Top Undervalued Stocks to Invest in Right Now: Must-Know Picks

Highlighting Hidden Gems in the Market

Investing in the stock market can be a lucrative endeavor, especially when you uncover the most undervalued stocks to buy right now. These hidden gems often fly under the radar, offering significant growth potential for savvy investors who know where to look. Based on recent financial analyses from trusted sources like Forbes, Investopedia, and Morningstar, several stocks stand out as prime candidates for undervaluation in March 2025. From large-cap giants with robust fundamentals to smaller firms boasting remarkably low valuation metrics, this comprehensive guide dives deep into the best undervalued stocks to watch, providing detailed insights into their metrics, potential catalysts, and inherent risks. Whether you’re a seasoned investor or just starting out, understanding these opportunities can help you make informed decisions to maximize returns.

Among the top picks, Kohl’s (KSS) and Moderna (MRNA) emerge as standout choices, trading at just 30 percent of their fair value according to Morningstar’s estimates. This steep discount suggests they could be some of the most undervalued stocks to invest in today, though their high fair value uncertainty introduces an element of risk that investors must weigh carefully. Similarly, SITE Centers Corp. (SITC) and ZIM Integrated Shipping Services Ltd. (ZIM) catch attention with their ultra-low price-to-earnings (P/E) ratios of 1.07 and 1.83, respectively, as highlighted by Investopedia. These figures position them as potentially undervalued stocks in the real estate and shipping sectors, though their volatility warrants a closer look. Meanwhile, Forbes points to Deere & Company (DE) and Bristol Myers Squibb (BMY) as undervalued large-cap stocks trading 20 percent below their intrinsic value, blending stability with growth potential. Each of these stocks offers a unique value proposition, making them worth exploring for anyone searching for undervalued stocks to buy in 2025.

To fully grasp why these stocks are considered undervalued, it’s essential to delve into the data and context behind their valuations. Forbes’ analysis focuses on companies with market caps exceeding $10 billion, low debt-to-equity ratios, and positive free cash flow, ensuring a foundation of financial health. Deere & Company, a leader in agricultural and construction equipment, boasts a forward P/E of 24 and a $10 billion order backlog extending into 2026, bolstered by an 8 percent revenue increase in precision agriculture for Q4 2024. This pivot toward technology highlights its evolution from a cyclical industrial firm to a stable, tech-driven provider, making it one of the best undervalued stocks for long-term growth. Bristol Myers Squibb, a healthcare titan, trades at a forward P/E of 9 against a sector average of 16, with a $11 billion cash reserve and recent approvals like Opdivo Qvantig in 2024. Despite market concerns over a looming patent cliff, its robust pipeline and acquisition strategy position it as a top undervalued stock in the healthcare sector.

Shifting focus to smaller, high-value opportunities, Investopedia’s list emphasizes stocks with low 12-month trailing P/E ratios, a key metric for identifying undervalued stocks with strong earnings potential. SITE Centers Corp., a real estate investment trust, leads with a P/E of 1.07 and a market cap of $0.8 billion, offering a compelling case for investors seeking undervalued stocks in real estate. Its low valuation reflects market oversight rather than weak fundamentals, though the real estate sector’s sensitivity to interest rates adds a layer of risk. ZIM Integrated Shipping Services Ltd., with a P/E of 1.83 and a $2.6 billion market cap, taps into the shipping industry’s cyclical nature. While its low price suggests undervaluation, the sector’s exposure to global trade fluctuations means investors should monitor economic trends closely. These stocks exemplify how undervalued stocks to buy now can span diverse industries, each with distinct risk-reward profiles.

Morningstar’s broader analysis of 33 undervalued stocks provides additional depth, using price-to-fair-value ratios to pinpoint opportunities across sectors. Kohl’s, a consumer cyclical stock, trades at a mere 0.30 of its fair value, translating to a 70 percent discount. This extreme undervaluation stems from retail sector challenges, yet its brand resilience and potential for a turnaround make it a speculative but intriguing undervalued stock to watch. Moderna, in the healthcare space, mirrors this 0.30 ratio, reflecting a post-pandemic slump in vaccine demand despite its mRNA technology promise. Both carry very high uncertainty, meaning their fair value estimates could shift, but their current pricing screams opportunity for risk-tolerant investors hunting for the most undervalued stocks in 2025. This sector diversity, from retail to biotech, underscores the range of options available to those seeking undervalued stocks with high upside potential.

Beyond individual stock metrics, the broader market context enhances our understanding of these opportunities. In 2024, the US market rose 24 percent per the Morningstar US Market Index, yet as of early 2025, it trades at a 4 percent premium to fair value. Small-value stocks, however, remain 27 percent undervalued, while large-growth stocks are 28 percent overvalued. Sectors like consumer cyclical and financial services appear overvalued, but real estate and energy present undervaluation, aligning with picks like SITC and EOG Resources (from Forbes). EOG, an energy stock, generates free cash flow even at low commodity prices, with growing dividends and share repurchases, making it a stable yet undervalued stock in a sector poised for demand growth. This macro perspective helps explain why certain undervalued stocks to invest in now might be mispriced, offering a strategic edge to investors.

Risks, of course, accompany these opportunities, and no discussion of undervalued stocks would be complete without addressing them. High uncertainty in Kohl’s and Moderna’s valuations could mean their fair value is overstated, while ZIM’s shipping exposure ties it to unpredictable global trade dynamics. Deere and Bristol Myers, though more stable, face sector-specific headwinds like commodity cycles and patent expirations. Investors should scrutinize balance sheets, cash flow statements, and dividend yields, as Forbes advises, to ensure these undervalued stocks align with their risk tolerance. For instance, Micron Technology (MU), another Forbes pick, trades at 2.4 times book value against a historical average, with an 11 percent share in the HBM3E market and multi-billion-dollar manufacturing investments. Its role in AI and data centers marks it as an undervalued stock with tech-driven growth, yet semiconductor volatility remains a concern.

What makes this landscape particularly fascinating is the unexpected sector diversity among undervalued stocks. Energy firms like EOG and Par Pacific Holdings (PARR, P/E 3.02) coexist with healthcare leaders like BMY and Moderna, alongside real estate (SITC) and technology (Micron, NXP Semiconductors). This variety allows investors to tailor their portfolios to specific sector trends, a nuance that might not surface when focusing solely on valuation metrics. For example, FedEx (FDX), another Forbes highlight, leverages e-commerce growth and its DRIVE cost-saving program, positioning it as an undervalued stock in industrials with a strong brand and global network. Such diversity enriches the pool of undervalued stocks to buy right now, catering to different investment strategies.