These 4 Undervalued Stocks Have MASSIVE Upside Right Now

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The market is expensive right now, really expensive. But that doesn't mean every stock is.

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These are 4 companies trading well below what their growth and cash flow say they're worth, not names where you squeeze out another 10 or 15%, but stocks where today's price could look downright cheap a year from now.

1. Century Aluminum (CENX)

Our first stock is Century Aluminum (CENX), the largest producer of primary aluminum in the United States, with smelters here and in Iceland, turning out the metal that goes into cars, power grids, and defense hardware.

Aluminum tariffs have put a wall around domestic producers, and Century sits right behind it. Earnings have been climbing and profit margins have widened past 20%. Century's PEG ratio sits around 0.16, anything under 1 is cheap for the growth you're getting, and below 0.5 is deeply undervalued territory. At 0.16, it's a steal.

Century is forecast to grow earnings around 51% a year, versus roughly 12% for the aluminum industry, with revenue growth also outpacing peers by a wide margin. So you've got well above industry growth at a bargain price.

Over the past year the stock nearly doubled, but it has cooled off recently, pulling back more than 25% over the last 3 months. This isn't a stock at its peak, it's a breather, and the fundamentals never went anywhere.

Wall Street is unanimously bullish. Coverage lands on a unanimous Strong Buy, with an average price target implying more than 80% upside. The highest target, from an analyst in the top 3% for stock picking performance, implies about 95% upside.

The data agrees. Century earns a Zen Rating of B, a Buy recommendation, in the top 6% of the more than 4,600 stocks tracked. Financials land in the top 4%, Value the top 3%, and the standout, Growth, the top 2% of the entire market. The one tradeoff is Safety, which grades on the low side, aluminum is a cyclical commodity business, and this stock will swing with it.

But a business this cheap, this profitable, and this strong on growth, with Wall Street unanimously behind it, that pullback starts to look like a gift.

2. Riley Exploration Permian (REPX)

That brings us to Riley Exploration Permian (REPX). This is an independent oil and gas producer working the Permian Basin out in Texas and New Mexico, the most productive oil patch in the country.

Here is why now. Riley just raised its full year production guidance, and it is guiding to roughly 30% year over year growth in output. When an energy company is telling you it is pumping more oil and lifting its own targets, that is a business with the wind at its back.

And it is priced like nobody is paying attention. Riley's PEG ratio, that growth adjusted value gauge, is at 0.46x, another stock where the numbers just scream undervalued relative to growth prospects.

And the growth is real. Riley is forecast to grow earnings around 15% a year, against about 9% for its oil and gas peers, genuine expansion, not just riding the crude price.

And while you wait, they pay you. Riley carries a dividend yielding about 4.2%, and it is well covered, they pay out under 30% of earnings, so it's both sustainable and there's room to grow. This is a company that has raised its dividend over the last 6 years without cutting it. You are getting paid to hold a growth story.

Wall Street is, once again, bullish. Three analysts cover it, and all 3 land on a Strong Buy recommendation, no holdouts. One of them sits in the top 12% of every analyst tracked with a target calling for more than 30% upside, as of this writing.

Now let's take a look at the fundamentals. Riley earns a Zen Rating of A, equivalent to a Strong Buy recommendation, and it's in the top 3% of everything tracked. Momentum comes in at the top 18%. Growth, the top 14%. Financials, also the top 14%. The AI grade, which measures how likely a stock is to outperform based on patterns in the data, lands in the top 7%. And the standout, Value, the top 2% of the market. The honest knock is Sentiment and Safety, both of which sit mid pack, oil is a commodity, and if crude rolls over, Riley feels it.

But a cheap, growing producer, paying you a near 5% dividend, with Wall Street unanimously behind it, that is a lot to like while you collect the check.

The Zen Ratings are updated daily, so be sure to visit the quote pages on wallstreetzen.com to see the latest ratings for this or any other stock.

Riley trades cheap because oil is out of favor. The next one trades cheap for a reason nobody can quite explain.

3. 8x8 (EGHT)

Our third stock is 8x8 (EGHT). They run a cloud communications platform, the phone systems, contact centers, and messaging that businesses run on, all built into one AI powered system.

They just posted their first full year of clear profitability since 2015. A business that spent years in the red on the bottom line is now making money, and the market has not reacted yet.

The turnaround is not an accident. The fastest growing part of the business is the usage based side, the communications APIs and AI tools that companies plug in and pay for as they scale. That piece grew more than 70% over the past year, and it is quietly reshaping the whole company into something the market still has not priced in.

Here's where it gets interesting. On a discounted cash flow basis, 8x8 is trading more than 40% below the estimate of its fair value. It is also trading below its Benjamin Graham value, the old school yardstick for what a stock is really worth. Two different valuation lenses, same answer, this stock is cheap.

And the PEG says the same thing. That growth adjusted value number sits under 0.3 here, deep below the 1 line that marks cheap for the growth.

Wall Street is starting to notice. There's not a ton of coverage, only 2 analysts, but both give it a Strong Buy recommendation. The average price target implies upside of more than 50% from current levels.

The Zen Ratings love it. 8x8 earns an A, a Strong Buy recommendation, in the top 1% of every stock tracked. Financials come in at the top 22%. Safety, the top 16%. Growth, the top 10%. The AI grade, the top 7%. And the standout, Value, the top 1% of the entire market.

Where it gets dinged is Momentum, which grades low, the stock hasn't run yet. But for a value hunter, that is the feature, not the flaw. You want to be early, before the price catches up to the fundamentals. Cheap on two separate models, newly profitable, and Wall Street just starting to show up, that is exactly the kind of setup worth going looking for.

8x8 is cheap and quiet. The last stock is cheap and about to get loud.

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4. Arcutis Biotherapeutics (ARQT)

For the last stock, picture a company that spent years losing money on every quarter, and then, almost overnight, flipped to profitable while its main product took off. That is Arcutis Biotherapeutics (ARQT), a dermatology company built around one fast growing drug.

Here is why the timing matters. Arcutis just crossed over into profitability, and it has filed to expand the label on its lead drug into new conditions, which means a bigger market ahead. A company hitting profitability right as its addressable market widens is the kind of inflection point that tends to keep a stock moving.

Look at the trajectory. Year after year, those losses shrank, and over the last several quarters the company has started printing actual profits. It is not perfectly smooth yet, but this is a business crossing into profitability in real time.

And the growth ahead is the loud part. Arcutis is forecast to grow earnings around 108% a year, versus about 10% for the broader biotech industry. Its PEG ratio sits right around 1.1. The average stock's PEG is about 1.5, so 1.1, for the growth prospects here, is a great deal.

Wall Street is genuinely leaning in. Six analysts cover it, and every single one lands on a Buy or Strong Buy recommendation. The average price target implies an upside of more than 45%, and the most bullish name on the panel, an analyst who ranks in the top 2%, thinks it could rally by almost 60% from where it's trading now.

The Zen Ratings put a bow on it. Arcutis earns an A, a Strong Buy recommendation, in the top 2% of every stock tracked. The AI grade lands in the top 12%, considerably stronger than it might first appear. Value, the top 17%. Financials, the top 14%. Growth, the top 10%. And the standout, Sentiment, the top 6% of the entire market, the smart money leaning in exactly as the story turns.

Now, there is a unique downside here. Earlier this year, Arcutis raised money by selling new stock, which dilutes existing shareholders, and a newly profitable biotech like this may need to tap the market again. That is the real risk here, and it's worth having plainly.

But on the whole, there are too many positives here to ignore. A newly profitable business, growth that tops its whole industry at a reasonable price, and a wall of top ranked analysts behind it, that is a closer worth watching, dilution risk and all.

Conclusion

So there you have it. 4 undervalued stocks the market has overlooked. Century Aluminum, the cheap metals producer behind a tariff wall. Riley Permian, the cheap oil grower paying you nearly 5% to wait. 8x8, trading more than 40% below fair value as it turns profitable. And Arcutis, the biotech hitting its stride right as the market widens.

These are the kinds of setups that don't stay overlooked forever, so if any of them speak to you, it pays to do your homework sooner rather than later. And remember, you can pull a free rating on over 4,600 stocks yourself just by typing in a ticker at WallStreetZen.com.

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