Growth stocks aren’t supposed to be cheap. Investors willingly pay higher multiples for companies that are expected to grow earnings over the next few years. With the stock market trading at all-time highs, even that premium is becoming difficult to justify for many growth investors. Times like these force them to look for growth opportunities that are available at attractive valuations.
Angelo Kourkafas, a CFA and Senior Global Investment Strategist at financial services firm Edward Jones, pointed out the importance of attractive valuation in today’s geopolitically charged environment. In his weekly market wrap on the company’s blog, he stated:
Market leadership is likely to broaden, volatility may normalize from low levels, and returns could become less momentum-driven and more dependent on earnings delivery, valuation discipline and sector rotation.
If investors can find stocks trading at low valuations, it will not only help maximize future returns but also protect against the de-rating risk resulting from potentially higher borrowing costs. In our quest to find such undervalued opportunities in the market, we decided to create a list of the most undervalued growth stocks to buy for the next 10 years.
Our Methodology
To compile our list of the top 8 most undervalued growth stocks to buy for the next 10 years, we considered only companies with a market cap of at least $2 billion. We then shortlisted stocks trading at a forward PE multiple of less than 15x and with expected earnings growth of more than 30% over the next 5 years. These stocks have reported recent investor-worthy news and are ranked from the highest to the lowest forward PE multiple.
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).
Note: All share price data is as of July 10, 2026.
8. The Chemours Company (NYSE:CC)
Forward P/E: 12.55
According to a report released on July 6, BMO Capital analyst John McNulty reiterated a Buy rating on The Chemours Company (NYSE:CC) with a price target of $26. The firm’s assigned price target is close to the median Wall Street analysts’ price target of $25, according to 11 analysts covering the stock. Moreover, the stock is currently trading about 11% below the lowest Wall Street price target of $21.
In contrast to BMO Capital, Mizuho Securities cut its price target on The Chemours Company (NYSE:CC) from $30 to $25 while keeping its Outperform rating on July 1. The firm’s downward-adjusted price target still presents a further 32% upside from current levels. Mizuho Securities updated its outlook for the chemical sector as part of its second-quarter earnings preview. The firm lowered price targets for most basic chemical companies.
According to Mizuho Securities, the recent decline in oil prices has reduced the expected cost advantage of natural gas for many basic chemical producers. At the same time, the firm believes that continued investment in advanced computing infrastructure will support demand for technology materials over the longer term.
The Chemours Company (NYSE:CC) is a global specialty chemicals company. The company operates in the Titanium Technologies, Thermal & Specialized Solutions, and Advanced Performance Materials segments. It is based in Wilmington, Delaware, and serves customers worldwide.
7. Phillips 66 (NYSE:PSX)
Forward P/E: 12.15
Phillips 66 (NYSE:PSX) is one of the most undervalued growth stocks to buy for the next 10 years. On July 2, Wells Fargo analyst Sam Margolin maintained a Buy rating on the stock. The analyst also assigned a target price of $201 to the stock.
Earlier, on June 24, CEO Mark Lashier said that refining and petrochemical companies will continue to see greater volatility due to uncertainty stemming from disruptions in the Strait of Hormuz. He added that the company reduced its refining costs by about $1 per barrel and aims to lower costs further to $5.50 per barrel. However, refining operations in California remain more expensive, with costs around $15 per barrel. Moreover, the company has improved its refinery performance by producing higher-value products. Lashier remarked:
We actually have improved our yield of high-value products for our refineries, and we’ve enhanced our utilization, running our refineries at higher rates as we’ve lowered the cost
Additionally, it will take time for global crude oil supplies to return to normal because uncertainty remains around shipping through the Strait of Hormuz. Around 90 to 100 million barrels of crude oil are still stuck in the region. This is because there isn’t enough room to store more oil. As a result, it will take a long time for the supply bottleneck to clear.
CEO Mark Lashier, highlighting the challenges of restoring normal oil flows, said:
We believe that most of the tanks on shore are full before crude can appreciably ramp up. You have to get some room in those tanks to place that crude, and so it’s going to be a long, drawn-out process
Phillips 66 (NYSE:PSX) operates as an integrated downstream energy provider across the United States, the United Kingdom, Germany, and international markets. The company is headquartered in Houston, Texas.
6. Dana Inc. (NYSE:DAN)
Forward P/E: 11.17
On July 7, Deutsche Bank lowered its price target on Dana Inc. (NYSE:DAN) to $39 from $40 and maintained a Buy rating on the stock. Based on the revised price target, there is a 53% upside from current levels. This upside is lower than the median Wall Street analysts’ upside of 61% based on 10 analysts’ estimates.
In our previous coverage of the stock, we mentioned the company’s acquisition of Eaton’s Mobility Group. This acquisition was believed to enhance Dana’s long-term business profile through higher margins, increased aftermarket exposure, and greater scale. On June 10, both companies entered into definitive agreements for a Reverse Morris Trust transaction. As part of the transaction, Eaton will transfer its Vehicle and eMobility business into the newly created SpinCo before it merges with Dana. A Separation and Distribution Agreement will govern this transfer. Additionally, a Dana subsidiary will also acquire Royal Precision Holding Corp. from Eaton, adding further assets to the combined company.
Dana and SpinCo secured a $2.6 billion short-term bridge loan commitment from Goldman Sachs to help fund the transaction. The financing will be used to support an approximately $1.1 billion cash payment to Eaton and to refinance certain existing Dana debt. However, the transaction is still subject to several conditions, including DAN shareholder approval and multiple regulatory clearances.
Dana Inc. (NYSE:DAN), together with its subsidiaries, provides power-conveyance and energy-management solutions for on-highway vehicles. The company also provides sealing solutions such as gaskets, seals, cam covers, and oil pan modules. It was founded in 1904 and is headquartered in Maumee, Ohio.
While we acknowledge the potential of DAN 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 DAN and that has 100x upside potential, check out our report about the cheapest AI stock.
Click to continue reading and see the 5 Most Undervalued Growth Stocks To Buy For The Next 10 Years.
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