In this article, we will look at the 11 Best Undervalued UK Stocks to Buy Right Now.
The UK and Europe’s Performance in Q1 2025
The global markets entered 2025 in the hope that the bullish run of the fourth quarter will continue in the first quarter of 2025. However, the uncertainty due to the tariffs led to the reversal of all gains made in the fourth quarter leading to a loss of 4.5%. However, on the positive side, the UK and the European market saw some excellent returns during the first quarter of 2025. Rory McPherson, the Chief Market Strategist of Wren Sterling, noted that the first quarter of 2025 was the best quarterly return quarter for the UK market since 2022. For the European market, it was their best quarterly return in over a year.
The performance of the UK and the European markets was based on several factors. Firstly, for Europe, the approval of a 500 billion Euro infrastructure fund and the lifting of restrictions on defense spending in Germany helped take the overall European market higher. This was also backed by the continued stimulus from the Chinese government to help fire up the engines of China and Germany. On the other hand, the UK market mainly benefitted from the better-than-expected corporate earnings, particularly from the banking sector. The UK’s banking sector reaped the advantage of its diversification, followed by its cheaper valuations, and increased profitability. As per Wern Sterling’s report, the UK banking sector grew its earnings by 30% year-over-year during the first quarter of 2025, which was similar to the growth of the Magnificent Seven in the United States. On top of this, the sector benefited from its extremely cheap valuation as compared to the top US stocks. The report also highlighted that the UK’s banking sector is using its excess cash to buy back stocks and increase dividends which makes it even more lucrative for shareholders.
How Will Tariffs Impact the UK’s growth
On April 24, Andrew Bailey, Bank of England governor, joined CNBC to talk about the impact of tariffs on the UK’s economy. He segregates the impact of tariffs into two portions, which are the impact on growth and the impact on inflation. He said that unfortunately, if we talk about the impact on growth, tariffs will have an impact in the longer run due to the closed nature of the global economy. Bailey elaborated that if we reduce the trade and openness of the global economy it directly impacts the growth trajectory of the economy. On top of this, there is the uncertainty effect which has led CEOs and consumers alike to postpone investment decisions. He noted that the UK already has a high saving rate, which shows that the people are simply uncertain about the economic and policy conditions that are restricting them from making investment decisions.
In terms of the inflationary impact, Bailey remains confident that the tariffs are not having an inflationary impact. He explains that inflation factors in a lot of other indicators, for instance, if trade with the United States is restricted the economy can redirect its exports to other markets. On the other hand, retaliation from the UK government could also lead to a deflationary impact.
To conclude, Bailey is more concerned about the impact of tariffs on growth as compared to inflation. He noted that the UK administration not only needs to address the supply and demand side issues related to growth but also has to tackle the trade issues with effective policies.
With that let’s take a look at the 11 best undervalued UK stocks to buy right now.
Our Methodology
To curate the list of the 11 best undervalued UK stocks to buy right now, we used the Finviz stock screener, Seeking Alpha, and Yahoo Finance as our sources. Using the screener we aggregated a list of UK stocks that are trading below the Fwd P/E of 15. Next, we cross-checked the Fwd P/E of each stock from Seeking Alpha and earnings growth from Yahoo Finance. Finally, we ranked these stocks in ascending order of the number of hedge funds that hold stakes in them, as of Q4 2024. Please note that the forward P/E data was collected on April 23, 2025.
Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here).
11 Best Undervalued UK Stocks to Buy Right Now
11. Prudential plc (NYSE:PUK)
Forward P/E Ratio: 10.47
Number of Hedge Fund Holders: 10
Prudential plc (NYSE:PUK) is a multinational health insurance and asset management company based in the United Kingdom. The company has operations in 24 countries across Africa and Asia. It uses a multi-channel distribution network that includes 63,000 active agents and over 200 bank partners to operate around the globe. Moreover, Prudential plc (NYSE:PUK) has also invested in digital platforms such as PRUServices and PRUForce that allow it to leverage artificial intelligence and data analytics to enhance customer experience.
On March 20, the company announced its joint venture with HCL group in India to address the growing need for health insurance in the country. Subject to approval, the company will hold a 70% stake in the joint venture while the HCL group will hold a 30% stake. Moreover, during fiscal 2024, Prudential plc (NYSE:PUK) reported growing its new business profit by 11% year-over-year, which was in line with its guidance of $3.1 billion. Management believes that 2025 will be the inflection point for growth in its free surplus, which came in at $2.6 billion during the year and was in line with expectations.
Lastly, on April 23, Barclays analyst Larissa Van Deventer maintained a Buy rating on the stock with a price target of £11.3. Prudential plc (NYSE:PUK) is one of the best undervalued UK stocks to buy right now.
10. Carnival Corporation & plc (NYSE:CUK)
Forward P/E Ratio: 9.02
Number of Hedge Fund Holders: 14
Carnival Corporation & plc (NYSE:CUK) is a global cruise company that operates through various cruise brands and other travel-related services. The company has a fleet of more than 90 ships spanning across 9 major cruise brands.
The company during its fiscal first quarter of 2025 announced launching new marketing campaigns across major brands to broaden the appeal of cruise travel. In addition, the company is also enhancing its exclusive cruise destinations such as Celebration Key in the Caribbean Relax Away at Half Moon Cay.
Moreover, on top of the strategic developments, Carnival Corporation & plc (NYSE:CUK) achieved record first-quarter results; it witnessed a robust yield growth of 7.3%, which surpassed guidance. The revenue grew over $400 million year-over-year to reach a record high of $5.8 billion. Management has raised the earnings guidance for the year by $185 million. The company ranks as one of the best undervalued UK stocks to buy right now.
9. Cushman & Wakefield plc (NYSE:CWK)
Forward P/E Ratio: 7.74
Number of Hedge Fund Holders: 21
Cushman & Wakefield plc (NYSE:CWK) is a real estate services company based in the United Kingdom. It operates through various core services including property, facility, and project management, leasing, capital markets, and valuation and advisory. It operates in more than 60 countries around the world and serves clients from corporations, governments, and other institutions.
Cushman & Wakefield plc (NYSE:CWK) benefited from the improved market condition in 2024. The company grew its fee revenue by 1% year-over-year to reach $6.6 billion, along with EBITDA margins improving 10 basis points to 8.8%, indicating better operational efficiency. The company benefited from the strong demand for office space in the United States, moreover, the leasing environment in APEC also remained strong.
In addition, the capital market revenue of Cushman & Wakefield plc (NYSE:CWK) also improved by 36% with particularly strong performance coming from America, EMEA, and APAC. Looking ahead, management anticipates accelerated growth in 2025 and is targeting mid-single-digit revenue growth. It is one of the best undervalued UK stocks to buy right now.
8. Barclays PLC (NYSE:BCS)
Forward P/E Ratio: 6.76
Number of Hedge Fund Holders: 25
Barclays PLC (NYSE:BCS) is a financial services company based in London, United Kingdom. It operates as a diversified bank that provides a range of services including personal and retail banking, corporate banking, investment banking, wealth management, credit cards, and more. The bank has a presence in more than 50 countries around the globe.
On April 17, Barclays PLC (NYSE:BCS) announced entering into a strategic partnership with Brookfield Asset Management to transform the company’s payment acceptance business. Under this partnership, the company will invest around £400 million within the first three years to accelerate its business transformation.
In addition, Barclays PLC (NYSE:BCS) has already been working on executing its three-year strategic plan, which resulted in a Return on Tangible Equity of 10.5% for the year, which exceeded the guidance of 10%. Moreover, the profitability before tax also improved to £8.1 billion, after improving by 24%.
On April 7, J.P. Morgan analyst Kian Abouhossein maintained a Buy rating on the stock. Barclays PLC (NYSE:BCS) is one of the best undervalued UK stocks to buy right now.
Ariel Global Fund stated the following regarding Barclays PLC (NYSE:BCS) in its Q4 2024 investor letter:
“We bought global bank and financial services provider, Barclays PLC (NYSE:BCS). We expect shares to benefit from a recovery in global capital markets and net interest income (NII) growth driven by macroeconomic hedging and asset flows. The bank is also planning to expand its investment banking advisory business. Moreover, its U.S. credit card business presents opportunities for either a potential sale or a quicker earnings recovery. Taken together, we see a reasonable path for Barclays to pursue its return targets, which include the distribution of £3 billion and £10 billion to shareholders through dividends and share repurchases between 2024 and 2026 and achieving a return on tangible common equity of about 12%.”
7. Marex Group plc (NASDAQ:MRX)
Forward P/E Ratio: 11.21
Number of Hedge Fund Holders: 26
Marex Group plc (NASDAQ:MRX) is a diversified financial services platform that provides various services including liquidity provision, market access, and infrastructure services across energy, commodities, and financial markets. The company through its platform connects clients to global exchanges and offers execution, clearing, and advisory services.
At the start of April, the company announced completing the strategic acquisition of Abu Dhabi-based Aarna Capital. This move is significant as it marks the company’s expansion in the Middle Eastern market and also strengthens its clearing line of business. This acquisition has allowed Marex Group plc (NASDAQ:MRX) to gain access to 180 local clients in Abu Dhabi and is expected to contribute 5% to the net profit of the company from 2025.
Moreover, the company recently released its preliminary outlook for the first quarter of 2025, which reflects a significant year-over-year increase. Marex Group plc (NASDAQ:MRX) anticipates the first quarter revenue to be in the range of $449.3 million to $464.3 million, up from $365.8 million in Q1 2024. In addition, the net profit before tax is also expected to reach $92.3 million to $97.3 million in comparison to a profit of $67.7 million last year. It is one of the best undervalued UK stocks to buy right now.
6. Nomad Foods Limited (NYSE:NOMD)
Forward P/E Ratio: 9.58
Number of Hedge Fund Holders: 27
Nomad Foods Limited (NYSE:NOMD) is recognized as one of the largest frozen food companies in Europe and around the globe. The company markets and sells a range of branded frozen foods across 16 European markets. Its products include frozen fish, ready-to-cook, frozen meat, ready meals, and more.
The company had a strong finish to fiscal 2024, which was characterized by volume growth, organic sales growth, and gross margin expansion. The fourth quarter ended with revenues growing 4.3% to €793 million along with a volume growth of 4.7%. Nomad Foods Limited (NYSE:NOMD) has been delivering consistent growth over the past 9 years, marked by organic sales growing at a compound annual growth rate of 3% since 2016.
Management of the company has been focused on strengthening its innovation engine. It increased the proportion of its sales coming from new products by 4.8% in 2024 and expects it to exceed 5% next year. Looking ahead, Nomad Foods Limited (NYSE:NOMD) aims to further expand its profit margins by improving its production and supply chain. It is one of the best undervalued UK stocks to buy right now.
5. Burford Capital Limited (NYSE:BUR)
Forward P/E Ratio: 8.98
Number of Hedge Fund Holders: 30
Burford Capital Limited (NYSE:BUR) is another financial services company based in the United Kingdom. It specializes in legal financial services such as core legal finance, complex strategies, post-settlement finance, asset recovery, and legal risk management.
Greenhaven Road Capital in its Q4 2024 investor letter noted the company to be a leader in litigation finance with a minimalistic losing rate on its cases. As per the company’s full-year report for 2024, Burford Capital Limited (NYSE:BUR) has grown its portfolio at a CAGR of 15% over the past 5 years. Management noted that the company is moving away from legacy portfolio labels to a more streamlined reporting structure focusing on return on invested capital and internal rate of return. As per Greenhaven Road Capital, the company has maintained a healthy historical IRR of 27%.
Last year, Burford Capital Limited (NYSE:BUR) established a new record for cash receipts and generated $556 million. This helped net realized gains grow by 75% year-over-year to reach $327 million for 2024. This is more than double the average annual gains over the past four years. The company ranks as one of the best undervalued UK stocks to buy right now.
Greenhaven Road Capital stated the following regarding Burford Capital Limited (NYSE:BUR) in its Q4 2024 investor letter:
“Burford Capital Limited (NYSE:BUR) – Burford isn’t just “getting there” – they’re already the leader in litigation finance with a 27% historical gross IRR and losses on only 13% of cases, according to their disclosures. I have gone out of my way in past letters to highlight just how good the company has been historically at financing litigation. They rarely lose money on cases, in part because the vast majority (76%) settle. They do, however, occasionally have “monster winners” that return 10X, 50X or even 100X their initial investment.
Burford’s leadership team personally owns stock totaling 9% (>$200M) of the company and has been a net buyer of the shares. With aligned insider ownership, historically low loss rates, and tangible book value making up more than 80% of their share price, Burford is a well-capitalized and sustainable business.
In 2024, Burford was worse than “dead money” as it posted a share price decline. It is rarely easy to isolate the cause of a share price decline, but apparently investors had some consternation over the slowing pace of investments in new cases. While I have tried to focus our attention on Burford’s current and future business, I think it is time to look deeper at the YPF case…” (Click here to read the full text)
4. AngloGold Ashanti plc (NYSE:AU)
Forward P/E Ratio: 10.02
Number of Hedge Fund Holders: 31
AngloGold Ashanti plc (NYSE:AU) is an international gold mining company based in the United Kingdom. Its main business revolves around exploring, mining, and producing gold. However, it produces other by-products including silver and sulfuric acid.
On April 21, Josh Wolfson from RBC Capital maintained a Buy rating on the stock with a price target of $41. The company has been benefiting from the increased gold prices internationally. In 2024, AngloGold Ashanti plc (NYSE:AU) produced 2,660 thousand troy ounces of gold, slightly more than the production in 2023. However, the revenue grew more than 26% year-over-year to reach $5.79 billion, indicating favorable gold prices.
Moreover, in March 2025, the company announced completing a landmark renewables project at its Tropicana gold mine in Western Australia. The project is recognized as the largest hybrid power system in Australia’s mining sector. It is one of the best undervalued UK stocks to buy right now.
3. International Game Technology PLC (NYSE:IGT)
Forward P/E Ratio: 12.9
Number of Hedge Fund Holders: 35
International Game Technology PLC (NYSE:IGT) is a key player in the gaming industry with a portfolio of gaming technology and services. It operates through three main segments including Global lottery, Global gaming, and Digital and Betting. The company is based in London, United Kingdom but has operations in more than 100 countries.
2024 was a significant year for the company as it underwent strategic transformation by selling its Gaming and Digital business for over $4 billion in cash. As a result, International Game Technology PLC (NYSE:IGT) has become a pure lottery company. The company demonstrated its grip on this line of business by generating an adjusted EBITDA of $1.17 billion with improved margins at 47%. Management has used the cash from sales to reduce debt and plans on bringing the net debt leverage to a historic low of 2.4 times. It is one of the best undervalued UK stocks to buy right now.
2. GSK plc (NYSE:GSK)
Forward P/E Ratio: 8.41
Number of Hedge Fund Holders: 38
GSK plc (NYSE:GSK) is a pharmaceutical company that specializes in research, development, and production of medicines and vaccines. The company has an international presence through wholesalers, pharmacies, hospitals, and physicians.
On April 3rd, Florent Cespedes from Bernstein maintained a Buy rating on the stock with a price target of £22. As per the company’s fiscal 2024 results, its Vaccine business faced external pressures, particularly in the US and China, with Arexvy sales down 51% and Shingrix up only 1%. However, the overall performance remained positive with 8% sales growth, driven by Specialty Medicines. The segment posted double-digit growth, with oncology sales nearly doubling to over £1.4 billion.
In addition to this performance, GSK plc (NYSE:GSK) has 5 new products in the pipeline for which it expects approval in 2025. The company has also raised its 2031 sales outlook to more than £40 billion. It is one of the best undervalued UK stocks to buy right now.
1. LivaNova PLC (NASDAQ:LIVN)
Forward P/E Ratio: 9.91
Number of Hedge Fund Holders: 39
LivaNova PLC (NASDAQ:LIVN) is an international medical technology company based in the United Kingdom. It specializes in innovative devices for therapies related to cardiac and neurological conditions. The company operates three main segments including Cardiopulmonary, Neuromodulation, and Advanced Circulatory Support.
On March 17, Needham analyst Michael Matson maintained a Buy rating on the stock. The analyst commented that the company’s financial outlook has improved after the Italian Supreme Court ruled in favor of the company. The court confirmed LivaNova PLC’s (NASDAQ:LIVN) liability for SNIA obligations but reduced the expected liability from about $493 million to $363 million. Matson also highlighted LivaNova’s strong cash position. The company had $429 million in cash and $295 million in restricted cash at the end of 2024, which gives him confidence in the company’s ability to pay back the liability. Moreover, he also noted that the market has already factored in the case therefore the risk has already been priced in the current stock price.
In addition to this LivaNova PLC (NASDAQ:LIVN) posted financial growth and clinical progress in its fourth quarter results. The revenue of the company improved 3.8% on a reported basis to reach $321.8 million. On the other hand, the OSPREY clinical study for obstructive sleep apnea met its primary safety and efficacy endpoints. LivaNova PLC (NASDAQ:LIVN) is the best undervalued UK stock to buy right now.
Greenlight Capital stated the following regarding LivaNova PLC (NASDAQ:LIVN) in its Q4 2024 investor letter:
“We sold our position in LivaNova PLC (NASDAQ:LIVN) after three and a half years at a -6% IRR. When we bought the shares, we believed that LIVN had three exciting opportunities in its pipeline. None of those materialized and we decided to move on.”
While we acknowledge the potential of LIVN 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 LIVN but that trades at less than 5 times its earnings, check out our report about this cheapest AI stock.
READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires.
Disclosure. None. Insider Monkey focuses on uncovering the best investment ideas of hedge funds and investors. Please subscribe to our daily free newsletter to get the latest investment ideas from hedge funds’ investor letters by entering your email address below.
