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.
13. Churchill Downs Incorporated (NASDAQ:CHDN)
Forward P/E Ratio as of September 20: 13.96
Number of Hedge Fund Holders: 43
Churchill Downs Incorporated (NASDAQ:CHDN) ranks among the most undervalued NASDAQ stocks to buy now. On September 16, JMP Securities reiterated its Market Outperform rating for Churchill Downs Incorporated (NASDAQ:CHDN) along with a price target of $142. The firm maintained its optimistic outlook for the racecourse and casino company, saying that Churchill Downs Incorporated (NASDAQ:CHDN) is currently trading at 9.4x 2027 expected EBITDA, which is lower than its long-term average of 11.7x.
JMP identified numerous potential triggers for the stock’s performance before the 2026 Kentucky Derby, which include historical racing machines (HRMs), financing decisions, and expected return on invested capital (ROIC). The firm anticipates that these variables will contribute to substantial year-over-year growth for the company.
Churchill Downs Incorporated (NASDAQ:CHDN) is a gambling company that offers online betting, gaming, and racing. It is divided into three business divisions: live and historical racing, wagering services, and gaming.
12. SS&C Technologies Holdings, Inc. (NASDAQ:SSNC)
Forward P/E Ratio as of September 20: 13.63
Number of Hedge Fund Holders: 43
SS&C Technologies Holdings, Inc. (NASDAQ:SSNC) ranks among the most undervalued NASDAQ stocks to buy now. UBS reaffirmed its Buy rating for SS&C Technologies Holdings, Inc. (NASDAQ:SSNC) on September 11th, citing a $110 price target. The firm named SS&C as a top idea, stating that it gives investors “a unique opportunity to benefit from disruption in financial services fueled by substantial data needs amid growing asset complexity.”
Despite increased market volatility, SS&C Technologies Holdings, Inc. (NASDAQ:SSNC) showed tenacity with a 97% retention rate in Q2, up 20 basis points from the previous year. According to UBS, the company’s diversification across business lines and client connections has helped it achieve “structurally higher organic revenue growth” that the market is not yet fully acknowledging.
The firm also pointed out that BluePrism, which SS&C Technologies Holdings, Inc. (NASDAQ:SSNC) acquired for $1.6 billion, keeps improving its AI strategy by promoting automation. In that vein, SS&C’s first AI agent solution, which was sold to an insurance conglomerate, reduced manual effort by as much as 80%.
SS&C Technologies Holdings, Inc. (NASDAQ:SSNC) offers software and services that streamline intricate business processes in financial services and healthcare.
11. Exelixis, Inc. (NASDAQ:EXEL)
Forward P/E Ratio as of September 20: 12.80
Number of Hedge Fund Holders: 43
Exelixis, Inc. (NASDAQ:EXEL) ranks among the most undervalued NASDAQ stocks to buy now. On September 17, Barclays began coverage of Exelixis, Inc. (NASDAQ:EXEL), rating it Equalweight and setting a price target of $40 on the company’s shares. The firm forecasts cabozantinib, Exelixis’ major value driver, will climb in the mid-single digits until its patent expires in 2029.
Barclays predicts overall revenue for 2029 to be around 8% lower than consensus, owing mostly to decreased sales contribution expectations from Exelixis, Inc. (NASDAQ:EXEL) pipeline products. Based on the current sales trajectory of cabozantinib, the firm sees possible downside risks to both its own and consensus expectations.
Meanwhile, Zanzalintinib, Exelixis’ key pipeline candidate, has the potential to improve colorectal cancer and non-clear cell renal carcinoma treatments in the near future. However, Barclays believes that zanzalintinib will find it difficult to proceed to earlier treatment lines in colorectal cancer due to the competitive landscape.
Exelixis, Inc. (NASDAQ:EXEL) focuses on developing targeted cancer treatments. The company specializes in molecular therapies that treat difficult-to-treat cancers by targeting particular mutations in the genome.
10. Keurig Dr Pepper Inc. (NASDAQ:KDP)
Forward P/E Ratio as of September 20: 12.44
Number of Hedge Fund Holders: 46
Keurig Dr Pepper Inc. (NASDAQ:KDP) ranks among the most undervalued NASDAQ stocks to buy now. On September 17, Piper Sandler maintained its Overweight rating on Keurig Dr Pepper Inc. (NASDAQ:KDP) but reduced its price target from $40 to $35. Following the acquisition of JDEP, Piper Sandler expressed worries regarding KDP’s post-acquisition leverage, which the firm predicts will result in the company’s pro-forma leverage reaching around 5.2x by the end of 2026 and then dropping to roughly 4.3x by the end of 2027.
Piper Sandler is still optimistic about Keurig Dr Pepper Inc. (NASDAQ:KDP) despite the price target cut, pointing out that the company boasts strong top-line momentum and leads opposing soda manufacturers in U.S. retail beverage channels. Additionally, the firm found that its third-quarter 2025 Ghost brand forecast could rise by almost $20 million.
Keurig Dr Pepper Inc. (NASDAQ:KDP), a 2018 merger, comprises well-known brands such as Dr Pepper, Canada Dry, Snapple, Keurig single-serve coffee pods, and Ghost energy drinks.
9. Jazz Pharmaceuticals plc (NASDAQ:JAZZ)
Forward P/E Ratio as of September 20: 5.97
Number of Hedge Fund Holders: 46
Jazz Pharmaceuticals plc (NASDAQ:JAZZ) ranks among the most undervalued NASDAQ stocks to buy now. Piper Sandler reaffirmed its Overweight rating and $147 price target for Jazz Pharmaceuticals plc (NASDAQ:JAZZ) on September 15 in expectation of data from the upcoming clinical trial. Jazz is gearing up to report progression-free survival data from its HERIZON-GEA-01 study in the fourth quarter of 2025. The trial assesses zanidatamab as the first-line therapy for advanced/metastatic gastroesophageal adenocarcinoma.
To talk about the possible results of the experiment, Piper Sandler recently convened a webinar with a top oncologist experienced with gastroesophageal adenocarcinoma. According to the specialist’s evaluation, Piper Sandler believes that should the trial’s outcomes be favorable, zanidatamab may be able to establish a sizable commercial presence in the treatment market.
Jazz Pharmaceuticals plc (NASDAQ:JAZZ) is a biopharmaceutical company that develops treatments for serious illnesses. Its key products include Xywav, Xyrem, Epidiolex, Rylaze, Zepzelca, Defitelio, and Vyxeos.
8. Cognizant Technology Solutions Corporation (NASDAQ:CTSH)
Forward P/E Ratio as of September 20: 12.11
Number of Hedge Fund Holders: 47
Cognizant Technology Solutions Corporation (NASDAQ:CTSH) ranks among the most undervalued NASDAQ stocks to buy now. On September 16, Ambit Capital reduced its price target for Cognizant Technology Solutions Corporation (NASDAQ:CTSH) from $84 to $82 while upgrading the company from Sell to Buy. After losing in important sectors like BFSI and Healthcare, which account for 60% of its revenue, Ambit states that the company’s performance is now comparable to or better than its tier-1 peers, which also highlighted Cognizant’s improving growth trajectory.
A number of Cognizant Technology Solutions Corporation (NASDAQ:CTSH) operational gains were highlighted by Ambit Capital, including attrition rates that are now on par with peers, increased offshoring, decreased client attrition, improved capabilities in SaaS and ER&D, and improved operational efficiencies.
Ambit Capital hinted at Cognizant Technology Solutions Corporation (NASDAQ:CTSH) having further room to invest as long as SG&A and outsourcing are allowed.
Cognizant Technology Solutions Corporation (NASDAQ:CTSH) is a multinational IT services company that helps businesses modernize via digital technology.
7. AstraZeneca PLC (NASDAQ:AZN)
Forward P/E Ratio as of September 20: 14.81
Number of Hedge Fund Holders: 48
AstraZeneca PLC (NASDAQ:AZN) ranks among the most undervalued NASDAQ stocks to buy now. Goldman Sachs maintained its Conviction Buy rating on AstraZeneca PLC (NASDAQ:AZN) and boosted its price target from GBP148.83 to GBP150.13 on September 16. The adjustment comes while AstraZeneca PLC (NASDAQ:AZN) awaits the results of a Phase 3 trial for efzimfotase alfa, an enzyme replacement treatment for hypophosphatasia (HPP).
Goldman Sachs anticipates these findings soon, pointing out that the HICKORY and CHESTNUT trials were primarily completed on July 9 and July 23, respectively.
Efzimfotase alfa’s economic potential is “underappreciated by the market,” according to the firm, which projects unrisked peak sales of $3.7 billion. Although this estimate falls within the lower end of management’s forecast range of $3–5 billion, it is 85% higher than the consensus estimates of $2 billion.
AstraZeneca PLC (NASDAQ:AZN) is a prominent player in the pharmaceutical sector, especially for its work on rare disease and cancer treatments. The company has a strong reputation in the healthcare industry thanks to its history of medical advancements.
6. Biogen Inc. (NASDAQ:BIIB)
Forward P/E Ratio as of September 20: 9.01
Number of Hedge Fund Holders: 55
Biogen Inc. (NASDAQ:BIIB) ranks among the most undervalued NASDAQ stocks to buy now. On September 18, Biogen Inc. (NASDAQ:BIIB) announced that it had finalized a deal to acquire Alcyone Therapeutics for an initial cash payment of $85 million and milestone payments.
The acquisition focuses on the ThecaFlex DRx, an implantable subcutaneous port and catheter device that is being researched for antisense oligonucleotide (ASO) intrathecal delivery. The system is intended to give patients with neurological illnesses a chronic medication delivery option that does not require repeated lumbar punctures.
Following the acquisition, Biogen Inc. (NASDAQ:BIIB) will be in charge of ThecaFlex DRx’s total development, production, and marketing. The PIERRE and PIERRE-PK clinical studies are now being used to assess the system in individuals with spinal muscular atrophy using SPINRAZA (nusinersen).
Biogen Inc. (NASDAQ:BIIB) is a multinational biopharmaceutical company dedicated to discovering, developing, and providing innovative treatments to patients with severe complex illnesses.
5. Gilead Sciences, Inc. (NASDAQ:GILD)
Forward P/E Ratio as of September 20: 13.24
Number of Hedge Fund Holders: 71
Gilead Sciences, Inc. (NASDAQ:GILD) ranks among the most undervalued NASDAQ stocks to buy now. Citing momentum in Gilead Sciences, Inc. (NASDAQ:GILD)’s product pipeline, Moody’s updated the company’s outlook from stable to positive on September 18, maintaining the company’s A3 senior unsecured ratings. The forecast takes into account Gilead’s recent clearance by regulators and introduction of Yeztugo, the first HIV prevention twice-yearly subcutaneous injectable.
According to Moody’s, Gilead’s liver and cancer platforms have a solid position for future expansion, especially with drugs like Livdelzi and Trodelvy.
Moreover, the firm identified governance risk concerns as a major factor in the rating update, indicating a favorable assessment of management’s financial strategy and credibility. In recent years, Gilead Sciences, Inc. (NASDAQ:GILD) has upheld conservative financial practices, concentrating on bolt-on acquisitions under $5 billion.
Gilead Sciences, Inc. (NASDAQ:GILD), a U.S. biopharmaceutical company headquartered in Foster City, California, focuses on developing antiviral treatments for illnesses such as COVID-19, hepatitis B and C, influenza, and HIV/AIDS.
4. Regeneron Pharmaceuticals, Inc. (NASDAQ:REGN)
Forward P/E Ratio as of September 20: 14.73
Number of Hedge Fund Holders: 73
Regeneron Pharmaceuticals, Inc. (NASDAQ:REGN) ranks among the most undervalued NASDAQ stocks to buy now. Regeneron Pharmaceuticals, Inc. (NASDAQ:REGN) reported on September 17 that its experimental medicine garetosmab has met the primary endpoint in a phase 3 trial for adults with fibrodysplasia ossificans progressiva, a rare genetic condition in which muscles, tendons, and ligaments gradually convert into bone.
According to the OPTIMA trial, at 56 weeks, both garetosmab dosages decreased new bone lesions by 90% or more when compared to a placebo.
An Independent Data Monitoring Committee advised switching placebo patients to garetosmab medication immediately based on the safety profile and results. By the end of 2025, Regeneron Pharmaceuticals, Inc. (NASDAQ:REGN) aims to submit the medication for regulatory approval in the US, with global submissions expected for the year after.
Regeneron Pharmaceuticals, Inc. (NASDAQ:REGN) is a prominent biopharmaceutical company that discovers, develops, and commercializes medicines for a variety of diseases, including cancer, eye disorders, and allergies.
3. Western Digital Corp. (NASDAQ:WDC)
Forward P/E Ratio as of September 20: 14.75
Number of Hedge Fund Holders: 74
Western Digital Corp. (NASDAQ:WDC) ranks among the most undervalued NASDAQ stocks to buy now. Benchmark raised its price target for Western Digital Corp. (NASDAQ:WDC) to $115 from $85 on September 16, retaining a Buy rating on the company’s shares. According to Benchmark, the hike is a result of extended lead times for high-capacity drives, which have reached nearly a year due to increased demand.
Benchmark has also amended its fiscal year 2026 projections for Western Digital Corp. (NASDAQ:WDC), now forecasting non-GAAP earnings of $7.29 per diluted share on sales of $11.43 billion. This figure is up from its earlier expectation of $6.92 per diluted share on sales of $11.15 billion.
The firm expects Western Digital’s performance to be driven by the sustained strength of its AI and data center clients in fiscal year 2027.
Western Digital Corp. (NASDAQ:WDC) is a well-known manufacturer and developer of data storage solutions and devices. The company’s product lines include external storage systems, NAND flash-based solutions, and hard disk drives (HDDs).
2. Comcast Corporation (NASDAQ:CMCSA)
Forward P/E Ratio as of September 20: 7.00
Number of Hedge Fund Holders: 82
Comcast Corporation (NASDAQ:CMCSA) ranks among the most undervalued NASDAQ stocks to buy now. UBS reaffirmed its Neutral rating and $36 price target for Comcast Corporation (NASDAQ:CMCSA) on September 18, citing pressure from rising investments in connectivity on the media giant. Comcast’s go-to-market initiatives, such as new broadband pricing, free mobile lines, and higher marketing and customer support costs, have caused the firm to revise its projections.
Comcast’s total company revenue and EBITDA have been forecast to drop 3.2% and 1.6%, respectively, in the third quarter, beating UBS’s earlier projections of -2.9% and -0.8%. For the full year, UBS continues to predict flat revenues and a 1.1% decrease in EBITDA, which marks a downward revision from its earlier forecast of -0.5%. The firm also predicts declines in the connectivity and content areas.
Comcast Corporation (NASDAQ:CMCSA) is a media, entertainment, and communications company that operates through three business units: Cable Communications, NBCUniversal, and Sky, the top entertainment provider in Europe.
1. PayPal Holdings, Inc. (NASDAQ:PYPL)
Forward P/E Ratio as of September 20: 11.72
Number of Hedge Fund Holders: 89
PayPal Holdings, Inc. (NASDAQ:PYPL) ranks among the most undervalued NASDAQ stocks to buy now. On September 15, PayPal Holdings, Inc. (NASDAQ:PYPL) unveiled PayPal links, a new tool that enables users to transfer and receive money using customized, one-time links that may be shared on multiple messaging apps.
Additionally, PayPal Holdings, Inc. (NASDAQ:PYPL) announced plans to incorporate cryptocurrency directly into its peer-to-peer payment system. This will enable users in the United States to send cryptocurrencies like Bitcoin, Ethereum, PYUSD, and others to digital wallets that facilitate cryptocurrency transactions, such as Venmo and PayPal.
According to the firm, Venmo saw its largest increase in total payment volume in three years, while peer-to-peer and other consumer payments rose 10% year-over-year in the second quarter.
PayPal Holdings, Inc. (NASDAQ:PYPL), based in San Jose, California, operates a technology platform that enables digital payments for merchants and customers worldwide. The company provides payment services under several brands, including PayPal, Credit, Braintree, Venmo, Xoom, and Zettle.
While we acknowledge the potential of PYPL 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 PYPL and that has 100x upside potential, check out our report about this cheapest AI stock.
READ NEXT: 10 Best Magic Formula Stocks for 2025 and 10 Best Retirement Stocks to Buy According to Hedge Funds.
Disclosure: None. Insider Monkey focuses on uncovering the best investment ideas of hedge funds and insiders. Please subscribe to our free daily e-newsletter to get the latest investment ideas from hedge funds’ investor letters by entering your email address below.
