5 Most Undervalued Foreign Stocks to Buy Now

3. Shell plc (NYSE:SHEL)

Forward Price to Earnings Ratio: 7.98

Number of Hedge Fund Holders: 43

Shell plc (NYSE:SHEL) is one of the Most Undervalued Foreign Stocks to Buy Now. On May 18, HSBC analyst Kim Fustier upgraded Shell plc (NYSE:SHEL) from Hold to Buy and raised the price target from 3,350 GBp to 3,700 GBp. The analyst noted that two key factors drove the upgrade, including the firm’s upwards revision of cash flow estimates for the company and the recently completed ARC Resources deal has meaningfully improved Shell’s medium-term upstream growth visibility. The analyst noted that this gives investors greater clarity on future production and earnings.

Shell plc (NYSE:SHEL) reported its fiscal Q1 2026 earnings on May 7. According to a Reuters report published on the earnings day, the company’s first quarter adjusted earnings grew to $6.92 billion, beating analyst expectations of $6.36 billion. This was recognized as the highest quarterly profit in two years and was driven largely by gains linked to the Middle East war, which has pushed global energy prices sharply higher. Trading in its chemicals and products division was a standout, delivering $1.93 billion against expectations of just $1.24 billion.

The company also raised its dividend by 5%. However, the quarterly buyback was trimmed from $3.5 billion to $3 billion. Looking ahead, the company expects second quarter integrated gas production to fall by 36% due to the conflict’s ​impact.

Shell plc (NYSE:SHEL) is an integrated energy company with operations spanning exploration, production, refining, marketing, and chemical manufacturing, alongside growing investments in biofuels and hydrogen.