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.
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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.
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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.
10. Diamondback Energy, Inc. (NASDAQ:FANG)
Forward P/E Ratio: 10.73
Analyst Upside Potential: 30.56%
Number of Hedge Fund Holders: 46
Diamondback Energy, Inc. (NASDAQ:FANG) is one of the Most Undervalued US Stocks According to Wall Street Analysts. On August 20, Raymond James reiterated a Buy rating on Diamondback Energy, Inc. (NASDAQ:FANG) with a price target of $212.
The bullish sentiment by the firm follows the company’s release of fiscal second-quarter results for 2025 on August 4. The company delivered $3.68 billion in revenue during the quarter, reflecting a 48.13% year-over-year increase and topping consensus by $346.93 million. However, the EPS of $2.67 fell short by $0.05. The company produced an average of 495.7 thousand barrels of oil per day and 919.9 thousand barrels of oil equivalent per day. Thereby, generating $1.7 billion in net cash from operating activities and $2.1 billion in operating cash flow before working capital changes.
Raymond James noted that Diamondback Energy, Inc. (NASDAQ:FANG) updated its guidance, narrowing oil production to 485-492 MBO/d and increasing BOE guidance by 2% to 890-910 MBOE/d. Notably, the company also lowered its cash expenditures to a range of $3.4 billion and $3.6 billion.
Diamondback Energy, Inc. (NASDAQ:FANG)is an independent oil and natural gas company that focuses on acquiring, developing, and exploring unconventional onshore oil and gas reserves in the Permian Basin.
9. Zoom Communications Inc. (NASDAQ:ZM)
Forward P/E Ratio: 12.86
Analyst Upside Potential: 27.49%
Number of Hedge Fund Holders: 48
Zoom Communications Inc. (NASDAQ:ZM) is one of the Most Undervalued US Stocks According to Wall Street Analysts. On August 18, Zoom Communications Inc. (NASDAQ:ZM) announced several new AI-driven features, notably Zoom Virtual Agent being integrated with Zoom Phone.
Management noted that Zoom Virtual Agent goes beyond traditional call answering by offering a smart, natural conversation experience. The agent has the ability to understand client needs, book appointments, provide updates, and more.
Moreover, Zoom Communications Inc. (NASDAQ:ZM) also launched Zoom Hub, which is a centralized content center within Zoom Workplace that organizes and consolidates Zoom assets. On the other hand, the company’s AI Companion feature now includes agentic meeting scheduling, streamlining the process of finding suitable times for meetings by analyzing calendars, time zones, and availability.
Zoom Communications Inc. (NASDAQ:ZM) provides an AI-powered work platform called Zoom Workplace that enhances human connection and collaboration.
8. Fidelity National Information Services, Inc. (NYSE:FIS)
Forward P/E Ratio: 12.06
Analyst Upside Potential: 24.00%
Number of Hedge Fund Holders: 49
Fidelity National Information Services, Inc. (NYSE:FIS) is one of the Most Undervalued US Stocks According to Wall Street Analysts. On August 19, Fidelity National Information Services, Inc. (NYSE:FIS) announced the launch of its Optimized Reconciliation Service.
Management noted that the new service automates the entire reconciliation process for banks, corporations, and financial institutions. Moreover, this is essential particularly in capital markets, where internal data is matched with external sources like banks and brokers to ensure accurate and consistent records.
The main goal of this service is to increase efficiency and reduce errors by using automation technology. The company aims to help clients move away from these outdated methods toward faster, precise, and trustworthy reporting.
Fidelity National Information Services, Inc. (NYSE:FIS) is a financial technology company that provides software and services to financial institutions, businesses, and developers.
7. Charter Communications, Inc. (NASDAQ:CHTR)
Forward P/E Ratio: 7.24
Analyst Upside Potential: 58.47%
Number of Hedge Fund Holders: 56
Charter Communications, Inc. (NASDAQ:CHTR) is one of the Most Undervalued US Stocks According to Wall Street Analysts. On August 21, Wells Fargo resumed Charter Communications, Inc. (NASDAQ:CHTR) with an Equal Weight rating and a $300 price target.
The firm noted that while the company still has the best go-to-market strategy in the cable sector. However, noted that the recent agreement of the company with Cox Communications, signed on May 16, 2025, does not change the company’s free cash flow per share and remains financially neutral.
Under the agreement with Cox Communications, both companies are set to create an industry leader in mobile, broadband communications, and seamless video entertainment. Despite this strategic step, the firm warned that there are strong pressures in the sector and that the competition remains challenging.
Charter Communications, Inc. (NASDAQ:CHTR) is a broadband and cable company serving over 57 million homes and businesses across 41 states under the Spectrum brand.
6. Schlumberger Limited (NYSE:SLB)
Forward P/E Ratio: 11.48
Analyst Upside Potential: 34.89%
Number of Hedge Fund Holders: 63
Schlumberger Limited (NYSE:SLB) is one of the Most Undervalued US Stocks According to Wall Street Analysts. On August 20, UBS analyst Josh Silverstein lowered the firm’s price target on Schlumberger Limited (NYSE:SLB) from $45 to $44, while keeping a Buy rating on the stock.
The analyst noted that the persistent commodity headwinds continue to dampen the upside potential for the company. In addition, the company reported mixed results during its fiscal second quarter of 2025. The company delivered revenue of $8.55 million, down 6.49% year-over-year, but ahead of expectations by $50.04 million. The EPS of $0.74 also exceeded expectations by $0.01.
Management noted that the company showed resilience despite weaker upstream spending and economic uncertainty. The company remains optimistic for the second half of 2025 and believes that the growth would be driven by a diversified portfolio, digital strengths, and cost management.
Schlumberger Limited (NYSE:SLB) is a global technology company that provides advanced solutions for the oil and gas industry.
5. ConocoPhillips (NYSE:COP)
Forward P/E Ratio: 14.59
Analyst Upside Potential: 21.19%
Number of Hedge Fund Holders: 72
ConocoPhillips (NYSE:COP) is one of the Most Undervalued US Stocks According to Wall Street Analysts. On August 18, Piper Sandler raised the firm’s price target on ConocoPhillips (NYSE:COP) from $123 to $124, while keeping an Overweight rating on the stock.
The firm noted that the company showed resilience in its fiscal second quarter of 2025. The company delivered a revenue of $14.74 billion, reflecting 4.27% year-over-year growth. The revenue fell short of the consensus by $150.41 million; however, the EPS of $1.42 exceeded expectations by $0.06.
The firm highlighted that ConocoPhillips (NYSE:COP) has a unique combination of growth potential, resource depth, and steady shareholder returns. Moreover, the firm also likes the valuation of the company, noting it to be undervalued compared to its peers. Management expects to produce between 2.33 and 2.37 million barrels of oil equivalent per day in the third quarter of 2025. Whereas, the full-year production is forecasted to be slightly higher, ranging from 2.35 to 2.37 MMBOED.
ConocoPhillips (NYSE:COP) is an oil and gas exploration and production company. The company operates in several regions, including Alaska, the United States, Canada, Europe, the Middle East, Asia Pacific, and other international locations.
4. Regeneron Pharmaceuticals, Inc. (NASDAQ:REGN)
Forward P/E Ratio: 14.51
Analyst Upside Potential: 28.09%
Number of Hedge Fund Holders: 73
Regeneron Pharmaceuticals, Inc. (NASDAQ:REGN) is one of the Most Undervalued US Stocks According to Wall Street Analysts. On August 20, Regeneron Pharmaceuticals, Inc. (NASDAQ:REGN) announced that the FDA has extended the review deadlines for two regulatory submissions of EYLEA HD Injection 8 mg to the fourth quarter of 2025.
The submissions made to the FDA include approval requests for a prefilled syringe and a label expansion to treat macular edema caused by retinal vein occlusion, including a monthly dosing option for approved uses. Management noted that the extended period is due to additional information provided after an FDA inspection of a third-party manufacturer. The FDA considers these updates a significant amendment, lengthening the review time.
However, the EYLEA HD remains available in vial form in the United States, with approved dosing intervals. The company expects the FDA to act quickly once manufacturing issues are resolved.
Regeneron Pharmaceuticals, Inc. (NASDAQ:REGN) is a biotechnology company that develops and manufactures medicines for serious diseases.
3. PG&E Corporation (NYSE:PCG)
Forward P/E Ratio: 10.41
Analyst Upside Potential: 36.72%
Number of Hedge Fund Holders: 77
PG&E Corporation (NYSE:PCG) is one of the Most Undervalued US Stocks According to Wall Street Analysts. On August 21, Morgan Stanley raised the firm’s price target on PG&E Corporation (NYSE:PCG) from $18.5 to $19, while keeping an Underweight rating on the stock.
The firm noted that the updated price target comes as part of their broader review of Regulated & Diversified Utilities and Independent Power Producers sectors in North America. Morgan Stanley highlighted that the utilities sector has outperformed the S&P 500 in July, which shows the strength of this sector. Moreover, they also see long-term benefits of nuclear energy and believe that the benefits of nuclear energy have not been fully recognized in the current market valuations. The firm remains cautiously optimistic about PG&E Corporation (NYSE:PCG) in the current market environment.
PG&E Corporation (NYSE:PCG) is a holding company dealing in Pacific Gas and Electric Company. It provides electricity and natural gas to customers in Northern and Central California.
2. Expand Energy Corporation (NASDAQ:EXE)
Forward P/E Ratio: 13.33
Analyst Upside Potential: 44.15%
Number of Hedge Fund Holders: 93
Expand Energy Corporation (NASDAQ:EXE) is one of the Most Undervalued US Stocks According to Wall Street Analysts. On August 14, Piper Sandler lowered the firm’s price target on Expand Energy Corporation (NASDAQ:EXE) from $140 to $136, while maintaining an Overweight rating on the stock.
The firm noted that the investment environment for the company has been tough, and the fiscal second quarter results for 2025 highlighted even more significant challenges. Although gas stocks have been seen as safer investment opportunities due to the near-term LNG capacity growth and long-term energy demands. However, the supply continues to surprise to the upside despite lower associated levels of activity.
On the bright side, operators like Expand Energy Corporation (NASDAQ:EXE) are improving efficiency by spending less capital but maintaining the same output.
Expand Energy Corporation (NASDAQ:EXE) is an independent natural gas producer in the United States. It focuses on developing natural gas, oil, and natural gas liquids to expand energy access.
1. Fiserv, Inc. (NYSE:FI)
Forward P/E Ratio: 13.65
Analyst Upside Potential: 28.61%
Number of Hedge Fund Holders: 94
Fiserv, Inc. (NYSE:FI) is one of the Most Undervalued US Stocks According to Wall Street Analysts. On August 4, Andrew Harte from BTIG maintained a Buy rating on Fiserv, Inc. (NYSE:FI) with a price target of $200.
The company delivered strong results for its fiscal second quarter of 2025. It delivered a revenue of $5.20 billion, up 8.39% year-over-year, but below expectations by $3.25 million. The EPS of $2.47 topped analysts’ consensus by $0.04. Management noted that growth came from a 10% increase in Merchant solutions and a 7% increase in Financial solutions. Moreover, the earnings per share were up 22% year-over-year. The company remains focused on diversifying business lines and focusing on strategic innovation.
Fiserv, Inc. (NYSE:FI) is a global financial technology company that provides payment and financial services technology solutions.
While we acknowledge the potential of FI 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 FI and that has 100x upside potential, check out our report about this cheapest AI stock.
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