5 Most Undervalued Dow Stocks to Buy Now

In this article, we will be taking a look at the 5 Most Undervalued Dow Stocks to Buy Now. If you wish to see the full list, visit 10 Most Undervalued Dow Stocks to Buy Now.

5. International Business Machines Corporation (NYSE:IBM)

International Business Machines Corporation (NYSE:IBM) is among the most undervalued Dow stocks on this list.

TheFly reported on April 20 that Jefferies reduced its price target on IBM from $370 to $320 while maintaining a Buy rating. The firm highlighted expectations for a strong first-quarter performance, anticipating that IBM could exceed Street estimates driven by approximately 11% year-over-year software growth supported by easier comparison metrics.

Separately, earlier on April 10, the U.S. Department of Justice announced a False Claims Act settlement with International Business Machines Corporation (NYSE:IBM) totaling $17,077,043, including civil penalties. The resolution addresses allegations that the company did not meet anti-discrimination obligations tied to its federal contracts. Authorities stated the case involved practices that were alleged to have resulted in discrimination against employees and job applicants based on race, color, national origin, or sex.

The settlement marks the first resolution under a Civil Rights Fraud Initiative launched in May 2025. Officials emphasized that compliance with equal employment requirements remains a condition for companies holding federal contracts. IBM did not admit liability as part of the agreement, and the payment resolves the government’s claims under the False Claims Act related to workplace and hiring practices under federal contracting rules.

International Business Machines Corporation (NYSE:IBM) is a global technology company founded in 1911 and based in New York. It specializes in hybrid cloud, AI, consulting, and quantum computing, serving clients across industries like finance, healthcare, and telecom.