Humm Group (ASX: HUM) has made a strong name for itself in the buy-now-pay-later (BNPL) sector, offering flexible financing solutions to consumers. However, its stock price has been under pressure due to growing regulatory scrutiny and increased competition from other BNPL providers. Despite these challenges, Humm’s ability to adapt to regulatory changes and expand internationally, particularly in the UK and Canada, has positioned it as an undervalued stock. The company’s diversified product offerings, which now include larger-ticket items, are a significant factor in its growth potential. With the BNPL sector maturing, Humm is expected to benefit from more stable market conditions and increased consumer adoption. As these trends unfold, Humm’s stock could see substantial appreciation, making it an attractive option for investors looking for exposure to a growing sector at a discounted price.

NRW Holdings Ltd (ASX: NRW) is a leading Australian construction and engineering services provider, with expertise in mining, civil infrastructure, and urban development. Despite its strong track record, NRW’s stock has been undervalued due to broader market concerns about the construction industry, including project delays and cost overruns that temporarily weighed on investor sentiment. However, the company’s fundamentals remain strong, with a healthy pipeline of projects and growing demand for mining and infrastructure services. As Australia continues to invest heavily in infrastructure, NRW is well-positioned to capture a share of this expanding market. Additionally, the company’s diversified service offerings across mining, civil works, and maintenance provide steady revenue streams, making NRW an undervalued stock with significant upside potential. Investors should consider NRW as a strong play in the infrastructure and mining sectors, with a solid foundation for growth in 2025.

QBE Insurance Group Ltd (ASX: QBE) is one of Australia’s largest and most well-established insurers, with a significant global footprint. The company offers a broad range of insurance products, including personal, commercial, and specialty coverage. However, QBE’s stock price has faced pressure due to a combination of factors, including challenging underwriting results, increased claims from natural disasters, and market volatility. Additionally, the company has been facing legal issues, including a lawsuit from the Australian Securities and Investments Commission (ASIC), which alleges that QBE misled over half a million customers regarding pricing discounts between 2017 and 2022. Despite these challenges, the company is undergoing a strategic restructuring, focusing on its most profitable lines of business and regions. Additionally, QBE has been improving its capital management and operational efficiency, positioning itself well for future growth. The global demand for insurance continues to rise, particularly in emerging markets, providing QBE with a solid foundation for recovery. As the company continues to streamline its operations and reduce costs, QBE’s stock is expected to rebound, offering significant potential for long-term investors looking for value in the insurance sector.