In this article, we will look at the 14 Best Undervalued Stocks to Buy Under $50.
On November 5, Torsten Slok, Apollo Global Management’s chief economist, appeared on CNBC’s ‘Power Lunch’ to talk about reading the current market’s concentration.
He stated that since the beginning of the year, the market has been very bifurcated, not just in terms of performance but also in terms of earnings and profit margins. The 2025 EPS consensus estimates for the Mag 7 have gone up since earlier this year, but the same have been going down for the S&P 493, with the chart for 2026 showing a similar picture.
This, according to Slok, shows that the market has come to the conclusion that in saying that earnings have been revised higher for the S&P 500, the primary contributor is the Mag 7 stock group, and not the S&P 493. Profit margins are following a similar trend, having been revised up for the Mag 7, and down for S&P 493.
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He further stated that the Mag 7 group has been growing in size, making up more than 40% of the total market cap in the S&P 500, which is an unusually high concentration.
The key issue with investors right now, according to Slok, is that one is not being diversified in the S&P 500 if one puts money into the index today with a focus only on the Mag 7 because they are in high concentration. This is what makes the distinction between the Mag 7 and S&P 493 so critical, especially when it comes to earnings revisions.
With these trends in view, let’s look at the best undervalued stocks to buy under $50.
Our Methodology
We used Finviz to compile a list of the best stocks under $50 with a forward P/E below 15. We selected the top 14 with the highest number of hedge fund holders as of Q2 2025, sourcing the hedge fund sentiment data from Insider Monkey’s database. The list is sorted in ascending order of hedge fund sentiment.
Note: All data was recorded on November 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. 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).
14 Best Undervalued Stocks to Buy Under $50
14. Banco Santander, S.A. (NYSE:SAN)
Stock Price: $10.29
Forward P/E: 10.40
Number of Hedge Fund Holders: 18
Banco Santander, S.A. (NYSE:SAN) is one of the best undervalued stocks to buy under $50. Banco Santander, S.A. (NYSE:SAN) received a rating update from RBC Capital on November 3, with the firm lifting the price target to EUR 8.50 from EUR 7.50 while keeping a Sector Perform rating on the shares.
The rating followed Banco Santander, S.A.’s (NYSE:SAN) release of results for the nine months of 2025, with revenue stable at €46.3 billion and record net fee income, up 4% year-over-year. Operating expenses, however, dropped by 1%, with management attributing the decrease to the bank’s pivot towards a more digital, simpler, and globally integrated model.
Banco Santander, S.A. (NYSE:SAN) further reported €10.337 billion in attributable profit for the first nine months of 2025, up 11% from the same period last year and marking a record performance for the period for the company. Attributable profit for fiscal Q3 2025 also achieved a new record of €3.504 billion, marking an 8% year-on-year growth and a sixth consecutive record quarter.
In addition, its customer base experienced the addition of more than seven million new customers over the past 12 months, bringing the total number to 178 million. These strong results were attributed to record levels of fee income and further efficiency gains, solid performance in net interest income, and continued improvement in credit quality.
Banco Santander (NYSE:SAN) is a Spain-based company that operates as a retail and commercial bank. Its segments are scattered across Continental Europe, the United Kingdom, Latin America, and the United States.
13. Equinor ASA (NYSE:EQNR)
Stock Price: $24.04
Forward P/E: 8.68
Number of Hedge Fund Holders: 19
Equinor ASA (NYSE:EQNR) is one of the best undervalued stocks to buy under $50. On October 31, TD Cowen analyst Jason Gabelman reiterated a Hold rating on Equinor ASA (NYSE:EQNR) and set a $22 price target.
Separately, Equinor ASA (NYSE:EQNR) reported on November 9 the awarding of new framework agreements for insulation, scaffolding, and surface treatment (ISS) at its onshore plants in Norway, signed with the the joint venture Beerenberg Services AS / Linjebygg AS, KAEFER Energy AS, Bilfinger ISP Offshore Norway AS, and StS-ISONOR AS.
Management reported that this collectively represents over a thousand full-time equivalents, with a duration of up to eight years; four years firm with options for extra two-year extensions. The agreements have an estimated value of around NOK 17 billion.
Equinor ASA (NYSE:EQNR) further reported that with the current agreements expiring at year end, the new ones would be formally put into effect on January 1, 2026. The company expects a “gradual transition” between the new and existing suppliers to ensure operational continuity.
Equinor ASA (NYSE:EQNR) explores, transports, produces, refines, and markets petroleum and petroleum-derived products. The company’s operations are divided into the following segments: Exploration and Production Norway, Exploration and Production International, Exploration and Production USA, Marketing, Midstream, and Processing, Renewables, and Other.
12. Ambev S.A. (NYSE:ABEV)
Stock Price: $2.40
Forward P/E: 13.77
Number of Hedge Fund Holders: 23
Ambev S.A. (NYSE:ABEV) is one of the best undervalued stocks to buy under $50. Bank of America Securities analyst Isabella Simonato maintained a Hold rating on Ambev S.A. (NYSE:ABEV) on November 3. The rating update followed Ambev S.A.’s (NYSE:ABEV) fiscal Q3 results released on October 30, with net revenue (organic) for the quarter rising 1.2% compared to last year.
Management stated that a 7.4% net revenue per hectoliter growth drove top-line performance. In addition, normalized EBITDA rose by 2.9%, with all the company’s business units delivering growing or flat EBITDA. Normalized EBITDA margin expanded by 50 bps to 33.9%, attributed to effective revenue and costs management by the company.
Bolstered by cost management and effective revenue, gross margin also expanded by 10 bps to 51.5% and normalized EBITDA margin expanded by 50 bps to 33.9%. In addition, high cash taxes led to cash flow from operating activities to drop by 14.7% compared to R$8.108 billion in fiscal Q3 2024.
Ambev S.A. (NYSE:ABEV) produces, distributes, and sells beverages. Its offerings include carbonated soft drinks, beer, and other non-alcoholic and non-carbonated products. The company’s operations are divided into the following geographical segments: Brazil, Central America and the Caribbean (CAC), and Canada.
11. Vale S.A. (NYSE:VALE)
Stock Price: $12.23
Forward P/E: 5.95
Number of Hedge Fund Holders: 32
Vale S.A. (NYSE:VALE) is one of the best undervalued stocks to buy under $50. On November 4, Wells Fargo lifted its price target on Vale S.A. (NYSE:VALE) to $12 from $11 and set an Equal Weight rating on the shares.
The firm cited the improving performance in the Base Metals segment, especially supported by precious metal byproduct credits. While it is adopting a cautious stance on the conditions of the iron ore market, Wells Fargo believes that Vale S.A. (NYSE:VALE) has maintained a lid on costs.
Vale S.A. (NYSE:VALE) reported its fiscal Q3 results on October 30, reporting a robust sales performance across all its business segments. Copper, iron ore, and nickel sales rose 20%, 5%, and 6% year-over-year, respectively, attributed to solid operational performance.
Pro forma EBITDA for the quarter reached $4.4 billion, reflecting a 17% year-over-year and 28% quarter-over-quarter growth. This positive trend was attributed to cost efficiencies, higher volumes, and higher iron ore, copper, and by-products prices. In addition, net operating revenue rose 9% year-over-year and 18% quarter-over-quarter.
Vale S.A. (NYSE:VALE) lowered its 2025 cost guidance because of the favorable outlook for byproduct revenues and lower-than-expected costs so far in the year. The company now expects nickle all-in cost to be between $13,000 and $14,000 per ton and copper all-in cost to be between $1,000 and $1,500 per ton. The continued cost improvement translates to an EBITDA growth of around $900 million compared to the company’s expectations at the start of the year.
Vale S.A. (NYSE:VALE) produces and exports pellets, iron ore, manganese, and iron alloys. Its operations are divided into the Energy Transition Materials, Iron Solutions, and Coal and Others segments.
10. Energy Transfer LP (NYSE:ET)
Stock Price: $16.54
Forward P/E: 12.58
Number of Hedge Fund Holders: 36
Energy Transfer LP (NYSE:ET) is one of the best undervalued stocks to buy under $50. Energy Transfer LP (NYSE:ET) and Entergy Louisiana announced the signing of a 20-year natural gas firm transportation agreement on November 4, aiming to deliver affordable and reliable energy to customers while supporting new economic development in North Louisiana. Management reported that the agreement marks the foundation for “Louisiana to lead the way on American energy and artificial intelligence dominance”.
The terms of agreement state that Energy Transfer LP (NYSE:ET) would initially provide 250,000 MMBtu per day of firm transportation service starting in February 2028 and continuing through January 2048. The agreement also offers Entergy the option to expand delivery capacity in the region to catch up with future energy demand.
Energy Transfer LP (NYSE:ET) further reported that Entergy Louisiana’s combined-cycle combustion turbine facilities would be fueled by the natural gas supplied through the agreement. The facilities are under development to provide cleaner and more efficient energy not only for the company’s customers but also “to support projects like Meta’s new hyperscale data center in Richland Parish”.
Energy Transfer LP (NYSE:ET) offers natural gas pipeline transmission and transportation services. The company operates through the following segments: Intrastate Transportation and Storage, Interstate Transportation and Storage, Midstream, NGL and Refined Products Transportation and Services, Crude Oil Transportation and Services, Investment in Sunoco LP, Investment in USAC, and All Other.
9. GSK plc (NYSE:GSK)
Stock Price: $47.10
Forward P/E: 10.50
Number of Hedge Fund Holders: 36
GSK plc (NYSE:GSK) is one of the best undervalued stocks to buy under $50. Deutsche Bank analyst Emmanuel Papadakis released a rating update for GSK plc (NYSE:GSK), maintaining a Hold rating on the stock with a £16 price target on November 4.
GSK plc (NYSE:GSK) recently released its fiscal Q3 earnings on October 29, reporting that vaccines, specialty medicines, and general medicines drove sales, profit, and earnings growth. Total sales for the quarter were £8.5 billion, up 7% AER and 8% CER. Sales in Specialty Medicines rose 16% to £3.4 billion, those in Respiratory, Immunology & Inflammation rose 15% to £1.0 billion, while Oncology and HIV sales grew 39% and 12%, respectively. Vaccine sales in fiscal Q3 2025 rose 2% to £2.7 billion.
Management further reported that core operating profit rose 11% and core EPS experienced a 14% growth, reflecting the above mentioned growth in Specialty Medicines and Vaccines, higher royalty income, and disciplined increased investment in R&D portfolio progression in Oncology and Vaccines.
GlaxoSmithKline, GSK plc (NYSE:GSK) upgraded its 2025 guidance, and now expects core EPS growth of between 10% to 12% compared to the previous range of between 6% to 8%. It also expects core operating profit growth of between 9% to 11% compared to the previous 6% to 8%.
Formerly known as GlaxoSmithKline, GSK plc (NYSE:GSK) is a global healthcare and biopharmaceutical corporation that develops and distributes a range of vaccines, medications, and consumer health items. It is based in the United Kingdom and has over 20 vaccines in its portfolio, positioning it as a leader in vaccines, immunology, and respiratory therapies. The company also develops cancer treatments for multiple myeloma, ovarian cancer, and endometrial cancer, in addition to other drugs.
8. UBS Group AG (NYSE:UBS)
Stock Price: $38.04
Forward P/E: 14.32
Number of Hedge Fund Holders: 36
UBS Group AG (NYSE:UBS) is one of the best undervalued stocks to buy under $50. UBS Group AG (NYSE:UBS) was downgraded to Neutral from Outperform by BNP Paribas Exane on November 4 with a price target of CHF 32.
The same day, UBS Group AG (NYSE:UBS) reported strong fiscal Q3 2025 earnings, with diluted EPS of $0.76 and reported revenue rising 3% year-over-year to $12.76 billion. Profit before tax for the quarter was $2.828 billion and underlying PBT reached $3.590 billion. Both figures rose 47% and 50% year-over-year, respectively. Management attributed these positive results to growth in the company’s core business, with raised their combined underlying PBT excluding litigation by 19% year-over-year.
Net profit attributable to shareholders also rose 74% year-over-year to $2.481 billion, and included net litigation reserve releases of $668 million. This was primarily because of the resolution of legal matters associated with the Credit Suisse’s Residential Mortgage Backed Securities (RMBS) business along with UBS Group AG’s (NYSE:UBS) legacy cross-border activities in France.
Similarly, underlying revenues from the company’s core business rose 7%, attributed to UBS Group’s (NYSE:UBS) diversified global platform and broad-based client momentum. However, underlying revenues in non-core and legacy division of the company dropped by $304 million compared to fiscal Q3 2024, highlighting NCL progress in a significant reduction in its portfolio size.
UBS Group AG (NYSE:UBS) provides financial management solutions, with the company’s operations divided into the following segments: Global Wealth Management, Personal and Corporate Banking, Asset Management, Investment Bank, Non-Core and Legacy, and Group Items.
7. Suncor Energy Inc. (NYSE:SU)
Stock Price: $41.99
Forward P/E: 12.29
Number of Hedge Fund Holders: 42
Suncor Energy Inc. (NYSE:SU) is one of the best undervalued stocks to buy under $50. TD Securities analyst Menno Hulshof lifted the price target on Suncor Energy Inc. (NYSE:SU) to C$71 from C$67 on November 5, while keeping a Buy rating on the stock.
The rating update came after Suncor Energy Inc. (NYSE:SU) reported its fiscal Q3 2025 earnings on November 4, reporting $3.8 billion in adjusted funds from operations and $2.3 billion in free funds flow. The company also reported adjusted operating earnings of $1.794 billion, or $1.48 per common share, compared to $1.875 billion ($1.48 per common share) in the prior year period, as factors such as growth in sales volumes, increase in production, and higher refinery margins managed to largely offset lower upstream price realizations.
In addition, the company returned more than $1.4 billion to shareholders, with $750 million in share repurchases and $700 million in dividends. Suncor Energy Inc. (NYSE:SU) also updated its fiscal 2025 corporate guidance ranges, increasing upstream production from 810,000–840,000 bbls/d to 845,000–855,000 bbls/d and increasing refinery thoroughput from 435,000–450,000 bbls/d to 470,000–475,000 bbls/d.
Suncor Energy Inc. (NYSE:SU) is an integrated energy company that develops petroleum resource basins. Its operations are divided into the following segments: Oil Sands, Exploration and Production, Refining and Marketing, and Corporate and Eliminations.
6. Novo Nordisk A/S (NYSE:NVO)
Stock Price: $46.51
Forward P/E: 13.15
Number of Hedge Fund Holders: 45
Novo Nordisk A/S (NYSE:NVO) is one of the best undervalued stocks to buy under $50. Bernstein analyst Florent Cespedes reiterated his bullish outlook on Novo Nordisk A/S (NYSE:NVO) on November 4 and set a price target of DKK540.
The same day, Novo Nordisk A/S (NYSE:NVO) announced that it submitted an updated unsolicited proposal for the acquisition of Metsera, Inc, including its early and development-stage incretin and non-incretin analogue peptide programmes.
Management reported that the updated unsolicited proposal was declared “superior” by the board of directors of Matsera, and that the acquisition would provide Novo Nordisk A/S (NYSE:NVO) with the “opportunity to maximise the potential of Metsera’s complementary portfolio and capabilities”.
Novo Nordisk A/S (NYSE:NVO) is a global healthcare company specializing in diabetes care. It develops, discovers, manufactures, and markets pharmaceutical products. Its operations are divided into two business segments: biopharmaceuticals and diabetes and obesity care. The latter segment covers GLP-1, insulin, and other protein-related products.
5. BP p.l.c. (NYSE:BP)
Stock Price: $35.82
Forward P/E: 12.33
Number of Hedge Fund Holders: 46
BP p.l.c. (NYSE:BP) is one of the best undervalued stocks to buy under $50. On November 4, Raymond James lifted the price target on BP p.l.c. (NYSE:BP) to $40 from $38 while keeping an Outperform rating on the shares. The firm told investors that BP p.l.c. (NYSE:BP) is traversing the right direction with its strategy reset from earlier in the year. However, some investors are pushing for a faster timeline.
Raymond James further stated that while BP p.l.c. (NYSE:BP) is trading at a material discount, several factors support a favorable risk-reward in the shares, including the company’s new strategy, efforts to divest non-core assets, and to re-prioritise value in the portfolio.
Murray Auchincloss, BP p.l.c. (NYSE:BP) Chief Executive Officer, stated on the same day that six of its major oil and gas projects planned for 2025 are online, with four running ahead of schedule. The company sanctioned its seventh operated production hub in the Gulf of America, and has had additional exploration success. BP p.l.c. (NYSE:BP) also anticipates the full year divestment proceeds to be higher, supported by approximately $5 billion of completed or announced disposal agreements.
In its Q4 2025 guidance, management reported that it expects the reported upstream production to be “broadly flat” when compared to fiscal Q3 2025. Within this, BP p.l.c. (NYSE:BP) expects slighty higher reported production from oil production and operations, and production from gas & low carbon energy to be lower.
Headquartered in London, United Kingdom, BP p.l.c. (NYSE:BP) is an integrated oil and gas company that provides carbon products and services. Its operations are divided into the Gas and Low Carbon Energy, Oil Production and Operations, and Customers and Products segments.
4. Truist Financial Corporation (NYSE:TFC)
Stock Price: $44.01
Forward P/E: 11.15
Number of Hedge Fund Holders: 55
Truist Financial Corporation (NYSE:TFC) is one of the best undervalued stocks to buy under $50. Truist Financial Corporation (NYSE:TFC) received a rating update from Barclays analyst Jason Goldberg, who maintained a Hold rating on the stock and set a $47 price target.
However, Truist Financial Corporation (NYSE:TFC) was upgraded to Buy from Hold at TD Cowen on October 21, with the firm raising the price target to $55 from $48.
The rating updates came after Truist Financial Corporation (NYSE:TFC) reported its fiscal Q3 2025 earnings on October 17, with net income available to common shareholders reaching $1.3 billion, or $1.04 per diluted share. Taxable-equivalent net interest income for the quarter rose 1.2%, or $45 million, compared to fiscal Q2 2025, attributed primarily to an additional day in fiscal Q3 2025, fixed-rate asset repricing, and loan growth.
The company also reported that total revenues for the quarter rose 4%, and average loan balance rose by 2.5% because of broad-based growth across consumer and wholesale segments, driven by an increase in new client acquisition and loan production.
Truist Financial Corporation (NYSE:TFC) is a financial holding company that provides banking services to businesses, individuals, and municipalities. The company operates through the following segments: Consumer Banking and Wealth, Corporate and Commercial Banking, and Other, Treasury and Corporate.
3. Schlumberger Limited (NYSE:SLB)
Stock Price: $36.36
Forward P/E: 12.57
Number of Hedge Fund Holders: 63
Schlumberger Limited (NYSE:SLB) is one of the best undervalued stocks to buy under $50. Schlumberger Limited (NYSE:SLB) was initiated with a Buy rating by Rothschild & Co Redburn on November 3 with a $48 price target.
The firm told investors that Schlumberger Limited (NYSE:SLB) has managed to reshape its business in recent years, even when its shares have “derated materially”, increasing exposure to less cyclical areas by acquiring ChampionX and disposing of “capital-intensive” assets.
Rothschild & Co Redburn cited several catalysts it sees driving a re-rating of the shares, including an increase in free cash flow and distributions and a return to earnings upgrades.
The same day as the rating update, Schlumberger Limited (NYSE:SLB) announced the launch of Tela™, a purpose-built agentic AI assistant specialized for the transformation of the upstream energy sector.
Management reported that Tela “leverages agentic AI to not only automate processes but transform workflows and drive better business outcomes”, and would be embedded in the company’s portfolio of platforms and applications. Users will be able to interact via a simple conversational interface, allowing the agentic AI to take on the role of a proactive collaborator.
Schlumberger Limited (NYSE:SLB) provides energy technology and operates through the following business segments: Digital and Integration, Reservoir Performance, Well Construction, and Production Systems.
2. Bristol-Myers Squibb Company (NYSE:BMY)
Stock Price: $46.63
Forward P/E: 7.12
Number of Hedge Fund Holders: 67
Bristol-Myers Squibb Company (NYSE:BMY) is one of the best undervalued stocks to buy under $50. Bristol-Myers Squibb Company (NYSE:BMY) was assigned a Hold rating by Bernstein analyst Courtney Breen on November 3, who maintained the price target at $58.
Bristol-Myers Squibb Company (NYSE:BMY) announced strong Q3 results on October 30, with both revenue and EPS exceeding expectations, supported by pipeline advancements, growth portfolio momentum, and strategic business development.
Growth portfolio revenues rose 18% to $6.9 billion compared to the prior year period, driven primarily by the company’s immuno-oncology (IO) portfolio, Reblozyl, Camzyos and Breyanzi. However, revenues of the Legacy Portfolio dropped 12% to $5.4 billion, because of expected continued generic impact across the rest of the Legacy Portfolio more than offsetting the increased demand for Eliquis. GAAP EPS for the quarter was $1.08 and non-GAAP EPS was $1.63.
Bristol-Myers Squibb Company (NYSE:BMY) also raised its full-year 2025 non-GAAP revenue guidance to an approximately $47.5 billion to $48.0 billion range from the previous range of around $46.5 billion to $47.5 billion, with the update taking into account the continued solid performance of the company’s Growth Portfolio.
Bristol-Myers Squibb Company (NYSE:BMY) is a biopharmaceutical company that discovers, develops, and delivers advanced medicines for serious diseases. Its medicines fall into various therapeutic classes, including hematology, oncology, cardiovascular, immunology, and neuroscience.
1. Pfizer Inc. (NYSE:PFE)
Stock Price: $24.42
Forward P/E: 7.90
Number of Hedge Fund Holders: 83
Pfizer Inc. (NYSE:PFE) is one of the best undervalued stocks to buy under $50. Pfizer Inc. (NYSE:PFE) received a rating update from TD Cowen analyst Steve Scala on November 4, who maintained a Hold rating on the stock and set a $30 price target.
Pfizer Inc. (NYSE:PFE) reported its fiscal Q3 2025 results the same day, announcing that revenue for the quarter experienced a 7% year-over-year operational decline to $16.7 billion. The operational decrease was attributed to a year-over-year decline in COVID-19 product revenues, primarily because of lower infection rates affecting the demand for Paxlovid along with a “narrower” vaccine recommendation for COVID-19 in the United States, reducing the eligible population for Comirnaty. However, strengthening commercial execution led to a 4% operational revenue growth of the non-COVID portfolio.
The company further reported that fiscal Q3 2025 diluted EPS was $0.62, and adjusted diluted EPS reached $0.87. Management reaffirmed the full-year 2025 revenue guidance in the $61.0 to $64.0 billion range, and raised and narrowed adjusted diluted EPS guidance to a range of $3.00 to $3.15 from $2.90 to $3.10 previously.
Management stated that the updated adjusted diluted EPS guidance factors in the company’s solid year-to-date performance, progress with ongoing cost improvement initiatives, continued confidence in the business, and improvement in its effective tax rate.
Pfizer Inc. (NYSE:PFE) is a global biopharmaceutical company that manufactures, develops, markets, and sells biopharmaceutical products worldwide. It advances wellness, prevention, treatment, and cures in developing and emerging markets.
While we acknowledge the potential of PFE 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 PFE and that has 100x upside potential, check out our report about this cheapest AI stock.
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