In this article, we will look at the 12 Most Undervalued Long-Term Stocks to Buy Right Now.
On October 23, Gene Goldman, CIO at Cetera, joined CNBC television to discuss the market valuations and the sectors he thinks are undervalued. He acknowledged that investors are a little concerned in the near term, due to high valuations, concerns regarding the AI bubble, and high market concentration. One of the main concerns, according to Goldman, is regarding the tremendous amount of money companies are spending on AI and data centers. As a result, Goldman noted that the markets are a “little jittery.” Therefore, despite the big tech names beating expectations, investors remain concerned about what lies ahead.
Goldman believes that despite the high market concentration and the concerns regarding the AI bubble, every market dip is buyable. He elaborated that while there are risks in the near-term due to the market rally since April lows. However, there are a lot of reasons to continue buying for the long term. He noted that the first reason is that the market is still bullish, as there are no risks of recession and the economy is a lot stronger than what the labor market data suggests. He emphasized that 2026 is set to be a year of stimulus, driven by fiscal and monetary stimulus. Moreover, the earnings growth forecasts for the next year are also stunning. On top of all this, there is a lot of cash on the sidelines, looking for an opportunity to get into the market. Therefore, Goldman believes that any correction or pullback is a buying opportunity.
With that, let’s take a look at the 12 Most Undervalued Long-Term Stocks to Buy Right Now.
Our Methodology
To curate the list of 12 Most Undervalued Long-Term Stocks to Buy Right Now. We sifted through various online rankings of “long term stocks” from reputable financial media sources. From these sources, we shortlisted stocks trading below a forward price-to-earnings ratio of 15. Next, we cross-checked the P/E from Seeking Alpha and ranked the stocks in ascending order of the number of hedge fund holders, sourced from Insider Monkey’s Q2 2025 database.
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 Most Undervalued Long-Term Stocks to Buy Right Now
12. Diamondback Energy, Inc. (NASDAQ:FANG)
Forward P/E Ratio: 10.76
Number of Hedge Fund Holders: 46
Diamondback Energy, Inc. (NASDAQ:FANG) is one of the Most Undervalued Long Term Stocks to Buy Right Now. On October 21, Devin McDermott from Morgan Stanley maintained a Buy rating on Diamondback Energy, Inc. (NASDAQ:FANG) with a price target of $184.
In addition, on October 20, Charles Minervino from Susquehanna raised the firm’s price target on the stock from $182 to $188, while maintaining a Buy rating. The analyst noted that the increased price target reflects the firm’s updated earnings estimates for E&P coverage before Q3. Moreover, the firm also lowered its Q4 WTI price assumption to $62.5 per barrel and maintained its 2026 estimate at $65 per barrel.
Diamondback Energy, Inc. (NASDAQ:FANG) is an independent oil and natural gas company that focuses on exploring, acquiring, and developing onshore unconventional reserves in the Permian Basin, West Texas.
11. Chubb Limited (NYSE:CB)
Forward P/E Ratio: 12.04
Number of Hedge Fund Holders: 61
Chubb Limited (NYSE:CB) is one of the Most Undervalued Long Term Stocks to Buy Right Now. On October 22, Citizens reiterated Chubb Limited (NYSE:CB) with a Market Perform rating and a $325 price target.
The rating comes after the company released its fiscal third-quarter earnings on October 21. While the EPS of $7.49 topped the estimates by $1.33, the revenue of $12.93 billion fell short of the consensus by $38.81 million.
The analyst noted that Chubb Limited (NYSE:CB) topped Citizens’ estimates of $6.64. This performance was driven by a robust underlying P&C combined ratio of 82% which exceeded the expectation of 85%.
In addition to Citizens, on October 22, Harry Fong from Roth MKM also reiterated a Buy rating on the stock with a price target of $330.
Chubb Limited (NYSE:CB) is a Swiss company that provides international insurance and reinsurance services.
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