5 Most Undervalued Stocks to Buy in 2025

By Jeremy Bowman – Updated Sep 24, 2025 at 7:26 PM | Fact-checked by Robin Hartill, CFP

Key Points

Undervalued stocks offer potential profits for patient investors seeking long-term bargains.
Profitable undervalued companies have strong growth prospects despite current low prices.
Research financial metrics like P/E ratios and ROE to identify genuinely undervalued stocks.

Despite a bull market that began in 2023, value investors hunting for a good bargain can still find some undervalued companies on sale.

An undervalued stock is a publicly traded company that's trading for less than it should be, often for overblown short-term concerns. Typically, these companies are consistently profitable and have attractive long-term growth prospects. Share prices are also cheap compared to many of their peers. They're also cheap compared to the amount of future profit expected to be generated. Such stocks can be great options for patient buy-and-hold investors willing to wait for hidden bargains.

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Green sales tag with dollar sign — Image source: Getty Images.

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Although investors are always on alert for a good deal, it's important to remember that some stocks are cheap for a reason. It may be that a company's growth prospects have diminished, it's losing money, or it's losing business to new competitors.

Whatever the reason, stocks like these (sometimes called value traps) are not considered undervalued even if they trade at very low prices.

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Intrinsic Value

The intrinsic value of a stock is its true value. It refers to what a stock (or any asset, for that matter) is actually worth -- even if some investors think it's worth a lot more or less than that am

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Ticker Information Table
Company name	Market cap	Dividend yield	Industry
Berkshire Hathaway	$1.1 trillion	0.00%	Diversified Financial Services
Berkshire Hathaway	$1.1 trillion	0.00%	Diversified Financial Services
Target	$40.5 billion	5.05%	Food and Staples Retailing
Micron Technology	$267.5 billion	0.19%	Semiconductors and Semiconductor Equipment
British American Tobacco	$118.0 billion	5.68%	Tobacco
Lennar	$30.7 billion	1.66%	Household Durables

Data as of Nov 7, 2025.

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NYSE: BRK.B

Berkshire Hathaway

Today's Change

(0.90%) $4.38

Current Price

$493.15

Key Data Points

Market Cap

$1064B

Day's Range

$486.75 - $494.03

52wk Range

$440.10 - $542.07

Volume

12K

Avg Vol

4.4M

Gross Margin

24.85%

Dividend Yield

N/A

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2. Target

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NYSE: TGT

Target

Today's Change

(-2.89%) $-2.66

Current Price

$89.28

Key Data Points

Market Cap

$41B

Day's Range

$88.50 - $92.61

52wk Range

$85.36 - $158.42

Volume

270K

Avg Vol

8.1M

Gross Margin

25.43%

Dividend Yield

0.05%

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3. Micron Technology

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NASDAQ: MU

Micron Technology

Today's Change

(0.35%) $0.83

Current Price

$238.33

Key Data Points

Market Cap

$268B

Day's Range

$234.88 - $246.41

52wk Range

$61.54 - $246.41

Volume

177K

Avg Vol

24M

Gross Margin

40.06%

Dividend Yield

0.00%

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NYSE: BTI

British American Tobacco

Today's Change

(0.68%) $0.36

Current Price

$54.24

Key Data Points

Market Cap

$118B

Day's Range

$54.13 - $54.72

52wk Range

$34.82 - $59.29

Volume

131K

Avg Vol

4.2M

Gross Margin

64.78%

Dividend Yield

0.06%

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5. Lennar

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NYSE: LEN

Lennar

Today's Change

(-0.70%) $-0.85

Current Price

$120.33

Key Data Points

Market Cap

$31B

Day's Range

$119.87 - $121.60

52wk Range

$98.42 - $173.08

Volume

1.8K

Avg Vol

3.7M

Gross Margin

19.53%

Dividend Yield

0.02%

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About the Author

Jeremy Bowman has been a contributing Motley Fool stock market analyst, covering technology, consumer goods, and macroeconomic trends since 2011. Before The Motley Fool, Jeremy was a newspaper reporter, restaurant manager, and English teacher abroad. He holds a bachelor’s degree in English from Colorado College and a master’s degree in business administration from American University. One of his Motley Fool headlines was briefly featured on Late Night with Stephen Colbert.

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American Express is an advertising partner of Motley Fool Money. Bank of America is an advertising partner of Motley Fool Money. Jeremy Bowman has positions in Bank of America, Micron Technology, Nvidia, and Target. The Motley Fool has positions in and recommends Apple, Berkshire Hathaway, Chevron, Costco Wholesale, Lennar, Nvidia, Target, and Walmart. The Motley Fool recommends British American Tobacco P.l.c. and recommends the following options: long January 2026 $40 calls on British American Tobacco and short January 2026 $40 puts on British American Tobacco. The Motley Fool has a disclosure policy.