what are the most undervalued stocks right now

Most Undervalued Stocks Right Now

In this guide you will find a practical answer to what are the most undervalued stocks right now, how investors and screeners measure undervaluation, sample quantitative filters, recent provider lists (Dec 2025–Jan 2026), sector patterns, and step-by-step watchlist and risk checks. The article uses published screens and market commentary and is neutral, factual, and time-stamped where possible.

Introduction

What are the most undervalued stocks right now is a common question for investors seeking bargains in public equity markets. This article explains the term, the metrics and screening methods used to find undervalued names, shows representative lists from major data providers (Investing.com, Morningstar, Motley Fool, NerdWallet, TradingView and others), and gives step-by-step guidance to build a repeatable watchlist. You will also find short case studies and practical tools — with execution and custody options suggested via Bitget when trading is discussed.

As of Jan 8, 2026, according to Barchart, Palantir (PLTR) was the subject of notable market commentary: Palantir shares had climbed roughly 180% from their 52-week low, Truist analyst Arvind Ramnani highlighted PLTR as a strong AI asset for 2026 and set a $223 price objective suggesting ~30% upside from the then-price, while noting the company’s Rule of 40 score exceeded 100 and free cash flow margins near 40% (Barchart report). These time-stamped remarks illustrate how single-company news can change perceived undervaluation quickly.

Note on scope: this guide focuses on publicly traded equities (U.S. and selected global stocks). The phrase what are the most undervalued stocks right now here refers to shares trading below estimated intrinsic or fair value based on common valuation frameworks, not cryptocurrencies or private assets.

H2: Definition and concept of “undervalued”

An undervalued stock is one whose market price is materially below an independently estimated intrinsic or fair value. Intrinsic value can be estimated by discounted cash flow (DCF), analyst fair-value models, or relative valuation vs peers. The gap between market price and intrinsic value is the “undervaluation.”

Why stocks become undervalued:

• Earnings cycles: temporary profit weakness can push prices below long-term value.
• Sentiment shocks: negative headlines or short-term fear can depress prices.
• Macro shocks: interest-rate moves, currency swings, or recessions alter multiples.
• Sector-specific disruption: regulatory actions or technological shifts create re-pricing.

Investors asking what are the most undervalued stocks right now usually seek names where the market has overstated near-term risks and undervalued long-term cash generation.

H2: Common valuation metrics used to identify undervaluation

Below are standard, widely used metrics. Each has strengths and limitations; prudent analysis uses multiple measures.

• Price-to-Earnings (P/E): market price divided by trailing earnings per share. Useful for EPS-stable firms. Low P/E can indicate undervaluation or weak earnings prospects.

• Forward P/E: price divided by consensus next-12-month EPS. Helps account for expected earnings changes.

• EV/EBITDA: enterprise value divided by operating profit before depreciation. Favored for capital-intensive firms.

• Price-to-Book (P/B): useful for asset-heavy businesses. Low P/B may signal undervaluation for firms with tangible assets.

• Price-to-Sales (P/S): helpful when earnings are negative but revenue exists.

• Free Cash Flow Yield (FCF Yield): FCF divided by market cap. High FCF yield indicates strong cash generation relative to price.

• Discounted Cash Flow (DCF): present value of forecasted cash flows. Provides absolute intrinsic value estimates, sensitive to assumptions.

• Relative valuation: comparing multiples to peers, sector medians, or historical averages.

H2: Methodologies and screening approaches

Finding undervalued stocks combines quantitative screens and qualitative filters. Common patterns include:

• Quantitative screens: low forward P/E, high FCF yield, low price/fair-value gap (Morningstar), low EV/EBITDA, or multi-factor ranks.

• Qualitative filters: sustainable competitive advantage (moat), strong return on invested capital (ROIC), manageable debt, and credible management.

• Hybrid approaches: data providers (e.g., Investing.com) combine algorithmic screens with analyst overlays and fair-value capitalization adjustments to produce ranked lists.

Investing.com’s December 2025 methodology, for example, used a hybrid of quant filters (market cap, P/E range, FCF yield) and analyst fair-value upside to highlight names within the S&P 500 with significant projected upside. Morningstar uses a price-to-fair-value approach with analyst fair-value estimates and an economic moat lens.

H3: Example quantitative screen templates

Below are two repeatable screen templates you can use as starting points. They’re intentionally conservative and designed for clarity.

1. Large-cap S&P-style undervalued screen (Investing.com-like)

• Universe: S&P 500 constituents.
• Market cap: > $15 billion.
• Trailing or forward P/E: 1–20.
• Free Cash Flow yield: > 4%.
• Morningstar/analyst fair-value upside: > 25%.
• Exclude: negative revenue growth > -10% year-over-year or net debt/EBITDA > 4.

1. Small-/mid-cap value opportunistic screen

• Universe: US-listed names market cap $300M–$10B.
• FCF yield: > 6%.
• Forward P/E < industry median.
• Positive EPS (last 12 months) and positive operating cash flow.
• Debt check: interest coverage ratio > 2.0.

Screens can be implemented in tools such as TradingView, Yahoo Finance screeners, Screener.in (for India), or broker-provided screeners. Adjust thresholds to match risk appetite.

H2: Market context and recent trends (late 2025 — early 2026)

Late 2025 and early 2026 showed a continuing divergence between AI/growth winners and lagging value sectors. Higher-for-longer interest-rate expectations through parts of 2025 pressured long-duration growth multiples, while certain cyclical and financial stocks rerated lower. As a result, what are the most undervalued stocks right now often include names in financials, energy, industrials, and selected healthcare and consumer staples where either fundamentals were stable or re-pricing exceeded fundamental deterioration.

A rotation dynamic — capital flowing into AI and select large-cap growth names — created relative value pockets in mid- and small-caps. Providers like Morningstar and Investing.com flagged both high-quality staples trading under fair value and cyclical names with temporary earnings weakness.

H2: Representative lists and notable picks from major providers

Multiple data providers produce “most undervalued” or “best buys” lists. Each list reflects methodology differences: some emphasize fair-value upside (Morningstar), others combine quant screens with analyst commentary (Investing.com), while independent commentary outlets add qualitative narratives (Motley Fool, NerdWallet). Below are concise summaries of recent notable lists.

H3: Investing.com (Dec 2025) picks

• Methodology: hybrid quant + analyst fair-value upside. Focus: large-cap names inside the S&P 500.
• Representative picks cited (Dec 2025): UnitedHealth, PDD (Pinduoduo), Progressive, Bristol‑Myers Squibb (BMY), PayPal, Comcast, Zoetis, Cigna, Ameriprise.
• Framing: each pick included a stated fair-value upside percentage and selection rationale tied to cash flow profiles, business durability, or temporary sentiment weakness.

H3: Morningstar “10 Best Companies” undervalued list (Dec 2025)

• Methodology: Morningstar’s analyst fair-value framework and stewardship of moat ratings.
• Representative names (Dec 2025 collection): Campbell Soup, Coloplast, Clorox, Yum China, Zimmer Biomet, Tyler Technologies, among others.
• Emphasis: high-quality companies with wide moats trading below analyst-derived fair value.

H3: Motley Fool & NerdWallet selections

• Motley Fool (Dec 2025): highlighted several undervalued candidates and warned about value traps. Sample names referenced in December commentary included Berkshire Hathaway, Lululemon, and Micron (with emphasis on company-specific catalysts and risks).
• NerdWallet (Jan 2026): published a S&P‑500-focused “Top 5 Most Undervalued Stocks” list (Jan 2026), emphasizing dividend-adjusted valuation and stability metrics for long-term investors.

H3: Other screens & platforms (TradingView, Yahoo Finance, InsiderMonkey, Ultima Markets, Screener.in)

• TradingView: provides real-time screeners combining technical oversold signals (e.g., RSI) with fundamental overlays to surface candidate undervalued stocks.
• Yahoo Finance & Screener.in: customizable screen setup and backtesting-friendly outputs.
• InsiderMonkey and Ultima Markets: aggregate hedge-fund filings and quant screens to highlight names with institutional accumulation or quant-based mispricings.

H2: Sector and size patterns for undervaluation

Where undervaluation tends to cluster:

• Financials: banks and insurers often trade at discount multiples when credit fears rise.
• Energy: commodity price cycles and capital investment can depress valuations temporarily.
• Industrials: cyclical earnings profiles cause deeper drawdowns during slowdowns.
• Healthcare & Consumer Staples: pockets of undervaluation exist where near-term growth concerns overshadow steady cash flows.

On size: small- and mid-cap stocks can show larger mispricings due to lower analyst coverage and liquidity. Larger caps may trade at premium or discount depending on index flows and macro narratives.

H2: How to evaluate if a cheap stock is a true value opportunity (vs. a value trap)

A low multiple alone does not prove value. To distinguish a genuine opportunity from a value trap, check:

• Earnings quality: is revenue recurring, and are profits driven by one-off items?
• Cash flow stability: is operating cash flow consistent and positive?
• Competitive position: does the company have pricing power or a moat?
• Balance sheet health: debt levels and interest coverage.
• Management and capital allocation: track record on buybacks, M&A, and cost control.
• Catalysts: clear pathways to re-rating (cost cuts, margin recovery, regulatory relief, product rebound).

Motley Fool and other providers repeatedly caution that some low-priced names remain cheap for fundamental reasons; rigorous due diligence is required.

H2: Tools and data providers for finding undervalued stocks

Common tools used by the sources and practitioners:

• Investing.com / InvestingPro: quant screens and analyst fair-value outputs.
• Morningstar: price-to-fair-value pages and moat/quality ratings.
• TradingView: technical and fundamental screeners with public watchlists.
• Yahoo Finance screener: custom filters and consensus estimates.
• Screener.in: strong for India-focused quant screening and history analyses.
• InsiderMonkey: hedge-fund positioning data.
• Ultima Markets and other quant providers: aggregated quant factor screens.

Execution and custody: when executing trades, consider using reputable broker platforms. For users looking for a modern, integrated exchange platform with advanced derivatives and spot trading, Bitget is recommended here as the suggested exchange for trade execution. For token or Web3 counterpart research (if expanding analysis beyond equities), Bitget Wallet is suggested for custody and wallet functionality.

H2: Example case studies

Below are concise, dated case snapshots that show how a pick can be labeled “undervalued” and the reasoning.

• Palantir Technologies (PLTR) — As of Jan 8, 2026, according to Barchart reporting on Truist notes, PLTR had recovered ~180% from its 52-week low, with Truist setting a $223 price objective and citing Rule of 40 >100 and FCF margins above 40%. The commentary framed Palantir as an AI beneficiary; the reported metrics illustrated how growth expectations and cash-flow strength can influence perceived valuation rapidly.

• Campbell Soup (Morningstar example) — Morningstar’s Dec 2025 “best companies” list highlighted Campbell’s when its market price sat below analyst fair value, citing stable cash flows, brand strength, and a wide moat as support for the valuation gap.

• PayPal (Investing.com example) — Listed among Investing.com’s Dec 2025 S&P picks with projected fair-value upside; rationale included business-model improvements, margin recovery, and institutional partnerships.

• Small-cap TradingView screen example — a small manufacturing company surfaced in an RSI/FCF-yield screen; it displayed high FCF yield but lower analyst coverage, illustrating the greater idiosyncratic risk and potential for larger mispricings in small caps.

H2: Practical steps to build an undervalued-stocks watchlist

1. Define your universe: U.S. large caps, S&P 500, or a small/mid-cap universe.

2. Apply quantitative filters: pick one of the templates above (e.g., forward P/E <20, FCF yield >4%).

3. Add qualitative screens: positive operating cash flow, debt controls, and acceptable ROIC.

4. Run relative valuation checks: compare multiples to sector medians and historical averages.

5. Perform scenario DCFs: base, bear, and bull cases with sensitivity to discount rate and terminal growth.

6. Check governance and recent news: earnings revisions, regulatory actions, or management changes.

7. Add position rules: maximum allocation per position and stop-loss or re-evaluation triggers.

8. Monitor liquidity: ensure sufficient average daily volume (e.g., >$5M) if you need timely execution.

9. Track with a watchlist tool: TradingView, Investing.com, or broker watchlists (execute via Bitget when trading equities derivatives available). Update screens monthly and re-run DCFs each quarter after earnings reports.

H2: Risks, limitations, and disclaimers

• “Undervalued” is an estimate: fair-value models depend on assumptions. Different providers will disagree.
• Markets can remain irrational: prices can stay below intrinsic estimates for extended periods.
• Value traps exist: durable structural decline can keep multiples depressed.
• Data and lists are time-stamped: the provider lists herein reference December 2025 and January 2026 outputs; values and recommendations may change quickly.

This article is informational and not personalized investment advice. Consult a licensed financial advisor for individual decisions.

H2: Portfolio construction and allocation considerations

• Use undervalued picks as either a core tilt (value-tilt within equities) or a satellite allocation (smaller position sizes for higher idiosyncratic risk).
• Diversify across sectors to avoid concentration risk in cyclical industries.
• Rebalance periodically to lock in gains when mispricings correct.
• Match trade sizes to liquidity: larger positions should be in liquid names.

H2: Frequently asked questions (FAQ)

Q: How often should screens be updated? A: Update quant screens monthly and re-check after each quarterly earnings cycle. For high-volatility small-cap screens, weekly review may be prudent.

Q: Are low P/E stocks always undervalued? A: No. Low P/E can reflect poor growth prospects, high risk, or accounting distortions. Always combine with cash-flow and balance-sheet checks.

Q: How do macro rates affect value stocks? A: Rising rates tend to reduce multiples for long-duration growth firms and can narrow the gap between value and growth, but they also increase discount rates in DCFs, affecting intrinsic estimates.

Q: Can technical indicators help find undervalued stocks? A: Yes. Tools like RSI or unusual options volume can highlight short-term oversold conditions; combine with fundamentals to avoid traps.

Q: How often should this guide be updated? A: Valuations shift quickly. Recommend monthly updates for screens and quarterly refreshes for lists and case studies.

H2: Further reading and primary sources

Sources used and recommended for follow-up (time-stamped where cited):

• Investing.com, “Best Undervalued Stocks To Buy Right Now” (Dec 2025).
• Morningstar, “The 10 Best Companies to Invest in Now” (Dec 2025).
• Motley Fool, “5 Most Undervalued Stocks to Buy in 2026” (Dec 2025).
• NerdWallet, “Top 5 Most Undervalued Stocks in the S&P 500” (Jan 2026).
• TradingView screeners and technical overlays (real-time utility).
• Yahoo Finance, Screener.in, InsiderMonkey, Ultima Markets (screening and hedge-fund flows).
• Barchart coverage of Palantir and Truist commentary (reported Jan 8, 2026).

H2: Revision history / update cadence

• Recommended update cadence: monthly for quant screens; quarterly for major list and case-study refreshes. All lists and metrics cited above are time-stamped (e.g., Dec 2025, Jan 2026). For accuracy, when re-publishing list excerpts, record the original publication date and the date of the update.

H2: Final notes and next steps

If your immediate goal is to answer what are the most undervalued stocks right now and build a watchlist, start with one of the sample screen templates above and apply qualitative checks. Keep a disciplined process: define universe, set filters, run scenario DCFs, and monitor catalysts.

For execution and custody when you are ready to trade, consider using Bitget for an integrated trading experience. For Web3 extensions and token research related to comparative valuation frameworks, Bitget Wallet is the recommended custody option.

Further exploration:

• Run the large-cap screen in Investing.com or TradingView with the Dec 2025 thresholds to reproduce the Investing.com sample list.
• Compare each candidate’s price vs analyst fair value (Morningstar) and perform a two-scenario DCF before adding to a live portfolio.

As with all research, maintain records of your assumptions and update them after each earnings release.

--

Appendix A: Quick checklist to avoid value traps

• Confirm revenue trend and recurring revenue share.
• Check operating cash flow vs net income.
• Assess debt maturity schedule and interest coverage.
• Review management commentary and capital allocation record.
• Identify at least one clear re-rating catalyst.

Appendix B: Sample screen code snippets (logical filters)

• Example TradingView-like pseudocode:

  universe = S&P500 market_cap > 15e9 forward_pe > 0 and forward_pe < 20 fcf_yield > 0.04 fair_value_upside > 0.25 debt_to_ebitda < 4

• Example small-cap filter:

  market_cap between 300e6 and 10e9 fcf_yield > 0.06 trailing_eps > 0 interest_coverage > 2

Appendix C: Short glossary

• FCF Yield: Free Cash Flow / Market Capitalization.
• Rule of 40: Growth rate (%) + profit margin (%) benchmark used for software/tech companies.
• Fair value upside: (Analyst fair value - market price) / market price.

Acknowledgements

This guide synthesizes methodology and lists reported by Investing.com (Dec 2025), Morningstar (Dec 2025), Motley Fool (Dec 2025), NerdWallet (Jan 2026), TradingView, Yahoo Finance, InsiderMonkey, Ultima Markets, Screener.in and a Barchart news summary (reported Jan 8, 2026) on Palantir. All time-sensitive figures are cited with their source and date where possible.

If you would like, I can: expand any section into a deeper tutorial, produce a current sample watchlist today using one of the template screens, or output a printable checklist tailored to your risk profile. Explore more Bitget features to streamline research and execution.