In this article, we will be looking at the 20 most undervalued stocks with smart money ratings.
We have passed a quarter into 2025, and the U.S. economy sends mixed signals, causing investors to scramble and decode them. The U.S. GDP contracted by 0.3% in Q1, 2025, as businesses started stockpiling imports at a record pace to brace themselves for the sweeping tariffs introduced by President Trump. Not considering the pandemic era, goods imports have never been this high since 1974.
In addition to dragging the economic growth lower, the rising imports and declining GDP have left even economists unsure of what comes next. Some tend to dismiss the slump as a temporary blip induced by changes in trade policies. Others are raising the alarm about a crack in the economy, influenced by stubborn inflation and slowing consumer spending.
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In the middle of this uncertain period, the Federal Reserve is presented with two options: cut rates to stimulate growth or hold firm to control inflation. As per a CNBC report, there is an upward movement in Core Personal Consumption Expenditures (PCE) prices by 3.5% year-over-year in Q1, well above the Fed’s anticipated 2%. The increase comes while the consumer spending growth has cooled to 1.8%, marking the weakest pace in the last two years.
Pointing to these cross signals, Chair Jerome Powell ruled out pre-emptive rate cuts and advocated trade negotiations to influence the current economic condition, either for better or worse. These claims have got the market on edge. Every headline about tariffs or Treasury yields is sending ripples through portfolios.
Opportunities are also on the rise amid the uncertainty. Historically, the undervalued stocks, trading below their actual worth owing to short-term fears arising from economic ambiguity, have outperformed even their counterparts when the market sentiment shifted. After the 2008 financial crisis, for instance, in 2009, the value stocks representing the market rebounded by 58%, beating the returns of their growth peers. Such a history would repeat itself in the current market environment if investors were to focus on stocks with strong fundamentals that are being overlooked.
We must separate the noise from the nuance to focus on the right stocks. Most of the headlines are fixated on tariffs and GDP dips. While these indicators should not be ignored, we must also look at the underlying strengths that would persist. Some companies are upgrading their equipment in anticipation of potential supply chain disruptions, causing the private domestic investment to increase by 21.9% in Q1. The unemployment rate has not risen from 4.2%, and the April payrolls added 177,000 jobs, indicating the labor market’s strong footing. These divergences point to an environment that invites bargaining opportunities for investors.
This brings us to our carefully curated list of smart money ratings for the 20 most undervalued stocks with strong growth potential. Going through their fundamentals, we have compiled a list of 20 companies trading at discounts far away from their long-term potential. Be it a tech firm undervalued due to tariff fears, or an industrial giant priced for recession. Our picks reflect a simple truth: markets overreact, but fundamentals endure.
Stock market data on a laptop screen. Photo by Alesia Kozik on Pexels
Our Methodology
We have used a few criteria when putting together our list of 20 undervalued stocks with smart money ratings. Primarily, we have only considered those stocks with a value that has gained less than 12% from their 52-week lows. All the picks on our list also have a price-to-earnings ratio of less than 25. We ensured that the stock’s value remained at least 20% below its average analyst target price. Together, the P/E ratio and upside potential represent the undervaluation of the stock in the market at a price beneficial to the investors. For listing our picks, we have used the stocks’ upside potential. All the data in the article was taken from financial databases and analyst reports, with all information updated as of May 08, 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).
20. Lamb Weston Holdings, Inc. (NYSE:LW)
Insider Transaction: 0.35%
Upside Potential: 21.98%
Forward P/E: 14.56
Lamb Weston Holdings, Inc. (NYSE:LW), headquartered in Idaho, is a leading global producer and distributor of frozen potato products. The company’s portfolio includes french fries, sweet potato fries, and other value-added offerings. Lamb Weston Holdings, Inc. (NYSE:LW) is currently serving more than 100 countries with a client base comprised of major restaurant chains, foodservice distributors, and retailers. The company’s manufacturing operations are primarily in the Pacific Northwest. Against intense competitors in the market, the company thrives by placing importance on innovation in frozen food processing. It is among the most undervalued stocks on our list.
Currently, Lamb Weston Holdings, Inc. (NYSE:LW) is trading at 5.93% above its 52-week low, which suggests that the company is at the initial stage of its recovery. The 9% increase in volume, as reported in the third quarter of 2025, suggests successful efforts to regain business growth. However, the macroeconomic environment remains uncertain, particularly since the changing consumer spending and preferences could shape the business outcome. Lamb Weston Holdings, Inc. (NYSE:LW) still anticipates consistency in its revenue, through new and innovative products like fridge-friendly fries and tots. Additionally, the company has projected pre-tax savings of at least $55 million in 2025, predicting financial stability during the fiscal year.
Insider transactions have gained an upward trend during the previous six months, but at just 0.35%, indicating limited internal conviction. With 47 hedge funds invested at the end of Q4 2024, institutional interest in the stock remains solid. Lamb Weston Holdings, Inc. (NYSE:LW) carries a forward P/E of 14.56, pointing to relative valuation efficiency. The upside potential of 21.98% seems promising for investors interested in stocks with notable growth potential.
19. Magnolia Oil & Gas Corporation (NYSE:MGY)
Insider Transaction: 0.14%
Upside Potential: 25.48%
Forward P/E: 11.1
Magnolia Oil & Gas Corporation (NYSE:MGY) is an independent exploration and production company headquartered in Texas. The company focuses on oil and natural gas assets in South Texas. Its core operations are centered around the Eagle Ford Shale and Austin Chalk formations, within the Karnes and Giddings areas. Placing importance on disciplined capital allocation and maintaining financial flexibility, Magnolia Oil & Gas Corporation (NYSE:MGY) gains a competitive edge over its peers, particularly against regional E&P firms. To deliver shareholder value, the company leverages its operational efficiency.
Magnolia Oil & Gas Corporation (NYSE:MGY) trades at 8.33% above its 52-week low. The primary contributor to the undervaluation is the year-over-year decline in total revenue per BOE. Despite the record quarterly production volume, the decline is due to lower oil prices. Additionally, due to acquisitions and capital expenditures, the company’s cash balance decreased to $260 million in 2024 from $400 million. However, the company has reduced operating costs by 10% per BOE and gained the board’s approval for a 15% increase in quarterly dividend, suggesting potential growth in 2025.
Though insider buying has increased only by a mere 0.14% over the past 6 months, the number of hedge funds tracked by Insider Monkey holding onto ownership in Magnolia Oil & Gas Corporation (NYSE:MGY) stands at 30 at the end of Q4 2024, indicating a moderate level of institutional interest. The company’s forward P/E stands low at 11.1, which shows undervaluation. With an upside potential of 25.48% based on the estimation from analysts, the stock appears attractive to growth-seeking investors.
18. FMC Corporation (NYSE:FMC)
Insider Transaction: 5.79%
Upside Potential: 28.60%
Forward P/E: 9.19
Pennsylvania-based company FMC Corporation (NYSE:FMC) is a global agricultural sciences company specializing in crop protection products like insecticides, herbicides, and fungicides. Competing with peers like Corteva, the company has a client base worldwide. FMC Corporation (NYSE:FMC)’s innovation pipeline concentrates on precision agriculture and sustainability, including plant health and biological solutions. Though commodity prices and regional planting patterns influence its performance, the company thrives in the agrochemical market through its strategic R&D investments and global distribution network.
The company is valued at 7.66% above its 52-week low, reflecting a modest recovery. The company achieved this recovery by meeting the guidance in 2024 in two quarters. Though the company is experiencing challenges with heightened channel inventories in Eastern Europe, Brazil, and India, FMC Corporation (NYSE:FMC) has reduced its manufacturing costs significantly, aligning with its future growth plans. Introduction of the new active ingredients, Isoflex and Fluinapi, is expected to result in substantial revenue growth, with projected sales of $600 million by 2027, thus gaining a positive outlook.
The company’s forward price-to-earnings ratio of 9.19 suggests it may be trading below its intrinsic value and is one of the most undervalued stocks. Over the past six months, insider transactions have risen by 5.79%, suggesting a meaningful internal confidence level. Institutional interest in FMC Corporation (NYSE:FMC) remains strong, as indicated by 48 hedge funds backing the stock, as per Insider Monkey’s Q4 2024 database. With an analyst’s estimate of 28.60% upside, appreciation in investment is anticipated.
17. OneWater Marine Inc. (NASDAQ:ONEW)
Insider Transaction: 1.93%
Upside Potential: 32.53%
Forward P/E: 7.18
OneWater Marine Inc. (NASDAQ:ONEW) is a premier retailer and service provider of recreational boats and marine products in the U.S. The Georgia-based company offers new and pre-owned boats, parts, servicing, and financing through a multi-store platform. Through acquisitions and regional market dominance, OneWater Marine Inc. (NASDAQ:ONEW) competes with other market players, including MarineMax and local dealerships. The company relies on lifestyle-driven demand for its growth and remains exposed to consumer discretionary spending and seasonal trends.
OneWater Marine Inc. (NASDAQ:ONEW) trades at just 6.55% above its 52-week low, signaling continued pressure on the stock. For instance, in the Q2 2025 report, the company noted a 2% decline in its same-store sales. However, it has outperformed the industry, which experienced a decline of 10%, translating positively in the market. The company also reported a 14% increase in sales of pre-owned boats owing to a strong demand in the segment. Additionally, almost surpassing its full-year goal of 10% reduction in inventory, the company moves on to the next target range of 10% to 15%, which is anticipated to optimize the brand lineups.
In the last six months, insider transactions have increased slightly by 1.93%, showing low internal conviction. A forward P/E of 7.18 reflects a relatively low valuation of the company’s future earnings from the market. Insider Monkey database noted six hedge funds invested in OneWater Marine Inc. (NASDAQ:ONEW), indicating scattered institutional traction. The 32.53% upside potential signals a cautious opportunity for speculative value seekers.
16. Avantor, Inc. (NYSE:AVTR)
Insider Transaction: 0.20%
Upside Potential: 33.50%
Forward P/E: 10.54
Avantor, Inc. (NYSE:AVTR), headquartered in Pennsylvania, is a provider of mission-critical products and services to the biopharma, healthcare, education, and advanced technology industries with an operational reach across the globe. The company’s portfolio is comprised of laboratory chemicals, equipment, and bioprocessing solutions. Against market players like Thermo Fisher and Merck KGaA, Avantor, Inc. (NYSE:AVTR) generates market share by integrating supply chain services with proprietary product offerings. Its end-to-end procurement platforms and strategic global distribution network give the company a strong foothold amid growing demand for life sciences.
The company’s value narrowly avoids the bottom by trading at a mere 1.00% higher than its 52-week low. Despite the challenging market conditions, though negative, the company’s earnings and margin during the first quarter of 2025 align with its plans. The demand in the key markets, such as the education and government sectors, has been weak, causing a decline in the company’s revenue. However, as part of the plan for 2025, Avantor, Inc. (NYSE:AVTR) intends to implement a delivery excellence initiative that could elevate supply chain efficiency as well as resilience. The AI-enabled e-commerce platform and other new products and distribution agreements are anticipated to support the company’s expansion into 2025.
With a low forward P/E ratio of 10.54, the company appears to be undervalued. Insider activity has been minimal for the past six months at 0.20%. With 39 hedge funds maintaining positions, institutional support remains better than internal confidence. Analysts anticipate a 33.50% upside, suggesting Avantor, Inc. (NYSE:AVTR) as a rebound candidate to be placed under watchful scrutiny.
15. DENTSPLY SIRONA Inc. (NASDAQ:XRAY)
Insider Transaction: 2.49%
Upside Potential: 34.18%
Forward P/E: 7.75
Based in North Carolina, DENTSPLY SIRONA Inc. (NASDAQ:XRAY) is a leading manufacturer of professional dental products and technologies. Its portfolio includes imaging systems, CAD/CAM solutions, consumables, and treatment centers. Serving dental professionals worldwide, the company competes with Align Technology among other players. The focus of the company is on digital dentistry, procedural efficiency, and clinical education to strengthen its brand presence. Its global distribution, combined with intraoral scanning innovations, helps establish a long-term position in dental care.
DENTSPLY SIRONA Inc. (NASDAQ:XRAY) has climbed 9.91% from its 52-week low, hinting at a recovery. The company achieved organic growth in the first quarter of 2025 in two of its three global regions. Though remaining negative, it surpassed the expectations. Specifically, the company recorded strong performance in the Imaging and Wellspect Healthcare segments, with the help of its new product introductions. Headwinds from global trade tariffs are anticipated to have a $50 million annualized impact. However, DENTSPLY SIRONA Inc. (NASDAQ:XRAY) maintains its 2025 outlook for organic sales and adjusted EPS while raising its sales outlook due to favorable changes in foreign currency translation.
Insider buying at 2.49% reflects moderate internal confidence in DENTSPLY SIRONA Inc. (NASDAQ:XRAY)’s growth prospects. Hedge funds continue to show interest, with 38 holding positions in the company’s stock. The low forward price-to-earnings ratio of 7.75 signals a potential undervaluation in the stock. Based on analysts’ forecasts, the company has a 34.18% upside potential, acknowledging undervalued fundamentals relative to its earnings potential.
14. ConocoPhillips (NYSE:COP)
Insider Transaction: 0.94%
Upside Potential: 36.23%
Forward P/E: 11.94
ConocoPhillips (NYSE:COP), headquartered in Texas, is one of the largest independent exploration and production companies globally. With a portfolio inclusive of North America, Europe, Asia, and Australia, the company strongly emphasizes shale, LNG, and deepwater assets. ConocoPhillips (NYSE:COP) prioritizes shareholder returns, operational efficiency, and low-carbon investments and leverages them to compete with other players in the market. The company’s performance is heavily linked to global crude oil and natural gas prices and environmental regulations.
ConocoPhillips (NYSE:COP) is currently trading at 9.73% above its 52-week low, showing moderate resilience in the market. Especially during the first quarter of 2025, the company has reported exceeding its production guidance by 2,389,000 barrels of oil equivalent per day. The macroeconomic environment remains uncertain and unfavorable for the company, causing the industry outlooks to be revised lower. However, the integration of Marathon Oil, which was completed ahead of schedule, is anticipated to provide opportunities that could optimize capital efficiency and reduce costs. The return of $2.5 billion to shareholders in the first quarter of 2025 further projects solid cash flows.
Insider conviction seems to be restrained, with insider purchases standing low at just 0.94% over the past 6 months. The company’s forward P/E ratio, standing at 11.94, points toward a possible mispricing in the valuation of the company. Meanwhile, ConocoPhillips (NYSE:COP) has undeniably high institutional confidence, with 86 hedge funds on board, as per Insider Monkey’s Q4 2024 database. With a 36.23% upside potential, the company attracts investors seeking growth opportunities amid the uncertain market conditions.
13. IQVIA Holdings Inc. (NYSE:IQV)
Insider Transaction: 0.09%
Upside Potential: 36.74%
Forward P/E: 11.42
IQVIA Holdings Inc. (NYSE:IQV) is a leading global provider of advanced analytics and technology solutions. The focus of the company is heavily laid on clinical research services to the life sciences industry. The North Carolina-based company is a merger of IMS Health and Quintiles. The company delivers real-world evidence, trial design, and commercial outsourcing solutions. Against some tough competitors like Syneos Health and ICON plc, IQVIA Holdings Inc. (NYSE:IQV) gains its competitive edge by leveraging its proprietary platforms and AI integration. Alongside the pharmaceutical R&D expenditure, the company’s performance is also influenced by healthcare digitization trends.
Currently positioned 11.86% above its 52-week low, the company has made a moderate recovery in the market. IQVIA Holdings Inc. (NYSE:IQV)’s total revenue for the first quarter of 2025 exceeded the guidance, despite the market environment headwinds, including delayed responses from customers regarding new programs. The Technology and Analytics Solutions (TAS) segment, however, shows robust growth with revenue reaching a 6.4% increase. The company’s backlog registers a record high value of $31.5 billion, thus providing a positive outlook for 2025.
The low P/E ratio of 11.42 makes it one of the most undervalued stocks on our list. With only a 0.09% uptick, the insider activity further hints at minimal internal engagement. Hedge fund presence in stocks is strong, with 51 funds maintaining their holding positions, as per Insider Monkey’s Q4 2024 database. The upside potential of 36.74% gives attractiveness to the company and gains the interest of investors looking for undervalued stocks with notable growth potential.
12. Ashland Inc. (NYSE:ASH)
Insider Transaction: 6.63%
Upside Potential: 37.63%
Forward P/E: 10.36
A global specialty chemicals company, Ashland Inc. (NYSE:ASH), delivers high-performance solutions to various industries, including personal care, pharmaceuticals, food, and energy. The company specializes in additives, rheology modifiers, and film coatings in Delaware. Peers like Dow and BASF pose tough competition in the market. However, Ashland Inc. (NYSE:ASH) stands out from them in terms of scientific innovation and regulatory compliance. Particularly, the company’s transformation from a diversified industrial firm to a focused specialty player ensures stability in its margin.
Ashland Inc. (NYSE:ASH) has rebounded 7.40% from its lowest point this year. The second quarter sales were down by 17% year-over-year. In addition to the decline in organic sales volume, portfolio optimization also contributed to this fall in sales. However, portfolio optimization, such as the sale of the Avoca business, is anticipated to increase the company’s long-term profitability. Life Sciences and Personal Care segments are performing well, simultaneously achieving a record-high EBITDA margin of more than 30%. With new facilities in China and Brazil, Ashland Inc. (NYSE:ASH) is also pursuing growth in the global market.
The stock could be considered undervalued relative to earnings expectations since it is trading at a forward P/E of 10.36. The company possesses notable internal faith, which is reflected in the 6.63% rise in insider activity in the past 6 months. Though hedge fund involvement stands moderate at 24 holders, the 37.63% upside potential estimated by analysts increases the company’s attractiveness for those seeking undervalued stocks.
11. Hillman Solutions Corp. (NASDAQ:HLMN)
Insider Transaction: 0.99%
Upside Potential: 38.41%
Forward P/E: 14.35
Ohio-based company, Hillman Solutions Corp. (NASDAQ:HLMN), offers hardware and home improvement solutions, including fasteners, keys, and builder’s hardware to retailers and contractors. Competing with companies like The Home Depot’s private label brands and Fastenal, the company leverages in-store service programs, RFID technology, and omnichannel fulfillment to gain a strong foothold in the market. Through strategic partnerships with major retailers, the company acquires scale benefits but remains sensitive to housing market cycles and inventory management costs in a volatile retail environment.
Currently trading at 8.81% above its 52-week low, Hillman Solutions Corp. (NASDAQ:HLMN) has a mild upward momentum. The company’s revenue for the Q1 of 2025 stands at $359.3 million, partly contributed by the Intex acquisition, and meeting the company’s expectations for the quarter. Amid the volatility and uncertainty prevailing in the market, the company demonstrated its confidence in its financial outlook by reiterating the full-year 2025 net sales and adjusted EBITDA guidance. This resilience is mainly due to the strong competitive moat and consistency in demand for repair and maintenance products.
The current forward P/E ratio of 14.35 suggests that Hillman Solutions Corp. (NASDAQ:HLMN) might be attractively priced. Internal optimism is cautious and reflected in the insider upward activity of just 0.99%. We noted 24 hedge funds holding positions in the company, representing a stable institutional presence. Analysts estimate a 38.41% upside potential for the stock, presenting the company as a quiet performer with overlooked growth potential.
10. Clarus Corporation (NASDAQ:CLAR)
Insider Transaction: 0.57%
Upside Potential: 43.38%
Forward P/E: 12.62
Clarus Corporation (NASDAQ:CLAR) is a leading outdoor and lifestyle consumer product manufacturer in Utah, including brands like Black Diamond and Sierra. The company targets premium and performance-oriented segments, focusing on climbing, skiing, and mountain sports. Brand authenticity and product innovation give the company a competitive edge over players like CF Corporation. Clarus Corporation (NASDAQ:CLAR) pursues strategic acquisitions and international expansion to expand its business while facing challenges like seasonal demand and raw material cost fluctuations.
Clarus Corporation (NASDAQ:CLAR) has recovered from its 52-week low but remains only 6.92% above it. As per the fourth quarter report for 2024, the company failed to meet its top-line objectives by a difference of $10 million. Particularly, the adventure segment did not perform well, facing a 23% decline because of lower OEM and Australian wholesale revenue in Q4. On the other hand, the company saw improvements in its outdoor segment due to Stock Keeping Units (SKU) rationalization efforts and product simplification. Clarus Corporation (NASDAQ:CLAR) also reported success in restructuring efforts and a strong cash position to support its 2025 endeavor.
At 12.62, the forward P/E ratio points to a valuation that may not truly reflect the company’s earnings potential. Managerial interest in the stock is low, with insider transactions over the past six months at 0.57%. Comparatively, institutional interest is modest, with 13 hedge funds holding positions in the company at the end of Q4 2024. However, analysts forecast a compelling 43.38% upside, which may attract risk-tolerant investors.
9. Liberty Latin America Ltd. (NASDAQ:LILAK)
Insider Transaction: 0.37%
Upside Potential: 47.42%
Forward P/E: 7.94
Headquartered in Colorado, a telecommunications company, Liberty Latin America Ltd. (NASDAQ:LILAK), runs operations across the Caribbean and Latin America. The company offers broadband internet, mobile, and video services under brands such as VTR, Flow, and C&W. Regional incumbents like América Móvil pose tough competition. However, Liberty Latin America Ltd. (NASDAQ:LILAK) seeks growth through network modernization, convergence, and M&A. Though a key player in digital connectivity, the company’s financials are influenced by currency volatility and infrastructure investment needs in emerging markets.
At 10.50% above its lowest price this year, Liberty Latin America Ltd. (NASDAQ:LILAK) experiences modest relative strength. In 2024, the company recorded close to 100,000 new subscribers, suggesting strong performance in the postpaid and broadband segments. Hurricane Beryl slightly impacted these new subscriptions in Jamaica. However, the substantial growth in the Panama region alongside a strong performance in the Caribbean and Costa Rica regions allowed the company to achieve an adjusted OIBDA of $1.6 billion. Additionally, Liberty Latin America Ltd. (NASDAQ:LILAK) has achieved 25% digital sales across the group and enters 2025 with a target of 30%.
Insider buying has been limited to 0.37%, which, though positive, suggests insider neutrality. With 22 hedge funds invested, institutional participation remains moderate. While the analysts are envisioning a 47.42% upside, Liberty Latin America Ltd. (NASDAQ:LILAK)’s forward P/E stands low at 7.94, signaling an undervalued investment opportunity.
8. Churchill Downs Incorporated (NASDAQ:CHDN)
Insider Transaction: 0.06%
Upside Potential: 47.55%
Forward P/E: 14.03
Based in Kentucky, Churchill Downs Incorporated (NASDAQ:CHDN) is a diversified entertainment company best known for operating the iconic Kentucky Derby. In addition to horse racing, the company owns racetracks, historical racing machine facilities, and online wagering platforms, including TwinSpires. Facing tough competition from the gaming and wagering sectors, the company expands in the market through acquisitions and property development. Besides consumer spending trends, Churchill Downs Incorporated (NASDAQ:CHDN)’s revenue relies on the evolution of digital gaming platforms.
The company is trading 8.38% above its 52-week low and maintains a value that reflects a regrowth. Churchill Downs Incorporated (NASDAQ:CHDN) reported a 9% year-over-year growth in its revenue during the first quarter of 2025, primarily contributed by increased revenue in its Live and Historical Racing and Gaming segments. However, the decline in net income by 5% indicates that the company has expenses that could offset the acquired gain. The opening of a new racing and gaming facility in Western Kentucky, with plans to further enhance the Kentucky Derby experience, signals long-term growth for the company.
The forward P/E ratio of 14.03, though relatively higher than many of the other picks, still indicates that the market may have discounted Churchill Downs Incorporated (NASDAQ:CHDN)’s future earnings potential. Over the previous six months, insider activity has been low at 0.06%, suggesting neutrality in managerial positioning. Insider Monkey noted 41 hedge fund holding positions, representing stable institutional confidence. Analysts have forecasted an upside potential of 47.55%. The company is a viable choice for investors seeking established names with room to run.
7. Minerals Technologies Inc. (NYSE:MTX)
Insider Transaction: 0.98%
Upside Potential: 55.51%
Forward P/E: 8.53
Minerals Technologies Inc. (NYSE:MTX) is a global resource and technology company established in New York. The company develops, produces, and markets mineral-based products to industries like paper, metal casting, construction, and pharmaceuticals. Its portfolio includes precipitated calcium carbonate and bentonite. Focusing on product innovation and operational efficiency, the company competes with competitors like Imerys and Omya. Exposed to raw material costs and global economic cycles, Minerals Technologies Inc. (NYSE:MTX)’s growth is also influenced by infrastructure investments and sustainability-driven industrial processes.
Minerals Technologies Inc. (NYSE:MTX) trades 6.02% higher than its yearly low, hinting at moderate growth in its current value. Because of lower volumes and adverse foreign exchange impacts, the company saw an 8% year-over-year decline in its sales in the first quarter of 2025. However, the company also reported a 10% increase in average daily sales in March compared to January. Environmental lining systems and building product segments have performed better since the beginning of the year, and they have gained many projects. The two new precipitated calcium carbonate (PCC) satellites commissioned in 2025 are also anticipated to improve production capabilities.
Forward P/E of the company stands low at 8.53, indicating that the current price does not align with Minerals Technologies Inc. (NYSE:MTX)’s projected profitability. A 0.98% increase in insider holdings reveals caution practiced in the internal environment. With 24 hedge funds involved, institutional backing is moderate. The company has a projected upside of 55.51%, signaling a potential value opportunity for investors seeking such growth in the industrial materials segment.
6. Ziff Davis, Inc. (NASDAQ:ZD)
Insider Transaction: 0.99%
Upside Potential: 57.04%
Forward P/E: 4.19
Established in New York City, Ziff Davis, Inc. (NASDAQ:ZD) operates a digital media and internet company with technology, healthcare, and gaming brands. The company’s portfolio comprises Mashable, PCMag, and Everyday Health. Performance marketing and subscription-based revenue allow the company to gain market share against competitors like Dotdash, Meredith, and Future Plc. Ziff Davis, Inc. (NASDAQ:ZD) relies on data analytics and SEO optimization to drive content monetization. However, changes in digital algorithms and consumer media consumption affect the company’s financial outlook.
Ziff Davis, Inc. (NASDAQ:ZD)’s current value, which stands 9.07% above its 52-week low, reflects a gradual price recovery. Specifically, in Q1 of 2025, the company reported revenue of $328.6 million, beating its expectations for the quarter. Though the company missed the Q1 adjusted EPS consensus estimate by $0.11, its revenue guidance for 2025 continues to stand at the $1.47 billion midpoint, exceeding analyst estimates. By not making any changes to this guidance amid the uncertain economic conditions, the company has elevated the confidence and predictability for investors.
Insider transactions saw a positive change of 0.99% in the last 6 months, showing minimal but present interest. Fourteen hedge funds maintain positions and represent moderate institutional engagement in Ziff Davis, Inc. (NASDAQ:ZD). The consensus estimate of a 57.04% upside potential and a low forward P/E of 4.19 projects an undervalued yet promising company profile for investors.
5. LendingTree, Inc. (NASDAQ:TREE)
Insider Transaction: 2.53%
Upside Potential: 65.11%
Forward P/E: 17.48
Based in North Carolina, LendingTree, Inc. (NASDAQ:TREE) is a leading online marketplace for financial services. The company connects consumers with loan offers across mortgages, credit cards, and personal loans. Despite intense competition from Bankrate, Credit Karma, and similar players, LendingTree, Inc. (NASDAQ:TREE) generates revenue through lead generation and affiliate marketing. Its strategy involves platform diversification and expanding into insurance and small business lending verticals. Interest rate fluctuations, consumer credit demand, and macroeconomic conditions influence the company’s growth.
LendingTree, Inc. (NASDAQ:TREE) shows early signs of rebound, with its current prices standing at 8.54% from its 52-week low. Though the adjusted EBITDA for the first quarter of 2025 fell below the estimates, the company reported solid revenue growth. Despite facing macroeconomic challenges, the company’s insurance segment had an uptick of 71% year-over-year, marking significant growth in performance. Along with home equity lending, the small business and personal loan products have also been growing and are anticipated to generate record revenue in 2025.
With the forward P/E multiple at 17.48, LendingTree, Inc. (NASDAQ:TREE) may be underappreciated by the market. The company is exposed to moderate institutional interest, represented by 23 hedge funds having stakes in the company’s ownership. Analysts are highly optimistic, assigning a 65.11% upside to the stock, earning a position in the top 10 of our list.
4. SM Energy Company (NYSE:SM)
Insider Transaction: 0.66%
Upside Potential: 68.07%
Forward P/E: 4.11
SM Energy Company (NYSE:SM) explores and produces oil and natural gas. The company is located in Colorado and primarily focuses on the Midland Basin and South Texas. Centennial Resource Development and similar companies raise the level of competition in the market, but by concentrating on resource-rich shale formations, SM Energy Company (NYSE:SM) acquires a competitive edge. The company’s outlook remains dependent on commodity price volatility, regulatory developments, and capital allocation strategies within a competitive upstream oil and gas sector.
Currently 8.36% above its yearly low, SM Energy Company (NYSE:SM)’s value hovers within a familiar range. In the first quarter of 2025, the company demonstrated its business growth with a 30% increase in oil production and a 20% increase in overall production. SM Energy Company (NYSE:SM) has successfully completed the Uinta Basin, and its assets have surpassed its early expectations. The company anticipates consistency in higher lease operating expenses, among other costs, for 2025. However, through a disciplined approach to capital allocation, which partly involves choosing debt reduction over stock repurchases, the company aims to control its expenses and increase its earnings.
Insider buying stands at 0.66%, indicating a cautious management sentiment. The 4.11 forward P/E ratio signals suppressed market expectations. Nonetheless, the company is also marketed by strong institutional interest, with 38 hedge funds maintaining their stake, as per Insider Monkey’s Q4 2024 database. SM Energy Company (NYSE:SM)’s upside potential has been estimated to be 68.07%, making the company stand out as one of the most undervalued stocks in our list.
3. Hillenbrand, Inc. (NYSE:HI)
Insider Transaction: 2.19%
Upside Potential: 71.41%
Forward P/E: 8.86
Headquartered in Indiana, a diversified industrial company, Hillenbrand, Inc. (NYSE:HI) operates through Advanced Process Solutions, Molding Technology Solutions, and Batesville. The company manufactures equipment for processing plastics, food, and recycling materials, focusing on burial caskets. Its key competitors include Illinois Tool Works and Dover Corporation. Hillenbrand, Inc. (NYSE:HI) gains its competitive advantage through strategic acquisitions and international expansion. Factors including capital goods demand, shifting mindset toward automation, and circular industrial practices affect company growth prospects.
Hillenbrand, Inc. (NYSE:HI) is trading at 7.33% above its 52-week low, indicating early momentum. The company’s revenue of $716 million surpassed expectations, irrespective of the macroeconomic challenges. Hillenbrand, Inc. (NYSE:HI) has divested 51% of its interest in the Milliron injection molding and extrusion business, and this is anticipated to increase the focus on the company’s core strengths. Through alternative sourcing, surcharge pricing, and a strong global footprint, the company is improving its resilience against tariff rate changes and anticipates a full-year EPS of $2.10 to $2.45 in 2025.
Trading at a forward P/E of 8.86, the stock is undervalued relative to earnings expectations. Moderately encouraging, the insider transactions have risen by 2.19% in the last six months. Hillenbrand, Inc. (NYSE:HI) garners steady institutional attention from 21 hedge funds. Meanwhile, the company’s upside potential of 71.41%, as forecasted by analysts, increases the stock’s appeal to growth-focused investors.
2. Kelly Services, Inc. (NASDAQ:KELYA)
Insider Transaction: 0.08%
Upside Potential: 134.48%
Forward P/E: 4.34
Kelly Services, Inc. (NASDAQ:KELYA) is a global workforce solutions firm providing staffing, outsourcing, and talent advisory services. The company serves multiple sectors, including education, engineering, and science. Based in Michigan, the company competes with players like ManpowerGroup and Robert Half and differentiates itself through its contingent workforce solutions. Labor market conditions and remote work trends influence the company’s growth in the market. Furthermore, changes in employment cycles and talent shortages often affect its financial stability.
Kelly Services, Inc. (NASDAQ:KELYA) remains near bargain territory with its shares selling at 6.44% above the annual low. However, its Q1 2025 report indicates that the company has met its revenue expectations and surpassed the market average, despite the decline in demand for federal contractors affecting Enterprise Talent Management (ETM) and Science, Engineering & Technology (SET) segments. With consistently high fill rates, the education business continues to stand strong. Additionally, Kelly Services, Inc. (NASDAQ:KELYA) is anticipating the integration of Motion Recruitment Partners (MRP) to create synergies that help optimize operational efficiency in 2025.
Insider participation has barely moved, with an almost unnoticeable 0.08% change, indicating a lack of internal conviction. Concerning institutional interest, Insider Monkey noted 19 hedge funds invested in the stock. At 4.34, the forward P/E ratio signifies a valuation that does not reflect the company’s growth prospects. The projected upside from analysts reaches an eye-catching 134.48%, marking Kelly Services, Inc. (NASDAQ:KELYA)’s entry into our list unavoidable.
1. Immunovant, Inc. (NASDAQ:IMVT)
Insider Transaction: 19.69%
Upside Potential: 253.11%
Forward P/E: 0.00
Immunovant, Inc. (NASDAQ:IMVT) is a clinical-stage biotechnology company headquartered in New York. The company specializes in developing targeted therapies for autoimmune diseases. Its flagship product, IMVT-1402, is an FcRn inhibitor that helps treat conditions like myasthenia gravis and thyroid eye disease. Immunovant, Inc. (NASDAQ:IMVT) signifies a differentiated safety and efficacy profile in which trial progression takes priority, but investor confidence, regulatory approval timelines, and therapeutic market expansion have some level of influence on the company’s growth. The company has yet to generate any profit as it is still in the development phase.
The company’s value is 12.19% above its 52-week low, showing upward movement. Although Immunovant, Inc. (NASDAQ:IMVT) reported a significant net loss of $111.1 million for the quarter ending December 31, 2024, the company stands strong in its cash position with a value of approximately $825 million. In addition to funding ongoing pivotal trials, this substantial capital allows the company to expand R&D efforts across ten planned indications. The company is also making significant progress with its lead asset IMVT-1402. The asset has cleared six Investigational New Drug (IND) applications. It has entered pivotal studies in Graves’ disease and difficult-to-treat rheumatoid arthritis, increasing its potential to generate significant revenue in the upcoming years.
Insider buying signals internal optimism, jumping to 19.69% in the past six months. Hedge fund involvement is strong, with 35 participants holding on to the company’s stakes. The forward P/E ratio of 0.00 indicates that the market valuation has not yet considered the company’s future growth potential. With a staggering upside potential of 253.11%, Immunovant, Inc. (NASDAQ:IMVT) stands out as the most undervalued in our list, with bullish sentiment across the board.
Immunovant, Inc. (NASDAQ:IMVT) ranks first among the smart money ratings for the 20 most undervalued stocks. While we acknowledge the potential of IMVT, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. There is an AI stock that went up since the beginning of 2025, while popular AI stocks lost around 25%. If you are looking for an AI stock that is more promising than IMVT but trades at less than 5 times its earnings, check out our report about this cheapest AI stock.
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