Is Upland Software (UPLD) the Undervalued Gem of a Stock to Buy Now?

We recently released a list of 11 Extremely Affordable Stocks Worth Considering for Investment In this piece, we will examine how Upland Software, Inc. (NASDAQ:UPLD) measures up against other extremely undervalued stocks worth considering for investment.

As we search for deals in the commodities market — Comparing price ratios, spotting sale items, and finding the best value for your money — Investing in the financial markets is not distinct in this aspect. In both types of investment, the price is crucial.

In a market where stock prices are excessively high, identifying undervalued treasures sets apart savvy investors from those acting on impulse. Recognizing that worth lies not merely in selecting good companies but in purchasing them at reasonable costs allows investors to uncover underappreciated yet valuable shares.

Let's start by grasping what a cheap stock truly means. Typically, this term can have one of two meanings. Firstly, a stock might be considered inexpensive due to having a relatively low share price. Secondly, a stock could also be labeled as "cheap" when it is believed to be undervalued compared to its actual worth. We align our discussion with the latter definition: a cheap stock trades beneath its inherent value derived from metrics such as profits, sales, or property. Hence, within financial circles, people consider these stocks attractive for purchase since they appear underpriced concerning their real capabilities, thus offering good prospects for investment.

A way to identify a potentially inexpensive stock is via the forward price-to-earnings ratio. Investors use this metric to determine how much they're spending per dollar of a firm’s future earnings. If a company has a lower P/E ratio relative to its peers, past performance, and overall market averages, it might indicate that the stock is undervalued.

According to a study conducted by Hoover Capital Management (HCM), value investing significantly outperforms growth investing when examined via the French High Minus Low (HML) factor over a period of 97 years—from July 1926 to December 2023. This comprehensive analysis shows that value stocks yielded returns exceeding those of growth stocks by as much as 3,000%, indicating that value investments have generated a remarkable 30-fold greater return compared to growth strategies. Additionally, economist Victoria Galsband’s findings corroborate this trend; her work reveals that inexpensive stocks consistently performed better than their high-growth counterparts across all seven major economies within the G7—namely Canada, the US, Japan, along with key nations in Europe—from 1975 up until 2010.

A different analysis examined how including or excluding firms from the S&P index affects their valuation metrics. The findings revealed that when businesses get dropped from the index, they tend to be underpriced compared to when they're included. Conversely, this suggests that removing entities often correlates with undervaluing them. According to research conducted by Research Affiliates, shares delisted from the S&P between 1990 and 2022 beat those incorporated into the list by over 5% each year on average. This supports our belief that cheaper stocks stand a better chance at delivering superior financial gains.

Our Methodology

We've put together a list of 11 extremely affordable stocks using the Finviz filter. The selection criteria included choosing stocks with a Price-to-Earnings (P/E) ratio below 5. This collection spans various sectors including consumer goods and natural resource extraction. The stocks are arranged based on their P/E ratios, starting with the highest and ending with the lowest.

At Insider Monkey, we are obsessed with hedge funds. 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 ) .

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Upland Software, Inc. (NASDAQ: UPLD )

Forward P/E as of April 17: 3.00

Upland Software, Inc., identified by NASDAQ as UPLD, offers AI-driven cloud software designed to provide various cloud-based corporate work management tools tailored for IT operations, process optimization, financial strategies, professional services, and marketing activities within organizations. This firm headquartered in Texas caters to clients ranging from large companies and governmental bodies down to smaller businesses. They assert their platform enhances income generation, cuts expenses, and delivers instant benefits for all involved parties.

Even though the historical performance of the stock has not been particularly impressive, we have confidence that this will shift. Upland Software, Inc. (NASDAQ:UPLD) expects to increase revenues in fiscal year 2025 as they overhaul their sales force, decrease financial obligations to cut down on interest expenses, and enhance profit margins via ongoing expense optimizations.

The stock UPLD has been set with a one-year price target of $4.25, suggesting over 80% potential for increase. During their earnings call, company leaders forecasted a promising growth trend, projecting a core organic expansion rate of around 2.5% for the year 2025. This optimistic projection stems from securing 110 additional clients in the fourth quarter along with deepening ties with 291 current clientele, anticipating further enhancements down the line.

We're relying on Upland Software, Inc.'s (NASDAQ:UPLD) smart investments for their growth. Their latest move involves investing in technology-focused India, which boosts their development capabilities and enables them to strengthen AI across their products, notably with BA Insight. Additionally, they've created two innovative solutions powered by artificial intelligence: Panviva, an AI-driven agent assistant, and Qvidian’s AI Assist.

For anyone who wants to play the risky stock game, UPLD is just the stock with high risk but good upside potential.

Overall, UPLD ranks 3rd on our list of ridiculously cheap stocks to invest in. While we acknowledge the potential of cheap stocks, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns, and doing so within a shorter time frame. There is an AI stock that went up since the beginning of 2025, while popular AI stocks lost around 25%. If you are looking for an AI stock that is more promising than UPLD but that trades at less than 5 times its earnings, check out our report about this cheapest AI stock .

READ NEXT: 20 Best AI Stocks To Buy Now and 30 Top Stocks to Purchase Currently as Recommended by Billionaires .

Disclosure: None. This piece was initially published at Insider Monkey .