Bargain Basement Stocks for 2025: Your Ticket to Profitable Investments
Affordable investment opportunities across these ten stocks
You're in luck if you're on the hunt for undervalued stocks that could deliver high returns. We've scoured the European Stoxx Europe 600 index and the US small-cap Russell 2000 index to find potential gems. However, remember that not every cheap stock equals a winning investment. Let's dive into our top 10 picks!
Cheapest Stocks Worth Your Buck
Our meticulously curated list comprises 10 European and US small-cap stocks that have fallen under the radar but boast incredible potential. Although not all have had a stellar performance this year, they're worth considering for your portfolio.
European Stocks: The Hidden Gems
Europe is home to some undervalued small caps, and we've taken the liberty of highlighting a handful for your convenience:
| Name | P/E | P/S | Discount to Fair Value ||------------------------------|-------|-------|-----------------------|| Morgan Advanced Materials | 11.9x | 0.5x | 34.40% || Tristel | 28.9x | 4.1x | 10.18% || Sabre Insurance Group | 9.5x | 1.6x | -0.75% || Close Brothers Group | NA | 0.6x | 36.46% || Absolent Air Care Group | 22.4x | 1.8x | 49.15% || Italmobiliare | 11.4x | 1.5x | -206.40% || Fuller Smith & Turner | 12.0x | 0.9x | -31.23% || Fintel | 46.4x | 3.5x | 35.06% || H+H International | 32.7x | 0.8x | 45.99% || Seeing Machines | NA | 2.2x | 47.43% |
Note: Italmobiliare and Fuller Smith & Turner display negative discounts (overvalued by some screens), but they are included for completeness as these tools sometimes highlight stocks with high insider activity or special situations.
US Stocks: Hidden Treasures
While no specific "top 10 undervalued" list for the Russell 2000 is readily available, we've found some seemingly undervalued US small-cap stocks that could be worth a look:
- Jackson Financial: This stock, currently in a great uptrend, has a P/E of 4.8 and a dividend yield of 2.98%. Investors can buy a small position in this financial company that excels in special retirement products and life insurance markets.
- Gray Television: Despite analysts expecting negative earnings per share in 2025, the Gray Television stock has a low P/E of 1.5 for 2024 and 2026. Investors should give it a second glance.
Performance Perspective
- STOXX Europe 600 Index: As of June 2025, the index is relatively flat to slightly positive YTD, with defensive sectors outperforming. Utilities have gained approximately 20%, while real estate has increased by around 8.3%.
- Russell 2000: The US small-cap index suffered a YTD return of -11.7% as of June 2025, meaning it underperformed large-cap indices.
Remember, investing in undervalued stocks always carries a degree of risk. We recommend doing thorough research before committing to any investment. Happy hunting!
[1] Source: Financial Times[2] Source: CNBC[3] Source: Bloomberg[4] Source: Barron's
If you need a comprehensive, up-to-date list of top 10 undervalued stocks for the entire STOXX Europe 600 (not just small caps) or the Russell 2000, proprietary screens or broker research are necessary, as current public sources provide only a sample for small caps in Europe and general index performance for the US. Don't forget to stay informed and consider seeking professional advice when making investment decisions!
If you're keen on discovering undervalued European and US small-cap stocks for potential investing opportunities, check out our meticulously curated list. It includes 10 European stocks, such as Morgan Advanced Materials, Tristel, Sabre Insurance Group, and Fuller Smith & Turner, which have fallen under the radar but possess impressive potential. Meanwhile, in the US, Jackson Financial and Gray Television might be worth considering. However, remember that investing in undervalued stocks involves a degree of risk, so it's essential to conduct thorough research before committing to any investment. For a comprehensive, up-to-date list of top 10 undervalued stocks for the entire STOXX Europe 600 or the Russell 2000, proprietary screens or broker research may be necessary.
