12 Best Undervalued UK Stocks to Buy According to Analysts

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.

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.

10. WPP plc (NYSE:WPP)

Forward P/E: 6.05

Number of Hedge Fund Holders: 9

Analyst Upside Potential: 16.49%

WPP plc (NYSE:WPP) is one of the Best Undervalued UK Stocks to Buy According to Analysts. On June 16, WPP plc (NYSE:WPP) announced expanding its partnership with TikTok by integrating Symphony, TikTok’s generative AI suite, into WPP Open.

This move makes WPP plc (NYSE:WPP) the first in the industry to use Symphony, by giving its team early access to TikTok’s latest AI tools. As a result, the company’s teams can now create more engaging content to reach the vast audience of TikTok. Moreover, the teams can also develop AI-driven content strategies and stay ahead of TikTok trends.

Some other key features of this collaboration include the addition of AI-generated digital avatars and an AI dubbing tool to WPP Open, which allows teams to produce content in more than 15 languages.

WPP plc (NYSE:WPP) is a UK-based company that helps businesses with advertising, marketing, and communications.

9. Prudential plc (NYSE:PUK

Forward P/E: 12.6

Number of Hedge Fund Holders: 10

Analyst Upside Potential: 21.75%

Prudential plc (NYSE:PUK) is one of the Best Undervalued UK Stocks to Buy According to Analysts. On July 31, Prudential plc (NYSE:PUK) announced the settlement of its legal dispute with Detik Ria Sdn Bhd, the 49% shareholder in Sri Han Suria Sdn Bhd, the holding company of Prudential Assurance Malaysia Berhad.

Earlier, Detik Ria had claimed dividends of about USD 833 million plus interest. As per the settlement, SHS will pay Detik Ria USD 83 million from existing resources as a dividend, and the company has also waived USD 33 million owed by Detik Ria to its subsidiary, based on a previous court decision. In return, all legal proceedings will be dropped, and both parties have agreed not to make future claims related to past issues. Management noted that Prudential plc (NYSE:PUK) has decided to slightly increase its IFRS shareholder equity, whereas Detik Ria’s 49% ownership in PAMB will continue to be reflected as a non-controlling interest in the company’s financial statements.

Prudential plc (NYSE:PUK) is a financial services company providing life, health insurance, and asset management solutions.

8. Carnival Corporation & plc (NYSE:CUK)

Forward P/E: 14.04

Number of Hedge Fund Holders: 17

Analyst Upside Potential: 21.77%

Carnival Corporation & plc (NYSE:CUK) is one of the Best Undervalued UK Stocks to Buy According to Analysts. On July 24, Carnival Corporation & plc (NYSE:CUK) announced a new partnership between its Princess Cruises and Starboard Group for the first time.

Under this partnership, Starboard Group will bring its retail expertise to the new Star Princess ship, which is set to launch in fall 2025. Star Princess will sail in the Mediterranean, Caribbean, Panama Canal, and Alaska during its first season. Starboard Group will curate nearly 4,800 square feet of retail space across two decks, featuring premium brands and tailored shopping experiences.

One of the highlights of this ship is its destination retail boutique, which will showcase regional, locally sourced, and artisanal products. Allowing guests to shop for food, clothing, jewelry, souvenirs, and more inspired by the regions visited. Moreover, the ship will also host rotating events, including trunk shows and appearances by brand designers who will offer styling advice.

Carnival Corporation & plc (NYSE:CUK) is a global cruise company that operates multiple cruise brands across different regions, including North America, Australia, Europe, and Asia.

7. Caledonia Mining Corporation Plc (NYSEAMERICAN:CMCL)

Forward P/E: 6.72

Number of Hedge Fund Holders: 7

Analyst Upside Potential: 27.55%

Caledonia Mining Corporation Plc (NYSEAMERICAN:CMCL) is one of the Best Undervalued UK Stocks to buy According to Analysts. On July 17, Maxim raised the firm’s price target on Caledonia Mining Corporation Plc (NYSEAMERICAN:CMCL) from $21 to $28, while maintaining a Buy rating on the stock.

The firm highlighted that the company reported higher-than-expected gold production in Q2 from its mine in Zimbabwe. As a result, the company also raised its production forecasts. The firm expects the company to use its free cash flow to reduce its debt and pay dividends. As per the company’s July 16 press release, the Blanket Mine in Zimbabwe produced 21,070 ounces in Q2 2025, setting a new quarterly record. The overall first-half production reached 39,741 ounces, reflecting a 5.1% increase year-over-year. The company now expects to produce between 75,500 and 79,500 ounces of gold during the year.

Caledonia Mining Corporation Plc (NYSEAMERICAN:CMCL) is a gold production, exploration, and development company focused mainly on Zimbabwe. It owns a 64% stake in the Blanket Mine, along with other mining assets including Bilboes, Motapa, and Maligreen.

6. LivaNova PLC (NASDAQ:LIVN)

Forward P/E: 12.07

Number of Hedge Fund Holders: 40

Analyst Upside Potential: 36.39%

LivaNova PLC (NASDAQ:LIVN) is one of the Best Undervalued UK Stocks to Buy According to Analysts. On June 6, Jefferies analyst Matthew Taylor maintained a Buy rating on LivaNova PLC (NASDAQ:LIVN) with a price target of $79.

The analyst highlighted the company’s strong growth potential driven by its solid product cycle. He noted the Essenz upgrade, which is expected to increase revenue by higher average selling prices as the replacement cycle advances. Moreover, Taylor also likes the company’s expansion in the oxygenator market. He believes that the increasing market share and production capacity give LivaNova PLC (NASDAQ:LIVN) a competitive edge over its peers.

He also points out the company’s progress in Vagus Nerve Stimulation therapy for epilepsy, backed by strong long-term data. Taylor believes this strengthens its position in drug-resistant epilepsy treatment.

LivaNova PLC (NASDAQ:LIVN) is a global medical technology company that designs and manufactures devices for cardiac surgery and neuromodulation.

5. Nomad Foods Limited (NYSE:NOMD)

Forward P/E: 8.09

Number of Hedge Fund Holders: 27

Analyst Upside Potential: 39.54%

Nomad Foods Limited (NYSE:NOMD) is one of the Best Undervalued UK Stocks to Buy According to Analysts. On July 30, Nomad Foods Limited (NYSE:NOMD) announced that its Board of Directors has approved a cash dividend of $0.17 per share for its shareholders.

The $0.17 per share dividend reflects a 13% increase compared to the dividend declared a year ago, demonstrating growth. The dividend will be paid out on August 26, 2025, to those who own shares as of the end of the trading day on August 11, 2025.

Moreover, the company is also set to report its Q2 2025 results on August 6, 2025. Nomad Foods Limited (NYSE:NOMD) reported a 3% decline in revenue during the fiscal first quarter of 2025, with organic revenue down 3.6% and volume decreasing 3.7%. Management noted retailer inventory destocking and Easter timing as key challenges hampering the growth. As a result, management lowered its full-year organic growth rate from 1% to 3% growth to 0% to 2% growth.

Nomad Foods Limited (NYSE:NOMD) is a leading European frozen food company headquartered in the United Kingdom.

4. Marex Group plc (NASDAQ:MRX)

Forward P/E: 10.72

Number of Hedge Fund Holders: 22

Analyst Upside Potential: 40.64%

Marex Group plc (NASDAQ:MRX) is one of the Best Undervalued UK Stocks to Buy According to Analysts. On July 25, Marex Group plc (NASDAQ:MRX) announced that it has agreed to acquire Winterflood Securities from Close Brothers for £103.9 million in cash.

Winterflood is a major UK equity market maker, serving more than 400 institutional clients and has a 15% share of London Stock Exchange trading by volume. Marex Group plc (NASDAQ:MRX) is paying £15 million more than the company’s value. Management noted that this strategic move will strengthen the company’s UK cash equities business as the company plans to gain new clients and expand its services for asset and wealth management firms. The deal is subject to regulatory approvals and is expected to be completed by early 2026.

Marex Group plc (NASDAQ:MRX) is an international financial services company that provides essential liquidity, market access and infrastructure services to its clients.

3. Burford Capital Limited (NYSE:BUR)

Forward P/E: 8.82

Number of Hedge Fund Holders: 31

Analyst Upside Potential: 52.67%

Burford Capital Limited (NYSE:BUR) is one of the Best Undervalued UK Stocks to Buy According to Analysts. On July 24, Burford Capital Limited (NYSE:BUR) announced that it will release its fiscal second quarter results for 2025 on August 7.

The company delivered strong results in the fiscal first quarter of 2025. Management noted that despite the first quarter being naturally slow for legal finance, the company had a strong start to the year with new business volumes growing significantly. As a result, realizations totaled $163 million for the quarter, which was significantly higher than Q1 of the previous two years. Moreover, Burford Capital Limited (NYSE:BUR) also grew its revenue by 253.08% year-over-year, driven by growing capital provision income and asset management income. Management remains confident for the upcoming financial release.

Burford Capital Limited (NYSE:BUR) is an international finance company that provides capital to businesses and law firms to fund commercial litigation and arbitration.

2. Gambling.com Group Limited (NASDAQ:GAMB)

Forward P/E: 9.41

Number of Hedge Fund Holders: 23

Analyst Upside Potential: 70.94%

Gambling.com Group Limited (NASDAQ:GAMB) is one of the Best Undervalued UK Stocks to Buy According to Analysts. On July 2, Jefferies lowered the firm’s price target on Gambling.com Group Limited (NASDAQ:GAMB) from $20 to $18.

The reduction in price target comes as the firm trimmed its EV/EBITDA for the company from 10.5x to 10x. The firm noted that they have made no changes to Q2 2025, fiscal year 2025, and fiscal year 2026 revenue and EBITDA estimates. Gambling.com Group Limited (NASDAQ:GAMB) is expected to release its Q2 2025 results on August 14. The company delivered a 39% year-over-year increase in revenue during the first quarter, with net income growing 54% during the same time.

Management reiterated the full-year outlook and expects full-year revenue between $170 million and $174 million.

Gambling.com Group Limited (NASDAQ:GAMB) is a performance marketing company that provides digital marketing services for the regulated online gambling industry.

1. KNOT Offshore Partners LP (NYSE:KNOP)

Forward P/E: 8.51

Number of Hedge Fund Holders: 7

Analyst Upside Potential: 71.92%

KNOT Offshore Partners LP (NYSE:KNOP) is one of the Best Undervalued UK Stocks to Buy According to Analysts. On July 2, KNOT Offshore Partners LP (NYSE:KNOP) announced strategic and operational updates.

Management noted that it will refinance debt on the shuttle tanker Tove Knutsen through a sale and leaseback deal, raising about $32 million. Moreover, the company is also acquiring the Daqing Knutsen, a modern shuttle tanker built in 2022, for $95 million. The vessel is currently on time charter to PetroChina in Brazil through July 2027. The company has guaranteed charter income for this vessel through 2032 under certain conditions. Lastly, KNOT Offshore Partners LP (NYSE:KNOP) also announced a $10 million common unit buyback program.

KNOT Offshore Partners LP (NYSE:KNOP) is a UK-based company that owns and operates shuttle tankers that transport crude oil from offshore oil fields to onshore terminals.

While we acknowledge the potential of KNOP to grow, 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 KNOP and that has 100x upside potential, check out our report about this cheapest AI stock.

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