In this article, we will look at the 12 Most Undervalued Stocks to Invest In.
Undervalued stocks are getting more attention as investors look for opportunities outside the crowded growth trade. The idea is not just to buy the cheapest names on the screen, but rather to find companies where expectations look too low, valuations have compressed, or earnings power is being overlooked. That matters in 2026 as market leadership broadens and investors become more selective after a long stretch of concentration in large growth stocks.
J.P. Morgan Asset Management says “Value stocks have outperformed Growth year-to-date in 2026,” helped by “lower valuations and quality fundamentals.” The firm adds that “When volatility picks up, Value protects,” which suggests investors are using cheaper, steadier names as a way to balance risk. Invesco makes the valuation case more directly, saying “Many value stocks are trading well below historical norms,” with “valuations at a 30% discount to the S&P 500 Index.” Franklin Templeton adds an important caveat: “Value investing isn’t about low multiples and weak companies,” but about finding “misalignments between price and longer-term potential.” In summary, undervaluation is not just a low P/E ratio. The better setup is when the market is underestimating a company’s cash flow, asset value, or earnings recovery.
With that in mind, let’s take a look at the 12 Most Undervalued Stocks to Invest In.
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Our Methodology
We used the Finviz screener to identify quality stocks that are trading below a forward P/E of 10x that have recently reported noteworthy developments likely to impact investor sentiment. These stocks are also popular among analysts and elite hedge funds.
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 498.7% since May 2014, beating its benchmark by 303 percentage points (see more details here).
12. Bristol-Myers Squibb Company (NYSE:BMY)
On May 20, 2026, Bristol-Myers Squibb Company (NYSE:BMY) announced a strategic agreement with Anthropic to deploy Claude across its research, clinical development, manufacturing, commercial, and corporate functions. Bristol Myers Squibb said the collaboration moves its AI use beyond conversational tools and toward agentic capabilities embedded in daily workflows and systems. The company plans to deploy Claude broadly across the business, giving more than 30,000 employees access to advanced reasoning and agentic capabilities.
On May 8, 2026, Bristol Myers Squibb announced that the European Commission approved Sotyktu, or deucravacitinib, alone or in combination with methotrexate, for adults with active psoriatic arthritis who had an inadequate response or intolerance to a prior disease-modifying antirheumatic therapy. The company said Sotyktu is the first TYK2 inhibitor approved for active PsA in the European Union. The approval was based on the POETYK PsA-1 and POETYK PsA-2 Phase 3 trials, where Sotyktu showed significant improvement in disease activity as measured by the American College of Rheumatology 20 and Minimal Disease Activity.
Last month, Bristol Myers reported Q1 adjusted EPS of $1.58, ahead of the consensus estimate of $1.42. Revenue totaled $11.49B, above the consensus estimate of $10.92B. Board Chair and CEO Christopher Boerner said the company was off to a “good start in 2026,” citing momentum across its Growth Portfolio and disciplined execution. Boerner also pointed to multiple pivotal data readouts and pipeline opportunities ahead.
Bristol-Myers Squibb Company (NYSE:BMY) discovers, develops, licenses, manufactures, markets, distributes, and sells biopharmaceutical products worldwide.
11. GSK plc (NYSE:GSK)
On May 18, 2026, GSK plc (NYSE:GSK) announced that the Japan’s Ministry of Health, Labour and Welfare expanded the eligible population for Arexvy to include adults aged 18 to 49 years at increased risk for RSV disease. GSK said Arexvy had previously been approved in Japan for the prevention of RSV disease in all adults aged 60 years and older, and for adults aged 50-59 AIR for RSV disease. The prescribing information was also updated to explicitly include immuno-compromised patients as an increased risk group.
On May 11, 2026, GSK plc (NYSE:GSK) announced an exclusive strategic collaboration with Sino Biopharmaceutical, through its subsidiary Chia Tai Tianqing Pharmaceutical Group, or CTTQ, to accelerate bepirovirsen in mainland China at launch. Bepirovirsen is under priority regulatory review in China as a potential first-in-class treatment for chronic hepatitis B. Under the agreement, CTTQ will handle importation, distribution, hospital access, and promotional and non-promotional activities in mainland China, while GSK will remain the marketing authorization holder and retain responsibility for regulatory, quality, pharmacovigilance, and global medical strategy. GSK International President Mike Crichton said chronic hepatitis B affects 75 million people in China and is a leading cause of liver cancer in the country.
GSK plc (NYSE:GSK) researches, develops, and manufactures vaccines, specialty medicines, and general medicines to prevent and treat disease internationally.
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