“I think the economic outlook is actually good,” according to Roger Altman, founder and senior chairman of Evercore, during an interview on CNBC’s Squawk Box on February 25. He then proceeded to enumerate several economic data points to support this claim.
Roger said Evercore expects real GDP to grow between 2.50% to 2.75% for 2026. Inflation is trending back down and is now approaching the lower bound of the US Fed’s target range. Nominal wages are also expected to grow by over 3% this year, which would mean that real wage growth would likely be positive (assuming inflation holds at its current level). The corporate profit outlook is also quite good.
Gary Cohn, IBM vice chair and former Trump National Economic Council director, had similar sentiments. According to him, during an interview with CNBC on February 27, “We’ve got a lot of really positive economic tailwinds.” One of these tailwinds he mentioned is the higher expected tax refunds that consumers will receive come tax filing season, due to the Build Back Better bill (which lowered taxes but not the withholding rates).
Gary further added that he thinks more traditional companies, rather than growth companies, will be the ones to benefit the most from these tailwinds. He said, “I think we’re having a rotation,” as investors start to reassess whether the growth estimates for tech stocks are still reasonable.
Given this backdrop of improving economic outlook and the rotation to the more undervalued, low multiple, traditional stocks, let us now take a look at the 14 most undervalued NYSE stocks to buy according to analysts.
Our Methodology
We screened stocks listed on the NYSE with a market capitalization of at least $2 billion, at least three analysts covering them, a median projected upside of at least 25%, and a forward price-to-earnings (P/E) ratio between 3x and 15x. We then filtered the list to only contain stocks with at least 15 hedge fund holders, according to Insider Monkey’s proprietary hedge fund database, which tracks over 1000 hedge funds as of Q4 2025. Finally, we selected and ranked the 14 stocks with the highest median projected upside from analysts. When two or more stocks were tied on upside, we used the number of hedge fund holders as a tiebreaker.
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).
Note: All data presented are as of 27 February 2026.
14. Sonic Automotive Inc. (NYSE:SAH)
Sonic Automotive Inc. (NYSE:SAH) is one of the 14 Most Undervalued NYSE Stocks to Buy According to Analysts.
Stephens, on February 19, trimmed its target price on Sonic Automotive by 1.5% and retained its Equal Weight call on the stock. The target price update came as a result of the firm adjusting its 2026 forecasts and initiating its 2027 estimates, following the release of the company’s Q4 2025 earnings report a day before, on February 18.
The earnings release showed solid results for Sonic. It delivered adjusted EPS of $1.52, just barely beating street consensus estimates of $1.50 despite a slight miss in revenue ($3.87 billion actual vs. $3.94 street consensus).
Even with a solid quarter (and a record year in revenue), Sonic’s management warned about the potential impact of rapidly rising vehicle prices, which would dampen consumer demand in 2026. Frank Dyke, Vice President of Retail Strategy during the Q&A segment of the earnings briefing, said that “The prices are just getting too high,” with manufacturers starting to pass on the costs more and more to consumers, “in a way that we did not see in 2025.” He is now concerned that consumers may not be able to deal with much more, which could lead to softer demand.
Sonic Automotive Inc. (NYSE:SAH) is an automotive retailer, selling both new and used cars and providing maintenance, warranty, paint, and repair services. The company is based in Charlotte, North Carolina, and was founded in January 1997 by Ollen Bruton Smith and Bryan Scott Smith.
13. Lincoln National Corporation (NYSE:LNC)
Lincoln National Corporation (NYSE:LNC) is one of the 14 Most Undervalued NYSE Stocks to Buy According to Analysts.
Wells Fargo upgraded its call on Lincoln National to Overweight (from Equal Weight) on February 25. This rating upgrade was accompanied by a 17.1% increase in the firm’s target price on the company to $48 (from $41). These changes were triggered by the release of the company’s FY 2025 earnings briefing on February 12.
The firm thinks that the company’s “momentum is gathering in a positive direction,” as shown by the 39% YoY growth in the free cash flows to the firm that Lincoln National generated in FY 2025. The life insurance segment was a key driver for this cash flow growth, with operating profit margins improving sequentially from improved mortality rates and higher alternative investment income.
With this improved cash flow, the company was able to meet its 2026 targets for capital buffer (as measured by its Risk-Based Capital (RBC) ratio) and leverage (as measured by its leverage ratio) a year in advance. With the balance sheet targets met, Wells now believes that Lincoln will start buying back stocks as early as 2026 and will ramp up in 2027 and 2028.
Lincoln National Corporation (NYSE:LNC), through its subsidiaries, provides insurance and retirement policies. The company is based in Radnor, Pennsylvania, and was founded in 1968.
12. Crescent Energy Company (NYSE:CRGY)
Crescent Energy Company (NYSE:CRGY) is one of the 14 Most Undervalued NYSE Stocks to Buy According to Analysts.
Crescent Energy, on February 25, released its Q4 2025 earnings. The release showed the company beating analyst expectations in the fourth quarter by posting adjusted diluted earnings per share of $0.49 (vs. the street consensus of $0.33).
The earnings beat was driven primarily by improved pumping efficiency, which allowed the company to extract more oil and gas from its existing wells. The positive impact from the efficiency gains more than offset the modest decline in oil and natural gas liquids (NGL) prices.
Realized synergies from Crescent’s acquisition of Vital Energy, in the form of operational efficiencies, overhead optimization, marketing improvements, and refinancing opportunities, also played a part in the strong earnings. To date, the company has realized ~$40 million in annual cost savings, out of the initial target of $90 to $100 million. It now expects to double this initial target.
The volume growth and cost rationalization, combined with lower CapEx, translated into substantial free cash flow generation, with a FCF yield of ~31% in 2025. The strong cash flows give Crescent the flexibility to accelerate its deleveraging (with a clear pathway to an investment-grade credit rating), increase capital returns to shareholders (a fixed quarterly dividend of $0.12 per share, ~$336 million in remaining buyback authorization), and fund accretive M&A.
Crescent Energy Company (NYSE:CRGY) is an energy company with a portfolio of oil and gas assets in Texas and the Rocky Mountain region. The company is based in Houston, Texas.
11. KBR Inc. (NYSE:KBR)
KBR Inc. (NYSE:KBR) is one of the 14 Most Undervalued NYSE Stocks to Buy According to Analysts.
KBR released its Q4 2025 earnings on February 26, which were headlined by a 10% YoY increase in adjusted diluted earnings per share, beating the street consensus estimate of $0.99.
Margin expansion, especially from the mission tech segment, was the key driver for this beat. Strong project execution kept costs in check, while portfolio discipline ensured that new projects were margin accretive (or at the very least, not dilutive). This margin expansion more than offset the revenue decline, which was caused by NASA funding restrictions and procurement delays.
The strong earnings translated into a 24% YoY increase in operating cash flows. This strong cash flow generation allowed the company, in FY 2025, to delever its balance sheet (below 2.5x net debt to EBITDA), fund organic growth, and return capital to shareholders (to the tune of $84 million in dividends and $329 million in share buybacks).
For 2026, management expects revenue, EBITDA, earnings, and operating cash flows to grow by ~3% to 4%, supported by backlog coverage and margin discipline. They also expect to fully execute the spin-off of KBR’s mission tech segment, initially announced on September 24 last year, by the 2nd half of 2026.
KBR Inc. (NYSE:KBR) provides science, technology, engineering, and logistics support solutions to the government and enterprises, through its two main segments: Sustainable Tech and Mission Tech. The company is based in Houston, Texas, and was founded in March 2006.
10. DNOW Inc. (NYSE:DNOW)
DNOW Inc. (NYSE:DNOW) is one of the 14 Most Undervalued NYSE Stocks to Buy According to Analysts.
Sitel, on February 23, trimmed its target price on DNOW by 11.1% to $16 (from $18), while retaining its Buy recommendation on the stock. This target price cut comes a couple of days after the company released its Q4 2025 earnings on February 20, which showed the increased risk from lingering ERP implementation issues.
David Cherechinsky, DNOW’s President and Chief Executive Officer, addressed this issue during the analyst briefing. According to him, the challenges in MRC Global’s US ERP implementation (which were communicated in the 3rd quarter, pre-merger) were more persistent than initially anticipated. He described the issue as follows:
“Design architecture is resulting in inefficiencies for certain core processes, continuing negative operating and financial impacts. Observed limitations across the system are that it is slow, impedes customer service, requires more resources, increases safety stock, and difficulty in processing orders.”
The negative revenue, profit margin, and cash flow impact from the persistent issues (which affected ~40% of DNOW’s consolidated business) spilled over well into the 4th quarter. Despite the earnings miss, Sitel believes that the ERP issues will “ultimately be transitory in nature.”
DNOW Inc. (NYSE:DNOW) is a holding company engaged in the distribution of energy products for industrial clients in the United States, Canada, and internationally. The company is based in Houston, Texas, and was founded in November 2013.
9. Equitable Holdings Inc. (NYSE:EQH)
Equitable Holdings Inc. (NYSE:EQH) is one of the 14 Most Undervalued NYSE Stocks to Buy According to Analysts.
Wells Fargo, on February 25, trimmed its target price on Equitable Holdings by 5.0% to $57 (from $60) but retained its Overweight call on the stock. The firm is generally reducing its 2026 EPS forecasts across the board, as most companies reported in-line to below consensus earnings growth guidance for 2026, leading to the price target cut.
As for Equitable Holdings, management released its guidance along with the Q4 2025 earnings on February 4. They are projecting 12% to 15% YoY adjusted operating EPS growth until 2027. This growth will be driven by double-digit growth in the wealth management segment and mid-to-high single-digit growth in the retirement segment.
The earnings growth will then translate to 11% to 13% growth in cash generation, which management is targeting to reach $2 billion annually by 2027. This strong cash flow generation will allow Equitable to deliver capital returns to its shareholders, with management targeting to return 60% to 70% of adjusted earnings to shareholders in the form of dividends and share buybacks.
Equitable Holdings Inc. (NYSE:EQH) is a financial services holding company, operating in the following segments: Individual retirement, group retirement, investment management and research, protection solutions, and wealth management. The company is based in New York, New York, and was founded in 1859 by Henry B. Hyde.
8. Fidelity National Information Services Inc. (NYSE:FIS)
Fidelity National Information Services Inc. (NYSE:FIS) is one of the 14 Most Undervalued NYSE Stocks to Buy According to Analysts.
RBC Capital, on February 25, reduced its target price on Fidelity National Information Services by 19.8% to $69 (from $86) but retained the firm’s Outperform call on the stock. The fourth-quarter earnings miss, combined with below-consensus guidance for 2026, was to blame for this price cut. Nonetheless, the firm likes the strong free cash flow generation, which could “lay the groundwork for a cleaner and more powerful total return story.”
FIS released its 4th-quarter 2025 earnings on February 24. The release showed a slight miss in diluted adjusted earnings per share ($1.68 actual vs. $1.69 street consensus vs. $1.40 prior year), despite exceeding revenue expectations ($2.81 billion actual vs. $2.74 billion street consensus). This phenomenon implies that profit margins did not expand as much as analysts were expecting.
Management also provided its guidance for Q1 2026. The guidance included an adjusted EPS forecast of $1.26 to $1.30, which is lower than consensus estimates of $1.34. The guidance miss, again, can be attributed to lower margins than expected, given that revenue guidance exceeded analyst estimates.
Despite the earnings and guidance disappointments, cash flow generation remained strong (with free cash flow growth outpacing earnings growth). Management expects this trend to continue. They expect free cash flows in 2026 to grow 27% to 33% YoY (vs. 8% to 10% adjusted EPS growth).
Fidelity National Information Services Inc. (NYSE:FIS) provides banking and capital markets solutions for financial institutions and businesses. The company is based in Jacksonville, Florida, and was founded in 1968.
7. Salesforce Inc. (NYSE:CRM)
Salesforce Inc. (NYSE:CRM) is one of the 14 Most Undervalued NYSE Stocks to Buy According to Analysts.
Truist, on February 27, reduced its target price on Salesforce by 26.3% to $280 (from $380), while retaining the firm’s Buy recommendation on the stock. Sector-wide valuation compression was the main driver of this price cut, overshadowing an otherwise stable Q4 FY 2026 results, which showed modest upside in subscription and revenue growth. Noisy FY 2027 guidance, due to Informatica’s inclusion and soft organic Salesforce guide, also contributed to the target price update.
This update comes two days after Salesforce released its Q4 FY 2026 results on February 25. The release was headlined by a 37% YoY growth in diluted adjusted earnings per share to $3.81, beating street consensus estimates of $3.05. Earnings growth was driven primarily by rapid growth in the company’s Agentforce 360 and Slack platforms.
Management also provided its guidance for FY 2027. For Truist, the main concern was the revenue guidance. Management is expecting 10% to 11% growth in consolidated revenue for FY 2027. Removing the effect of the Informatica acquisition, the implied revenue growth for just the Salesforce portion comes out to around 7% to 8%. This organic growth figure would be a deceleration compared to the 10% YoY growth Salesforce posted in FY 2026.
Salesforce Inc. (NYSE:CRM) is a global enterprise software company that provides customer relationship management (CRM) and cloud-based business applications across sales, service, marketing, commerce, and data analytics. Its Customer 360 platform, powered by data tools and trusted AI, enables organizations to unify customer data and drive personalized engagement.
6. KKR & Co. Inc. (NYSE:KKR)
KKR & Co. Inc. (NYSE:KKR) is one of the 14 Most Undervalued NYSE Stocks to Buy According to Analysts.
RBC Capital initiated coverage of KKR on February 24, assigning the company an Outperform rating and a target price of $137. The firm sees KKR making good progress relative to its mid-term and long-term targets, which the company set during an investor day presentation last April 2024. This track record, combined with the attractive valuations due to the recent selloff, makes a good entry point for investors to invest in “one of the leading alternative asset management franchises.”
KKR, back in its 2024 investor day, set out several milestones for 2026, many of which are well within reach. Strategic holdings’ operating earnings were one of these metrics, with management targeting $300 million p.a. by 2026. Following Q4 earnings, management now believes it will surpass this mark and reach $350 million by year-end.
Another metric that was mentioned was fee-related earnings per adjusted share (FREPS), with management targeting $4.50 by 2026. 2025 results showed FRE of $4.13, after growing 14% YoY. This result means that KKR would only need to grow its FRE by 9% in 2026 to reach its target.
KKR & Co. Inc. (NYSE:KKR) is an investment firm, offering alternative asset management, capital markets, and insurance solutions. The company is based in New York, New York, and was founded in May 1976 by Henry Kravis, George R. Roberts, and Jerome Kohlberg.
5. UWM Holdings Corporation (NYSE:UWMC)
UWM Holdings Corporation (NYSE:UWMC) is one of the 14 Most Undervalued NYSE Stocks to Buy According to Analysts.
On February 26, Barclays analyst Terry Ma reduced his target price on UWM Holdings by 14.3% to $6 (from $7) but retained the firm’s Overweight call on the stock. Lower 1st-quarter guidance from management, which offset an otherwise solid 4th quarter, was the driver of this target price cut. He also added that the lack of a Q&A portion during the earnings call may have contributed to the stock selloff following the earnings release.
UWM held its Q4 2025 earnings call a day before, on February 25. The release showed diluted earnings per share in Q4 quadrupling to $0.08 (vs. $0.02), which is more or less in line with the street consensus of $.0.09. Earnings growth was driven by both volume growth and gain margin expansion.
Despite the solid quarter, management gave a rather conservative estimate for Q1 2026 revenue. They expect revenue to be between $650 million and $850 million. The lower half of this range would fall below the street consensus of $742 million.
Matthew Ishbia, Chief Executive Officer of United Wholesale Mortgage, also refused to include a Q&A portion during the briefing, claiming that “our industry’s superior business model that the short Q&A does not necessarily do it justice, really make it to explain the complexity of business. So I am not going to go through the question process today.” Barclays suspects that this lack of transparency may have scared off some investors, causing the stock to fall 8.8% immediately after the briefing.
UWM Holdings Corporation (NYSE:UWMC) is a wholesale residential mortgage lender. The company is based in Pontiac, Michigan, and was founded in 1986.
4. Super Group (SGHC) Limited (NYSE:SGHC)
Super Group (SGHC) Limited (NYSE:SGHC) is one of the 14 Most Undervalued NYSE Stocks to Buy According to Analysts.
Benchmark, on February 24, increased its target price on Super Group by 5.9% to $18 (from $17) and reiterated the firm’s Buy recommendation on the stock. The price increase was driven by an earnings beat in the 4-th quarter. The firm is also encouraged by the company’s 2026 prospects, as it sees “a pathway for results to exceed baseline expectations as 2026 progresses.”
Super Group released its Q4 2025 results on February 23, which were headlined by an 11% YoY growth in adjusted EBITDA. The earnings growth was driven by revenue growth and margin expansion. Revenue grew 8% YoY to $578 million (which beat street consensus of $485 million), due to double-digit growth in monthly active customers. Margins, meanwhile, improved as the company benefited from economies of scale (G&A expenses were flat, despite rising revenue).
Management also provided its guidance for 2026. They expect full-year revenue of $2.55 billion, which was more than what analysts were expecting ($2.09 billion). They also expect margins to improve further, resulting in $680 million in adjusted EBITDA.
For more information about SGHC’s Q4 2025 earnings, read this.
Super Group (SGHC) Limited (NYSE:SGHC) is a global digital gaming company, engaged in online sports betting and gaming businesses through its brands: Betway and Spin. The company is based in the United Kingdom and was founded in July 2020.
3. SM Energy Company (NYSE:SM)
SM Energy Company (NYSE:SM) is one of the 14 Most Undervalued NYSE Stocks to Buy According to Analysts.
Mizuho, on February 26, reduced its target price on SM Energy by 8.8% to $31 (from $34). Despite the price target cut, the firm retained its Outperform call on the stock. This update comes a day after SM Energy released its Q4 and full-year 2025 earnings on February 25.
SM Energy, in the 4th quarter, delivered diluted adjusted earnings per share of $0.83, which is just a tick below the street consensus estimate of $0.85. This print represents a ~57% YoY drop vs. Q4 2024 and was driven primarily by lower global oil and gas prices, combined with flat net production volume. Despite this large drop, adjusted free cash flow to the firm increased slightly YoY due to significantly lower CapEx spend.
Moving forward in 2026, the company plans to continue this strategy of focusing on value (through disciplined capital investments and greater focus on higher-margin products/commodities), rather than on volume, to maximize free cash flows.
The company is also looking to capture the value-accretive synergies over the next two years from its merger with Civitas (which closed on January 30). Management has already identified $200 million in annual cost synergies, ~80% of which have been actioned. They also believe that they can extract an additional $100 million in annual savings.
The additional free cash flows from these initiatives, combined with the $950 million proceeds from the company’s divestiture of certain South Texas assets (which Stephens thinks is “positive”), will be used to enhance the company’s return of capital program and accelerate its debt reduction.
SM Energy Company (NYSE:SM) is an energy company engaged in the acquisition, exploration, development, and production of oil, gas, and natural gas liquids. The company is based in Denver, Colorado, and was founded in 1908.
2. GoDaddy Inc. (NYSE:GDDY)
GoDaddy Inc. (NYSE:GDDY) is one of the 14 Most Undervalued NYSE Stocks to Buy According to Analysts.
B. Riley, on February 25, cut its target price on GoDaddy by 11.6% to $215 but retained the firm’s Buy recommendation on the stock. This target price update comes on the heels of GoDaddy’s Q4 2025 results, which were mostly above expectations. Management’s 2026 guidance, however, was a mixed bag, with lower-than-expected revenue but higher margins, ultimately leading to the target price cut. Despite the cut, the firm still sees potential upside from customer growth. It also thinks that the stock’s current valuation and a $2 billion share buyback program make the company’s risk/reward profile attractive.
GoDaddy released its Q4 2025 results on February 24. The earnings brief showed the company beating analyst expectations, posting EPS of $1.80 (vs. the street consensus of $1.59). The earnings beat was driven by revenue growth and margin expansion.
Revenue grew 7% YoY thanks to double-digit growth in average revenue per user (ARPU), combined with stable growth in total bookings. The majority of the growth is attributable to the double-digit growth in the applications and commerce segment.
Operating income margins, meanwhile, improved significantly. Mark McCaffrey, GoDaddy’s Chief Financial Officer, attributed this expansion to better operational execution, “aided by AI-driven efficiencies.”
For 2026, management is targeting full-year revenue between $5.195 billion and $5.275 billion, still driven mostly by the applications and commerce segment. This figure is slightly below consensus estimates of $5.28 billion. Management is also looking to further improve margins by ~1 percentage point.
GoDaddy Inc. (NYSE:GDDY) is the world’s largest domain name registrar. The company is based in Tempe, Arizona, and was founded in 1997 by Robert R. Parsons.
1. Shift4 Payments Inc. (NYSE:FOUR)
Shift4 Payments Inc. (NYSE:FOUR) is one of the 14 Most Undervalued NYSE Stocks to Buy According to Analysts.
B. Riley analyst Hal Goetsch, on February 27, reduced his target price on Shift4 Payments by 8.4% to $120 (from $131), but retained the firm’s Buy recommendation on the stock. This update comes on the heels of the release of FOUR’s Q4 2025 results, which B. Riley had mixed feelings about. Management’s 2026 guidance also missed the firm’s expectations, likely due to cautious assumptions amid ongoing acquisition integration and a higher cost of debt.
Shift4 Payments released its Q4 2025 results on February 26, which showed adjusted diluted earnings per share declining 3.6% YoY to $1.60. This figure is in line with analyst expectations (albeit already tempered). The earnings decline was due to significantly higher interest expense (more than 2x vs. Q4 2024), as the company took on debt to temporarily finance its acquisition of GlobalBlue. The higher interest expense more than offset the 51% increase in revenue.
For 2026, management expects a 26% to 31% growth in revenue, which (while still rapid) would mark a significant deceleration vs. 2025. Adjusted EPS, meanwhile, is expected to decline further to $5.50-$5.70 (missing the consensus estimate of $6.45), as the company feels the full-year impact of the higher debt level.
Shift4 Payments Inc. (NYSE:FOUR) is a payment acceptance and processing technology solutions provider. The company is based in Center Valley, PA, and was founded in 1999 by Jared Isaacman.
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