13 Most Undervalued NASDAQ Stocks To Buy According To Hedge Funds

5. Western Digital Corporation (NASDAQ:WDC)

Number of Hedge Fund Holders: 85

Forward P/E Ratio as of March 12: 5.63

Ranked 5th on our list of the most undervalued stocks is Western Digital Corporation (NASDAQ:WDC), which designs, produces, and distributes data storage devices across the United States, Europe, China, the Middle East, Hong Kong, Africa, and other markets. On March 11, the firm was recognized as one of the World’s Most Ethical Companies for 2025 by Ethisphere, a global leader in promoting ethical business practices. This marks the seventh time Western Digital has received this title, making it one of only five companies recognized in the technology sector.

In the second quarter of fiscal 2025, Western Digital Corporation (NASDAQ:WDC) reported $4.3 billion in revenue, with a non-GAAP gross margin of 35.9% and earnings per share of $1.77. The company’s focus on quality, reliability, and innovation, along with a diverse portfolio, has helped it navigate market shifts effectively. Operating cash flow for the quarter reached $403 million, while free cash flow amounted to $335 million. WDC ended the quarter with $2.3 billion in cash and equivalents, bringing total liquidity to $4.5 billion. Looking ahead, the company expects third quarter revenue to range between $3.75 billion and $3.95 billion.

According to Insider Monkey’s fourth quarter database, 85 hedge funds were bullish on Western Digital Corporation (NASDAQ:WDC), a significant increase from 66 in the previous quarter.