3 Undervalued Stocks to Buy Now, 5/14/2025, According to Analysts 

Amid the chaos caused by President Trump’s tariffs, value stocks present opportunities for investors seeking stability in the market. Value investing involves picking stocks that appear to be trading lower than their intrinsic or book value. This approach involves looking for undervalued stocks with strong fundamentals and growth potential. By investing in these stocks, investors can achieve significant returns once the market recognizes their true value.

One way to identify value stocks is by comparing a company’s price-to-earnings (P/E) ratio with industry averages or its historical P/E ratios. This ratio compares a company’s stock price to its earnings per share. It must be noted that a lower P/E ratio may indicate that the stock is undervalued. Along with this, we have zeroed in on stocks that have received Strong Buy ratings from Wall Street analysts. 

Here are this week’s stocks:

Bath & Body Works (BBWI) – This American retailer specializes in personal care and home fragrance products. It has a Strong Buy analyst consensus rating and an average price target of $41.80, implying a 24.15% upside potential from the current levels. The company’s P/E of 9.26x is trading at a 51.7% discount to the Consumer Cyclical sector’s median of 19.16.

Alaska Air (ALK) – Alaska Air is a major U.S. airline, offering passenger and cargo services across North America. It currently has a P/E ratio of 19.94, which is down 17.4% from the Industrials sector’s median of 24.14. ALK stock has a Strong Buy consensus rating. It has an average price target of $67.36, indicating a 22.74% upside.

Matador Resources (MTDR) – This independent energy firm explores, develops, produces, and acquires oil and natural gas resources. It has a Strong Buy analyst consensus rating and an average price target of $64.40, implying a 38.91% upside potential from the current levels. The company’s P/E of 6x is trading at a 53.3% discount to the Energy sector’s median of 12.86.