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.
A close-up of a wealth manager’s hands hovering over a laptop presenting a customer with investment options.
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.
9. Corebridge Financial, Inc. (NYSE:CRBG)
Forward P/E as of July 11: ~7.05x
Market Cap as of July 11: $18.9 Billion
Number of Hedge Fund Holders: 32
Corebridge Financial, Inc. (NYSE:CRBG) is one of the Best Large Cap Value Stocks to Invest In. UBS upgraded the company’s stock to “Neutral” from “Sell” with a price objective of $37, up from the prior target of $28, as reported by The Fly. The firm sees the company’s shares as fairly valued after the variable annuity reinsurance deal with Venerable.
UBS believes that by reinsuring its entire $51 billion individual VA business, Corebridge Financial, Inc. (NYSE:CRBG) monetizes its most complex, low-multiple business for $2.1 billion of distributable proceeds, and also validates as well as eliminates the fundamental downside risk the firm flagged. Overall, UBS noted that the deal significantly improves its view of Corebridge Financial, Inc. (NYSE:CRBG)’s value creation strategy and willingness to adapt.
Corebridge Financial, Inc. (NYSE:CRBG)’s top management highlighted that the transaction offers significant value. The company plans to use proceeds to accelerate its capital management objectives, which include a substantial majority returned through share repurchases, while the balance will be used to support organic growth. Notably, the $51 billion of total account value consists of $5 billion of General Account AV (reinsured 100% on a coinsurance basis) as well as $46 billion of Separate Account AV (reinsured on the modified coinsurance basis).
Corebridge Financial, Inc. (NYSE:CRBG) provides retirement solutions and insurance products.
8. RenaissanceRe Holdings Ltd. (NYSE:RNR)
Forward P/E as of July 11: ~13.2x
Market Cap as of July 11: $11.5 Billion
Number of Hedge Fund Holders: 40
RenaissanceRe Holdings Ltd. (NYSE:RNR) is one of the Best Large Cap Value Stocks to Invest In. Barclays upgraded the company’s stock to “Equal Weight” from “Underweight” with a price objective of $256, up from the prior target of $231. Moving forward, the firm remains cautious on property and casualty carriers, noting that the underwriting margins witness pressure due to the softening rates as well as unfavorable mix shift. Furthermore, Barclays remains more constructive on reinsurers because of idiosyncratic tailwinds and capital return potential over the H2. The analyst expects capital deployment, primarily from the share repurchase, as a catalyst in the back half for RenaissanceRe Holdings Ltd. (NYSE:RNR).
Fitch Ratings sees RenaissanceRe Holdings Ltd. (NYSE:RNR)’s overall business profile as ‘Moderate’ as compared to all other reinsurance organizations on a global basis. Furthermore, the firm considers RenaissanceRe Holdings Ltd. (NYSE:RNR) a leader in the broader property/casualty and specialty traditional and alternative reinsurance markets, offering consistent market capacity and effectively underwriting and pricing the catastrophe-related risks.
With respect to the underwriting results, in the property segment, the gross premiums written rose $241.0 million, or 12.7% in Q1 2025, driven by a rise of $325.5 million, or 24.3%, in the catastrophe class. However, the rise in gross premiums written was partially offset by a decrease of $84.6 million in the other property class.
7. Chubb Limited (NYSE:CB)
Forward P/E as of July 11: ~12.8x
Market Cap as of July 11: $111.4 Billion
Number of Hedge Fund Holders: 55
Chubb Limited (NYSE:CB) is one of the Best Large Cap Value Stocks to Invest In. Barclays analyst Alex Scott downgraded the company’s stock to “Equal Weight” from “Overweight” with a price objective of $298, down from the prior target of $321, as reported by The Fly. Heading into earnings, the firm remains more cautious on the property and casualty carriers, mentioning that the underwriting margins continue to face pressure due to softening rates as well as unfavorable mix shift.
However, Barclays remains more constructive on reinsurers, thanks to the idiosyncratic tailwinds and capital return potential in the second half. Overall, the firm’s updated margin modeling and reassessment of the broader commercial P&C landscape to reflect a cautious stance resulted in the downgrade of Chubb Limited (NYSE:CB)’s stock. In Q1 2025, Chubb Limited (NYSE:CB) saw $1.5 billion in core operating income, which was aided mainly by strong underlying underwriting results, double-digit growth in investment income, and growth in life insurance income. Notably, the total company premiums increased 5.7% in constant dollars.
Chubb Limited (NYSE:CB)’s track record of healthy underwriting performance reflects that it is well-equipped to navigate changing market conditions. Its focus on risk selection, pricing discipline, and effective claims management continues to be a critical driver of its profitability. Chubb Limited (NYSE:CB)’s diverse product portfolio, along with its global presence, enables it to balance risks throughout different lines of business and geographies, offering stability in underwriting results.
6. U.S. Bancorp (NYSE:USB)
Forward P/E as of July 11: ~10.9x
Market Cap as of July 11: $73.4 Billion
Number of Hedge Fund Holders: 63
U.S. Bancorp (NYSE:USB) is one of the Best Large Cap Value Stocks to Invest In. Raymond James analyst David Long upgraded the company’s stock to “Strong Buy” from “Outperform” with a price objective of $57, up from the prior target of $51, as reported by The Fly. The upgrade demonstrates the firm’s increased confidence that U.S. Bancorp (NYSE:USB) will achieve targeted medium-term profitability metrics. As per the analyst, the bank’s improvement in profitability is expected to shift investor sentiment to the positive side.
Also, the firm highlighted that the current market skepticism about U.S. Bancorp (NYSE:USB)’s ability to reach the medium-term profitability targets resulted in a unique buying opportunity, with the company’s shares trading at a discounted valuation. All U.S. Bancorp (NYSE:USB)’s regulatory ratios demonstrate healthy capital levels as well as surpass the well-capitalized requirements. Notably, the company’s CET1 capital to risk-weighted assets ratio using the Basel III standardized approach stood at 10.8% as of March 31, 2025.
In Q1 2025, U.S. Bancorp (NYSE:USB)’s total net revenue of ~$7.0 billion was aided by slight margin expansion and YoY growth in fee revenue of 5%. Notably, the asset quality and capital levels were robust.
5. ConocoPhillips (NYSE:COP)
Forward P/E as of July 11: ~13.9x
Market Cap as of July 11: $120.6 Billion
Number of Hedge Fund Holders: 70
ConocoPhillips (NYSE:COP) is one of the Best Large Cap Value Stocks to Invest In. UBS lifted the price target on the company’s stock to $115 from $111, while maintaining a “Buy” rating on the shares, as reported by The Fly. The firm sees another positive operational quarter re-centering the story for the company. Furthermore, the firm mentioned that ongoing cost savings are flowing through, potentially lowering ConocoPhillips (NYSE:COP)’s breakeven points and increasing the top-tier inventory duration.
Notably, the firm pointed to an expected FCF ramp as long-cycle spending starts to decrease in H2 2025, contributing to the robust outlook for ConocoPhillips (NYSE:COP) in the latter part of the year. Amidst the volatile macro environment, ConocoPhillips (NYSE:COP) remains confident in the competitive advantages stemming from its differentiated portfolio, robust balance sheet as well as disciplined capital allocation framework.
In Q1 2025, the company demonstrated healthy execution and reduced its full-year capital and operating cost guidance. Full-year capital expenditures guidance has been lowered to $12.3 billion – $12.6 billion as compared to the prior guidance of ~$12.9 billion. Notably, the full-year adjusted operating cost guidance was also lowered to $10.7 billion – $10.9 billion compared to the prior guidance of $10.9 billion – $11.1 billion.
4. Gilead Sciences, Inc. (NASDAQ:GILD)
Forward P/E as of July 11: ~13.7x
Market Cap as of July 11: $136.3 Billion
Number of Hedge Fund Holders: 79
Gilead Sciences, Inc. (NASDAQ:GILD) is one of the Best Large Cap Value Stocks to Invest In. Analyst Courtney Breen of Bernstein maintained a “Buy” rating on the company’s stock, retaining a price objective of $120.00. The analyst’s rating is backed by a combination of factors associated with the promising prospects of the new drug, Yeztugo. The drug, which is also known as Lenacapavir, was recently approved by the FDA for use as a monotherapy in preventing HIV, which can significantly drive Gilead Sciences, Inc. (NASDAQ:GILD)’s growth, added the firm’s analyst.
Furthermore, the innovation in Yeztugo’s dosing paradigm is expected to enhance patient adherence as well as expand the PrEP market. Despite the concerns related to the drug’s pricing, the analyst believes that the perceived financial burden might be mitigated by the insurance coverage. The analyst has also highlighted Gilead Sciences, Inc. (NASDAQ:GILD)’s strategic efforts to address logistical challenges. Overall, such factors, together with the drug’s clinical differentiation and market receptivity, support the analyst’s favourable outlook for the company’s stock.
Notably, the company has announced a strategic partnership agreement with the Global Fund to fight AIDS, Tuberculosis, and Malaria to supply lenacapavir, Gilead Sciences, Inc. (NASDAQ:GILD)’s twice-yearly injectable HIV-1 capsid inhibitor, for preventing HIV as pre-exposure prophylaxis (PrEP).
Impax Asset Management, an investment management company, released its Q1 2025 investor letter. Here is what the fund said:
“Gilead Sciences, Inc. (NASDAQ:GILD) (Health Care) the company is owned due to its role in solving evolving heath care challenges through the development of new medical treatments for conditions as chronic diseases are on the rise. The company also has one of the highest systematic ESG scores in the portfolio. Gilead reported better-than-expected quarterly results, largely driven by strong revenue from its HIV franchise. The company also provided an optimistic earnings guidance for the next fiscal year, helping provide defensiveness amid a flurry of volatility.”
3. Wells Fargo & Company (NYSE:WFC)
Forward P/E as of July 11: ~14.4x
Market Cap as of July 11: $268.6 Billion
Number of Hedge Fund Holders: 88
Wells Fargo & Company (NYSE:WFC) is one of the Best Large Cap Value Stocks to Invest In. Raymond James downgraded the company’s stock from “Outperform” to “Market Perform,” noting the limited upside potential. While the firm maintains its bullish outlook on Wells Fargo & Company (NYSE:WFC)’s growth prospects as well as continued profitability improvement, it opines that the upside to earnings estimates is appropriately reflected in premium valuation.
S&P Global believes that the lifting of the Federal Reserve’s asset growth restriction on Wells Fargo & Company (NYSE:WFC), along with the termination of regulatory consent orders against the company, demonstrates significant improvement in its governance and risk management. The asset cap’s termination is expected to provide Wells Fargo & Company (NYSE:WFC) opportunities to compete for new business and deposits, added S&P Global. Overall, the firm’s positive outlook demonstrates its expectation that Wells Fargo & Company (NYSE:WFC) will improve its risk management oversight and that the risk-adjusted returns will rise.
According to S&P Global, Wells Fargo & Company (NYSE:WFC) remains well-placed to handle an economic slowdown or a deterioration in the asset quality. The company tends to benefit from the scale of a universal bank as well as a less complex business mix, which is similar to a large regional bank. Furthermore, the revenue remains well balanced and is not overexposed to any specific area.
Hotchkis & Wiley, an investment management company, released its Q4 2024 investor letter. Here is what the fund said:
“Wells Fargo & Company (NYSE:WFC) is one of the nation’s largest depositories and banks by assets. In addition to having a very high market share of deposits, they also enjoy high market share within the geographies they operate in such as western and southeastern US. In our opinion, WFC is one of the best franchises in banking with a history of very high returns on assets and equity. Performance over the quarter was strong due to potential deregulation with the onboarding of a new presidential regime and speculation that the company’s asset cap could be lifted as early as 1H25.”
2. The Progressive Corporation (NYSE:PGR)
Forward P/E as of July 11: ~14.8x
Market Cap as of July 11: $143.6 Billion
Number of Hedge Fund Holders: 91
The Progressive Corporation (NYSE:PGR) is one of the Best Large Cap Value Stocks to Invest In. Morgan Stanley analyst Bob Huang downgraded the company’s stock to “Equal Weight” from “Overweight” with a price objective of $290, down from the prior target of $330, as reported by The Fly. The downgrade exhibits the firm’s view that The Progressive Corporation (NYSE:PGR)’s previous investment thesis of unincumbered growth and margin expansion has been nearing its end.
Overall, the firm identified 2 critical factors which have changed the outlook: the intensifying industry competition, and the pressure on The Progressive Corporation (NYSE:PGR)’s valuation as it exits the peak growth and margin environment. In Q1 2025, the company had strong policies in force (PIF) growth, with ~5.5 million more PIFs as compared to the end of the first quarter last year, resulting in the total PIF count to more than 36 million as of March 31, 2025. The Progressive Corporation (NYSE:PGR) remains focused on improving profitability and reducing exposure in markets that are more susceptible to catastrophic weather events.
Fitch Ratings believes that The Progressive Corporation (NYSE:PGR) maintains a favorable business profile, with continued growth in market share. Also, the firm highlighted that The Progressive Corporation (NYSE:PGR) remains one of the most consistently profitable underwriters across leading property/casualty (P/C) insurers, possessing a history of favorable underwriting margins and stability.
Madison Investments, an investment advisor, released its Q1 2025 investor letter. Here is what the fund said:
“The Progressive Corporation (NYSE:PGR) continues to deliver industry-leading policy growth with better-than-expected underwriting margins. Total revenue growth of 22% in the month of December 2024 reflects ongoing market share gains for the company. Overall, 2024 was a solid year for Progressive with net premium revenue growth of 21% and strong profitability with a combined ratio of 88.8%. Progressive is gaining share versus its competitors with industry leading segmentation, claims accuracy, and competitive pricing. The company’s accurate claims handling is key to its competitive pricing. Balancing efficient and accurate claim outcomes with strong customer satisfaction have been the drivers of the company’s strong results.”
1. Pfizer Inc. (NYSE:PFE)
Forward P/E as of July 11: ~8.7x
Market Cap as of July 11: $145.8 Billion
Number of Hedge Fund Holders: 99
Pfizer Inc. (NYSE:PFE) is one of the Best Large Cap Value Stocks to Invest In. Morningstar reduced its moat rating for the company to narrow due to the portfolio setbacks as well as policy risk. That being said, the firm also added that Pfizer Inc. (NYSE:PFE)’s foundation is strong on the basis of steady cash flows coming from the basket of diverse drugs. Furthermore, its large size possesses strong competitive advantages in developing new drugs. These factors, along with a broad portfolio of patent-protected drugs, have supported Pfizer Inc. (NYS E:PFE) in building an economic moat around its business, opines Morningstar.
The company’s overall strong Q1 2025 performance reflects its continued emphasis on commercial execution. Its focus on operational efficiency and financial discipline continues to drive healthy results to its bottom line. Pfizer Inc. (NYSE:PFE) saw revenues of $13.7 billion in Q1 2025, while its adjusted diluted EPS came in at $0.92. The company’s aggressive cost-saving initiatives can significantly improve Pfizer Inc. (NYSE:PFE)’s long-term profitability. Therefore, by improving operational efficiency, it can allocate more resources to high-potential areas, including pipeline development and strategic acquisitions.
While we acknowledge the potential of PFE to grow, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than PFE and that has 100x upside potential, check out our report about this cheapest AI stock.
READ NEXT: 13 Cheap AI Stocks to Buy According to Analysts and 11 Unstoppable Growth Stocks to Invest in Now.
Disclosure: None. Insider Monkey focuses on uncovering the best investment ideas of hedge funds and insiders. Please subscribe to our free daily e-newsletter to get the latest investment ideas from hedge funds’ investor letters by entering your email address below.
