On January 22, Dan Ives, Global Head of Technology Research at Wedbush Securities, and Jeff Kilburg, Founder & CEO of KKM Financial, appeared on CNBC to suggest that easing volatility, AI-driven tech strength, and falling rates support stock picking and potential new market highs. Kilburg expressed excitement over the president’s stated commitments for $18 trillion in domestic investments and noted that futures are pointing toward new all-time highs. Despite a minor market hiccup related to Greenland, Kilburg observed that the bears are being forced to chase the market higher. He highlighted the decline of the VIX, which retreated from above 20 to around 16, as a sign that recent market volatility was an overreaction and an opportunity for stock pickers to buy the dispersion in the market. He suggested that this subdued risk environment sets a positive landscape for the next 30 days, particularly in previously unloved sectors like healthcare, real estate, and energy.
Ives shifted the focus to the MAG7 and believes that the AI revolution is spreading through its second and third derivatives, making tech stocks a 10% to 15% run-up opportunity that investors cannot afford to miss. Dan Ives and Jeff Kilburg both agreed that the market is broadening, supported by the imminent decline of the 10-year Treasury note yield. Kilburg emphasized that even as the market awaits the appointment of a new Fed chairperson, the downward trajectory of interest rates remains a powerful tailwind for US equities across the board.
That being said, we’re here with a list of the 13 most undervalued quality stocks to buy right now.
Our Methodology
We sifted through the Vanguard US Quality Factor ETF holdings to compile a list of the undervalued stocks that had a forward P/E ratio under 15. We then selected 13 stocks that were the most popular among elite hedge funds and that analysts were bullish on. The stocks are ranked in ascending order of the number of hedge funds that have stakes in them, as of Q3 2025.
Note: All data was sourced on February 3.
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 427.7% since May 2014, beating its benchmark by 264 percentage points (see more details here).
13 Most Undervalued Quality Stocks to Buy Right Now
13. WSFS Financial Corporation (NASDAQ:WSFS)
Number of Hedge Fund Holders: 22
WSFS Financial Corporation (NASDAQ:WSFS) is one of the most undervalued quality stocks to buy right now. On January 29, Keefe Bruyette updated its outlook on WSFS Financial and increased the price target to $70 from $63 alongside a Market Perform rating.
On the same day, Piper Sandler also increased its price target for WSFS Financial to $67 from $62 while maintaining a Neutral rating, citing a positive outlook following the company’s recent quarterly performance. The firm boosted its 2026 projections by 8% due to stronger pre-provision net revenue and an aggressive share buyback strategy. The firm noted that the accelerating trends in loans and deposits, coupled with disciplined credit management and significant capital returns, represent a potentially transformative shift in the investment thesis for the stock.
A day before these ratings, TD Cowen raised the price target for WSFS Financial to $73 from $67, keeping a Buy rating following the company’s Q4 2025 results. The upward revision reflects an updated financial model that anticipates sustained growth through 2026, driven by continued strength in the bank’s Wealth and Trust divisions. Earlier, in Q4 2025, WSFS Financial Corporation (NASDAQ:WSFS) headlined a 29% year-over-year increase in EPS to $1.43.
WSFS Financial Corporation (NASDAQ:WSFS) operates as the savings and loan holding company for the Wilmington Savings Fund Society, FSB that provides various banking services in the US.
12. Primerica Inc. (NYSE:PRI)
Number of Hedge Fund Holders: 29
Primerica Inc. (NYSE:PRI) is one of the most undervalued quality stocks to buy right now. On January 28, TD Cowen increased its price target for Primerica to $326 from $322 while maintaining a Buy rating on the shares. This adjustment was made as part of the firm’s broader Q4 2025 preview of the life insurance group, in which TD Cowen maintains a balanced sector view despite anticipating a slight headwind from lower alternative returns.
In Q3 2025, Primerica Inc. (NYSE:PRI) reported a 7% increase in adjusted net operating income to $206 million, with diluted adjusted operating EPS rising 11% to $6.33. The company’s Investment and Savings Product segment was a major growth driver, achieving record sales of $3.7 billion, which was a 28% year-over-year surge, while client asset values reached $127 billion.
However, the Term Life segment faced significant headwinds, as new policies issued dropped 15% compared to the previous year. Management attributed this decline to cost-of-living pressures and economic uncertainty, which have caused clients to delay financial decisions and led to lapse rates exceeding long-term assumptions. Additionally, while the sales force is projected to grow to 153,000 representatives by year-end, recent recruiting and licensing figures have slowed.
Primerica Inc. (NYSE:PRI), together with its subsidiaries, provides financial products and services to middle-income households in the US and Canada.
