In this article, we will discuss the 7 Best Undervalued Stocks to Buy Now.
According to Fidelity, the broader stock market may have established upper and lower bounds for the year, resulting in a trading range for the remainder of 2025. While analysts continue to expect positive earnings growth for 2025, this may be mitigated by downward pressure on stock valuations resulting from broader interest-rate dynamics. The firm believes that international stocks have been outperforming so far this year, suggesting that diversification remains important in tough market environments.
Broadening to Continue, Says T. Rowe Price
T. Rowe Price, a global investment management firm, believes that the Trump administration’s trade policies can result in a supply shock to the US and a demand shock for the rest of the world. As per the firm, there will be a broadening of the opportunity in equities, both in the US and from the US towards other regions. The emergence of start-ups, like China’s DeepSeek, showcases that AI innovation is no longer concentrated in a limited trillion-dollar companies.
As per the firm, in the US, the earnings growth spread between large tech stocks and other sectors continues to narrow, while value sectors can become more competitive. Outside the US, India and Argentina have been standing out when it comes to emerging markets, with European equities remaining attractively valued.
Amidst these trends, let us now have a look at the 7 Best Undervalued Stocks to Buy Now.
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Our Methodology
To list the 7 Best Undervalued Stocks to Buy Now, we used a screener to shortlist the stocks that trade at a forward P/E of less than ~15x. Next, we chose the ones popular among hedge funds, as of Q1 2025. Finally, the stocks are ranked in ascending order of their hedge fund sentiments, as of Q1 2025.
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 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here).
7 Best Undervalued Stocks to Buy Now
7. TechTarget, Inc. (NASDAQ:TTGT)
Number of Hedge Fund Holders: 8
Forward P/E as on June 10: ~12.1x
TechTarget, Inc. (NASDAQ:TTGT) is one of the 7 best undervalued stocks to buy now. On June 10, JPMorgan analysts downgraded the company’s stock from “Neutral” to “Underweight,” reducing the price objective from $18.00 to $8.00. The downgrade comes after the company released its financial results for FY 2024. The company’s reported results for 2024 demonstrate the structure of a combination, comprising 12 months’ contribution from the Informa Tech digital businesses and ~1 month’s contribution from the legacy TechTarget business, being the period from completion of the transaction (December 2, 2024) to the end of the year.
On this basis, its reported revenues came in at $285 million, with a GAAP net loss of $117 million. The net loss reflects the small contribution period of TechTarget, acquisition and integration costs, and non-cash impairments. Furthermore, TechTarget, Inc. (NASDAQ:TTGT) stated that the market backdrop remains uncertain in H1 2025, and it expects a low-to-mid-single-digit YoY decline in revenues throughout the H1 2025 period, with sequential improvement from Q1 to Q2.
Overall, JPMorgan’s analysis demonstrates that the recent clarity on TechTarget, Inc. (NASDAQ:TTGT)’s combined performance and near-term prospects resulted in a less favorable view of its investment appeal. TechTarget, Inc. (NASDAQ:TTGT) stated that it targets the growth trajectory to improve further through H2 2025, as its expanded customer and go-to-market strategy continues to gain momentum, providing broadly consistent YoY revenue performance.
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