In this article, we will discuss the 10 Best Large Cap Value Stocks to Invest In.
According to Goldman Sachs Research, US stocks may rally more than previous forecast, as the US Fed is expected to cut rates earlier than anticipated. The S&P 500 Index is expected to increase to 6,600 (an increase from the earlier forecast of 6,100) over the upcoming 6 months and to 6,900 (an increase from 6,500) over the next 12 months, as per David Kostin (chief US equity strategist in Goldman Sachs Research).
What’s Driving the Forecasts Up?
As per Goldman Sachs, the forecast change exhibits the firm’s economists’ expectations of earlier and deeper rate easing from the US Fed and expectations of lower bond yields, overall strength in the largest stocks, as well as willingness of investors to tolerate the likely near-term weakness in earnings.
Moving into H2 2025, Goldman Sachs Research opines that investors should have a portfolio with a largely balanced allocation across sectors, along with an overweight allocation to software and services, materials, utilities, media and entertainment, and real estate. It also believes that there can be opportunities in alternative asset managers. These have lagged their macro-implied returns despite an improvement in the backdrop for capital markets.
Amidst such trends, we will now have a look at the 10 Best Large Cap Value Stocks to Invest In.
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Our Methodology
To list the 10 Best Large Cap Value Stocks to Invest In, we used a screener to shortlist the stocks that have a market cap of over $10 billion, and that trade at a forward P/E of less than ~15.0x. Next, we chose the ones popular among hedge funds. Finally, the stocks were ranked in ascending order of their hedge fund sentiments, as of Q1 2025.
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).
10 Best Large Cap Value Stocks to Invest In
10. Sun Life Financial Inc. (NYSE:SLF)
Forward P/E as of July 11: ~11.5x
Market Cap as of July 11: $35.2 Billion
Number of Hedge Fund Holders: 15
Sun Life Financial Inc. (NYSE:SLF) is one of the Best Large Cap Value Stocks to Invest In. Barclays analyst Alex Scott downgraded the company’s stock to “Underweight” from “Equal Weight” with a price objective of C$82, down from the prior target of C$86. Moving into Q2 earnings, the firm expects growing risk in Medicaid dental, mainly for Sun Life Financial Inc. (NYSE:SLF). This resulted in the downgrade to “Underweight.”
However, amidst a complex business environment, Sun Life Financial Inc. (NYSE:SLF) continues to advance its Client Impact Strategy and strategic imperatives, aided by new digital tools and capabilities, strong capital raising at SLC Management, and healthy sales and distribution in Asia. Sun Life Financial Inc. (NYSE:SLF)’s capital position remains robust with a LICAT ratio of 149%, offering resilience and financial flexibility. Notably, Morningstar highlighted that Sun Life Financial Inc. (NYSE:SLF) remains one of the Big 3 Canadian life insurers that collectively make up ~80% of the nation’s life insurance premiums.
The company’s strategic priorities consist of investment in digital capabilities, expansion of alternative asset management business (Sun Life Capital Management), increasing the health benefits market share and service offerings, as well as acceleration of Asian growth, added Morningstar.
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