In this article, we will discuss the 12 Undervalued Stocks to Buy According to the Wall Street.

On July 6, Tom Lee, Fundstrat Managing Partner, joined ‘Squawk Box’ to discuss the latest market trends. Lee explained that he was unimpressed by the stalling performance of the averages in June, but he maintained an optimistic view for July, noting that current valuations are more reasonable and sentiment is not excessively bullish. He anticipates that the upcoming Q2 earnings reports will surprise to the upside, following a strong Q1 performance. Because of these expectations, Lee noted that the market’s P/E ratio is actually one full turn lower than it was in January, and he believes that as earnings grow, the market will become cheaper, creating room for P/E expansion.

Regarding his end-of-year outlook, Lee confirmed that he believes that an S&P 500 target of 8,000 is achievable. He justified this by suggesting that 8,000 would represent roughly 20 times his 2027 earnings estimate of 400. However, he added that he considers 400 a conservative estimate and believes the P/E multiple could reach 22 or higher, which could potentially push the S&P 500 toward a year-end target of 8,400 to 8,800.

Despite his bullish stance for July, Lee warned that the market may experience a period between August and October that feels like a bear market. He does not expect this to occur in July, explaining that because June was not a strong month and a high number of fund managers are currently trailing their benchmarks (with only 23% beating the large-cap growth index, the lowest level in nearly five years), there is likely to be significant dip-buying activity throughout July.

Defining what he means by a period that feels like a bear market, Lee clarified that he is referring to a decline that might not necessarily hit the technical 20% bear market threshold. He pointed to the decline between February and April of this year as an example, noting that it felt like a bear market despite only being a 7% drop. He identified four potential headwinds that could cause such a decline later in the year: a cumulative shortage of petroleum products and high levels of margin debt.

Against this backdrop, lets take a look at some of the undervalued stocks to buy according to Wall Street.

Our Methodology

We used screeners to identify stocks that are trading below a forward P/E of 15 and have an average upside potential of at least 45%. We limited our final selection to companies that have recently reported noteworthy developments likely to impact investor sentiment. These stocks are also popular among analysts and elite hedge funds.

Note: All data was sourced on July 7. 

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. Insider Monkey’s quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 599.2% since May 2014, beating its benchmark by 372 percentage points (see more details here).

12 Undervalued Stocks to Buy According to the Wall Street

12. Wix.com Ltd. (NASDAQ:WIX)

Average Upside Potential: 47.69%

Wix.com Ltd. (NASDAQ:WIX) is one of the undervalued stocks to buy according to the Wall Street. On July 7, Wix and Elavon, a subsidiary of US Bank, announced a strategic partnership to provide unified commerce solutions for small businesses. This collaboration integrates Elavon’s payment processing capabilities with Wix’s website creation and commerce technology, allowing business owners to manage online and in-person sales, inventory, and real-time analytics within a single platform.

The offering is structured into three tiers (Launch, Grow, and Scale)  to support businesses at different stages of their development. These packages provide varying levels of digital tools, ranging from basic setup for new ventures to advanced, customizable solutions for established businesses aiming to optimize performance and handle higher transaction volumes.

By combining these resources, the partnership aims to reduce operational complexity and improve visibility for business owners. Both companies emphasize a shared commitment to providing flexible, scalable technology that enables entrepreneurs to focus on growth while maintaining a seamless digital presence across multiple sales channels.

Wix.com Ltd. (NASDAQ:WIX) provides a web development platform for creators, delivering services through a SaaS model. Its products include website templates, website builders, website designs, an app market, web hosting, domain names, website accessibility, a mobile app builder, and an AI website builder.

11. Amdocs Limited (NASDAQ:DOX)

Average Upside Potential: 48.66%

Amdocs Limited (NASDAQ:DOX) is one of the undervalued stocks to buy according to the Wall Street. On June 24, Amdocs announced that telecom operator Three Scandinavia selected the company as a partner to support its digital and business transformation across Sweden and Denmark. The program aims to modernize customer engagement and commerce capabilities by deploying the Amdocs Customer Engagement Platform, which will consolidate marketing, sales, and service processes into a unified, AI-native foundation.

The transformation is designed to be implemented in phases, ensuring that Three Scandinavia can maintain continuous service delivery while improving operational efficiency. By utilizing data and automation, the initiative will streamline workflows across the customer lifecycle, supporting both consumer and business segments with more consistent, omnichannel experiences.

This partnership focuses on building a scalable digital foundation that allows Three Scandinavia to maintain its market momentum while simplifying internal operations. Both organizations emphasized the collaboration as a key step in enhancing customer satisfaction and strengthening the operator’s service offerings throughout the Nordic region.

Amdocs Limited (NASDAQ:DOX) provides services and software to entertainment, communications, media, and other service providers worldwide. The company develops, implements, designs, supports, markets, and operates an open and modular cloud offering. It also offers CES25, Amdocs Monetization Suite, and GenAI agents.