassing estimates by $1.08 billion. Moreover, the EPS of $0.54 also topped estimates by $0.03. Management reported Q3 to be a record quarter for net sales growth, driven by growth across all business segments. Notably, the net income for the quarter came in at $581 million, and return on Equity reached 23.7%.
In other news, on December 12, Reuters reported that JBS N.V. (NYSE:JBS) will permanently close its Swift Beef Company facility in Riverside, due to tight cattle supply. The facility is expected to close by February 2, thereby eliminating 374 jobs. A spokesperson from the company noted that the facility is not being closed due to cattle shortage, instead it is “a strategic initiative to optimize its value-added and case-ready business and simplify operations across its network.”
JBS N.V. (NYSE:JBS) is a global leader in protein food production, specializing in beef, poultry, pork, lamb, fish, and plant-based products for retail, foodservice, and industrial clients.
3. Cheniere Energy, Inc. (NYSE:LNG)
Forward P/E Ratio: 14
Number of Hedge Fund Holders: 76
Analyst Upside Potential: 44.17%
Cheniere Energy, Inc. (NYSE:LNG) is one of the Undervalued Stocks with Biggest Upside Potential. The share price of Cheniere Energy, Inc. (NYSE:LNG) has decreased by more than 10.4% since the release of its fiscal Q3 2025 results on October 30. However, Wall Street maintains a positive outlook on the stock with analysts’ 12-month price target reflecting 44.17% upside from the current level. Recently, on December 12, Jean Ann Salisbury reiterated a Buy rating on the stock, but lowered the price target from $274 to $271.
The demand for LNG also remains strong, and exports hit an all-time monthly high in November, marking the second straight month of record exports. According to a report by Reuters released on December 1, the United States shipped around 10.9 million metric tones of LNG in November, up from 10.1 million metric tones in October 2025. Cheniere Energy, Inc. (NYSE:LNG) remained the largest LNG exporter from the US with 4.6 million metric tones of LNG shipments, up from 4.1 million metric tones during the last month.
As per the report, the increase in LNG exports is mainly due to cooler weather and robust output from the United States top producers. Moreover, demand from Europe also remains robust as the continent received 70% of the US LNG in November, translating to 7.5 million metric tones. This figure was up 69% month-over-month.
Cheniere Energy Inc. (NYSE:LNG) is an energy infrastructure company that engages in the liquefied natural gas/LNG related businesses in the US.
2. NICE Ltd. (NASDAQ:NICE)
Forward P/E Ratio: 8.91
Number of Hedge Fund Holders: 22
Analyst Upside Potential: 48.76%
NICE Ltd. (NASDAQ:NICE) is one of the Undervalued Stocks with Biggest Upside Potential. On December 10, NICE Ltd. (NASDAQ:NICE) announced the launch and general availability of NiCE CXone Mpower in South Africa, with full local hosting and infrastructure.
Management noted that the platform is now live and being hosted at redundant data centers in Cape Town and Johannesburg. The platform allows financial institutions, regulated industries, and large enterprises to provide personalized customer experience, connected complaints, and much more across every channel. Moreover, management also highlighted that they are positioning CXone Mpower as an AI-first customer engagement platform that connects all channels and provides end-to-end access across all fronts.
That said, on December 8, Daniel Ives from Wedbush downgraded NICE Ltd. (NASDAQ:NICE) from Buy to Hold and also lowered the price target from $170 to $120. The analyst cited the company’s recent Capital Markets Day, where management laid out its ambitious long-term targets. However, Ives believes that these long-term goals come at the cost of near-term margins, which Ives sees as a risky trade-off. The analyst also highlighted that the agentic AI sector is exploding with competition, and new entrants are building specialized AI agents for CX, which increases competition for NICE Ltd. (NASDAQ:NICE).
NICE Ltd. (NASDAQ:NICE) is an international enterprise software provider that provides software that helps businesses improve customer interactions and prevent financial crimes.
1. Venture Global, Inc. (NYSE:VG)
Forward P/E Ratio: 6.73
Number of Hedge Fund Holders: 27
Analyst Upside Potential: 86.99%
Venture Global, Inc. (NYSE:VG) is one of the Undervalued Stocks with Biggest Upside Potential. On December 10, Jean Ann Salisbury from the Bank of America Securities reiterated a Buy rating on Venture Global, Inc. (NYSE:VG), but lowered the firm’s price target from $15 to $11.
The analyst noted that the valuations of the refiners surprised him in 2025, mainly due to temporary drivers including Ukrainian drone strikes on Russian infrastructure and tighter sanctions reducing Russian fuel exports, higher prices of European gas, and slower than expected ramp‑up of new global refining capacity. Salisbury noted that these factors took the valuations of refiners higher than expected. However, the analyst notes these factors to be cyclical rather than structural, Salisbury expects the valuations to return to normal.
In addition, the analyst also highlighted that a Russia-Ukraine resolution is probable in 2026. This scenario will result in Russian pipeline gas returning to Europe, thereby lowering pressure on European gas and related LNG pricing. Salisbury highlights that if a resolution is reached, it would weaken Venture Global, Inc.’s (NYSE:VG) key support for high trans‑Atlantic LNG arbitrage, thereby directly impacting the company’s long-term margins.
That said, earlier on November 25, Venture Global, Inc. (NYSE:VG) announced signing a major 20-year deal with Tokyo Gas, which is Japan’s leading natural gas supplier. As per the agreement, Tokyo Gas has agreed to buy 1 million tones per annum of liquefied natural gas starting in 2030.
Venture Global, Inc. (NYSE:VG) produces and exports US liquefied natural gas (LNG) sourced from North American basins, operating facilities primarily in Louisiana.
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