10 Most Undervalued Growth Stocks to Buy Now

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1. United Airlines Holdings, Inc. (NASDAQ:UAL)

Forward P/E ratio: 5.36

Revenue CAGR last 5 years: 20.83%

Number of Hedge Fund Holders: 86

​United Airlines Holdings, Inc. (NASDAQ:UAL) is a major US airline serving over 300 destinations across six continents through key hubs like Chicago, Newark, and San Francisco. It is a founding member of the Star Alliance and operates extensive passenger, cargo, and maintenance services. UAL has a strong international presence but lags in premium customer satisfaction rankings.

United Airlines Holdings, Inc. (NASDAQ:UAL) delivered EPS of $0.91 in Q1 2025, with a pretax margin of 3%, marking their strongest first quarter performance in 5 years. Despite a challenging macro environment with softer demand, the company’s revenue increased 5.4% to a record $13.2 billion. The company’s resilience is demonstrated by its expectation to maintain its full-year guidance range of $11.50 to $13.50 EPS if the environment remains stable, while still projecting $7 to $9 EPS even in a recessionary scenario.

United Airlines Holdings, Inc. (NASDAQ:UAL)’s competitive strength is built on its success in winning brand loyal customers, becoming the brand loyal leader in 6 of its 7 hubs. The company’s strategic focus on premium services and international routes has shown resilience, with premium cabin unit revenues up mid-single digits. Looking ahead, UAL maintains a strong liquidity position of $18.3 billion and generated over $2 billion in free cash flow, while reducing net leverage to 2.0x from 2.2x at the end of 2024. The company continues to demonstrate financial discipline through strategic capacity adjustments and cost management, while maintaining its commitment to customer experience improvements, such as Starlink WiFi implementation and club expansions.

Overall UAL ranks first on our list of the most undervalued growth stocks to buy now. While we acknowledge the potential of UAL to grow, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. There is an AI stock that went up since the beginning of 2025, while popular AI stocks lost around 25%. If you are looking for an AI stock that is more promising than UAL but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

READ NEXT:  20 Best AI Stocks To Buy Now and 30 Best Stocks To Invest In According to Billionaires

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