Investors observed a rebound in stocks on September 25, 2023, as the tech-heavy NASDAQ Composite Index rose by 0.4%. This increase followed the release of the August figures for the Personal Consumption Expenditures (PCE) index, a key indicator of inflation that showed a year-on-year rise of 2.9% and a month-on-month increase of 0.2%. These results aligned with economists’ expectations. Despite recent declines, the NASDAQ remains up 16.61% year-to-date, sparking optimism among some analysts who foresee further gains.
BMO Capital has also adjusted its year-end estimate for the S&P 500 to 7,000, attributing this outlook to potential Federal Reserve easing, robust earnings, and an artificial intelligence boom that has yet to reach saturation. However, there are concerns that additional tariffs could sustain inflation pressures, possibly leading the Fed to reconsider its rate-cutting trajectory.
Identifying Low P/E Ratio Stocks
To compile a list of NASDAQ stocks with low price-to-earnings (P/E) ratios, a thorough examination was conducted using various online publications, exchange-traded funds (ETFs), and stock screeners. Stocks with P/E ratios below 15 were prioritized, and the number of hedge fund investors as of the second quarter of 2025 was utilized for ranking.
The rationale for focusing on stocks favored by hedge funds is straightforward: research indicates that mimicking the top picks of successful hedge funds can lead to superior market performance. A quarterly newsletter strategy has yielded a return of 373.4% since May 2014, significantly outperforming its benchmark by 218 percentage points.
Top NASDAQ Stocks with Low P/E Ratios
1. Gibraltar Industries, Inc. (NASDAQ: ROCK)
P/E Ratio as of September 24: 14.61
Number of Hedge Fund Holders: 27
Gibraltar Industries recently announced a strategic pivot from renewables to building materials, which currently represent 70% of its inventory. The company, focusing on the $6 billion metal roofing sector, aims to increase direct sales to contractors. The sale of its renewables division is also progressing, narrowing potential buyers from 19 to 6.
2. The Wendy’s Company (NASDAQ: WEN)
P/E Ratio as of September 24: 9.70
Number of Hedge Fund Holders: 27
Wendy’s has faced challenges in the U.S. market, prompting Argus to downgrade its rating from Buy to Hold on September 23. The fast-food chain reported a 2% decline in second-quarter revenue compared to the previous year, with U.S. sales down 3%. Despite international gains, the company must navigate rising costs and stiff competition.
3. Methanex Corporation (NASDAQ: MEOH)
P/E Ratio as of September 24: 10.99
Number of Hedge Fund Holders: 31
Methanex has established strategic alliances to provide methanol bunkering services in South Korea and the Amsterdam-Rotterdam-Antwerp area. This initiative expands on previous agreements and utilizes Methanex’s existing supply chain capabilities.
4. Mattel Inc. (NASDAQ: MAT)
P/E Ratio as of September 24: 11.04
Number of Hedge Fund Holders: 33
Roth/MKM maintained a $22 price target on Mattel, citing retail timing issues that have pushed order deliveries into late 2025. The toy manufacturer expects a full-year earnings per share of $1.63 amid ongoing supply chain adjustments.
5. Baidu Inc. (NASDAQ: BIDU)
P/E Ratio as of September 24: 12.20
Number of Hedge Fund Holders: 33
Baidu received permits for testing its autonomous vehicle fleet in Dubai, marking a significant step in its goal to deploy over 1,000 autonomous cars by 2028. The company operates China’s largest internet search engine and is venturing into self-driving technology.
6. Upwork Inc. (NASDAQ: UPWK)
P/E Ratio as of September 24: 11.45
Number of Hedge Fund Holders: 32
Citizens JMP has raised its price target for Upwork from $20 to $27, citing the potential of its new enterprise platform, Lifted, to enhance growth despite macroeconomic fluctuations.
7. Garrett Motion Inc. (NASDAQ: GTX)
P/E Ratio as of September 24: 9.57
Number of Hedge Fund Holders: 39
Stifel initiated coverage of Garrett Motion with a Buy rating and a $17.50 price target. The company aims to generate $1 billion in revenue from its Zero Emission portfolio by 2030.
8. Weatherford International plc (NASDAQ: WFRD)
P/E Ratio as of September 24: 10.38
Number of Hedge Fund Holders: 41
Weatherford recently secured an eight-year contract with SNGN Romgaz S.A. for real-time monitoring of gas well operations, showcasing its commitment to technological advancements in the energy sector.
9. Illumina Inc. (NASDAQ: ILMN)
P/E Ratio as of September 24: 11.96
Number of Hedge Fund Holders: 54
Illumina announced collaborations with global pharmaceutical companies to develop companion diagnostics for KRAS biomarkers, a significant move in the fight against cancer.
As investors continue to monitor the market, these stocks present intriguing opportunities for those seeking value in a fluctuating economic landscape.
