In this article, we will look at the 8 Most Undervalued Growth Stocks to Buy Right Now.
Undervalued growth stocks are getting more attention as investors try to find companies that still have strong earnings prospects without paying stretched multiples. For this list, the focus is on stocks trading below 15x forward earnings and forecasted to grow earnings by more than 30% annually over the next five years.
Franklin Templeton says it looks for companies “poised for revenue, earnings or asset growth whose valuations do not fully reflect their long-term growth potential.” MFS makes the valuation point more carefully, saying valuation reflects a company’s “earnings potential, growth trajectory” and whether investors are “paying an appropriate or discounted price” relative to “true earnings potential.” Invesco adds that a pickup in global activity could “unlock value across a wider range of areas,” while noting there are “AI opportunities that are more attractively priced” and companies that may benefit through “cost efficiencies or new product offerings.” In plain summary, the setup is about finding growth that the market may still be underpricing.
With that in mind, let us now take a look at the 8 Most Undervalued Growth Stocks to Buy Right Now.
Our Methodology
We used the Finviz screener to identify stocks that are forecasted to grow their earnings by over 30% annually in the next 5 years while trading at a forward PE ratio of less than 15x. We then 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.
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 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).
8. Vale S.A. (NYSE:VALE)
On May 27, 2026, Scotiabank analyst Alfonso Salazar raised the firm’s price target on Vale S.A. (NYSE:VALE) to $18 from $16.50 previously and maintained a Sector Perform rating on the shares. Salazar said Scotiabank has begun including copper growth in its valuation model and price target following the publication of the Vale Base Metals Asset Handbook.
On May 22, 2026, JPMorgan also raised the firm’s price target on Vale S.A. to $19.50 from $18.50 previously and maintained an Overweight rating on the shares. JPMorgan updated the company’s model.
In April, Vale S.A. reported Q1 iron ore output of 69.68M metric tons, compared to 67.67M last year. Iron ore production totaled 69.7 Mt, up 3% year-over-year, supported by record output at S11D and Brucutu and continued ramp-up of the Capanema and VGR1 projects. Pellet production rose 14% year-over-year to 8.2 Mt, while iron ore sales increased 4% year-over-year to 68.7 Mt. Copper production totaled 102.3 kt, up 13% year-over-year, and nickel production totaled 49.3 kt, up 12% year-over-year.
Vale S.A. produces iron ore and nickel across Brazil, Asia, the Middle East, North Africa, Europe, the Americas, and Oceania.
7. Nu Holdings Ltd. (NYSE:NU)
On June 1, 2026, Nu Holdings Ltd. (NYSE:NU) disclosed in a regulatory filing that Rob Livingston has been appointed CFO, effective July 13. Livingston will replace Guilherme Lago, who will transition to Special Advisor and support the management team and Audit and Risk Committee on corporate development and other strategic matters. Livingston joins from Visa (V), where he recently served as CFO for North America, and will lead Nu’s global finance organization, including capital and liquidity planning, financial reporting, corporate development, tax, and investor relations.
On May 21, 2026, BofA lowered the firm’s price target on Nu Holdings Ltd. to $16 from $17 and maintained a Neutral rating on the shares. BofA said quarterly results disappointed for “a second consecutive quarter” and reduced its FY26 and FY27 BRL net income estimates by 6% and 9%, respectively.
On May 14, 2026, Nubank reported Q1 revenue of $5.32B, above the consensus estimate of $5.06B. CEO David Velez said Nu’s AI transformation is a core priority, adding that the company is “rebuilding banking around AI.” Velez said NuFormer is already in production for credit cards in Brazil and Mexico and unsecured lending in Brazil, while AI Private Banker functionalities serve more than 15 million monthly active users. Nu also reported more than 135 million customers, revenue above $5B for the first time, net income of $871M, and ROE of 29%.
Nu Holdings Ltd. provides a digital banking platform in Brazil, Mexico, Colombia, the Cayman Islands, and the United States.
6. MINISO Group Holding Limited (NYSE:MNSO)
On May 29, 2026, JPMorgan analyst Kevin Yin lowered the firm’s price target on MINISO Group Holding Limited (NYSE:MNSO) to $16 from $26 previously and maintained an Overweight rating on the shares following the company’s Q1 earnings report.
On May 26, 2026, MINISO Group Holding Limited reported Q1 adjusted EPS of RMB1.80, compared to RMB1.92 last year. Revenue totaled RMB5.688B, up from RMB4.427B last year. Founder, Chairman, and Chief Executive Officer Guofu Ye said group-level revenue grew 28.5% year-over-year, outperforming prior expectations. Ye said MINISO Chinese mainland revenue grew 29.6% year-over-year in Q1, marking a fifth consecutive quarter of acceleration since the March quarter of 2025, supported by another solid high-single-digit SSSG. MINISO overseas revenue grew 21.9%, supported by low-single-digit SSSG, while TOP TOY revenue increased 51.4% year-over-year.
MINISO Group Holding Limited retails and wholesales design-led lifestyle and pop toy products across Mainland China, the rest of Asia, North and Latin America, Europe, and internationally.
5. Sociedad Química y Minera de Chile S.A. (NYSE:SQM)
On May 28, 2026, Scotiabank raised the firm’s price target on Sociedad Química y Minera de Chile S.A. (NYSE:SQM) to $105 from $100 and maintained an Outperform rating on the shares. Scotiabank said that, following the company’s Q1 results and guidance revisions, there are multiple ways to win with the stock.
Meanwhile, BofA raised the firm’s price target on Sociedad Química y Minera de Chile S.A. to $58 from $53 and maintained an Underperform rating on the shares. BofA cited “strong” Q1 operating results and raised its 2026-27 EBITDA estimates by 6.2%, reflecting higher Specialty Plant Nutrition volumes and modestly stronger lithium prices after a 15% rebound since the end of March.
On May 26, 2026, Sociedad Química y Minera de Chile S.A. reported Q1 revenue of $1.76B, above the consensus estimate of $1.70B. CEO Ricardo Ramos said the company delivered “strong results” in the quarter, with lithium sales volumes reaching approximately 69 thousand metric tons of LCE as SQM operated at full capacity to meet customer demand. Ramos said global lithium demand could exceed 1.9 million metric tons of LCE this year, while market dynamics suggest a tight supply-demand balance. SQM raised its expected sales volume growth guidance for the year from 10% to 15%.
Sociedad Química y Minera de Chile S.A. produces and sells specialty plant nutrients, iodine and its derivatives, and related products across Chile, Latin America, the Caribbean, Europe, North America, Asia, and internationally.
4. Hilton Grand Vacations Inc. (NYSE:HGV)
On June 1, 2026, Goldman Sachs analyst Lizzie Dove upgraded Hilton Grand Vacations Inc. (NYSE:HGV) to Neutral from Sell with a price target of $55, up from $44. Dove said the company is starting to see benefits from HGV Max, while its inventory overhang is less of a concern following the Bluegreen Vacations acquisition. Goldman Sachs also said Hilton Grand’s earnings power is likely understated in Street estimates and took a more constructive view on the timeshare sector, citing execution-driven earnings growth, self-help initiatives, and strong travel demand, particularly in the U.S.
On May 21, 2026, Hilton Grand Vacations Inc. announced the closing of an upsized $1B revolving warehouse facility. The facility accommodates both deeded and trust inventory, including loans from Elara, a Hilton Grand Vacations Club, the company’s flagship resort in Las Vegas, acquired in April 2026. The revolving period will end in May 2028, with final maturity in May 2029, while the maximum advance rate remains at 90%.
On May 18, 2026, Truist analyst C. Patrick Scholes raised the firm’s price target on Hilton Grand Vacations Inc. to $71 from $67 and maintained a Buy rating on the shares. Scholes updated the firm’s model following Q1 earnings in the lodging industry and noted a common theme around “enhanced experiences” for owners, including customer-engagement initiatives aimed at increasing sales.
Hilton Grand Vacations Inc. develops, markets, sells, manages, and operates resorts, timeshare plans, and ancillary reservation services under the Hilton Grand Vacations brand in the United States, Japan, and Europe.
3. Comstock Resources, Inc. (NYSE:CRK)
On May 27, 2026, Mizuho lowered the firm’s price target on Comstock Resources, Inc. (NYSE:CRK) to $21 from $25 and maintained a Neutral rating on the shares. Mizuho said it expects the Iran crisis to have a prolonged impact on global oil prices and refining cracks. The firm raised its 2026 and 2027 oil price outlook by 25% and 6%, respectively, and increased its forecast for U.S. refining cracks by 61% and 51%.
Meanwhile, Clear Street lowered the firm’s price target on Comstock Resources, Inc. to $25 from $29 and maintained a Buy rating on the shares. Clear Street said the company reported a Q1 EBITDA miss after backing out the one-off unrealized gain from derivatives and cited Comstock’s higher net debt for the target cut.
Earlier in May, Comstock Resources, Inc. reported Q1 adjusted EPS of 15c, versus the consensus estimate of 23c. Revenue totaled $419.03M, below the consensus estimate of $486.41M. The company said natural gas and oil sales were $338.6 million, operating cash flow was $191.9 million, and net income was $112.5 million, or $0.38 per diluted share. Excluding the pre-tax $82.8 million unrealized gain on hedging contracts, exploration expense, and gain from sale of assets, adjusted net income was $44.5 million, or $0.15 per diluted share.
Comstock Resources, Inc. acquires, explores, develops, and produces natural gas and oil properties in the United States.
2. Cinemark Holdings, Inc. (NYSE:CNK)
On June 1, 2026, Cinemark Holdings, Inc. (NYSE:CNK) announced that it delivered its “highest-ever” domestic box office performance for the month of May. The company said the results were driven by broad moviegoer enthusiasm and strategic programming across a balanced slate that included blockbusters, breakout mid-tier content, and strong holdovers. Cinemark also reported its highest-ever food and beverage per-cap spend for the month of May.
On May 4, 2026, JPMorgan analyst David Karnovsky raised the firm’s price target on Cinemark Holdings, Inc. to $36 from $35 and maintained an Overweight rating on the shares.
Early in May, Cinemark Holdings, Inc. reported Q1 revenue of $643M, above the consensus estimate of $634.83M. CEO Sean Gamble said the quarter marked Cinemark’s strongest first quarter since the onset of the pandemic across all revenue categories and adjusted EBITDA. Gamble cited operational execution, the company’s market position, and ongoing investments and strategic initiatives, while also pointing to consumer enthusiasm, upcoming film releases, and the studio’s commitment to theatrical exhibition.
Cinemark Holdings, Inc. operates theatres in the United States and Latin America.
1. Southwest Airlines Co. (NYSE:LUV)
On June 1, 2026, Morgan Stanley raised the firm’s price target on Southwest Airlines Co. (NYSE:LUV) to $60 from $55 previously and maintained an Overweight rating on the shares.
On May 28, 2026, Southwest Airlines Co. announced leadership changes. Chief Operating Officer Andrew Watterson will focus fully on operations, while Justin Jones, previously Executive Vice President Operations, was appointed Chief Commercial Officer and will report directly to CEO Bob Jordan. Chief Customer & Brand Officer Tony Roach will also report directly to Jordan, while Chief People Officer Elizabeth Bryant and the People, Learning & Development organization will report to Roach. Jordan said the changes position Southwest to move forward with “greater clarity” and stronger execution.
On May 26, 2026, UBS analyst Atul Maheswari raised the firm’s price target on Southwest Airlines Co. to $53 from $49 and maintained a Buy rating on the shares. Maheswari said UBS sees potential for around 50% EPS growth for several airlines in 2027.
Southwest Airlines Co. provides scheduled passenger air transportation services in the United States and internationally.
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