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.
10. The Cigna Group (NYSE:CI)
On May 20, 2026, Morgan Stanley raised the firm’s price target on The Cigna Group (NYSE:CI) to $361 from $355 and maintained an Overweight rating on the shares. Morgan Stanley said meetings with management “reinforced the underappreciated” specialty opportunity. The firm added that the September investor day should give Cigna a platform to emphasize its increasingly Specialty-centric long-term focus.
UBS also raised the firm’s price target on The Cigna Group (NYSE:CI) to $400 from $375 and maintained a Buy rating on the shares. UBS said managed care organizations broadly raised guidance after stronger-than-expected Q1 results, supported by favorable respiratory trends and seasonal cost patterns. The firm also cited improved Medicare Advantage rates, steadier ACA exchange enrollment, and modest Medicaid outperformance, while noting ongoing cost pressures from specialty drugs, GLP-1s, and behavioral health.
Last month, The Cigna Group (NYSE:CI) reported Q1 adjusted EPS of $7.79, ahead of the consensus estimate of $7.61. Revenue totaled $68.49B, above the consensus estimate of $66.2B. Chairman and CEO David M. Cordani said the quarter was driven by “disciplined execution,” portfolio shaping, and targeted innovation.
The Cigna Group (NYSE:CI) provides insurance and related products and services in the United States.
9. Barrick Mining Corporation (NYSE:B)
On May 21, 2026, Barclays analyst Richard Garchitorena initiated coverage of Barrick Mining Corporation (NYSE:B) with an Equal Weight rating and a $41 price target. Meanwhile, UBS raised the firm’s price target on Barrick Mining Corporation (NYSE:B) to $54 from $50 and maintained a Buy rating on the shares.
On May 11, 2026, Barrick Mining Corporation (NYSE:B) reported Q1 adjusted EPS of 98c, ahead of the consensus estimate of 81c. Revenue totaled $5.22B, above the consensus estimate of $4.84B. President and CEO Mark Hill said Barrick started the year with “another strong quarter,” citing performance ahead of plan on both gold production and costs. Hill also pointed to progress at Lumwana and Fourmile, improved safety, and the planned North American Barrick IPO.
Barrick Mining said it remains on track to meet 2026 guidance. Gold production guidance continues to be 2.90-3.25 million ounces, with 730,000-770,000 ounces expected in the second quarter and further increases expected in Q3 and Q4. Copper production guidance remains unchanged at 190,000-220,000 tonnes, with copper COS of $3.05-$3.35 per pound, C1 cash costs of $2.20-$2.45 per pound, and AISC of $3.45-$3.75 per pound.
Barrick Mining Corporation (NYSE:B) explores, develops, produces, and sells mineral properties, including gold, copper, silver, and energy materials.
8. Devon Energy Corporation (NYSE:DVN)
On May 20, 2026, Citi raised the firm’s price target on Devon Energy Corporation (NYSE:DVN) to $65 from $60 and maintained a Buy rating on the shares. Citi said that despite the recent rally in the exploration and production sector, it still sees a “disconnect” between oil-levered companies and medium-term crude prices. The firm said investors should focus on shares that “offer good value and compelling narratives,” and kept Devon as its top pick in the group.
Meanwhile, Jefferies upgraded Devon Energy Corporation (NYSE:DVN) to Buy from Hold with a $62 price target, up from $53. Jefferies said pullbacks in the front of the oil curve create an opportunity, and that Devon has multiple catalysts for absolute and relative outperformance after the Coterra merger closes. The firm added that divesting non-core assets, particularly the Marcellus, could eliminate debt and boost returns.
Earlier in May, Devon Energy Corporation (NYSE:DVN) reported Q1 core EPS of $1.04, compared to the consensus estimate of $1.09. The company said it delivered “another strong quarter,” citing performance ahead of guidance across major value drivers, including oil production and capital. Devon also said it remains on track to fully deliver its $1 billion business optimization target ahead of schedule and expects the Coterra merger to unlock synergies, accelerate free cash flow growth, and enhance shareholder returns.
Devon Energy Corporation (NYSE:DVN) explores, develops, and produces oil, natural gas, and natural gas liquids in the United States.
7. MetLife, Inc. (NYSE:MET)
On May 21, 2026, Morgan Stanley analyst Bob Huang raised the firm’s price target on MetLife, Inc. (NYSE:MET) to $93 from $89 and maintained an Overweight rating on the shares. Huang said Q1 results were “generally strong” for life insurance companies and expects earnings momentum to continue through the rest of 2026, supported by international business momentum and continued improvements in mortality.
JPMorgan analyst Jimmy Bhullar also raised the firm’s price target on MetLife, Inc. (NYSE:MET) to $96 from $95 and maintained an Overweight rating on the shares. JPMorgan raised estimates following the company’s Q1 report.
Earlier in May, MetLife, Inc. (NYSE:MET) reported Q1 adjusted EPS of $2.42, ahead of the consensus estimate of $2.27. Revenue totaled $19.07B, below the consensus estimate of $19.42B. President and CEO Michel Khalaf said MetLife delivered “exceptional performance” in the first quarter, with adjusted EPS up 23% and broad top-line growth. Khalaf added that the company is making progress in year two of New Frontier through disciplined execution and capital deployment that balances business investment with shareholder returns.
MetLife, Inc. (NYSE:MET) provides insurance, annuities, employee benefits, and asset management services worldwide.
6. The Allstate Corporation (NYSE:ALL)
On May 21, 2026, The Allstate Corporation (NYSE:ALL) announced estimated catastrophe losses for April of $870M, or $687M after tax. The losses came from 10 wind and hail events, with approximately 70% tied to two events.
Earlier in May, Piper Sandler raised the firm’s price target on The Allstate Corporation (NYSE:ALL) to $268 from $252 and maintained an Overweight rating on the shares. Piper Sandler said Allstate beat the firm’s and consensus estimates, driven by better-than-expected favorable development. The firm noted that top-line growth was lower than expected, while total company year-over-year PIF growth slowed from the previous quarter and auto PIF growth accelerated.
Last month, The Allstate Corporation (NYSE:ALL) reported Q1 adjusted EPS of $10.65, ahead of the consensus estimate of $7.24. Revenue totaled $16.9B, compared with estimates of $17.29B. Tom Wilson said Allstate generated strong earnings and increased growth in the first quarter, with net income of $2.4 billion and policies in force reaching 212 million. Wilson also cited a strong Property-Liability combined ratio, improvement in the underlying combined ratio across all personal lines products and brands, and a 9.8% increase in investment income.
The Allstate Corporation (NYSE:ALL) provides property and casualty, and other insurance products in the United States and Canada.
While we acknowledge the potential of ALL 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 ALL and that has 100x upside potential, check out our report about the cheapest AI stock.
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