In this piece we will look at the 5 Most Undervalued Foreign Stocks to Buy Now. Please visit 9 Most Undervalued Foreign Stocks to Buy Now if you’d like to see an extended list and how we came up with the list of Most Undervalued Foreign Stocks to Buy Now.
5. UBS Group AG (NYSE:UBS)
Forward Price to Earnings Ratio: 13.98
Number of Hedge Fund Holders: 39
UBS Group AG (NYSE:UBS) is one of the Most Undervalued Foreign Stocks to Buy Now. On May 15, the Federal Reserve Board announced that it has formally ended its enforcement actions against UBS and its acquired subsidiary Credit Suisse, marking the close of a regulatory saga that began in 2023.
According to a report by Bloomberg, the actions had been triggered by serious failures in counterparty credit-risk management at Credit Suisse, specifically in its dealings with collapsed hedge fund Archegos Capital Management. When Archegos imploded in March 2021, Credit Suisse was by far the hardest hit among affected banks, suffering losses of around CHF 5 billion. This became a central factor in Credit Suisse’s broader crisis, which eventually led to its emergency takeover by UBS in 2023.
The report noted that the Fed had imposed fines totaling roughly $387 million and mandated improvements in supervision, liquidity, and data management. The UK’s Prudential Regulation Authority fined the bank £87 million, while Switzerland’s FINMA required corrective measures.
UBS has met those obligations and the Fed’s termination of the orders indicates that regulators are satisfied with the remediation work carried out. Bloomberg noted that this allows UBS Group AG (NYSE:UBS) to move forward with fewer legacy regulatory burdens hanging over its integration.
UBS Group AG (NYSE:UBS) is a global financial institution that provides wealth management, personal and corporate banking, asset management, and investment banking services to private, institutional, and corporate clients worldwide.
4. British American Tobacco p.l.c. (NYSE:BTI)
Forward Price to Earnings Ratio: 13.28
Number of Hedge Fund Holders: 40
British American Tobacco p.l.c. (NYSE:BTI) is one of the Most Undervalued Foreign Stocks to Buy Now. On May 19, the company announced opening a new Information, Digital and Technology hub in Bengaluru, India. Management noted that this step is part of the company’s strategy to become a more agile and data driven business.
Notably, the hub centers around the company’s Future Capabilities Centre, which is designed to consolidate key technology functions under one roof and accelerate innovation across the group. Moreover, the hub will bring together teams working across Cyber Security, Data & Analytics, Artificial Intelligence, and Digital Platforms. These teams will collaborate with strategic partners to drive continuous improvement.
British American Tobacco p.l.c. (NYSE:BTI) noted that the choice of Bengaluru is deliberate as it is widely regarded as India’s premier technology ecosystem. The announcement indicates that BAT is increasingly embedding technology at the core of its operations, rather than treating it as a peripheral function.
British American Tobacco (NYSE:BTI) provides tobacco and nicotine products to consumers in the US, Europe, Latin America, Canada, the Asia-Pacific, the Middle East, Central Asia, Caucasus, and Africa.
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.
2. Novo Nordisk A/S (NYSE:NVO)
Forward Price to Earnings Ratio: 12.78
Number of Hedge Fund Holders: 55
Novo Nordisk A/S (NYSE:NVO) is one of the Most Undervalued Foreign Stocks to Buy Now. On May 6, Reuters reported that Novo Nordisk A/S (NYSE:NVO) topped first-quarter profit forecasts and also raised the full-year outlook slightly.
The results were driven by the company’s new Wegovy weight-loss pill, which was launched in the US in January. During the quarter the sales hit 2.26 billion Danish crowns, nearly double the analysts expectations. Moreover, the total prescriptions also topped the 2 million mark since its launch. The company calls this the strongest GLP-1 launch by volume in US history.
The adjusted operating profit for the quarter came in at 32.86 billion Danish crowns, and topped the expectation of 28.74 billion. Moreover, the group sales came in at 70.06 billion Danish, above the 69.07 billion expected by analysts. Looking ahead, Novo plans to expand the Wegovy pill beyond the US in the second half of 2026, with regulatory submissions already filed in Europe. The company forecasts full-year adjusted sales and operating profit to decline by 4% to 12%, better than the previously expected 5% to 13% decline.
Novo Nordisk (NYSE:NVO) is a drug manufacturer for global pharmaceutical products that operates through two segments: Obesity & Diabetes Care and Rare Disease. The company was founded in 1923 and is headquartered in Denmark.
1. PDD Holdings Inc. (NASDAQ:PDD)
Forward Price to Earnings Ratio: 7.93
Number of Hedge Fund Holders: 67
PDD Holdings Inc. (NASDAQ:PDD) is one of the Most Undervalued Foreign Stocks to Buy Now. On May 11, Reuters reported that Shein has accused PDD Holdings Inc. (NASDAQ:PDD)’s platform Temu of copyright infringement “on an industrial scale.” The company alleged that Temu used thousands of Shein’s product photos to advertise copycat clothing on its platform.
The report noted that Shein’s lawyer described it as an attempt to gain an unfair advantage by piggybacking on a more established competitor. On the other hand, Temu in the trial that opened in London’s High Court denied the allegations and framed the lawsuit as a competitive tactic rather than a genuine intellectual property dispute.
Shein’s lawyer Benet Brandreth noted that Temu has dropped its defense against the copyright claims covering nearly 2,300 photos taken by Shein employees. Brandreth compared this to pleading guilty at the last moment. On the other hand Temu has filed a counter-claim, seeking damages after an earlier injunction forced it to remove thousands of product listings.
Separately, Temu alleges that Shein broke competition law by locking fast-fashion suppliers into exclusive agreements. This claim is expected to be heard at a separate trial next year.
That said, PDD Holdings Inc. (NASDAQ:PDD) is expected to release its fiscal first quarter 2026 earnings on May 27. The Street expects the company to post revenue around $16.08 billion, along with a GAAP EPS of $2.15.
PDD Holdings Inc. (NASDAQ:PDD) operates e-commerce platforms including Temu, offering a wide range of consumer products globally.
While we acknowledge the potential of PDD 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 PDD and that has 100x upside potential, check out our report about the cheapest AI stock.
READ NEXT: 10 Best Stocks to Buy While the Market Is Down and 14 Stocks That Will Double in the Next 5 Years.
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