In this article, we will look at the 12 Best Undervalued UK Stocks to Buy According to Analysts.
On July 14, Equity released its UK outlook for Q3 2025, noting that the market entered the third quarter at a turning point with steady growth and IMF upgrades. The UK GDP grew by 0.7% during the first quarter of 2025, which prompted the IMF to raise its forecast for the region to 1.2%. Moreover, the Bank of England has also shifted towards a more expansionary monetary policy, and further interest rate cuts remain viable. The report highlighted that the growth was driven by a 2.9% increase in exports and remained the highest among G7 nations. Experts project that while the IMF has already raised its forecast from 1.1% growth to 1.2%, this is expected to increase to 1.4% in 2026. The impact of newly imposed tariffs from the US also remains minimal, with estimates suggesting only a 0.3% reduction in GDP forecasts.
Despite this performance, the report highlighted some headwinds, including higher labour taxes and the newly increased minimum wage. Moreover, the government borrowing rate has also increased, driven by concerns over rising US tariffs. The Bank of England has remained in action by cutting the interest rates twice since the start of the year, mainly due to inflation, which remains ahead of the bank’s target, suggesting a possibility of another quarter-point cut within the next three months. The report concluded that while the economy has shown resilience, the next few months are critical for continuing the momentum.
With that, let’s take a look at the 12 best undervalued UK stocks to buy according to analysts.
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Our Methodology
To curate the list of 12 best undervalued UK stocks to buy according to analysts, we used the Finviz stock screener, Seeking Alpha, and CNN as our sources. Using the screener, we aggregated a list of UK stocks trading below the FWD P/E of 15 that had an upside potential of more than 15%. Next, we cross-checked the FWD P/E of each stock from Seeking Alpha and the analyst upside potential from CNN. Lastly, we ranked the stocks in ascending order of the upside potential. We have also added the number of hedge fund holders sourced from Insider Monkey’s Q1 2025 database. Please note that the data was recorded on July 30, 2025.
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).
12 Best Undervalued UK Stocks to Buy According to Analysts
12. Navigator Holdings Ltd. (NYSE:NVGS)
Forward P/E: 11.08
Number of Hedge Fund Holders: 26
Analyst Upside Potential: 15.71%
Navigator Holdings Ltd. (NYSE:NVGS) is one of the Best Undervalued UK Stocks to Buy According to Analysts. On July 17, Navigator Holdings Ltd. (NYSE:NVGS) announced its new partnership with Amon Maritime. The joint venture between the two companies is called Navigator Amon Shipping AS.
Navigator Holdings Ltd. (NYSE:NVGS) owns 80% of this new joint venture, whereas Amon Maritime owns 20%. The partnership plans to build two new ships in Norway, which will use ammonia as fuel and can also carry liquefied petroleum gas. Each ship will have a capacity of 51,530 cubic meters and will be constructed by Nantong CIMC Sinopacific Offshore & Engineering Co., Ltd, costing around $84 million each. The ships are expected to be delivered in June and October of 2028.
Both the new ships have received significant support from the Norwegian government’s agency, Enova, as it has granted NOK 90 million for each ship; however, the management noted that the rest of the funding will come from bank loans. The companies plan to lease these ships to a major industry player on a 5-year contract.
Navigator Holdings Ltd. (NYSE:NVGS) already owns and operates a large fleet of specialized ships that carry liquefied gases like petrochemical gases, LPG, and ammonia.
11. Clarivate Plc (NYSE:CLVT)
Forward P/E: 6.5
Number of Hedge Fund Holders: 25
Analyst Upside Potential: 15.84%
Clarivate Plc (NYSE:CLVT) is one of the Best Undervalued UK Stocks to Buy According to Analysts. On July 31, William Blair analyst Andrew Nicholas maintained a Hold rating on Clarivate Plc (NYSE:CLVT) without disclosing any price target.
The analyst noted that the company’s second-quarter results were strong, and the revenue and EPS exceeded expectations. This growth was driven by strong performance in key areas including academia, government, life sciences, and healthcare. However, despite this performance, the stock price dropped after the release, mainly due to a lack of major news on the company’s strategic review, as investors were expecting clearer updates.
Moreover, Nicholas also highlighted some upsides and risks for the company, including a slight increase in recurring revenue and some segments returning to growth. However, Clarivate Plc (NYSE:CLVT) faces risks from academic and government sector budget cuts and less US federal spending.
Clarivate Plc (NYSE:CLVT) provides data, analytics, and workflow solutions to help organizations make informed decisions. It serves sectors like academia, government, intellectual property, and life sciences.
