In this article, we will look at the 12 Best Undervalued Stocks to Invest In Right Now.
On March 3, Katie Stockton, Fairlead Strategies founder, appeared on CNBC’s ‘The Exchange’ to talk about her view on the equity markets, and more. She was of the view that the S&P 500 has been range-bound for several weeks now, and that range is still intact as long as support, which is right around 6750, remains intact.
She added that we have upheld a neutral short-term bias, so that still stands, and we have also seen momentum deteriorate over all different time frames: short-term, intermediate-term, and even long-term now. She is somewhat concerned about that, and also does not think it is right to rush into the market, especially with the volatility pickup that we have seen. The VIX is a gauge of transaction sentiment, has broken out to the upside, and that is a contrarian negative for the S&P 500.
READ ALSO: 14 Best Semiconductor Equipment Stocks to Invest In Now AND 15 Cheap Stocks Under $50 to Buy Right Now.
Stockton further stated that the ultimate pair trade has been long semis and short software, but we are finally seeing signs of exhaustion that are more than just short-term in ratios. If you take SMH as a proxy for semis and IGV as one for software, the ratio has a new sell signal to suggest that we will see nine weeks of countertrend performance, meaning that semis pull back in relative terms to software.
With these broader market trends in view, let’s look at the best undervalued stocks to invest in right now.
Our Methodology
We sifted through media outlets to compile a list of the best stocks with a forward P/E below 15 and selected the top 12 most popular among elite hedge funds as of Q3 2025. We sourced the hedge fund data from Insider Monkey’s database. The stocks are ranked in ascending order of hedge fund sentiment.
Note: All data was recorded on March 5.
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).
12 Best Undervalued Stocks to Invest In Right Now
12. TotalEnergies SE (NYSE:TTE)
TotalEnergies SE (NYSE:TTE) is one of the best undervalued stocks to invest in right now. Berenberg lifted the price target on TotalEnergies SE (NYSE:TTE) to EUR 62 from EUR 57 on March 3, keeping a Hold rating on the shares. Citi also lifted the price target on the stock to EUR 75 from EUR 71 on March 2, and maintained a Buy rating on the shares, telling investors that it sees “strong valuation support” for global energy names due to the Middle East war. The firm thus raised price targets across the global integrated oil and gas group.
The same day, TotalEnergies SE (NYSE:TTE) was upgraded to Overweight from Neutral by JPMorgan on March 2, with the firm adjusting the price target on the stock to EUR 75 from EUR 63. It recommended adding to European oil and gas positions after the full-scale military strikes in the Middle East, stating that these “represent a tail-risk scenario becoming reality”. JPMorgan also said to buy stocks that offer oil leverage, production, and resource longevity, and cheapening relative valuations under higher price scenarios. In another development, TotalEnergies SE (NYSE:TTE) was downgraded to Neutral from Outperform by Grupo Santander on February 26.
TotalEnergies SE (NYSE:TTE) operates as a global integrated energy company that produces natural gas and green gases, oil and biofuels, as well as renewables and electricity. It is headquartered in Courbevoie, France, and operates through the following business segments: Exploration & Production, Integrated LNG, Integrated Power, Refining & Chemicals, and Marketing & Services.
11. The Toronto-Dominion Bank (NYSE:TD)
The Toronto-Dominion Bank (NYSE:TD) is one of the best undervalued stocks to invest in right now. The Toronto-Dominion Bank (NYSE:TD) received several bullish rating updates from analysts following the release of its financial results on February 26 for the first quarter ended January 31, 2026. Scotiabank raised the price target on The Toronto-Dominion Bank (NYSE:TD) to C$142 from C$132 on February 27, keeping a Sector Perform rating on the shares. The same day, CIBC also lifted the price target on The Toronto-Dominion Bank (NYSE:TD) to C$140 from C$136 and reiterated a Neutral rating on the shares.
In its financial results released on February 26, The Toronto-Dominion Bank (NYSE:TD) stated that reported earnings were $4.0 billion, up 45% compared with the prior year period, and adjusted earnings were $4.2 billion, up 16%. Management reported that the company delivered solid results for the quarter, including record adjusted earnings and significant year-over-year adjusted return on equity growth, reflecting momentum across its businesses. Reported diluted earnings per share were $2.34, compared with $1.55 in the prior year period, while adjusted diluted earnings per share reached $2.44, compared to $2.02.
The Toronto-Dominion Bank (NYSE:TD) provided financial products and services. Its operations are divided into the following segments: Canadian Personal and Commercial Banking, U.S. Retail, Wealth Management and Insurance, Wholesale Banking, and Corporate segment.
10. Royal Bank of Canada (NYSE:RY)
Royal Bank of Canada (NYSE:RY) is one of the best undervalued stocks to invest in right now. On February 27, Scotiabank lifted the price target on Royal Bank of Canada (NYSE:RY) to C$247 from C$242, reiterating an Outperform rating on the shares. However, the same day, TD Securities cut the price target on the stock to C$259 from C$260 and reaffirmed a Buy rating on the shares.
The rating updates came after Royal Bank of Canada (NYSE:RY) reported on February 26 a record net income of $5.8 billion for the quarter ended January 31, 2026, up $654 million or 13% from the prior year. Diluted EPS reached $4.03, up 14% over the same period, reflecting improved results in Wealth Management, Personal Banking, Commercial Banking, and Capital Markets, partially offset by lower results in Insurance. Royal Bank of Canada (NYSE:RY) also reported adjusted net income and adjusted diluted EPS of $5.9 billion and $4.08, up 12% and 13%, respectively, compared to the prior year.
Royal Bank of Canada (NYSE:RY) provides banking and financial services. The company’s operations are divided into the following segments: Personal and Commercial Banking, Wealth Management, Insurance, Capital Markets, and Corporate Support.
9. Rio Tinto Group (NYSE:RIO)
Rio Tinto Group (NYSE:RIO) is one of the best undervalued stocks to invest in right now. On March 4, Rio Tinto Group (NYSE:RIO) and the Western Australian Government announced that they had entered into a 50:50 joint venture to complete both Stage 1 and Stage 2 of the Dampier Seawater Desalination Plant. The plant will deliver 8GL of desalinated water per year to the West Pilbara Water Supply Scheme once fully operational, which would reduce pressure on regional aquifers. Management further reported that construction of Stage 1 of the desalination plant is underway, and is anticipated to begin delivering 4GL of annual desalination capacity later this year.
It further announced the commencement of the Stage 2 construction, which would add a further 4GL of annual capacity, with the first water anticipated in 2027. Stages 1 and 2 would, when taken together, considerably reduce abstraction from the Bungaroo and Millstream aquifers. The West Pilbara Water Supply Scheme is operated by Water Corporation and supplies the towns of Karratha, Wickham, Dampier, Roebourne, Point Samson, and the industrial areas of Cape Lambert and the Burrup Peninsula.
Rio Tinto Group (NYSE:RIO) reported that the joint venture builds on a 2025 Memorandum of Understanding, under which the company and the WA Government agreed to work together to bolster water security in the Pilbara.
Rio Tinto Group (NYSE:RIO) explores, mines, and processes mineral resources. Its operations are divided into the following business segments: Copper, Iron Ore, Aluminium, and Minerals.
8. Shell plc (NYSE:SHEL)
Shell plc (NYSE:SHEL) is one of the best undervalued stocks to invest in right now. JPMorgan lifted the price target on Shell plc (NYSE:SHEL) to 3,600 GBp from 3,400 GBp on March 2, maintaining an Overweight rating on the shares. The same day, Citi also lifted the price target on the stock to 2,950 GBp from 2,700 GBp, reaffirming a Neutral rating on the shares and stating that it sees “strong valuation support” for global energy names due to the Middle East war. The firm lifted price targets across the global integrated oil and gas group.
Separately, in its fiscal Q4 2025 results, Shell plc (NYSE:SHEL) announced that 2025 marked a year of accelerated momentum for the company, supported by strong operational and financial performance. Adjusted earnings for fiscal Q4 2025 were $3.3 billion and CFFO of $9.4 billion, supported by strong operational performance in Upstream and Integrated Gas in a lower price environment, offset by year-end movements. The company also reported a resilient CFFO of $42.9 billion for the full year of 2025.
Headquartered in London, Shell plc (NYSE:SHEL) produces oil and natural gas. The company’s operations are divided into the following segments: Integrated Gas, Upstream, Marketing, Chemicals and Products, Renewables and Energy Solutions, and Corporate.
7. Novo Nordisk A/S (NYSE:NVO)
Novo Nordisk A/S (NYSE:NVO) is one of the best undervalued stocks to invest in right now. Novo Nordisk A/S (NYSE:NVO) was upgraded to Equal Weight from Underweight by Morgan Stanley on March 3. The firm also adjusted the price target on the stock to $40 from $42, stating that the stock’s valuation post the selloff on the REDEFINE-4 data better reflects its mid-term growth uncertainty and the loss of exclusivity risks on semaglutide. It further told investors in a research note that consensus estimates have been rebased.
In a separate development, Novo Nordisk A/S (NYSE:NVO) announced on February 27 that the US Food and Drug Administration approved three new indications for once-weekly Sogroya injection 5 mg, 10 mg, or 15 mg, a long-acting growth hormone, for children aged at least 2.5 years with Idiopathic Short Stature (ISS), short stature born Small for Gestational Age without catch-up growth by the age of 2 years, and growth failure associated with Noonan Syndrome.
The approval marks the first long-acting growth hormone supporting children with these three indications in the United States. Somapacitan-beco also holds approval for children aged at least 2.5 years with growth hormone deficiency. Since the option is once-weekly, it helps children and caregivers struggling with daily injections for hormone treatment.
Novo Nordisk A/S (NYSE:NVO) is a global healthcare company specializing in diabetes care. It develops, discovers, manufactures, and markets pharmaceutical products. Its operations are divided into two business segments: biopharmaceuticals and diabetes and obesity care. The latter segment covers GLP-1, insulin, and other protein-related products.
6. Newmont Corporation (NYSE:NEM)
Newmont Corporation (NYSE:NEM) is one of the best undervalued stocks to invest in right now. Citi raised the price target on Newmont Corporation (NYSE:NEM) to $150 from $118 on March 3, reiterating a Buy rating on the shares. Newmont Corporation (NYSE:NEM) also received a rating update from Bernstein on February 27, with the firm upgrading the stock to Outperform from Market Perform while adjusting the price target to $157 from $121. The firm attributed the rating update to its bullish outlook on gold, adding that the stock’s shares have several other catalysts as well, including a new CEO with a clear agenda, achievable guidance, and a “rational reconciliation” with its largest joint venture partner.
In a separate development, Newmont Corporation (NYSE:NEM) reported gold Mineral Reserves of 118.2 million attributable ounces at the end of 2025 compared to 134.1 million attributable ounces in the previous year. This was primarily driven by the divestment of assets in 2025. Management reported that the company’s portfolio also includes considerable reserves from other metals, including 12.5 million attributable tonnes of copper reserves and 442 million attributable ounces of silver reserves.
Newmont Corporation (NYSE:NEM) is a global producer in Canada, Mexico, the US, and several other countries. Its operations include Brucejack, Red Chris, Penasquito, Merian, Cerro Negro, Yanacocha, Boddington, Tanami, Cadia, Lihir, Ahafo, and NGM.
While we acknowledge the potential of NEM as an investment, 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 NEM and that has 100x upside potential, check out our report about the cheapest AI stock.
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