In this article, we will look at the 12 Most Undervalued US Stocks According to Wall Street Analysts.
On August 23, Aswath Damodaran, professor of finance at NYU, joined CNBC for an interview to discuss whether current market valuations have become excessive. He noted that the valuation question arises every time the markets reach new highs. Over the past 10 years, he has seen markets being called too rich, and experts advising people to sell; however, the markets continued to rise further. Damodaran highlighted that lately, he has started to trust the markets more than what experts like him have to say about them. This is because, in his experience, markets have always found a way to move past the high valuations to continue to rise further.
He noted that this year’s market has had two phases, one where the tech stocks, especially the Mag 7, lost $2 trillion till April 8th, and then the second phase since April 8th to today, where the sector has made a comeback and gone on to become one of the strongest sectors again in the S&P 500.
While discussing the valuations, he acknowledged that the market is rich in terms of valuations and there might be looming risks. However, until those risks start to show up in earnings and economic data, the market is pricing in a positive expectation and thus moving higher.
With that, let’s take a look at the 10 most undervalued US stocks according to Wall Street analysts.
A business person consulting with their financial advisor showing their portfolio of stocks.
Our Methodology
We used the Finviz stock screener, Seeking Alpha, and CNN as our sources. Using the screener, we aggregated a list of US stocks trading below a forward P/E of 15 and with an upside potential of more than 20%. Next, we cross-checked each stock’s P/E ratio from Seeking Alpha and its upside potential from CNN. Lastly, we ranked these stocks in ascending order of the number of hedge fund holders sourced from Insider Monkey’s Q2 2025 database. Please note that the data was recorded on August 22, 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 Most Undervalued US Stocks According to Wall Street Analysts
12. Constellation Brands, Inc. (NYSE:STZ)
Forward P/E Ratio: 13.11
Analyst Upside Potential: 21.47%
Number of Hedge Fund Holders: 42
Constellation Brands, Inc. (NYSE:STZ) is one of the Most Undervalued US Stocks According to Wall Street Analysts. On August 5, Constellation Brands, Inc. (NYSE:STZ) announced the sale of its Copper & Kings American Brandy Company to Bourdon Spirits Company, which is a family-owned business in Louisville.
Copper & Kings is a well-known brand famous for high-quality American brandy and innovative bourbon. The production of brandy will continue at the Copper & Kings’ distillery in Kentucky following the acquisition. This comes as another divestment move from Constellation Brands, Inc. (NYSE:STZ) after it sold Svedka vodka to Sazerac in December. Management noted that this is another step towards a higher-end wine and spirit brand. The deal closed on August 5, and the financial details of the transaction were not disclosed.
Since the announcement, Constellation Brands, Inc. (NYSE:STZ) is down nearly 2%.
Constellation Brands, Inc. (NYSE:STZ) produces and markets beer, wine, and spirits. The company owns well-known brands like Corona Extra and Robert Mondavi Winery.
11. ONEOK, Inc. (NYSE:OKE)
Forward P/E Ratio: 13.48
Analyst Upside Potential: 26.22%
Number of Hedge Fund Holders: 44
ONEOK, Inc. (NYSE:OKE) is one of the Most Undervalued US Stocks According to Wall Street Analysts. On August 14, Barclays analyst Theresa Chen lowered the firm’s price target while maintaining an Equal Weight rating on the stock.
The lowered price target comes after the company released its second-quarter results on August 4. The firm noted that the reduced price target reflects the updated models in the midstream and refining group post the second quarter results. During the fiscal second quarter of 2025, ONEOK, Inc. (NYSE:OKE) reported $7.89 billion in revenue, reflecting a 61.16% year-over-year increase; however, it missed estimates by $441.52 million. On the bright side, the EPS of $1.34 exceeded expectations by $0.01.
Management noted witnessing an 11% increase in natural gas liquids feed volumes in the Rocky Mountains Region. Moreover, the CEO, Pierce H. Norton II also highlighted the company’s success to be driven by its integrated business model and steady demand for energy services.
ONEOK, Inc. (NYSE:OKE) is a midstream energy company that provides services such as gathering, processing, fractionation, transportation, storage, and marine export of natural gas, natural gas liquids, refined products, and crude oil.
