Undervalued stocks are the clearance items of the financial markets. They cost less than competitors relative to earnings or book value. When you invest in undervalued stocks, you expect the stock price to rise to its true value over time.
Quality undervalued stocks can also be good defensive positions in uncertain financial markets. Since they are priced efficiently, these securities can have lower downside risk than high-valuation growth stocks.
Let’s review five stocks that are undervalued right now. One may be the right addition to your portfolio in the spring of 2025.
How These Undervalued Stocks Were Chosen
These undervalued stocks were selected by screening U.S.-traded equities on these parameters:
- Forward price-to-earnings (P/E) ratio below 10. The forward P/E ratio is the stock price divided by expected earnings. A forward PE ratio of 10 is about half the estimated forward P/E ratio of the S&P 500.
- Price-to-book (P/B) ratio below one. A P/B ratio below one indicates the stock is trading for less than its net worth as measured by assets minus liabilities.
- Debt-to-equity below 0.75. The debt-to-equity ratio quantifies a company’s leverage. Lower is better.
- Forward dividend yield above 2%. Undervalued stocks don’t always pay dividends, but it is a nice perk. Dividends can be your payment for waiting for the stock to reprice to a higher fair value.
- Trailing 12-month (TTM) free cash flow growth. Free cash flow is operating cash flow less capital expenditures. Growth here shows a company is improving its ability to fund operations and ongoing capital investments. Free cash flow growth can differentiate good undervalued stocks from stocks that are cheap for a reason.
- Price target upside of 10% or more. Analyst price targets are not always right, but they are informed opinions and useful data points.
5 Top Undervalued Stocks to Buy In April 2025
The table below includes five stocks that are undervalued right now, according to the above criteria. The metrics that follow are from corporate earnings releases and stockanalysis.com.
For more investing ideas, see best stocks for 2025 and best ETFs.
1. Barrick Gold Corporation (GOLD)
- Stock price: $18.91
- Price target upside: 22.32%
- Forward P/E ratio: 12.72
- P/B ratio: 0.98
- Forward dividend yield: 2.11%
- TTM FCF growth: 103.87%
- Debt/equity: 0.16
Barrick Gold Corporation Business Overview
Barrick gold explores and produces gold and silver. The company has a large portfolio of premium gold properties with up to 20-year growth potential, plus copper operations in Saudi Arabia, Chile and Zambia.
Why GOLD Stock Is A Top Choice
The gold spot price reached an all-time high in late March 2025. While analysts disagree on whether the gold rally is waning or just getting started, history says economic uncertainty is good for gold. What’s good for gold is good for Barrick—including the rising potential for a global trade war and the return of inflation.
Barrick’s 2024 results included higher production, higher margins, $4.5 billion in operating cash flows, a 50% net EPS increase and gold and copper reserve growth. The company also had $4 billion in cash and equivalents on its balance sheet at year-end. The balance sheet liquidity plus the $3 billion to $4 billion in annual operating cash flows provide funding for growth projects, share repurchases and dividends.
Barrick pays annual dividends of $0.40 per share, for a yield of 2.11%. The company spent $498 million on share repurchases in 2024.
2. Chord Energy Corporation (CHRD)
- Stock price: $112.04
- Price target upside: 47.64%
- Forward P/E ratio: 8.63
- P/B ratio: 0.76
- Forward dividend yield: 4.64%
- TTM FCF growth: 0.43%
- Debt/equity: 0.10
Chord Energy Business Overview
Chord explores and produces oil, natural gas and natural gas liquids (NGL). The company owns about 1.3 million acres on the U.S. side of the Williston Basin, with an estimated 10 years of low-cost oil inventory.
Why CHRD Stock Is A Top Choice
In 2024, Chord Energy merged with competitor Enerplus. The combination achieved capital and operating cost synergies, initially projected to be $150 million annually.
CHRD’s 2024 results include six months of Enerplus performance. Revenue increased, but net income and EPS declined 17% and 34%, respectively. The larger EPS dip indicates share dilution. Investors have not been happy with these results—the CHRD stock price is down 36% over the past year.
The stock-price decline increases the potential upside for CHRD, which now has a consensus price target upside of 51%. This stock could be a waiting game for investors, however. Analysts expect lower EPS in 2025, followed by growth in 2026 and 2027.
CHRD’s dividend fluctuates. The last quarterly payout of $1.30 implies an annual dividend of $5.20 and a yield of 4.64%.
3. Civitas Resources (CIVI)
- Stock price: $36.04
- Price target upside: 83.74%
- Forward P/E ratio: 4.83
- P/B ratio: 0.49
- Forward dividend yield: 5.55%
- TTM FCF growth: 22.37%
- Debt/equity: 0.69
Civitas Resources Business Overview
Civitas acquires, explores and produces oil and natural gas. The company owns assets in the Denver-Julesburg and Permian basins.
Why CIVI Stock Is A Top Choice
CIVI is another downtrodden undervalued stock, sitting on a 54% price decline over the past year. Investors were disappointed with the company’s second-quarter and fourth-quarter results and its 2025 production outlook.
However, there are positive trends in play. For one, Civitas produces a lot of cash. 2024 adjusted free cash flow totaled $1.3 billion. The company also has a low cost structure, good execution skills and premium assets.
Shareholders appreciate the company’s dividend and repurchase actions. Quarterly dividend payments of $0.50 per share equate to a 5.55% yield. Civitas spent $427 million on share repurchases in 2024.
4. Patterson-UTI Energy (PTEN)
- Stock price: $8.49
- Price target upside: 40.87%
- Forward P/E ratio: NA
- P/B ratio: 0.94
- Forward dividend yield: 3.78%
- TTM FCF growth: 27.40%
- Debt/equity: 0.37
Patterson-UTI Energy Business Overview
Patterson-UTI Energy provides drilling and completion services to oil and gas explorers and producers. The services include contract drilling, integrated well completion, directional drilling and specialized bit solutions.
Why PTEN Stock Is A Top Choice
PTEN has fallen short of expected earnings in three consecutive quarters. As a result, the stock price has dipped roughly 29% over the last year.
On the plus side, the company has a popular fleet of tier-one drilling rigs, an impressive customer list of active explorers and producers, a predictable capital allocation strategy, low leverage and good liquidity.
Higher margins and shareholder returns are priorities. Management expects to return at least 50% of free cash flow to shareholders through dividend payments and repurchases. 2024 free cash flow was nearly $500 million.
The annual dividend is $0.32 per share, for a yield of 3.78%. PTEN also spent $290 million on share repurchases last year.
5. Apple Hospitality REIT (APLE)
- Stock price: $13.43
- Price target upside: 28.44%
- Forward P/E ratio: 15.11
- P/B ratio: 0.98
- Forward dividend yield: 7.11%
- TTM FCF growth: 1.58%
- Debt/equity: 0.49
Apple Hospitality REIT Business Overview
Apple Hospitality owns about 220 high-end hotels in the U.S., in popular leisure and business travel markets across 37 states. The company partners with Hilton, Hyatt and Marriott to operate its portfolio hotels.
Why APLE Stock Is A Top Choice
Apple Hospitality boasts a P/B ratio below 1, while the average P/B for hotel and resort REITs is 1.29. The company’s backward-looking P/E ratio of 15.14 is also compelling relative to a peer average of 28.61.
Apple Hospitality grew 2024 net income per share by 15.6% versus the prior year. The property portfolio produced a higher average daily rate (ADR) and higher comparable hotels occupancy.
Management expects 2025 net income of $173 million to $202 million, excluding any unannounced property sales or acquisitions. This is lower than 2024’s $214 million result.
Apple Hospitality pays a regular monthly dividend of $0.08 plus occasional special dividends. Not including special dividends, the yield is 7.11%. The monthly payout and high yield make APLE one of the best dividend stocks for income seekers.
Bottom Line
You can find good undervalued stocks by seeking companies with growing cash value, reliable dividends and reasonable leverage. Whatever issue has pushed the stock price lower, verify that it’s temporary and surmountable. With this approach, your undervalued stock picks should enhance your portfolio with downside protection, income and growth potential over time.
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