In this article, we will discuss the 10 Undervalued Stocks with High Upside Potential.
On June 19, Jonathan Lo, Portfolio Manager at Ninepoint Partners, appeared on BNN Bloomberg. As markets head into H2 of the year, Lo discussed the primary catalysts that shaped H1 and what investors can expect moving forward. H1 was defined by two seemingly opposing forces: the energy crisis and the boom in AI. While the energy crisis, which began at the end of February, has been a major factor, there is hope that the market is beginning to move past it. Simultaneously, the AI boom has significantly catalyzed earnings growth, and Lo believes that there is still substantial runway left for this trend.
The AI sector’s momentum is underpinned by massive CapEx from hyperscalers, who have committed ~$720 billion this year, an amount equivalent to ~2.5% of US GDP. This spending is benefiting a wide range of companies, including those in power, cooling, and semiconductor chip production, as well as memory and optical components. Beyond these specific sectors, the opportunity set is broadening into software infrastructure companies. Lo noted that as AI usage grows and more agentic AI is deployed, the creation of more software and code will continue to generate greater opportunities for this segment. The AI trade effectively captured investor attention during the period of conflict because it offered a sense of certainty; companies like Google showed their commitment to this infrastructure by raising equity specifically to increase spending, providing investors with a clear and reliable investment theme.
Our Methodology
We used screeners to identify stocks that are trading below a forward P/E of 15 and have an upside potential of at least 30%. We limited our final selection to companies that have recently reported noteworthy developments likely to impact investor sentiment. These stocks are also popular among analysts and elite hedge funds.
Note: All data was sourced on June 29.
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. Insider Monkey’s quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 599.2% since May 2014, beating its benchmark by 372 percentage points (see more details here).
10 Undervalued Stocks with High Upside Potential
10. Petróleo Brasileiro S.A. – Petrobras (NYSE:PBR)
Average Upside Potential: 38.02%
Petróleo Brasileiro S.A. – Petrobras (NYSE:PBR) is one of the undervalued stocks with high upside potential. On June 11, Petrobras announced an agreement to acquire a 50% stake in the Itaimbezinho exploration block within Brazil’s Campos Basin from Equinor. Equinor will retain the remaining 50% interest and continue to serve as the operator of the block, while Pré-Sal Petróleo S.A. maintains management of the production-sharing contract. The deal is currently pending approval from Brazilian regulatory authorities.
This acquisition reflects Petrobras’ focus on supporting its exploration pipeline to offset production declines in mature fields. By partnering with Equinor (a major investor in Brazil’s upstream sector), Petrobras aims to leverage technical synergies and share capital requirements across adjacent assets. This collaboration builds upon the companies’ existing partnerships in other projects, including the Raia gas development.
The deal aligns with Petróleo Brasileiro S.A. – Petrobras’ (NYSE:PBR) 2026-2030 Business Plan, which prioritizes exploration and strategic joint ventures to access prospective resources. While much industry focus has been on Brazil’s pre-salt fields, this investment highlights the ongoing interest in the Campos Basin, where new technologies and geological models are being utilized to support long-term production growth.
Petróleo Brasileiro S.A. – Petrobras is involved in exploration, production, and distribution activities involving oil and gas. The company’s operations are divided into the following segments: Exploration and Production; Refining, Transportation, and Marketing; and Gas and Low Carbon Energies.
9. Fox Corporation (NASDAQ:FOX)
Average Upside Potential: 53.88%
Fox Corporation (NASDAQ:FOX) is one of the undervalued stocks with high upside potential. On June 15, Fox Corporation announced a definitive agreement to acquire Roku (NASDAQ:ROKU) in a cash-and-stock transaction valued at approximately $22 billion. The deal values Roku at $160 per share, uniting Fox’s portfolio of live sports, news, and the Tubi streaming service with Roku’s connected TV platform, which currently reaches over 100 million global households.
This merger creates a scaled media and technology entity positioned to capitalize on the shift toward streaming while maintaining the strength of live broadcast content. By combining their respective streaming assets, Tubi and The Roku Channel, the new organization will become one of the largest players in the US television market by share of viewing, operating across broadcast, cable, and streaming environments.
The companies have committed to maintaining Roku as an open, partner-friendly platform and ensuring broad distribution for Fox Corporation’s (NASDAQ:FOX) content. Fox expects the acquisition to enhance its monetization capabilities and reach, while assuring shareholders that its capital return program and investment-grade credit rating will remain uninterrupted throughout the integration.
Fox Corporation operates as a news, sports, and entertainment company in the United States across its Cable Network Programming, Television, Credible, and The FOX Studio Lot segments.
8. Stellantis (NYSE:STLA)
Average Upside Potential: 53.97%
Stellantis (NYSE:STLA) is one of the undervalued stocks with high upside potential. On June 11, Stellantis and Factorial (NASDAQ:FAC) announced the first North American road testing of an EV powered by advanced solid-state battery technology. Integrated into a Dodge Charger Daytona, the battery uses Factorial’s FEST system, which leverages a patented mechanical architecture to deliver high energy density and ultra-fast charging capabilities.
This milestone marks a shift from laboratory validation to real-world application, with the ongoing test program designed to tune system performance, safety, and durability. By showing compatibility with existing lithium-ion manufacturing processes, the project provides a critical path toward scaling high-performance, cost-effective solid-state batteries for future mass-market vehicles.
The collaboration represents a significant step in the companies’ multi-stage development program. By successfully adapting vehicle control systems and pack designs to meet automotive standards, Stellantis and Factorial are setting a new industry benchmark for bringing solid-state technology closer to widespread commercial use.
Stellantis is a Netherlands-based multinational automaker, producing passenger vehicles, pickup trucks, and SUVs. The company makes vehicles for the mass market and luxury segments. Its vehicle brands include Jeep, RAM, Dodge, and Maserati.
7. PTC Inc. (NASDAQ:PTC)
Average Upside Potential: 57.63%
PTC Inc. (NASDAQ:PTC) is one of the undervalued stocks with high upside potential. On June 10, PTC announced the release of Creo 13 and Creo+ 13.3, featuring the new Creo AI Assistant. This tool is embedded directly into the design workflow, providing engineers with instant access to best practices and troubleshooting guidance. Additionally, the release introduces a beta capability that analyzes 3D models to help teams identify design issues earlier and accelerate validation.
Beyond AI enhancements, this release delivers hundreds of productivity improvements across simulation, manufacturing, and assembly management. Notable updates include a 70% faster assembly loading speed over networks and more efficient composite design and manufacturing tools, which can accelerate transition calculations by up to 60x.
These advancements aim to modernize engineering workflows by reducing repetitive tasks and using AI to democratize institutional knowledge. By providing engineers with more powerful tools for product development and electrification, PTC continues to advance its vision of an “Intelligent Product Lifecycle” designed to help manufacturers compete more effectively.
PTC Inc. is a global software company headquartered in Boston, Massachusetts, and was founded in 1985. The company specializes in product lifecycle management/PLM, computer-aided design, and industrial IoT solutions.
6. Oracle Corporation (NYSE:ORCL)
Average Upside Potential: 65.98%
Oracle Corporation (NYSE:ORCL) is one of the undervalued stocks with high upside potential. On June 29, Oracle launched four new “Fusion Agentic Applications” within its Cloud SCM platform, using AI agents to autonomously manage supply chain tasks like inventory planning, supplier qualification, and production readiness. By shifting from manual tracking to AI-driven execution, these tools help teams identify risks and accelerate decision-making to improve operational resilience.
Oracle also introduced new inventory optimization features, including multi-echelon modeling, interactive network visualization, and an advisor agent that recommends safety stock adjustments. These tools help planners balance service levels against costs by analyzing complex supply chain dependencies and network variability.
These updates expand Oracle Corporation’s (NYSE:ORCL) AI-powered platform to automate routine workflows and minimize disruptions. By surfacing critical insights and streamlining processes, the new capabilities enable teams to improve production flow and maintain efficiency despite ongoing market uncertainty.
Oracle Corporation provides information technology-related products and services to enterprises through its main business segments: Cloud and License, Hardware, and Services.
5. Trip.com Group Limited (NASDAQ:TCOM)
Average Upside Potential: 66.34%
Trip.com Group Limited (NASDAQ:TCOM) is one of the undervalued stocks with high upside potential. On June 24, Trip.com reported solid FQ1 2026 financial results, with total net revenues rising 17% year-over-year to RMB16.2 billion. This growth was driven by resilient travel demand, highlighted by a 65% increase in international platform bookings and a 90% surge in inbound travel. While the company achieved strong operational metrics, net income for the quarter was RMB2.5 billion, down from RMB4.3 billion in the same period last year.
Trip.com Group Limited projects year-over-year revenue growth to decelerate to 3%-8% in FQ2 2026. This outlook reflects broader macroeconomic headwinds, including geopolitical volatility and rising energy costs, as well as operational adjustments made to align with evolving regulatory frameworks and compliance standards.
The company also disclosed that it is currently cooperating with an investigation by China’s State Administration for Market Regulation regarding potential anti-monopoly conduct. While the outcome and potential financial impact of this inquiry remain uncertain, management emphasized its commitment to robust governance and continued focus on enhancing the partner ecosystem and global connectivity.
Trip.com Group Limited is a one-stop travel platform, operating through its portfolio of brands: Ctrip, Qunar, Trip.com, and Skyscanner. The company is based in Singapore and was founded in June 1999 by Jian Zhang Liang, Min Fan, Nan Peng Shen, and Qi Ji.
4. POSCO Holdings Inc. (NYSE:PKX)
Average Upside Potential: 66.81%
POSCO Holdings Inc. (NYSE:PKX) is one of the undervalued stocks with high upside potential. On May 21, ReElement Technologies and Posco International formed a $200 million JV to develop the first integrated rare earth separation and permanent magnet production facility in the US. The initiative aims to establish a secure, non-China supply chain for critical industries, including electric vehicles, defense, and renewable energy, with plans to reach an annual separation capacity of 3,000 metric tons by 2028 and double that by 2030.
The partnership uses Posco’s industrial market expertise and ReElement’s proprietary purification technology to create a “closed-loop” system. By using both primary and recycled feedstock, the companies seek to reduce US dependence on Chinese refining (which currently controls over 90% of global permanent magnet production) and address critical gaps in the domestic supply of rare earth materials.
This deal strengthens an existing alliance between the two firms and aligns with broader US efforts to support national security and clean energy infrastructure. As the companies evaluate potential US site locations, the project is designed to be modular and scalable, providing a sustainable model to meet the surging demands of the North American automotive and advanced technology sectors.
POSCO Holdings Inc. is a South Korean steelmaking and industrial company. It produces and sells steel products such as hot-rolled, cold-rolled, and stainless steel, which are used in automotive, construction, shipbuilding, and machinery industries. The company also operates in energy, chemicals, and materials businesses, including lithium and nickel for batteries.
3. Fermi Inc. (NASDAQ:FRMI)
Average Upside Potential: 78.01%
Fermi Inc. (NASDAQ:FRMI) is one of the undervalued stocks with high upside potential. On June 26, Fermi America selected Spanish EPC contractor TSK to lead engineering and project management for the second phase of “Project Matador,” a massive Texas power campus. TSK will oversee permitting and infrastructure planning for three Siemens SGT6-5000F gas turbines, which are intended to provide reliable, dispatchable power for the site.
Project Matador is a private energy system designed to supply up to 17 GW of electricity directly to hyperscale AI and advanced computing facilities. By combining natural gas, nuclear, solar, and battery storage, the campus aims to address the surging energy demands of the technology sector.
This partnership reflects a growing trend of developers investing in dedicated power assets to secure electricity for AI infrastructure. By using TSK’s specialized EPC expertise, Fermi Inc. aims to accelerate development timelines and reduce execution risks as it scales this critical energy project.
Fermi Inc. is a developer of private power campuses for AI-centric clients. It is involved in creating and operating an integrated power generation and computing infrastructure. Additionally, it also engages in the development and renting of grid-independent energy generation and high-performance computing campuses.
2. Equinox Gold Corp. (NYSEAMERICAN:EQX)
Average Upside Potential: 124.44%
Equinox Gold Corp. (NYSEAMERICAN:EQX) is one of the undervalued stocks with high upside potential. On June 25, Equinox Gold announced 20-year land access agreements with the three communities hosting its Los Filos Mine in Mexico. These agreements provide a stable foundation for the company to begin restarting heap leach operations and initiate technical studies for potential expansion, including a possible carbon-in-leach processing facility.
The company is currently prioritizing environmental remediation, workforce rehiring, and supplier contract negotiations while maintaining a collaborative commitment to sustainable mining protocols. Although Los Filos holds significant mineral reserves, its production is not currently included in Equinox Gold’s 2026 guidance of 700,000 to 800,000 ounces.
Equinox Gold Corp. plans to use these new agreements to de-risk the site’s development and evaluate opportunities to optimize throughput and project economics. The company intends to provide further updates as restart activities progress and technical and engineering studies advance.
Equinox Gold Corp. is involved in the exploration, operation, acquisition, and development of mineral properties in the Americas. It mainly explores silver and gold deposits. The company was founded in 2007 and is based in Vancouver, Canada.
1. AudioEye Inc. (NASDAQ:AEYE)
Average Upside Potential: 166.78%
AudioEye Inc. (NASDAQ:AEYE) is one of the undervalued stocks with high upside potential. On June 18, AudioEye announced the appointment of Matthew Domeyer as Chief Financial Officer, effective July 20. Domeyer joins the digital accessibility leader with nearly 20 years of finance experience, most recently serving as Corporate Controller at Flexsteel Industries, where he managed financial operations and SEC reporting.
Domeyer’s arrival comes as AudioEye continues to scale, building on 41 consecutive quarters of sequential revenue growth and $41.2 million in Annual Recurring Revenue. He will partner with CEO Kelly Georgevich to drive the company’s next phase of growth, focusing on using current regulatory and market tailwinds alongside new AI initiatives.
Prior to his role at Flexsteel, Domeyer held senior finance positions at Upsher-Smith Laboratories and spent eight years at PricewaterhouseCoopers. His background in financial operations and strategic planning is expected to support AudioEye Inc.’s (NASDAQ:AEYE) ongoing efforts to improve operating margins and cash flow.
AudioEye Inc. provides AI-driven, cloud-based web accessibility solutions that enable organizations to ensure their digital properties are accessible to individuals with disabilities. Its technology enhances website usability through features such as text-to-speech and automated compliance tools.
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