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12 Best Undervalued Stocks to Buy According to Reddit

In this article, we discuss the 12 best undervalued stocks to buy according to Reddit. If you want to read about some more undervalued stocks, go directly to 5 Best Undervalued Stocks to Buy According to Reddit

Retail investors who often discuss their investment strategies on platforms like Reddit have become a dominant market force in recent years. According to data maintained by Vanda Research, between 2014 and 2019, inflows from retail investors at the stock market peaked at $700 million in 2015 but generally remained around $200 million. However, this figure jumped to more than $1.2 billion at the beginning of 2020. In early 2023, inflows from retail investors in stock trades were around $1.5 billion. 

A variety of factors have contributed to this rise. The advent of commission-free online trading platforms, stimulus payments from the government, and boredom induced by pandemic lockdowns have all come together to create a perfect storm for retail traders. Even as inflation battered growth stocks in late 2021 and throughout 2022 and 2023, retail investors continued piling into their favorite undervalued firms like Alibaba Group Holding Limited (NYSE:BABA), Merck & Co., Inc. (NYSE:MRK), and Cleveland-Cliffs Inc. (NYSE:CLF).

There is also reason to believe that many more Americans are leaning towards investments at the stock market in this decade as compared to the previous one. Between 2009 and 2019, only about 55% of Americans, on average, had dabbled in stock trades. This number was over 61% in the preceding decade. Since 2020, this figure has climbed back up from 55% to 58%. Part of this has to do with the boom in growth stocks that has pushed the market capitalizations of some big tech firms into trillions of dollars, boosting the brand value of the market as a whole. 

The earnings call of stock trading firm Robinhood Markets, Inc. (NASDAQ:HOOD) provides important insight into the world of retail trading. Robinhood is one of the most popular trading apps among retail investors. The average age of Robinhood users is just thirty-one and a majority of them are new to the investing world. Vlad Tenev, the CEO of the firm, recently outlined how his company has plans to expand beyond trading and also taking steps to get to customers outside the United States. 

“We’re still No. 2 in retail trading market share in the US. We’re at the very early stages of expanding beyond trading, with just over $1 billion of retirement assets on our platform, out of the over $12 trillion US IRA market. We’re also just now beginning to take our first steps to serve customers outside the US, where we believe the need and opportunity for innovation in financial services is even greater than it is domestically.

As we continue to execute on our strategy, we believe we can grow into one of the largest and most profitable financial companies in the world. I’m excited to talk to you about our progress. But first, let’s review our Q3 high-level business and financial results. It goes without saying that the macro-environment of the past few years has been challenging for investors.”

Our Methodology

To shortlist stocks for this piece, we scoured Reddit threads to identify popular undervalued stocks among Redditors. The analyst ratings of these stocks are also discussed to provide additional context. The hedge fund sentiment around each stock was calculated using the data of around 900 hedge funds tracked by Insider Monkey in the third quarter of 2023. Hedge funds’ top 10 consensus stock picks outperformed the S&P 500 Index by more than 140 percentage points over the last 10 years (see the details here). That’s why we pay very close attention to this often-ignored indicator.

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Best Undervalued Stocks to Buy According to Reddit

12. Ambarella, Inc. (NASDAQ:AMBA)

Number of Hedge Fund Holders: 19  

Ambarella, Inc. (NASDAQ:AMBA) develops semiconductor solutions for video that enable high-definition (HD) and ultra HD compression, image processing, and deep neural network processing worldwide. On December 1, investment advisory Susquehanna maintained a Positive rating on Ambarella, Inc. (NASDAQ:AMBA) stock and raised the price target to $70 from $60.

At the end of the third quarter of 2023, 19 hedge funds in the database of Insider Monkey held stakes worth $232 million in Ambarella, Inc. (NASDAQ:AMBA), compared to 23 in the preceding quarter worth $324 million. 

Just like Alibaba Group Holding Limited (NYSE:BABA), Merck & Co., Inc. (NYSE:MRK), and Cleveland-Cliffs Inc. (NYSE:CLF), Ambarella, Inc. (NASDAQ:AMBA) is one of the best undervalued stocks to buy according to Reddit.

In its Q3 2022 investor letter, Meridian Funds, an asset management firm, highlighted a few stocks and Ambarella, Inc. (NASDAQ:AMBA) was one of them. Here is what the fund said:

“Ambarella, Inc. (NASDAQ:AMBA) designs system-on-a-chip semiconductor solutions that specialize in visual processing for the security, industrial, and automotive markets. We have owned Ambarella since the third quarter of 2017 when earnings declined due to sales shortfalls at large customer GoPro. Our thesis was that emerging artificial intelligence (AI), automotive, industrial, and security markets would soon dwarf the company’s declining consumer market. After significant outperformance in 2021driven by strong demand for AI-enabled computer vision chips in a variety of applications, Ambarella’s stock has been weak since2022 and was again this quarter. Ambarella’s legacy products, mainly image processors for low-end security cameras, are in decline while the company re-focuses its resources on its computer vision chips, which are enabled for AI processing. The company has a core competency in placing very complicated algorithms on individual chips in a very power-efficient way, placing Ambarella in a strong leadership position as AI capabilities shift from centralized data centers to inference at the edge, a fast-growing future market. We also believe that the company’s superior technology makes it a highly attractive acquisition target for many larger technology companies. As such, the stock remains in the portfolio, though we reduced the position during the quarter as we believe an earnings growth catalyst may be several quarters in the future.”

11. Plug Power Inc. (NASDAQ:PLUG)

Number of Hedge Fund Holders: 26 

Plug Power Inc. (NASDAQ:PLUG) delivers end-to-end clean hydrogen and zero-emissions fuel cell solutions for supply chain and logistics applications, on-road electric vehicles, stationary power markets, and others in North America and internationally. On November 14, investment advisory UBS maintained a Buy rating on Plug Power Inc. (NASDAQ:PLUG) stock and lowered the price target to $5 from $15.5. 

Among the hedge funds being tracked by Insider Monkey, Chicago-based investment firm Citadel Investment Group is a leading shareholder in Plug Power Inc. (NASDAQ:PLUG) with 4.7 million shares worth more than $35 million. 

10. Teladoc Health, Inc. (NYSE:TDOC)

Number of Hedge Fund Holders: 29  

Teladoc Health, Inc. (NYSE:TDOC) is a New York-based telemedicine company founded in 2002. On November 17, investment advisory JPMorgan maintained a Neutral rating on Teladoc Health, Inc. (NYSE:TDOC) stock and lowered the price target to $19 from $33. 

At the end of the third quarter of 2023, 29 hedge funds in the database of Insider Monkey held stakes worth $529 million in Teladoc Health, Inc. (NYSE:TDOC), compared to 28 in the preceding quarter worth $790 million. 

9. Verizon Communications Inc. (NYSE:VZ)

Number of Hedge Fund Holders: 61

Verizon Communications Inc. (NYSE:VZ) is a New York-based multinational telecommunication firm. On December 13, investment advisory Citi maintained a Buy rating on Verizon Communications Inc. (NYSE:VZ) stock and raised the price target to $42 from $40. 

Among the hedge funds being tracked by Insider Monkey, London-based investment firm Marshall Wace LLP is a leading shareholder in Verizon Communications Inc. (NYSE:VZ) with 6.7 million shares worth more than $217 million. 

8. Ford Motor Company (NYSE:F)

Number of Hedge Fund Holders: 43   

Ford Motor Company (NYSE:F) designs, manufactures, markets, and services a range of Ford trucks, cars, sport utility vehicles, electrified vehicles, and Lincoln luxury vehicles worldwide. On December 19, investment advisory Citi maintained a Buy rating on Ford Motor Company (NYSE:F) stock and lowered the price target to $15 from $17. 

At the end of the third quarter of 2023, 43 hedge funds in the database of Insider Monkey held stakes worth $1.3 billion in Ford Motor Company (NYSE:F), compared to 40 in the preceding quarter worth $895 million. 

7. Canopy Growth Corporation (NASDAQ:CGC)

Number of Hedge Fund Holders: 14      

Canopy Growth Corporation (NASDAQ:CGC) markets cannabis-based products. In early December, Canopy Growth Corporation (NASDAQ:CGC) announced that it had completed the sale of the biosteel business of the firm for gross proceeds of $30 million. 

Among the hedge funds being tracked by Insider Monkey, Chicago-based investment firm Citadel Investment Group is a leading shareholder in Canopy Growth Corporation (NASDAQ:CGC) with 177,380 shares worth more than $1.3 million. 

6. RTX Corporation (NYSE:RTX)

Number of Hedge Fund Holders: 63 

RTX Corporation (NYSE:RTX) is a Massachusetts-based defense manufacturer. On December 19, investment advisory TD Cowen maintained an Outperform rating on RTX Corporation (NYSE:RTX) stock and raised the price target to $106 from $99. 

At the end of the third quarter of 2023, 63 hedge funds in the database of Insider Monkey held stakes worth $1.6 billion in RTX Corporation (NYSE:RTX), up from 56 in the preceding quarter worth $1.3 billion.

In addition to Alibaba Group Holding Limited (NYSE:BABA), Merck & Co., Inc. (NYSE:MRK), and Cleveland-Cliffs Inc. (NYSE:CLF), RTX Corporation (NYSE:RTX) is one of the best undervalued stocks to buy according to Reddit.

In its Q3 2023 investor letter, Carillon Tower Advisers, an asset management firm, highlighted a few stocks and RTX Corporation (NYSE:RTX) was one of them. Here is what the fund said:

“RTX Corporation (NYSE:RTX) lowered its free cash flow guidance for the year due to a new issue in its jet engine business. Although the company’s management has a solution, the total implementation cost remains unknown, which caused the stock to react negatively.”

Click to continue reading and see 5 Best Undervalued Stocks to Buy According to Reddit.

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Disclosure. None. 12 Best Undervalued Stocks to Buy According to Reddit is originally published on Insider Monkey.

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.

This influx of talent guarantees a constant stream of groundbreaking ideas and rapid advancements.

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

The future is powered by artificial intelligence, and the time to invest is NOW.

Don’t be a spectator in this technological revolution.

Dive into the AI gold rush and watch your portfolio soar alongside the brightest minds of our generation.

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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…