10 Undervalued Stocks with the Highest Upside Potential

4. Abercrombie & Fitch Company (NYSE:ANF)

Forward P/E Ratio: 7.71x

Upside Potential: 57%

Number of Hedge Fund Holders: 51

Abercrombie & Fitch Company (NYSE:ANF) is an apparel retail chain with Hollister and Abercrombie brands. Abercrombie has been successful in establishing itself as a premium lifestyle brand with a direct-to-consumer business model and a global presence.

Abercrombie & Fitch Company (NYSE:ANF) announced Q4 2024 diluted EPS of $3.29, a 38% improvement over Q4 last year’s $2.38. Operating margin was driven by full-price selling, good product mix, and cost control. Strong holiday season demand and efficient inventory management underpinned better-than-anticipated profitability.

The firm is making investments in shop remodellings and multichannel retailing in a bid to enhance positioning and customer interaction. The analysts expect 57% upside from the current price. The earnings are to be announced in May 2025.