14 Most Undervalued NASDAQ Stocks to Buy Now

In this article, we will take a look at the 14 Most Undervalued NASDAQ Stocks to Buy Now.

On September 22, stocks surged to mark a third consecutive day of record-high closes, driven by hopes that the AI trade and additional Fed policy easing would boost the upward trend. However, the surge was put on hold on a variety of fronts by Powell’s caution on September 23. The Nasdaq saw a nearly 1% drop in tech companies, with market favorites Nvidia and Amazon leading the selloff.

After resuming rate cuts again this past week, Powell hinted at a speech in Rhode Island that the central bank would proceed gradually, stressing the difficulty of managing its dual mandate.

Powell’s remarks prepared the scene for the release of the Personal Consumption Expenditures index, the Fed’s favored inflation indicator, on September 26. Expectations for two more rate cuts this year may be dampened if Wall Street sees indications that the already stubborn inflation isn’t becoming worse.

Our Methodology

To come up with our list of the most undervalued NASDAQ stocks to buy now, we went through a variety of online publications, ETFs, and stock screeners to note down equities with forward price-to-earning ratios less than 15. We also used the number of hedge fund investors to rank the stocks, as of Q2 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).

14. Incyte Corporation (NASDAQ:INCY)

Forward P/E Ratio as of September 20: 12.28

Number of Hedge Fund Holders: 42

Incyte Corporation (NASDAQ:INCY) ranks among the most undervalued NASDAQ stocks to buy now. Citizens JMP reaffirmed its Market Perform rating on Incyte Corporation (NASDAQ:INCY) on September 18 after the company revealed updated clinical trial findings for its medication povorcitinib. The company evaluated povorcitinib in patients with moderate-to-severe hidradenitis suppurativa in its pivotal Phase 3 STOP-HS1/HS2 trials, presenting 24-week data at the EADV 2025 Congress.

According to Citizens JMP, povorcitinib continues to show promise in a field that is becoming increasingly competitive, with Phase 3 trials in vitiligo, prurigo nodularis, and CSU currently underway.

Although the firm estimates that the approval of povorcitinib could result in peak revenues of $1 billion, it says that Incyte shares are fairly valued as it waits for a significant acquisition and pipeline discipline to balance the projected $3 billion+ ruxolitinib patent gap by 2029.

Incyte Corporation (NASDAQ:INCY), an American global pharmaceutical company, operates as a market leader in developing treatments for patients suffering from various diseases, including cancer.