3 Stocks Undervalued by Analysts: Reddit, Caterpillar, and Nu Holdings

Three undervalued stocks that analysts are loving right now are Reddit, Caterpillar, and Nu Holdings. Reddit offers natural, human conversation data that's valuable for AI platforms, while Caterpillar is positioned for infrastructure and energy demand growth. Analysts rate these stocks a Moderate Buy, with Reddit's Argus setting a $250 price target for a 14% upside and Caterpillar's Energy & Transportation segment posting a 7% year-over-year revenue increase. Short sellers have also started to step away from their positions.

Three undervalued stocks that analysts are loving right now are Reddit, Caterpillar, and Nu Holdings. These companies offer unique growth opportunities in their respective sectors, and analysts have given them a Moderate Buy rating. Here's a closer look at why these stocks are gaining attention.

Reddit Inc. (RDDT)

Reddit, a popular social media platform, has been attracting significant investment from institutional investors. FORA Capital LLC acquired 55,911 shares of Reddit Inc. in the first quarter of 2025, marking a substantial investment in the company's stock [1]. The company reported earnings per share of $0.45, far exceeding analysts' expectations of $0.20, and saw a 77.9% year-over-year revenue increase. Argus Research has set a $250 price target for Reddit, indicating a potential 14% upside [1].

Caterpillar Inc. (CAT)

Caterpillar Inc. has entered into a long-term collaboration with Hunt Energy Company to deliver efficient, independent energy production for data centers. This partnership positions Caterpillar to leverage its advanced power solutions and Hunt Energy’s infrastructure experience, addressing the rising demand for reliable, always-on energy in the fast-growing data center sector [2]. The Energy & Transportation segment of Caterpillar posted a 7% year-over-year revenue increase, highlighting the company's growth potential in this sector [2].

Nu Holdings Inc.

Nu Holdings Inc. has also been gaining analyst attention. The company's unique business model, offering natural, human conversation data valuable for AI platforms, has attracted investors. Nu Holdings has been positioning itself as a key player in the AI data market, with analysts expressing optimism about its growth prospects.

Conclusion

Reddit, Caterpillar, and Nu Holdings are undervalued stocks that analysts are loving right now. With their strong fundamentals and growth potential, these stocks offer attractive investment opportunities. As always, investors should conduct thorough research and consider their risk tolerance before making investment decisions.

References:
[1] https://www.marketbeat.com/instant-alerts/filing-fora-capital-llc-acquires-shares-of-55911-reddit-inc-rddt-2025-08-26/
[2] https://simplywall.st/stocks/us/capital-goods/nyse-cat/caterpillar/news/caterpillar-cat-is-up-68-after-hunt-energy-partnership-to-po