Investing in the best undervalued stocks offers a compelling way to grow wealth, especially in 2025’s evolving global market landscape. These opportunities let investors potentially purchase high-quality companies at discounted prices and ride the upside as markets reset. In this guide, we’ll explore why the best undervalued stocks on a global scale deserve attention, and then dive into our top 10 picks worth considering as stocks to buy now.
First, we’ll define what global stocks are and why they matter even if your portfolio is centered in the U.S. Next, you’ll get the inside scoop on each of our 10 handpicked undervalued stocks, complete with growth drivers, dividend perks, and what makes them stand out in their markets. Whether you’re a dividend-focused investor or seeking growth via dividend investing, this list spans sectors and continents, supporting your long-term investing and stock strategy.
Why Global Stocks Deserve Your Attention
Global stocks refer to shares of companies listed outside your home country, or sometimes dual-listed domestically and abroad. These include ADRs (American Depositary Receipts), multicountry giants, and region-wide businesses. Investing globally helps you lower risk by spreading exposure across different economies, currencies, and industry cycles.
In 2025, several trends highlight why investors should cast a wider net:
- Undervaluation: Many international markets Asia, Europe, and Latin America, are trading at lower valuations compared to the U.S. That means higher expected returns and reduced downside. Morningstar data show over 30% of non-U.S. companies are trading below fair value.
- Higher dividends: Outside the U.S., dividend yields tend to be stronger, especially in energy, financials, and utilities. Investors focused on dividend investing can find reliable income streams abroad.
- Sector exposure: Global markets offer access to industries like luxury goods, emerging-market tech, European powerhouses, and Asian consumer staples—sectors less represented in U.S. indices.
- Diversification: With rising inflation, geopolitical tensions, and shifting interest rates, international stocks can stabilize returns when U.S. markets falter.
In short, the best global companies trading below their intrinsic value give you a better risk-reward payoff. And targeting undervalued names with good fundamentals can be a smart long-term investment and stock play.
10 Best Undervalued Global Stocks to Buy in 2025
Here are ten high-conviction picks from Morningstar, Forbes, and Morningstar UK, meeting quality and valuation criteria:
1. ASML Holding (Netherlands: ASML)
- Sector: Semiconductor equipment
- Why it stands out: ASML is the world’s leading supplier of cutting-edge lithography machines critical to chip production. Shares trade ~20% below Morningstar’s fair value estimate
- Investment case: Dominant position in extreme ultraviolet (EUV) tech keeps entry barriers high. Customer orders remain strong despite chip cycles slowing.
- Key stats: Large-cap growth, dividend yield ~1%, wide tech moat.
2. HSBC Holdings (UK: HSBC)
- Sector: Banking & Financial Services
- Why undervalued: Trades at ~0.8x book value—well below historical norms. Asian expansion and cost-cutting give upside potential.
- Why buy now: Global investor lane underappreciates its capital return ability, and dividend yields (~4%) offer income upside.
3. AstraZeneca (UK: AZN)
- Sector: Healthcare & Pharmaceuticals
- Undervalued metrics: ~12% undervalued versus Morningstar fair value, Forbes.
- Why it qualifies: Strong drug pipeline across oncology, cardiovascular, and respiratory, yielding ~2.2%, and robust R&D execution.
4. Banco Santander (Spain: SAN)
- Sector: Banking
- Undervalued metrics: Trades at 0.6–0.7x book value with improving profitability.
- Buy thesis: Large Latin American presence with higher margins; growing capital returns as European macro stabilizes.
5. Taiwan Semiconductor Manufacturing Company (TSMC, Taiwan: TSM)
- Sector: Semiconductors
- Valuation edge: Trading ~30% below fair value and at ~60% of 52-week highs.
- Why buy now: As the global leader in chip fabrication, TSMC feeds into AI, high-performance computing, and 5G demand, while yield (~1.5%) provides cushion.
6. Pfizer (U.S./UK listings)
- Sector: Pharmaceuticals
- Valuation: 20–25% undervalued compared to peers SG.
- Why it’s a buy: Strong cash flows from legacy vaccines/drugs, growing oncology pipeline, and 3–4% dividend yield make it a solid bet for dividend investing.
7. Yum China (China: YUMC)
- Sector: Consumer / Restaurants
- Undervalued because: Trades at a meaningful discount versus U.S. peers; China reopening tailwinds support growth.
- Case to buy: Leading fast-food operator in China with KFC/Pizza Hut brands; consistent expansion and urbanization trends support long-term growth.
- Brown‑Forman (U.S./Crosslisted: BF.B)
- Sector: Beverages
- Valuation: trading ~85% of fair value.
- Why now: Iconic spirits brands (Jack Daniel’s) with pricing power, solid margins, and a healthy dividend (~1.2%) feed global beverage demand.
9. Huntington Ingalls Industries (U.S.: HII)
- Sector: Defense & Shipbuilding
- Undervalued metrics: ~80% of fair value.
- Thesis: As the premier U.S. naval shipbuilder, defense budgets are rising globally; predictable cash flow makes it attractive for stocks to buy now.
10. Constellation Brands (U.S.: STZ)
- Sector: Beverage alcohol
- Valuation: ~90% of fair value.
- Why buy: Strong brand portfolio, Corona, Modelo, plus cannabis-linked Corby Spirits, attractive growth and dividends for long-term investors.
Analyzing the Picks: What Makes a Stock Undervalued?
These ten best undervalued stocks share key traits:
- Discounted valuations: All are trading at meaningful discounts to fair value or historical norms, key for value investing.
- Defensive moats: Companies in semiconductors, healthcare, consumer staples, defense, and beverages industries with resilience and limited threat from competition.
- Income potential: Several features, 2–4% dividend yields, ideal for those focused on dividend investing.
- Global exposure: Cover regions like Asia, Europe, and Latin America, offering true global equity diversification.
These stocks balance near-term margin of safety with upside if sentiment shifts or earnings rebound.
The 2025 Investing Outlook: Why Now?
Current macro trends support the global value and stocks to buy now thesis:
- U.S. equity valuations are stretched, while international markets offer lower P/E multiples.
- Global dividend yields are competitive, especially in Europe and Asia.
- Reopening economies post-COVID (China, Latin America) create growth tailwinds for brands like Yum China and Santander.
- Technology access: Exposure to essential AI and semis plays ASML, TSM positions for long-term secular growth.
Final Insights on Building a Value-Driven Portfolio
In 2025, the smart money is scanning the globe. These best undervalued stocks blend wide economic moats, solid financials, and strong growth or income potential, just the mix value investors love.
By investing in quality companies at a discount, you benefit from both capital appreciation and income via dividend investing. Combined with geographic and sector diversification, this list lets you build a balanced, forward-looking portfolio.
That said, always conduct your research and consider risk tolerance before acting. Global markets come with currency and geopolitical risks, but with that comes opportunity. By adopting patience, discipline, and a long-term mindset, these undervalued gems could be some of the most rewarding stocks to buy now.
