In this article, we will take a look at the 15 NASDAQ Stocks with the Lowest P/E Ratios.
A Revised U.S. Economic Outlook
At the start of the year, strategists and economists projected the U.S. economy to perform better in 2025 with the U.S. stock market positioned for another year of above-trend growth. Now, economic growth projections are moving slightly to the lower end of the previous forecasts.
Economic forecasting teams from Morgan Stanley, Goldman Sachs, and others revised their 2025 GDP projections lower. Morgan Stanley now projects a 1.5% growth in 2025, and Goldman expects a 1.7% growth.
The year-end targets for the S&P 500 might be too optimistic. If things go the way they are being projected, the S&P 500 will potentially underperform compared to growth in 2024, impacting the NASDAQ 100 index as well. So far in 2025, the S&P 500 has plunged over 3.30% while the NASDAQ 100 index has dropped over 5.50%, as of March 18. The first quarter is about to end and markets are volatile now with the new U.S. administration implementing its tariff policy.
The head of US equity strategy at RBC Capital Markets, Lori Calvasina, pointed out that the U.S. equity market can hold the drop if things go south.
“We have seen the U.S. equity market on a rocky path higher through year-end, and have believed that our 6,600 can absorb a 5-10% drawdown,” Calvasina wrote in a note to clients on March 9. She further added, “risks of a drawdown of more than 10% have admittedly grown, however. If that occurs, we see a ‘growth scare’ of a 14-20% decline from the peak as most likely, which could shift us into our bear case.”
President Donald Trump addressed Congress with potential disturbance to the economy from his tariff policies. In an interview with Fox Business on March 9, President Trump said:
“There is a period of transition because what we’re doing is very big … We’re bringing wealth back to America. That’s a big thing … it takes a little time, but I think it should be great for us.”
With that, let’s take a look at the 15 NASDAQ Stocks with the Lowest P/E Ratios.
Photo by Pascal Bernardon on Unsplash
Our Methodology
To compile our list of NASDAQ stocks with the lowest P/E ratios, we first compiled a list of 40 NASDAQ listed firms with a forward P/E ratio lower than 10 and a market capitalization greater than $150 million. Then, we shortlisted the 15 stocks with the lowest P/E ratios and ranked them based on the number of hedge fund holders, as of Q4 2024.
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).
15 NASDAQ Stocks with the Lowest P/E Ratios
15. Euroseas Ltd. (NASDAQ:ESEA)
Forward P/E ratio: 2.22
No. of Hedge Fund Holders: 7
Euroseas Ltd. (NASDAQ:ESEA) is engaged in the shipping business and operates dry bulk and container carrier vessels. It is a provider of seaborne transportation for dry bulk and containerized cargoes. The company’s dry bulk carriers transport major bulks, such as iron ore, coal, and grains, and minor bulks, such as bauxite, phosphate, and fertilizers.
Euroseas Ltd. (NASDAQ:ESEA) has announced the spin-off of its subsidiary, Euroholdings Ltd. The subsidiary will be listed on NASDAQ under the ticker EHLDV. Euroseas will now have a fleet of 22 vessels, including 15 Feeder containerships and 7 Intermediate containerships. The company’s containerships will have a cargo capacity of 67,494 twenty-foot equivalent units (teu). This spin-off will allow both companies to pursue different investment strategies and different distributions to their shareholders. Euroholdings will focus on managing older vessels, operating them to the end of their economic lives. Here is what Aristides Pittas, Chairman and CEO of Euroseas said regarding the future of the company:
“Specifically, Euroseas will continue focusing on operating container vessels with a lower environmental footprint by owning – on average – younger vessels, keep investing in retrofits of certain of its existing vessels to improve their efficiency, and continuing its new building program of modern, fuel-efficient containerships.”
As the company aims to optimize its operations and investment strategies following the spin-off, it has been performing well recently. During Q4 2024, Euroseas Ltd. (NASDAQ:ESEA) reported solid results with total net revenues of $53.3 million for the quarter, a notable increase of 8.7% from a year ago. The company took delivery of two new vessels, which will improve its fleet capacity and revenue generation. The company has secured strong charter contracts for its vessels, with nearly 85% of its fleet fixed for 2025. This reflects visibility into future cash flows.
14. StealthGas Inc. (NASDAQ:GASS)
Forward P/E ratio: 6.77
No. of Hedge Fund Holders: 11
StealthGas Inc. (NASDAQ:GASS) offers international seaborne transportation services to liquefied petroleum gas (LPG) producers and users. It also provides crude oil and product carriers to oil producers, refineries, and commodities traders through its fleet. StealthGas’ fleet consists of almost 50 LPG carriers.
StealthGas Inc. (NASDAQ:GASS) had a remarkable year with record revenues reported in 2024. The company posted revenues of $167.3 million, marking the highest in the company’s history. The company achieved yet another record profit of $77 million, continuing a three-year streak of record profits. This helped in an improved profit margin of 42% for the year compared to a 36% profit margin in 2023. StealthGas is now close to being net debt-free after it reduced its debt below $100 million for the first time. For 2025, the company has already secured more than $200 million in future revenues with 70% of fleet days covered. As StealthGas continues to enhance its operational efficiency and increase its revenues, the management has authorized an additional $10.5 million for share repurchases, reflecting a commitment to returning value to shareholders.
13. Park-Ohio Holdings Corp. (NASDAQ:PKOH)
Forward P/E ratio: 6.71
No. of Hedge Fund Holders: 11
Park-Ohio Holdings Corp. (NASDAQ:PKOH) is a diversified company that provides supply chain management outsourcing services, capital equipment used on their production lines, and manufactured components used to assemble their products. The company operates through three segments including Supply Technologies, Assembly Components, and Engineered Products.
Park-Ohio Holdings Corp. (NASDAQ:PKOH) performed considerably well in 2024. The company achieved record levels of gross margin and improved leverage metrics and liquidity in 2024. Park-Ohio Holdings achieved all-time highs in sales and profitability for its supply chain management, proprietary fastener manufacturing, and industrial equipment businesses. The supply technologies segment and engineered products segment posted record sales of $779 million and $482 million, up from $766 million and $469 million in 2023, respectively. The supply technologies segment sales were driven by strong demand in aerospace and defense, heavy-duty trucks, consumer electronics, and electrical distribution markets.
In FY2024, the company’s adjusted earnings per share soared by 17% to $3.59 per share, beating estimates by $0.04 per share. In FY2025, Park-Ohio Holdings Corp. expects its revenue growth between 2% and 4%, with improvements in EBITDA, FCF, adjusted operating income, and adjusted net income.
12. TORM plc (NASDAQ:TRMD)
Forward P/E ratio: 6.71
No. of Hedge Fund Holders: 11
TORM plc (NASDAQ:TRMD) is a shipping company, which owns and operates a fleet of product tankers in the U.K. TORM primarily transports petroleum products such as gasoline, kerosene, and jet fuel through water-based routes. TRMD has suffered due to the challenges in the recent past as a result of market weakness.
Despite the seasonal fluctuations in freight rates, TORM plc (NASDAQ:TRMD) did exceptionally well in 2024. In the recent Q4 2024 earnings report, the company announced that it achieved a new all-time high in Time Charter Equivalent (TCE) earnings of $1.135 billion in 2024. TORM posted a net profit of $612 million and a return on invested capital of 24.3% for FY2024.
TORM has a competitive advantage due to fleet efficiency, disciplined cost management, and a well-executed commercial strategy. The company continues to invest in fleet growth and modernization. It is focused on large, fuel-efficient vessel classes that place it well to capture higher freight rates and serve growing global markets. TORM plc is committed to sustainability as it achieved a 40% reduction in carbon intensity in 2024, meeting the IMO 2030 target ahead of schedule.
11. NewtekOne, Inc. (NASDAQ:NEWT)
Forward P/E ratio: 5.91
No. of Hedge Fund Holders: 14
NewtekOne, Inc. (NASDAQ:NEWT) is a financial holding company that offers a variety of deposit accounts, SBA loans, and commercial loans, including real estate loans. The company provides electronic payment processing, cloud-based POS systems, insurance brokerage, payroll services, and technology solutions such as website hosting, cloud hosting, and data recovery.
The company has a diversified loan portfolio with a strong focus on technology-enabled client acquisition, improving efficiency and customer satisfaction. NewtekOne, Inc. (NASDAQ:NEWT) posted a net income of $50.9 million in FY2024, up from $47.3 million in 2023. The earnings per share came in at $1.97 compared to $1.89 per share in 2023. Newtek Bank and the company’s non-bank lending subsidiaries ended the year with $1.5 billion of loans across all loan products, up by 33.1% from a year ago.
For 2025, NewtekOne, Inc. has increased its annual EPS forecast range to $2.10 per basic and $2.50 per diluted share, from its previous forecast range of $2 and $2.25, respectively.
10. GigaCloud Technology Inc. (NASDAQ:GCT)
Forward P/E ratio: 5.35
No. of Hedge Fund Holders: 14
GigaCloud Technology Inc. (NASDAQ:GCT) is a pioneer in worldwide end-to-end B2B technology solutions for large parcels. GCT’s B2B e-commerce platform, the GigaCloud Marketplace, offers everything from discovery to payments, and logistical technologies in one simple platform.
GigaCloud Technology Inc. (NASDAQ:GCT) posted record revenue in its history, surpassing $1 billion in total revenue for the first time. The company’s marketplace Gross Merchandise Value (GMV) soared 70% from a year ago, reaching $1.3 billion. This shows the strong demand for the company’s offerings. GigaCloud got the number one spot on Forbes America’s Most Successful Small Cap Companies 2025 list and was added to the Russell 2000 Index. The company maintains a strong balance sheet with zero debt and robust cash flow generation. This positions it well for future growth.
Despite a record performance in 2024, analysts have downgraded the price target on GCT shares. On March 4, Roth MKM analyst Matt Koranda downgraded GCT from Buy to Neutral, dropping its price target from $32 to $15. The analyst highlights that the disappointing outlook for Q1 2025 suggests a deceleration in sales combined with margin erosion. Koranda mentioned that the firm needs to show visibility into first-party sales growth, service revenue re-acceleration, and sustainable margin expansion before it is reassigned a buy rating. Lake Street analyst has also reduced the price target on GCT from $50 to $26, maintaining a Buy rating. Although the analysts have reservations, GCT is one of the cheapest stocks listed on NASDAQ with strong growth momentum.
9. International Money Express, Inc. (NASDAQ:IMXI)
Forward P/E ratio: 5.98
No. of Hedge Fund Holders: 15
International Money Express, Inc. (NASDAQ:IMXI), also known as Intermex, is a leading global remittance operator. It supports money transfers primarily from the U.S. and Canada to 20 Latin American countries, eight African countries, the Philippines, and Vietnam. With over 5.7 million customers and a vast network of over 100,000 retail locations, mostly in community-owned stores, Intermex has positioned itself as a dominant player in the remittance market. Mexico is one of the primary markets for Intermex as it accounts for most of its overall revenues in Latin America.
International Money Express, Inc. (NASDAQ:IMXI) has introduced wire transfers through WhatsApp, making money transfers more convenient than ever. With 95% of U.S. Hispanics using WhatsApp, this new feature will add to the company’s offerings and increase revenue.
In FY2024, the company posted $658.6 million in total revenue. During Q4, the digital transactions surged by 71.7% year-over-year. The full-year digital revenue was around $20.6 million, demonstrating the success of their omni-channel approach. The company achieved a record adjusted EPS of $0.57, up by 1.8% from a year ago. The acquisition of Amigo Paisano and the wire transfer feature on WhatsApp is expected to improve digital growth and leverage superior unit economics.
8. Consensus Cloud Solutions, Inc. (NASDAQ:CCSI)
Forward P/E ratio: 4.43
No. of Hedge Fund Holders: 16
Consensus Cloud Solutions, Inc. (NASDAQ:CCSI) is a global information delivery services firm that offers a software-as-a-service platform. Its technology allows organizations to simplify client interactions across several channels such as phone, chat, and email.
During Q4 2024, Consensus Cloud Solutions, Inc. (NASDAQ:CCSI) posted solid results with earnings per share of $1.32, beating consensus estimates by $0.14. The quarterly revenue was around $86.98 million, exceeding estimates of $84.49 million. The company ended the year with $88 million in FCF, up from $77 million in 2023. For FY2025, the company expects its revenue between $343 million and $357 million. The company’s estimates for adjusted EBITDA target range from $179 million to $190 million.
On February 18, BTIG analyst David Larsen increased the price target from $32 to $37 on CCSI shares, keeping a Buy rating on the stock. After speaking with CCSI’s CEO Scott Turicchi, the analyst feels that the company is gaining market share. Larsen expects the company’s corporate revenue growth to remain above the 5% level. In addition to that, Consensus’ innovative AI-driven solutions, including Clarity, jsign, Harmony, and Unite, are gaining traction.
7. JAKKS Pacific, Inc. (NASDAQ:JAKK)
Forward P/E ratio: 6.25
No. of Hedge Fund Holders: 18
JAKKS Pacific, Inc. (NASDAQ:JAKK) is a well-known designer, manufacturer, and marketer of toys and consumer products sold worldwide. It operates through two major segments including Toys/Consumer Products and Costumes.
Despite the earnings dropping from $3.79 in FY2024 to $4.62 in 2023, JAKKS Pacific, Inc. (NASDAQ:JAKK) outlook for 2025 remains strong. The company’s disappointing performance of Disney’s Wish flopped in theatres in the Fall of 2023 and subsequently impacted merchandise sales when it transitioned to streaming in the Spring of 2024. However, Moana 2 and Sonic 3, both major box office successes in Fall 2024, will enter the streaming cycle in Spring 2025, positively impacting JAKKS’ earnings for the full year 2025. The company has already shown positive momentum, reporting a 4.8% growth in the second half of 2024 compared to 2023.
JAKKS Pacific, Inc. is continuing to grow its business internationally, reaching an all-time high outside North America for the fourth consecutive year. With no long-term debt and a low P/E ratio, JAKK remains one of the most promising NASDAQ stocks.
6. G-III Apparel Group, Ltd. (NASDAQ:GIII)
Forward P/E ratio: 6.44
No. of Hedge Fund Holders: 24
G-III Apparel Group, Ltd. (NASDAQ:GIII) designs, sources, and markets a range of luxury apparel, including outerwear, dresses, swimwear, sportswear, and more. G-III has a diverse portfolio of proprietary and licensed brands, with its five global power brands including Calvin Klien, DKNY, Donna Karan, Karl Lagerfeld, and Tommy Hilfiger.
G-III Apparel Group, Ltd. (NASDAQ:GIII) ended FY2025 on a higher note with Q4 net sales reaching $840 million, up 10% from $765 million in Q4 FY2024. The company reported record non-GAAP EPS of $4.42 per share for FY2025, increasing by 9% year-over-year. The company’s major international brands including DKNY, Karl Lagerfeld, and Donna Karan, achieved over 20% growth, contributing massively to the GIII’s top-line growth. The relaunch of the Donna Karan brand surpassed internal expectations, delivering strong profitability and high sell-through rates.
Moving ahead, the company’s investment in All We Wear Group (AWWG) is projected to accelerate international growth, increasing the reach of its brands in Spain and Portugal.
5. Academy Sports and Outdoors, Inc. (NASDAQ:ASO)
Forward P/E ratio: 6.68
No. of Hedge Fund Holders: 30
Academy Sports and Outdoors, Inc. (NASDAQ:ASO) is a leading sporting goods and outdoor recreation retailer. The company’s outdoor division sells products related to camping, fishing, and hunting, including firearms and ammunition. The sports and recreation division provides sports and fitness equipment, accessories, and nutrition supplies. The company also operates apparel and footwear divisions.
Academy Sports and Outdoors, Inc. (NASDAQ:ASO) is expected to have faced headwinds from a tough macroeconomic environment during Q4 FY2024. However, the company remains focused on growth through new stores. The company has opened 16 new stores in 2024 and plans to open 20 to 25 new locations in 2025, raising its unit count by 7.5%. As the company continues to experience growth, it plans to open 160 to 180 stores over the next five years.
On March 17, Telsey Advisory Group analyst Cristina Fernandez reiterated a price target of $60 on ASO, maintaining an Outperform rating on the shares. The analyst remains optimistic regarding ASO’s prospects, considering its expansion. ASO is one of the cheapest stocks trading on NASDAQ.
4. Garrett Motion Inc. (NASDAQ:GTX)
Forward P/E ratio: 6.91
No. of Hedge Fund Holders: 32
Garrett Motion Inc. (NASDAQ:GTX) is a Switzerland-based automotive technology company. It specializes in turbocharging and electric boosting technology for vehicles. Garrett designs and manufactures turbochargers, which increase engine power output by forcing more air into the combustion chamber. The company’s turbochargers for engines are powered by gasoline, diesel, natural gas, and even hybrid systems. The company also offers services and products for the connected vehicle market, including automotive cybersecurity and integrated vehicle health management (IVHM).
On February 12, BWS Financial analyst Hamed Khorsand kept a Buy rating on GTX shares with a price target of $12 per share. The analyst remains bullish on GTX and emphasizes the firm’s financial health and future potential. Garrett Motion Inc. (NASDAQ:GTX) showed a strong ability to generate FCF, despite the challenges during the second half of 2024. During Q4 2024, the company achieved an adjusted EBITDA of $153 million, with a margin of 18.1%. The company now expects its adjusted EBITDA around $575 million and adjusted FCF of almost $345 million in 2025, providing financial leverage to exercise share repurchases and pay dividends.
McIntyre Partnerships stated the following regarding Garrett Motion Inc. (NASDAQ:GTX) in its Q4 2024 investor letter:
“Garrett Motion Inc. (NASDAQ:GTX) is a leading manufacturer in the moat-rich turbocharger (TB) market, with a global end-market and industry-leading margins. As TBs are not used in battery electric vehicles (BEVs), the market has concerns about GTX’s terminal value, which is suppressing its valuation. GTX trades ~5x my 2025 levered FCF with leverage at 2x EBITDA. Beyond its core business in TBs, GTX has a separate BEV growth story that is currently pre-revenue with high upfront costs, depressing GTX’s reported run-rate FCF. As a result, I believe GTX is even cheaper on owners’ earnings than the headline numbers suggest. Beyond its BEV investments, GTX has been using its FCF to buy back significant amounts of stock. Since 2022, GTX has retired almost one-third of its shares outstanding. If either BEV penetration is less bad than feared or GTX has success in its BEV investments, I believe GTX shares are significantly undervalued.”
3. Weatherford International plc (NASDAQ:WFRD)
Forward P/E ratio: 6.54
No. of Hedge Fund Holders: 36
Weatherford International plc (NASDAQ:WFRD) is a leading global energy services company. It is focused on providing equipment and services used in the drilling, evaluation, and well construction in the oil and natural gas exploration and production industry. Weatherford’s products are also used in new energy platforms. The company operates through three segments including Drilling and Evaluation (DRE), Well Construction and Completions (WCC), and Production and Intervention (PRI).
In the fiscal year 2024, the company achieved adjusted EBITDA margins exceeding 25%, marking the highest full-year margin in over 15 years. Weatherford International plc (NASDAQ:WFRD) generated $524 million in adjusted FCF, indicating strong cash generation capabilities. In 2024, the company’s international business experienced remarkable growth in the Middle East, North Africa, and Asia regions, growing by 10% on a full-year basis. In the last three years, Weatherford’s Well Services product line has grown over 50%, showing a notable growth vector with low capital intensity.
Rewey Asset Management stated the following regarding Weatherford International plc (NASDAQ:WFRD) in its Q4 2024 investor letter:
“We added shares of Weatherford International plc (NASDAQ:WFRD) in the quarter, a $5.2 billion market cap global provider of oil field services and equipment. We see significant neglect and undervaluation in shares of WFRD, a position that shows a 59.2% upside to our AFV price target of $114 per share, a level that would still be 15.6% below its July 16th, 2024 high of $135.
Weatherford sold off in concert with the broader energy group in 4Q24, as investors fretted about the risks of slowing global oilfield spending in 2025, the potential for more drilling to push down oil prices under a Trump administration andtax loss selling by investors who purchased shares near summer highs. In our view, the current valuation level ignores the significant financial and operational improvement completed since its 2019 restructuring and the strong long-term revenue growth prospects for its globally diversified and technologically leading offerings…” (Click here to read the full text)
2. American Airlines Group Inc. (NASDAQ:AAL)
Forward P/E ratio: 6.10
No. of Hedge Fund Holders: 59
American Airlines Group Inc. (NASDAQ:AAL) is a leading network air carrier that provides scheduled air transportation services for passengers and cargo through its hubs across a vast domestic and international route network.
American Airlines Group Inc. (NASDAQ:AAL) recently updated its financial and operational outlook for the first quarter of 2025. The company highlighted that the revenue environment seems weaker now than initially projected in its January guidance, mainly due to the impact of Flight 5342 and a slowdown in the domestic leisure segment. The company now expects the Q1 revenue to remain flat compared to the same period in 2024, a downward revision from the previously projected growth of 3% to 5%.
Most of the analysts maintain their rating on AAL with a slight adjustment in the price target. On March 12, Citi analyst Stephen Trent maintained a Buy rating on AAL shares, keeping a price target of $21.50. Even though Trent acknowledged the weaker revenue outlook for Q1, he remains optimistic about AAL’s medium-term growth potential. The analyst cited strong international premium travel demand, growing loyalty revenue, and strategic initiatives to re-engage corporate clients as key strengths.
1. United Airlines Holdings, Inc. (NASDAQ:UAL)
Forward P/E ratio: 6.06
No. of Hedge Fund Holders: 86
United Airlines Holdings, Inc. (NASDAQ:UAL) is a leading airline company engaged in air transportation services across North America, Europe, Asia, the Pacific, Africa, Latin America, and the Middle East. The company serves both passengers and cargo through its mainline and regional fleets. United Airlines Holdings has started installing Starlink on its aircraft, with its first installation completed on its regional aircraft on March 7.
Wall Street analysts seem optimistic about United Airlines Holdings, although they have concerns regarding the lacklustre airline industry outlook. On March 12, Barclays analyst Brandon Oglenski maintained an Overweight rating on UAL shares with a slight adjustment in price target from $150 to $140. Despite the economic challenges in the industry, United Airlines Holdings, Inc. (NASDAQ:UAL) has done a commendable job dealing with challenges related to reliability and costs. It is the time for the company to reap the rewards now.
In the fourth quarter of 2024, United Airlines Holdings, Inc. experienced a 1.6% year-over-year increase in total revenue per available seat mile, driven by a 6.2% rise in capacity. The company reported record quarterly earnings, with an EPS of $3.26 outperforming expectations, and contributed to a full-year EPS of $10.61, exceeding market estimates. United Airlines Holdings gathered around $3.4 billion in FCF and reduced its debt by almost $7.4 billion in 2024.
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. 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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