Act Fast: These 3 Undervalued Stocks Won’t Stay Low for Long

Key Points

• As stock indexes hit new all-time highs, investors may grow wary of buying new names for their portfolios. 
• These discounts are far from justified, as the macro backdrop and fundamental tailwinds act as reasons to rally.
• Wall Street analysts and institutional buyers are all over today's stock list.

With new all-time high valuations for the S&P 500 and Nasdaq-100 in full swing, more and more investors are growing wary of buying new names for their portfolios, and for good reason. Buying near the top of the valuation cycle is always a scary thing.

Still, several names haven’t caught up to this optimism today, providing some of the most attractive discounts in the market.

This is where being a shrewd investor comes in handy; instead of focusing on the hyped-up names in the stock market, it's better to concentrate on the best fundamentals that trade at a discount. With this in mind, discounts can be interchangeable between price action and traditional valuation multiples, as long as investors can rectify the underlying story for higher prices.

Chances are, portfolios that carry discounted names like XPeng Inc. NYSE: XPEV, Intel Co. NASDAQ: INTC, and even Albemarle Corp. NYSE: ALB will see their equity curves enjoy a path that goes up and to the right. Although this ride may not be the smoothest, it is likely to outperform the curve of others who buy the hyped names trading at all-time highs today.

XPeng’s Quiet Tailwinds Lie in Earnings Growth

Most investors are afraid of putting their money to work overseas, most of all in Chinese stocks. However, there are a few reasons to believe that China’s stock market could outperform the S&P 500 over the next few years, as valuation gaps directly contradict the earnings per share (EPS) growth that the two countries are set to deliver.

This is where XPeng stock becomes attractive, trading at only 70% of its 52-week high. However, it is one of China’s leading suppliers in the automotive sector. Most electric vehicles (EVs) in China, which is where most of the EV growth is happening, look to XPeng for parts and other services, making it a hot name to consider today.

More than being an industry leader in one of the fastest-growing economies and markets, today’s price does not reflect where future EPS could be for XPeng at all. According to Wall Street analysts, this company could report up to $0.30 in EPS over the next 12 months, a massive jump from today’s net loss of $0.10.

This outlook might explain why Morgan Stanley analyst Tim Hsaio decided to reiterate his Overweight rating on XPeng stock, this time also boosting its fair valuation target to $28 per share. Now, investors are talking about a potential rally of as much as 47% from where the stock trades today.

Institutions Love Intel’s Dip

Following Intel's new management team's decision to prioritize cost control over growth, the market punished the stock with a 9% selloff in the last week of July 2025. However, cutting costs is precisely what some institutions wanted to see out of Intel.

With President Trump announcing America’s A.I. Action Plan, it is clearer than it has ever been that capital will now rotate to chipmakers that have a significant footprint in manufacturing within the United States. This is where Intel lands way ahead of everyone else in the peer group, since it has been building out factories in Ohio and Arizona since 2022.

By the time Intel’s competitors reach this level of manufacturing exposure, markets are likely to realize that the investment and political advantages are greater when investing in the early leader, which is Intel. As the stock trades at only 66% of its 52-week high, it has recently become a prime candidate for big buyers.

Buyers such as the Aberdeen Group boosted their holdings in Intel stock by 8.4% as of late July 2025, bringing their entire position to a high of $90.9 million to make them one of Intel’s largest institutional holders. This gives every other investor a new vote of confidence in this company’s upside.

Short Sellers Run From Albemarle Stock

This lithium and rare earth metals player is going to be one of the hottest stocks in the coming years. As the United States prepares to negotiate further with China and Europe regarding rare earth metals used in energy production and storage, Albemarle could become the next big jump for the basic materials sector.

Seeing that the future is brighter for the bulls, and now that the stock trades at only 64% of its 52-week high, some of the short sellers in this name decided to leave their convictions in the dust. That’s where investors can notice a decline of up to 7.4% in Albemarle’s short interest over the past month alone.

Not to mention, there is also a renewed level of institutional buying interest. As of mid-July 2025, PGGM Investments has decided to build up a new stake worth $67.1 million, and, similar to Intel, this position makes PGGM the largest institutional holder. The fact that they are one of the most recent ones also plays into the optimistic timing for this company.