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.
10. D.R. Horton, Inc. (NYSE:DHI)
Forward P/E Ratio: 13.03
Number of Hedge Fund Holders: 64
D.R. Horton, Inc. (NYSE:DHI) is one of the Most Undervalued Long Term Stocks to Buy Right Now. On October 13, Sam Reid from Wells Fargo maintained a Buy rating on D.R. Horton, Inc. (NYSE:DHI) with a price target of $190.
While Wells Fargo is bullish on the stock, Bank of America Securities, on October 10, lowered the price target on the stock from $175 to $165, while keeping a Neutral rating on the stock. The firm noted that the demand in the housing sector has been sluggish while incentives are still elevated. BofA believes that the policy uncertainty adds further downside. Therefore, the firm reduced the price targets on homebuilders it covers by 6% as it expects the policy uncertainty to hamper growth.
D.R. Horton, Inc. (NYSE:DHI) is a homebuilding company that constructs and sells residential homes across the United States.
9. Elevance Health, Inc. (NYSE:ELV)
Forward P/E Ratio: 11.67
Number of Hedge Fund Holders: 67
Elevance Health, Inc. (NYSE:ELV) is one of the Most Undervalued Long Term Stocks to Buy Right Now. On October 21, Sarah James from Cantor Fitzgerald reiterated a Buy rating on Elevance Health, Inc. (NYSE:ELV) with a price target of $400.
The firm maintains a cautious outlook on the 2026 Medicaid Environment, noting that the company has conservative elements in its 2026 earnings per share projections. In addition, the firm also believes that execution in Medicare Advantage, commercial business, and Carelon to be critical for the company’s performance in 2026 and 2027. They believe this is particularly important due to the Medicaid visibility becoming increasingly uncertain.
Despite the cautious outlook, Cantor Fitzgerald believes that Elevance Health, Inc. (NYSE:ELV) will outperform expectations in the Medicare Advantage and Carelon segments.
Elevance Health, Inc. (NYSE:ELV) is a health insurer in the United States offering various health plans and services.
8. Verizon Communications Inc. (NYSE:VZ)
Forward P/E Ratio: 8.59
Number of Hedge Fund Holders: 71
Verizon Communications Inc. (NYSE:VZ) is one of the Most Undervalued Long Term Stocks to Buy Right Now. On October 21, Sam McHugh from BNP Paribas Exane downgraded Verizon Communications Inc. (NYSE:VZ) from Outperform to Neutral with a price target of $44.
The company on October 6, had appointed Dan Schulman as Chief Executive Officer to replace Hans Vestberg. Dan Schulman is the former CEO of PayPal. Analyst Sam McHugh noted that this change in leadership has raised questions about the company’s strategy and its ability to defend the company’s share. This is because this move comes at a time when Verizon Communications Inc. (NYSE:VZ) is faced with net losses in its postpaid phone subscriber base and also faces tougher competition.
Moreover, the analyst also noted that his firm has had a simplistic view of the sector for the past few years and has advised investors to own wireless over cable.
Verizon Communications Inc. (NYSE:VZ) is a holding company that offers communications and technology services through its subsidiaries.
7. Regeneron Pharmaceuticals, Inc. (NASDAQ:REGN)
Forward P/E Ratio: 14.57
Number of Hedge Fund Holders: 73
Regeneron Pharmaceuticals, Inc. (NASDAQ:REGN) is one of the Most Undervalued Long Term Stocks to Buy Right Now. On October 17, Regeneron Pharmaceuticals, Inc. (NASDAQ:REGN) announced that the European Medicines Agency adopted a positive opinion for its Libtayo, which treats adults with cutaneous squamous cell carcinoma.
Earlier this month, Libtayo was approved by the FDA to treat patients with cutaneous squamous cell carcinoma who are at high risk of recurrence after surgery and radiation. Management expects the European Commission to announce its final decision on the application in the coming months.
This positive opinion is supported by results from the treatment’s global Phase 3 C-POST trial, which showed Libtayo reduced the risk of disease recurrence or death by 68% compared to placebo.
Regeneron Pharmaceuticals, Inc. (NASDAQ:REGN) is a biotechnology company that discovers, develops, and commercializes medicines for serious diseases.
6. Wells Fargo & Company (NYSE:WFC)
Forward P/E Ratio: 13.6
Number of Hedge Fund Holders: 75
Wells Fargo & Company (NYSE:WFC) is one of the Most Undervalued Long Term Stocks to Buy Right Now. On October 21, Phillip Securities analyst Glenn Thum maintained a Buy rating on Wells Fargo & Company (NYSE:WFC) with a price target of $95.
The analyst noted that the company, during its fiscal third quarter of 2025, showed a 9% year-over-year increase, driven by a growth in non-interest income and a significant reduction in provisions. In addition, the company also improved its income from higher card fees, investment advisory, brokerage commissions, and investment banking fees.
Thum also highlighted Wells Fargo & Company’s (NYSE:WFC) strategic position, which has improved with the removal of asset caps by the Federal Reserve. The analyst noted that this allows the bank to expand its deposit base and lending capabilities. As a result, the company has improved its medium-term return on equity targets, reflecting an improved outlook.
Wells Fargo & Company (NYSE:WFC) is a large financial services company offering banking, mortgage, and investment products.
5. Pfizer Inc. (NYSE:PFE)
Forward P/E Ratio: 8.13
Number of Hedge Fund Holders: 83
Pfizer Inc. (NYSE:PFE) is one of the Most Undervalued Long Term Stocks to Buy Right Now. On October 19, Pfizer Inc. (NYSE:PFE) and Astellas Pharma US Inc. announced final overall survival results from their Phase 3 EMBARK study.
The study evaluated XTANDI in combination with leuprolide as a monotherapy for men with non-metastatic hormone-sensitive prostate cancer. The results showed the therapy reduced the risk of death by 40.3% compared to leuprolide alone. Moreover, the mean follow-up time for XTANDI in combination with leuprolide was 94.2 months. The safety profile of the treatment was also consistent with that observed at the primary EMBARK analysis.
Johanna Bendell, M.D., Chief Development Officer, Oncology, Pfizer, said
“With up to 90 percent of men with high-risk BCR developing metastatic disease, early intervention with effective therapy is critical. The final analysis from EMBARK shows that XTANDI plus leuprolide improved outcomes and extended lives for men facing high-risk BCR after local therapy with curative intent.”
Pfizer Inc. (NYSE:PFE) is a global biopharmaceutical company focused on discovering, developing, manufacturing, and marketing medicines.
4. PayPal Holdings, Inc. (NASDAQ:PYPL)
Forward P/E Ratio: 12.85
Number of Hedge Fund Holders: 89
PayPal Holdings, Inc. (NASDAQ:PYPL) is one of the Most Undervalued Long Term Stocks to Buy Right Now. On September 22, Wells Fargo initiated coverage of PayPal Holdings, Inc. (NASDAQ:PYPL) with an Equal Weight rating and $74 price target.
The firm noted that they started coverage on 20 stocks in the payments and processors, and IT services sectors. Wells Fargo highlighted that the payments sector specifically has suffered from the rotation to the AI stocks. On the other hand, there have been multiple instances of subpar execution from payment companies. Despite this, the firm believes that too many stocks in this sector have been painted by the same brush. They believe that while the sector has “been a minefield for investors,” they still see some attractive opportunities.
PayPal Holdings, Inc. (NASDAQ:PYPL) provides digital financial payment platforms for consumers and merchants.
3. The Progressive Corporation (NYSE:PGR)
Forward P/E Ratio: 12.64
Number of Hedge Fund Holders: 99
The Progressive Corporation (NYSE:PGR) is one of the Most Undervalued Long Term Stocks to Buy Right Now. On October 20, Alex Scott from Barclays lowered the firm’s price target on The Progressive Corporation (NYSE:PGR) from $271 to $257, while keeping an Equal Weight rating on the stock. The firm noted updating its model for the company post its Q3 earnings.
On the same day, Morgan Stanley analyst Bob Huang downgraded The Progressive Corporation (NYSE:PGR) from Equal Weight to Underweight, while also reducing the price target from $265 to $214.
The analyst noted that they find the company’s bull case viable when excluding Florida. He believes that the company is entering into a softer pricing cycle, which is expected to compress its valuation multiple. As a result, Haung believes that the cyclical nature of the business might result in earnings decline in 2026 and 2027.
The Progressive Corporation (NYSE:PGR) is an insurance holding company with personal and commercial insurance businesses.
2. Bank of America Corporation (NYSE:BAC)
Forward P/E Ratio: 13.54
Number of Hedge Fund Holders: 115
Bank of America Corporation (NYSE:BAC) is one of the Most Undervalued Long Term Stocks to Buy Right Now. On October 21, Phillip Securities analyst Glenn Thum raised the price target on Bank of America Corporation (NYSE:BAC) from $50 to $56, while maintaining a Buy rating on the stock.
The analyst noted his bullish sentiment is based on the company’s financial performance. The bank grew its earnings by 23% year-over-year during the fiscal third quarter of 2025. This was above expectations and was largely driven by a record rise in net interest income, asset repricing, and growth in deposits and loans.
Moreover, Bank of America Corporation (NYSE:BAC) also grew its brokerage revenue by 11% and banking fees by 43%, noted the analyst. The analyst also highlighted the wealth management segment, which makes a significant part of the company’s revenue, also benefited from higher market valuations and increased client balances. Thum anticipates continued growth in net interest income and wealth management fees.
Bank of America Corporation (NYSE:BAC) is a financial services company that offers banking, investment, and wealth management solutions.
1. JPMorgan Chase & Co. (NYSE:JPM)
Forward P/E Ratio: 14.86
Number of Hedge Fund Holders: 124
JPMorgan Chase & Co. (NYSE:JPM) is one of the Most Undervalued Long Term Stocks to Buy Right Now. On October 21, Glenn Thum from Phillip Securities maintained a Hold rating on JPMorgan Chase & Co. (NYSE:JPM) with a price target of $305.
The company grew its earnings by 12% year-over-year, driven by investment banking income, asset management, and trading; however still fell short of the expectations, said the analyst in a research note. He noted that while the non-interest income was a significant growth driver, the net interest income only grew slightly during the quarter, mainly due to a decline in net interest margins.
Thum remains cautious on JPMorgan Chase & Co. (NYSE:JPM) due to macro-economic uncertainties, including trade tensions and policy changes, which he believes can lead to increased provisions and non-performing loans.
JPMorgan Chase & Co. (NYSE:JPM) is a global financial services firm that provides a wide range of banking and investment services. It operates through segments including Consumer & Community Banking, Commercial & Investment Banking, and Asset & Wealth Management.
While we acknowledge the potential of JPM 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 JPM and that has 100x upside potential, check out our report about this cheapest AI stock.
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