While acquiring high-momentum shares in the hopes of even greater returns may represent a sound tactic, arguably most investors prefer targeting the most undervalued stocks to buy. At the psychological level, a certain pioneering appeal exists about discovering the next big thing before the crowd arrives.

Certainly, getting in before the masses may yield blistering rewards. Contextually, market participants today may be much more incentivized to consider the top undervalued stocks for investment. Sure, the latest jobs report suggests that anyone who wants to find employment can get it. However, with the length of time people spend looking for work likely increasing, not all is well with the economy. Thus, buying overheated securities presents significant risks. Plus, let’s face reality: no one wants to end up holding the bag. In fairness, going the discount route doesn’t guarantee anything. But you may be able to improve your odds with high potential undervalued stocks.

Avis Budget (CAR)

Perhaps an oddball idea for the most undervalued stocks to buy, Avis Budget (NASDAQ:CAR) might seem risky given economic challenges. A leading global provider of mobility solutions through its Avis and Budget brands, the company depends on strong travel sentiment. Fortunately, the revenge travel phenomenon that started following the initial relaxing of Covid-19 protocols continues to be relevant today. Notably, CAR stock gained almost 17% since the Jan. opener.

Moving onto data provided by investment resource Gurufocus, the market prices CAR at a forward multiple of 11.44. As a discount to projected earnings, Avis ranks better than 71.52% of companies listed in the business services sector. Also, CAR trades at 0.66-times trailing sales, ranking better than 65.49% of its rivals.

However, these aren’t fluff statistics. In particular, Avis’ three-year revenue growth rate (on a per-share basis) clocks in at 30%, above 92.3% of sector players. Also, its EBITDA growth rate during the same period impresses at 42.7%. Finally, Wall Street analysts peg CAR as a consensus moderate buy. Their average price target lands at $226.25, implying nearly 18% upside potential. Thus, it might be one of the top undervalued stocks for investment.

Phillips 66 (PSX)

On the surface, downstream hydrocarbon energy specialist Phillips 66 (NYSE:PSX) might seem an irrelevant idea for most undervalued stocks to buy. With more people making the transition to electric vehicles, fewer people will need to use gasoline stations. While true, the integration of EVs is nowhere near the scale of combustion cars on the road today. So, people will need downstream specialists today, tomorrow and maybe even decades from now.

Another factor that makes PSX stand among the high potential undervalued stocks are the attractive financial metrics. First, the market prices PSX at a trailing multiple of 3.91. As a discount to earnings, Phillips 66 ranks better than 75.7% of the competition. Also, PSX trades at 0.28-times trailing sales, well below the sector median stat of 0.89 times.

However, on the top line, Phillips 66’s three-year revenue growth rate clocks in at 14.9%, above 60.52% of peers in the oil and gas industry. Also, its EBITDA growth rate is 39.3%, above 77.56%. Lastly, analysts peg PSX as a consensus strong buy. Their average price target hits $119.89, implying nearly 19% upside potential.

Albemarle (ALB)

Headquartered in Charlotte, North Carolina, Albemarle (NYSE:ALB) is a global specialty chemicals company with leading positions in lithium, bromine and refining catalysts. Per its corporate ethos, Albemarle empowers the potential of companies in critical industries such as energy, electronics and transportation. Usually, analysts cite ALB as a lithium provider. It also happens to be one of the most undervalued stocks to buy. That’s the case even with shares soaring nearly 18% in the trailing one-month period. Specifically, the market prices ALB at a forward multiple of 11.53. As a discount to projected earnings, Albemarle ranks better than 66.45% of companies listed in the chemicals industry.

In addition, the company delivers strong stats in the operational realm. Its three-year revenue growth rate pings at 22.6%, outflanking 81% of sector rivals. Also, its EBITDA growth rate during the same period stands at 45.7%, above 89.19% of industry players. To close, analysts peg ALB as a consensus moderate buy. Their average price target comes in at $261.88, implying nearly 20% upside potential. Thus, it’s a worthy idea for best undervalued stocks for high returns.

Archer Daniels Midland (ADM)

Coming in as a top name among the most undervalued stocks to buy, Archer Daniels Midland (NYSE:ADM) should rate highly thanks to its permanently relevant business. A global leader in human and animal nutrition and the world’s premier agricultural origination and processing company per its public profile, investors enjoy long-term confidence with ADM. However, since the beginning of the year, shares slipped over 18%.

While the red ink might look bad, the main argument is that we’re talking about a solid enterprise succumbing to rough circumstances. Therefore, Gurufocus labels ADM a legitimately undervalued trade. Presently, the market prices share at a forward multiple of 10.57. As a discount to projected earnings, Archer Daniels ranks better than 80.53% of the competition.

In addition, the company benefits from strong operational stats. Its three-year revenue growth rate clocks in at 16.4%, ranked above 77.43% of sector peers. Also, its EBITDA growth rate during the same period is 30.8%, above 80.88%. Turning to Wall Street, analysts peg ADM as a moderate buy. Their average price target stands at $95.29, implying nearly 30% upside potential.

Ovintiv (OVV)

An enticing idea among the most undervalued stocks to buy, Ovintiv (NYSE:OVV) is a hydrocarbon exploration and production company. While the political narrative presently centers on clean and renewable energy sources, the vast majority of society depends on fossil fuels. Thanks to their incredible energy density, hydrocarbons will be difficult to give up. That’s just reality. That’s just science.

Cynically, then, Ovintiv presents a powerful case if you want to buy undervalued stocks now. As Gurufocus pointed out, OVV represents a significant discount. By the numbers, OVV trades at a forward multiple of 4.78. As a discount to projected earnings, Ovintiv ranks better than 80.36% of the competition. Also, shares trade at 4.29-times FCF, ranked better than 71.24% of its peers.

Operationally, Ovintiv’s three-year revenue growth rate clocks in at 23.3%, above 75.79% of sector players. Also, its EBITDA growth rate hits 22.9%, above 61.1%. Looking to the Street, analysts peg OVV as a consensus moderate buy. Their average price target lands at $49.73, implying over 30% upside potential.

Nutrien (NTR)

A Canadian fertilizer company, Nutrien (NYSE:NTR) symbolizes a pertinent idea for most undervalued stocks to buy. Per its corporate profile, Nutrien is the world’s largest provider of crop inputs and services, playing a critical role in helping growers increase food production in a sustainable manner. Specifically, the company produces and distributes 27 million tons of potash, nitrogen and phosphate products worldwide.

However, the market has a dim view of NTR, seeing it slide down over 17% since the Jan. opener. And that’s where the true contrarian comes out. If you’re interested in top undervalued stocks for investment, Nutrien appears quite tempting. Specifically, the market prices NTR at a trailing multiple of only 4.66. As a discount to earnings, the company ranks better than 90.61% of the agriculture industry. Operationally, Nutrien also delivers the goods. Its three-year revenue growth rate hits 28.1%, above 76.64% of sector rivals. Plus, its EBITDA growth rate during the same frame impresses at 57.8%. Lastly, analysts peg NTR as a moderate buy. Their average price target comes in at $79.13, implying over 33% upside potential.

Stellantis (STLA)

One of the world’s leading automakers, Stellantis (NYSE:STLA) might not be a household name. However, many of its automotive brands – such as Alfa Romeo, Chrysler, Dodge, Fiat and Jeep – very much are. Fundamentally, the beauty of Stellantis is that it can electrify several popular combustion-based models. For example, Dodge will launch an electric muscle car, with all the noise that such a platform implies.

Just speaking on my behalf, I can’t wait – an EV with a personality! Aside from individual biases, STLA legitimately rates as one of the most undervalued stocks to buy. In particular, the market prices STLA at a forward multiple of 3.33. As a discount to projected earnings, Stellantis ranks better than 97.11% of the competition. Also, it trades a lowly FCF multiple of 4.4.

On the operational front, Stellantis’ three-year revenue growth rate pings at 14.6%, ranked above 75.79% of rivals. Also, its EBITDA growth rate during the same period comes in at 32.2%, above 84.72%. On a final note, analysts peg STLA as a consensus strong buy. Their average price target lands at $22.35, implying over 39% upside potential.

On the date of publication, Josh Enomoto did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.