In this article, we will take a look at the Top 9 NASDAQ Stocks with Low P/E Ratios.
As investors reviewed the latest inflation figures, stocks bounced back on September 25. The tech-heavy Nasdaq Composite had a notable 0.4% increase.
The August reading of the Personal Consumption Expenditures (PCE) index, which includes the Fed’s preferred “core” PCE measure of inflation, found prices increasing as expected. In August, the “core” PCE price index climbed 2.9% YoY and 0.2% MoM, both of which were results that economists had anticipated.
Although the Nasdaq has dropped this week, it is still up 16.61% year-to-date, and some analysts believe there is still more upside. The financial firm BMO Capital also raised its year-end estimate for the S&P 500 to 7,000, citing Fed easing, strong earnings, and an AI boom that isn’t yet excessively hot as reasons for equities to be in a “Goldilocks” scenario.
However, some analysts contend that further tariffs may push inflation until the end of the year, which might put pressure on the Fed to halt or reduce rate cuts.
Our Methodology
To come up with our list of the NASDAQ stocks with low PEs, we went through a variety of online publications, ETFs, and stock screeners to note down equities with price-to-earning ratios less than 15. We also used the number of hedge fund investors to rank the stocks, as of Q2 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).
9. Gibraltar Industries, Inc. (NASDAQ:ROCK)
P/E Ratio as of September 24: 14.61
Number of Hedge Fund Holders: 27
Gibraltar Industries, Inc. (NASDAQ:ROCK) ranks among the top NASDAQ stocks with low P/E ratios. Presenting at the Small-Cap Virtual Conference on September 18, Gibraltar Industries, Inc. (NASDAQ:ROCK) announced a strategic shift away from renewables and toward building materials.
Gibraltar Industries, Inc. (NASDAQ:ROCK) is focusing on building products, which currently make up 70% of the company’s inventory. Gibraltar states that it aims to grow by selling directly to contractors in the $6 billion metal roofing sector.
On the other side, the renewables division sale is moving forward, with potential buyers whittled down in the second round. In that regard, Gibraltar Industries, Inc. (NASDAQ:ROCK) has decreased its number of companies from 19 in 2019 to just 6, with the goal of selling five of them post-renewables.
Gibraltar Industries, Inc. (NASDAQ:ROCK) is a prominent manufacturer and provider of products and services in the renewable energy, residential, agricultural technology, and infrastructure markets.
8. The Wendy’s Company (NASDAQ:WEN)
P/E Ratio as of September 24: 9.70
Number of Hedge Fund Holders: 27
The Wendy’s Company (NASDAQ:WEN) ranks among the top NASDAQ stocks with low P/E ratios. Argus lowered The Wendy’s Company (NASDAQ:WEN)’s from Buy to Hold on September 23 owing to weak U.S. sales and traffic that are affecting the company’s performance despite overseas gains.
The fast-food giant reported second-quarter revenue 2% lower than the previous year, with global sales falling 1.8%. U.S. sales dipped 3%, while same-store sales fell 3.6%, partially offset by a 9% increase in overseas sales.
According to Argus, although Wendy’s valuation appears low, the company is dealing with growing expenses, a change in leadership, and fierce competition. If U.S. sales show a rebound and international sales pick up, the firm stated that it would consider adding the company back to its buy list.
The Wendy’s Company (NASDAQ:WEN) is a chain of quick-service restaurants that operates in the United States as well as overseas. The company operates through three primary segments: Global Real Estate & Development, Wendy’s International, and Wendy’s U.S.
7. Methanex Corporation (NASDAQ:MEOH)
P/E Ratio as of September 24: 10.99
Number of Hedge Fund Holders: 31
Methanex Corporation (NASDAQ:MEOH) ranks among the top NASDAQ stocks with low P/E ratios. The Methanex Corporation (NASDAQ:MEOH) established strategic alliances on September 23 to supply methanol bunkering services in South Korea and the Amsterdam-Rotterdam-Antwerp area.
Methanex Corporation (NASDAQ:MEOH) and TankMatch collaborated to offer barge-to-ship methanol bunkering services in the ARA region. The collaboration expands upon an earlier agreement between OCI Global and UniBarge, which Methanex obtained by acquiring OCI.
The South Korea and ARA collaborations both make use of Methanex’s existing supply chain and the local knowledge of nearby bunkering operators.
According to the Methanex Corporation (NASDAQ:MEOH), all of its partners fulfill its operational and safety requirements. It has also offered safety packages and technical advice to companies that are using methanol as marine fuel.
Methanex Corporation (NASDAQ:MEOH) is a methanol manufacturer with operations in Asia Pacific, North America, Europe, and South America.
6. Mattel Inc. (NASDAQ:MAT)
P/E Ratio as of September 24: 11.04
Number of Hedge Fund Holders: 33
Mattel Inc. (NASDAQ:MAT) ranks among the top NASDAQ stocks with low P/E ratios. On September 18, Roth/MKM reaffirmed its $22 price target and Neutral rating on Mattel Inc. (NASDAQ:MAT), pointing to retail timing concerns that are pushing order deliveries into 2025’s fourth quarter.
The company observed that third-quarter predictions were lowered and fourth-quarter projections were raised due to U.S. merchants pushing out shelf changes later than usual. Despite these changes in timing, the full-year projection remains unchanged, with earnings per share of $1.63 and net sales of $5.514 billion expected.
The toy manufacturer is also convinced of its ability to offset the total tariff cost of less than $100 million in 2025 via supply chain adjustments, procurement changes, production location changes, and selective price hikes implemented at the start of the third quarter.
Mattel Inc. (NASDAQ:MAT) is a multinational toy manufacturer headquartered in California. The company focuses on the design and manufacture of high-quality toys and other consumer products. It also produces action figures, building sets, and games under the trademarks MEGA, UNO, and WWE, as well as licensed products from Disney, Microsoft, and NBCUniversal.
5. Baidu Inc. (NASDAQ:BIDU)
P/E Ratio as of September 24: 12.20
Number of Hedge Fund Holders: 33
Baidu, Inc. (NASDAQ:BIDU) ranks among the top NASDAQ stocks with low P/E ratios. On September 24, the Roads and Transport Authority (RTA) granted 50 test licenses and Dubai’s first autonomous driving testing permit to Baidu, Inc. (NASDAQ:BIDU).
Since August, the permits, which were issued in July, have allowed Baidu’s Apollo Go fleet of fifty autonomous cars to test on public roads in specific locations throughout Dubai. Displaying its sixth-generation autonomous cars (RT6) at the 4th Dubai World Congress for Self-Driving Transport, Baidu, Inc. (NASDAQ:BIDU) runs the only platform permitted to conduct self-driving experiments on Dubai’s public roads.
By 2028, the company aims to have more than 1,000 completely autonomous cars in its fleet, assisting Dubai’s efforts to promote autonomous mobility.
Baidu, Inc. (NASDAQ:BIDU), a leading Chinese technology company, manages China’s largest internet search engine. The company has also expanded into AI-driven initiatives that include self-driving technology.
4. Upwork Inc. (NASDAQ:UPWK)
P/E Ratio as of September 24: 11.45
Number of Hedge Fund Holders: 32
Upwork Inc. (NASDAQ:UPWK) ranks among the top NASDAQ stocks with low P/E ratios. On September 24, Citizens JMP maintained its Market Outperform rating on Upwork Inc. (NASDAQ:UPWK) and increased its price target from $20 to $27. In order to effectively compete with established staffing firms, the company pointed to Upwork’s new enterprise platform, Lifted, which has “the potential to materially expand its enterprise offering over the next several years” by bringing crucial capabilities in-house.
Lifted, a fully owned subsidiary formed by the acquisitions of Bubty and Ascen, is seen by Citizens JMP as a “multi-year growth catalyst” that has the ability to boost Gross Services Value (GSV) regardless of any change in the macroeconomic climate.
Beyond Lifted, the firm found a number of factors that drive GSV and revenue growth independent of macroeconomic conditions, including the introduction of Upwork’s new variable freelancer fee, the increase in demand for AI-related work, the development of AI-driven marketplaces, and the steady advancement of advertising and monetization tools.
Upwork Inc. (NASDAQ:UPWK) is a communication services company that runs a global freelancing platform, connecting businesses with individuals and agencies.
3. Garrett Motion Inc. (NASDAQ:GTX)
P/E Ratio as of September 24: 9.57
Number of Hedge Fund Holders: 39
Garrett Motion Inc. (NASDAQ:GTX) ranks among the top NASDAQ stocks with low P/E ratios. On September 18, Stifel began coverage of Garrett Motion Inc. (NASDAQ:GTX) with a Buy rating and a $17.50 price target. The firm said that Garrett Motion Inc. (NASDAQ:GTX) aims to generate $1 billion in revenue from its Zero Emission portfolio by 2030, highlighting the company’s potential to deliver differentiated growth from this market.
Despite dwindling addressable markets, Stifel noted that Garrett’s legacy turbocharging division operates in well-structured areas that are expected to increase market share.
The firm anticipates that the turbocharging division will provide substantial free cash flow to support Garrett Motion’s expansion plans for zero emissions.
Garrett Motion Inc. (NASDAQ:GTX) is an auto components company that develops, produces, and distributes turbocharging, air and fluid compression, and high-speed electric motor technologies to original equipment manufacturers.
2. Weatherford International plc (NASDAQ:WFRD)
P/E Ratio as of September 24: 10.38
Number of Hedge Fund Holders: 41
Weatherford International plc (NASDAQ:WFRD) ranks among the top NASDAQ stocks with low P/E ratios. On September 23, Weatherford International plc (NASDAQ:WFRD) announced that it was awarded an eight-year contract by Romanian natural gas producer SNGN Romgaz S.A. to provide real-time monitoring capabilities for gas well operations.
The contract entails deploying wellsite monitoring systems throughout thousands of existing wells to capture and transmit dynamic metrics from wellheads. This is Romgaz’s first implementation of these kinds of monitoring services. Weatherford International plc (NASDAQ:WFRD) will employ cloud infrastructure to gather vital field data, giving Romgaz insight to support automated infrastructure operations and inform production choices.
Weatherford International plc (NASDAQ:WFRD) offers services and equipment to the natural gas and oil exploration and production industries. The company operates in three segments: Drilling and Evaluation (DRE), Well Construction and Completion (WCC), and Production and Intervention (PRI).
1. Illumina Inc. (NASDAQ:ILMN)
P/E Ratio as of September 24: 11.96
Number of Hedge Fund Holders: 54
Illumina Inc. (NASDAQ:ILMN) ranks among the top NASDAQ stocks with low P/E ratios. On September 23, Illumina Inc. (NASDAQ:ILMN) announced that it would collaborate with several global pharmaceutical companies to create companion diagnostics (CDx) for KRAS biomarkers on its TruSight Oncology Comprehensive genomic profiling test.
The collaborations are intended to increase tumor-agnostic CDx claims for KRAS mutations, which are known to result in uncontrolled cell growth that can lead to cancer. By identifying genetic abnormalities that fuel the growth of cancer, the TruSight Oncology Comprehensive test creates molecular tumor profiles that assist physicians in matching patients with authorized targeted medicines or clinical trials.
Through pharmaceutical agreements, Illumina Inc. (NASDAQ:ILMN) stated it maintains an expanding pipeline of CDx claims in development to assist immunotherapies and targeted medicines.
Illumina Inc. (NASDAQ:ILMN) is a life sciences company that develops and produces tools and systems for genomic research. It provides a variety of tools and services, such as sequencing platforms and microarrays that allow clinicians to evaluate genetic data and make discoveries.
While we acknowledge the potential of ILMN 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 ILMN and that has 100x upside potential, check out our report about this cheapest AI stock.
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