5 Best Undervalued Stocks to Buy for Q2 2025

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eToro is a multi-asset investment platform. The value of your investments may go up or down. Your capital is at risk.

These types of securities provide good long and short-term investment opportunities for beginners and professionals alike. For example, these shares can rise significantly in value when investors spot their growth potential. Finding such top stocks beforehand can be highly profitable, so in this guide, we have detailed how you can find the best undervalued stocks in 2025.

What are the top undervalued stocks to buy?

Finding undervalued stocks to trade can be difficult; it can take a lot of research to assess companies based on their financial strength (fundamental ratios) and strategic ambitions. We have done some of the hard work for you by identifying the best undervalued stocks in 2025:

1. Warner Bros. Discovery (WBD)

• Market Cap: $19.70 billion
• P/E Ratio: N/A
• Revenue Growth: -1.88%
• Stock Price: $8.05

Warner Bros. Discovery is one of the most undervalued companies in Wall Street as its stock has lost over a third of its value since going public. This valuation is mostly because of its huge mountain of debt and the fact that it owns many toxic assets like linear television stations.

The company’s streaming business is also facing substantial competition from the likes of Netflix and Disney. Still, the company is trading at a price-to-sales ratio of 0.48, which is lower than most media companies. 

Also, a sum-of-parts valuation calculation shows that the company is a bargain. This means that if it was broken down and sold separately, it would attract a higher valuation than the current combined market cap. 

Warner Bros. Discovery’s stock could bounce back if it demonstrates that it can grow its revenues, slash its debt, and reduce costs.

2. Wynn Resorts (WYNN)

• Market Cap: $10 billion
• P/E Ratio: 11.9
• Revenue Growth: 65%
• Stock Price: $91

Wynn  Resorts is another highly undervalued companies in the United States. It runs one of the biggest casino businesses in the United States with a presence in Nevada, Massachusetts, and Macau China. 

The company has become highly undervalued even as the gaming industry is doing well and its revenue is growing. In June 2024, the company had a price-to-earnings ratio of 11.9, lower than the S&P 500 average of 20. This is even as the company’s revenue is growing by over 20%.

Wynn has a lower valuation than other casino companies because it does not have a huge presence in the digital gambling industry.

I believe that the stock has more room to grow because of its coming locations in the UAE, which has become a leading location for the wealthy. The company could transform the region into a major gambling hub like Macau.

3. Target (TGT)

• Market Cap: $67 billion
• P/E Ratio: 16
• Revenue Growth: -2.4%
• Stock Price: $146

Target, the giant American retailer, has also emerged as one of the most undervalued players in the industry. The company trades at a multiple of 16, which is lower than that of other companies like Walmart, Costco, and Dollar General.

This undervaluation is because the company’s revenue growth has been weaker than other retailers. It had a negative revenue growth of 2.4% in the first quarter while companies like Walmart and Costco grew by over 5%.

Target is an ideal investment because it can be turned around. The management is working to cut costs, close underperforming brands, and accelerating its presence online.

4. Boeing (BA)

• Market Cap: $113 billion
• P/E Ratio: N/A
• Revenue Growth: 8.3%
• Stock Price: $185

Boeing is another highly undervalued company. This undervaluation happened as the company moved from one crisis to another, which has led it to lose market share in the aviation industry. Airbus now has a significantly bigger market share and backlog than Boeing.

Still, there is a likelihood that the stock will bounce back in the long term. For one, it still has a big backlog for both civil and military equipment. It also has a good reputation in its other aircrafts like 747 and 77. 

Also, Boeing has a long track record of generating strong returns. It is also implementing a turnaround strategy that will eventually work out.

5. Lockheed Martin (LMT)

• Market Cap: $111 billion
• P/E Ratio: 16
• Revenue Growth: 5.28%
• Stock Price: $462

Lockheed, the second-biggest player in the military industrial complex is another highly undervalued company. It trades at a price to sales multiple of 16, which is lower than the S&P 500 index average.

Its cheaper valuation is mostly because of the supply chain issues and commodity prices issues it has gone through in the past few years. Still, these issues are now improving, which will see it become more profitable.

Lockheed Martin has a strong market share in its industry and has a long track record of paying dividends. It has increased its payouts for over 21 years, meaning that it will soon become a dividend aristocrat.

Where to buy the best undervalued shares

Investing in the stock market is made easy these days through the use of online brokers. We have shortlisted some of the best brokers for you.

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Min. Deposit $100

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No. assets 3600+

Demo account Yes

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Plus500

Min. Deposit $100

Fees From 2%

No. assets 2800+

Demo account Yes

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This information is NOT relevant to EU residents who are to be serviced by EU subsidiaries of the Plus500 Group, such as Plus500CY Ltd, authorized by CySEC (Reg. 250/14). Different regulatory requirements apply in Europe, such as leverage limitations and bonus restrictions.

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Public

Min. Deposit $20

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No. assets 9000+

Demo account No

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Public.com review

Cryptocurrency execution and custody services are provided by Apex Crypto LLC (NMLS ID 1828849) through a software licensing agreement between Apex Crypto LLC and Public Crypto LLC. Crypto trading on Public platforms is served by Public Crypto LLC and offered through APEX Crypto. Please ensure that you fully understand the risks involved before trading.

What to know about the best undervalued stocks

As the GameStop saga in Q1 2021 proved, there are always stocks that could rise significantly in price when a group of investors determines that they are undervalued, although in this case, mere speculation was also a factor.

From an investment rather than speculation perspective, undervalued stocks may be those whose total assets exceed their current market capitalisation, so shareholders could simply sell all the company’s assets and make a profit. Or, an undervalued stock might be one whose earnings and operating magin justify a higher share price, as measured by one of the fundamental ratios such as the price to earning (P/E) ratio.

The best trading hours to buy undervalued stocks

Exchanges all over the world open and close at specific times. US stock markets include the New York Stock Exchange (NYSE) and the Nasdaq. These markets are available to trade from 9:30 am to 4 pm eastern time, but some trading occurs pre-market and post-market. London and other international markets trade during different hours.

How to trade undervalued stocks in 3 Steps

1. Open a trading account

To invest in undervalued stocks, the first step is to open a trading account on your chosen brokerage platform. This is a relatively simple process, taking only a few minutes to select a username, select a password and provide a contact email or telephone number. After this, you will need to provide some identification such as a valid passport or driving license.

2. Choose undervalued stocks

You can fund your trading account using a debit or credit card (and sometimes PayPal), then navigate the broker’s list of available stocks to buy. Some brokers let you filter the list on various criteria, to more easily identify the stocks you want. You can also usually click one of the listed stocks to see additional information or look up the company on a financial website to find its fundamental ratios.

3. Place your trade

Before placing a trade in a live trading account, some brokers let you “paper trade” in a demo account. Once you know what you’re doing, go ahead and click the “buy” button for your selected stock in your live account, but be sure not to invest too much money too soon in a single stock (however undervalued it looks).

Are undervalued shares a good investment?

While trading undervalued stocks, it is important to keep your risk management in check at all times. Many traders and investors lose money due to a poor ability to control their risks, and not knowing when to cut losses. Do not risk more than a manageable amount of your total investment capital on any single trade or investment. Live to fight another day, but be cautious about selling out too soon and leaving profits on the table for someone else.

The best undervalued stocks can often provide good gains, especially if you invest early before the price of a stock soars to its intrinsic value and beyond. Investing in stocks whose share prices are below their intrinsic value can be relatively risk-free, but it’s not riskless, and it can take some time for a stock’s true value to be reflected in its share price. As one successful investor once said, “The market can remain irrational longer than you can stay solvent.”

Methodology: How we choose the best undervalued stocks

At Invezz, our mission is to empower our readers with the most accurate and reliable financial information. Our curated selection of the best stocks in specific industries is designed to provide investors with well-researched, expertly reviewed stock recommendations. Our team follows a rigorous process to ensure our readers receive high-quality, trustworthy stock selections.

• Initial screening. Our team of experienced stock market analysts conducts an initial screening of stocks within the chosen industry. This involves analyzing a broad range of companies based on key financial metrics such as revenue growth, profitability, debt levels, and market capitalization.
• Earnings reports and financial analysis. Analysts review the latest earnings reports of shortlisted companies. This includes a detailed assessment of financial statements, looking for consistent earnings growth, strong balance sheets, and positive cash flow trends. Special attention is given to year-over-year performance and quarterly results.
• Sector analysis. A comprehensive sector analysis is conducted to understand the macroeconomic factors affecting the industry. This includes examining market trends, competitive landscape, regulatory changes, and technological advancements. Our analysts utilize industry reports, market research, and economic forecasts to gain a holistic view of the sector.
• Analyst recommendations. We consider recommendations from reputable sources such as Barron’s and Zacks. These sources provide expert opinions and ratings on stocks, which serve as an additional layer of validation for our selections. Incorporating external analyst recommendations ensures that our curated stocks are backed by a consensus of expert views.
• Internal review. After the initial selection by our analysts, the chosen stocks are reviewed by a sub-editor. The sub-editor ensures that the analysis is clear, concise, and adheres to Invezz’s editorial guidelines. This review process helps maintain the quality and readability of our content, making it accessible to a broad audience.
• Quarterly updates. To ensure our stock recommendations remain relevant and up-to-date, we update the curated section quarterly. Each update cycle involves re-evaluating the stocks based on the latest financial reports, industry developments, and market conditions. This regular update process ensures that our recommendations reflect the most current information available.

Our approach combines expert analysis, comprehensive research, and regular updates to deliver reliable and insightful investment recommendations. Read more about our review process and editorial policy.

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