In this article, we will discuss the 10 Best Value Stocks to Buy According to Billionaires.
The H1 2025 has been a roller coaster ride for the investors. During the initial months of the year, the benchmarks touched record highs, according to Bank of America Private Bank. However, when a plan to raise tariffs on almost all the global trading partners was announced in April, the S&P 500 entered the bear market territory, briefly falling 20% from the peak. Once the proposed tariffs were paused, there was a significant rebound, recovering all that was lost by mid-May.
What Lies Ahead for Equities?
As per CIO Head of Portfolio Strategy Marci McGregor, the corporate earnings are expected to be the major focus for investors. Notably, continuing uncertainty can drive the ongoing choppiness in the broader markets, added McGregor. That being said, it is of utmost importance to stay invested, so that the investors don’t miss the potential growth in the recovery phase.
Talking about the opportunities, the technology giants that made up for big gains in recent years were laggards during the spring downturn. However, some of them can see a relief rally through the summer and beyond, added McGregor. Considering the continuing resilience of consumers, mainly in higher-income households, the financial and consumer discretionary sectors can also do well, noted McGregor. Over the long term, utilities can benefit due to increased demand for energy to fuel innovation in Gen AI.
Amidst such trends, we will now have a look at the 10 Best Value Stocks to Buy According to Billionaires.
A financial analyst at his computer monitor, tracking the public company’s investments.
Our Methodology
To list the 10 Best Value Stocks to Buy According to Billionaires, we used a screener and Insider Monkey’s exclusive database of billionaire stock holdings to shortlist the companies that trade at a forward P/E of less than ~15.0x. For the stocks with the same number of billionaire holdings, we have used the number of hedge fund investors as a secondary metric to rank the stocks, 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 Value Stocks to Buy According to Billionaires
10. AllianceBernstein Holding L.P. (NYSE:AB)
Forward P/E as of June 30: ~12.8x
Number of Hedge Fund Holders: 11
Dollar Value of Billionaire Holdings: $5.82 million
Number of Billionaire Investors: 2
AllianceBernstein Holding L.P. (NYSE:AB) is one of the 10 Best Value Stocks to Buy According to Billionaires. On June 27, Goldman Sachs downgraded the company’s stock to “Neutral” from “Buy” with a price objective of $40, down from the prior target of $42.25. While the firm sees AllianceBernstein Holding L.P. (NYSE:AB) as one of the better-positioned managers, it is now seeing signs of slowing organic growth throughout both the company’s equities and fixed income.
The analyst believes that this can offset benefits in some of AllianceBernstein Holding L.P. (NYSE:AB)’s structurally stronger growth areas, like private markets. The firm expects AllianceBernstein Holding L.P. (NYSE:AB)’s organic growth to turn negative in Q2 and to be below trend across the remainder of the year. AllianceBernstein L.P. and AllianceBernstein Holding L.P. (NYSE:AB) reported that preliminary AUM rose to $803 billion during May 2025 from $781 billion at April end. The rise of 2.8% in month-end AUM was because of market appreciation, which was partially mitigated by net outflows. Coming to the channel, private wealth saw slight inflows, offset by institutional and retail outflows.
AllianceBernstein Holding L.P. (NYSE:AB) released Q1 2025 results, wherein the retail channel gross sales exceeded $25 billion for the third quarter in a row, resulting in the organic gains for the 7th consecutive quarter. Notably, channel inflows came in at $0.9 billion, which were diversified throughout asset classes with active equities, fixed income, and alternatives/multi-asset growing organically in Q1 2025.
9. Republic Bancorp, Inc. (NASDAQ:RBCAA)
Forward P/E as of June 30: ~11.4x
Number of Hedge Fund Holders: 7
Dollar Value of Billionaire Holdings: $3.95 million
Number of Billionaire Investors: 4
Republic Bancorp, Inc. (NASDAQ:RBCAA) is one of the 10 Best Value Stocks to Buy According to Billionaires. On June 27, Raymond James began coverage of the company’s stock with a “Market Perform” rating and no price target, as reported by The Fly. As per the firm, the company is positioned for incremental growth over the upcoming years despite near-term EPS growth headwinds from lower income from the Tax Refund Solutions segment and modest NIM pressure. The analyst opines that the bank has been strategic in making itself a commercially focused community bank, catering to business and retail customers.
The firm also noted Republic Bancorp, Inc. (NASDAQ:RBCAA)’s consistent growth, superior capital levels, and improved profitability. Overall, the firm opines that the risk/reward profile for Republic Bancorp, Inc. (NASDAQ:RBCAA)’s stock remains balanced. The company’s Tax Refund Solutions segment saw net income of $19.6 million during Q1 2025 as compared to net income of $8.8 million in Q1 2024. The rise was mainly aided by a positive $10.3 million decrease in the estimated Provision for RAs and Early Season RAs versus Q1 2024, and a 30% rise in the average per-unit profitability for Refund Transfers.
8. Franklin Resources, Inc. (NYSE:BEN)
Forward P/E as of June 30: ~9.8x
Number of Hedge Fund Holders: 29
Dollar Value of Billionaire Holdings: $281.9 million
Number of Billionaire Investors: 11
Franklin Resources, Inc. (NYSE:BEN) is one of the 10 Best Value Stocks to Buy According to Billionaires. On June 27, Goldman Sachs upgraded the company’s stock to “Buy” from “Neutral” with a price objective of $29, as reported by The Fly. The firm highlighted the company’s improved traction in alternative investments and moderation of outflows from traditional products. Furthermore, the analyst noted that Franklin Resources, Inc. (NYSE:BEN) made meaningful progress in the expansion of its business towards the private markets business.
As per the firm, as the appetite for alternative products builds from the wealth channel, Franklin Resources, Inc. (NYSE:BEN) can draw from its expansive global retail distribution to fuel growth at attractive fee rates. Furthermore, Franklin Resources, Inc. (NYSE:BEN)’s organic base fee growth is expected to be closer to break-even over the upcoming quarters compared to the negative mid-single-digit decay over the previous years, opines the firm.
Franklin Resources, Inc. (NYSE:BEN) reported preliminary month-end AUM of $1.57 trillion as of May 31, 2025, compared to $1.53 trillion as of April 30, 2025. This month’s AUM demonstrated the positive impact of markets and preliminary long-term net inflows of $1 billion, which includes $3 billion of long-term net outflows at Western Asset Management.
7. EOG Resources, Inc. (NYSE:EOG)
Forward P/E as of June 30: ~12.0x
Number of Hedge Fund Holders: 64
Dollar Value of Billionaire Holdings: $599.9 million
Number of Billionaire Investors: 13
EOG Resources, Inc. (NYSE:EOG) is one of the 10 Best Value Stocks to Buy According to Billionaires. The company announced a definitive agreement with Canada Pension Plan Investment Board (CPP) and Encino Energy, according to which EOG Resources, Inc. (NYSE:EOG) will acquire Encino Acquisition Partners (EAP) for the consideration of $5.6 billion, including EAP’s net debt. The company currently expects to finance the acquisition via $3.5 billion of debt and $2.1 billion of cash on hand.
EOG Resources, Inc. (NYSE:EOG)’s management highlighted that the acquisition tends to combine large, premier acreage positions in the Utica, thereby creating a third foundational play for EOG along with its Delaware Basin and Eagle Ford assets. Notably, Encino’s acreage improves the quality and depth of EOG Resources, Inc. (NYSE:EOG)’s Utica position, resulting in the expansion of its multi-basin portfolio to over 12 billion barrels of oil equivalent net resource.
The transaction is immediately accretive to EOG Resources, Inc. (NYSE:EOG)’s net asset value and all per-share financial metrics. To be specific, the acquisition will be accretive on an annualized basis to 2025 EBITDA by 10%, and cash flow from operations and FCF by 9%.
6. Regeneron Pharmaceuticals, Inc. (NASDAQ:REGN)
Forward P/E as of June 30: ~14.7x
Number of Hedge Fund Holders: 66
Dollar Value of Billionaire Holdings: $1.0 billion
Number of Billionaire Investors: 14
Regeneron Pharmaceuticals, Inc. (NASDAQ:REGN) is one of the 10 Best Value Stocks to Buy According to Billionaires. Regeneron Pharmaceuticals, Inc. (NASDAQ:REGN) and Sanofi announced that the US FDA approved Dupixent® (dupilumab) for the treatment of adult patients with bullous pemphigoid (BP). The approval for bullous pemphigoid brings a novel treatment approach to patients and their caregivers. Also, this approval extends the ability of Dupixent to transform treatment paradigms for people who live with a variety of diseases with underlying type 2 inflammation, from common conditions such as asthma and atopic dermatitis, to rarer ones, including eosinophilic esophagitis and prurigo nodularis, and now including bullous pemphigoid.
Dupixent demonstrated the potential to improve the most challenging effects of bullous pemphigoid, while, at the same time, supporting some patients in achieving sustained disease remission as well as decreased oral corticosteroid use. Regeneron Pharmaceuticals, Inc. (NASDAQ:REGN) highlighted that the approval also reinforced the demonstrated safety profile of Dupixent in a broad age range of patients, from infants to elderly people, and throughout dermatological, respiratory, and gastrointestinal diseases. The FDA approval was on the basis of data from the pivotal ADEPT Phase 2/3 trial, which evaluated the efficacy and safety of Dupixent as compared to placebo in adults with moderate-to-severe BP.
5. Amgen Inc. (NASDAQ:AMGN)
Forward P/E as of June 30: ~13.3x
Number of Hedge Fund Holders: 69
Dollar Value of Billionaire Holdings: $1.41 billion
Number of Billionaire Investors: 14
Amgen Inc. (NASDAQ:AMGN) is one of the 10 Best Value Stocks to Buy According to Billionaires. On June 23, the company announced full results from Part 1 of the Phase 2 study of MariTide (maridebart cafraglutide, formerly AMG 133), which is a long-acting, peptide-antibody conjugate subcutaneously administered monthly or less frequently. In the Phase 2 study, MariTide exhibited up to ~20% average weight loss in people who are living with obesity without Type 2 diabetes (T2D) as compared with 2.6% in the placebo arm, and up to ~17% average weight loss in people who are living with obesity with T2D in comparison to 1.4% in the placebo arm, per the efficacy estimand.
Amgen Inc. (NASDAQ:AMGN) also added that weight loss had not plateaued by 52 weeks, which indicates the potential for further weight reduction. Apart from the meaningful weight loss, MariTide showcased a robust and sustained reduction in hemoglobin A1c (HbA1c) of up to 2.2% in people who have obesity and T2D. MariTide’s monthly or less frequent dosing can improve adherence and long-term weight control. This provides an opportunity to optimize health outcomes for people who have obesity, Type 2 diabetes, and related conditions, highlighted Amgen Inc. (NASDAQ:AMGN).
4. Gilead Sciences, Inc. (NASDAQ:GILD)
Forward P/E as of June 30: ~14.0x
Number of Hedge Fund Holders: 79
Dollar Value of Billionaire Holdings: $1.65 billion
Number of Billionaire Investors: 14
Gilead Sciences, Inc. (NASDAQ:GILD) is one of the 10 Best Value Stocks to Buy According to Billionaires. The company announced that the US FDA approved Yeztugo® (lenacapavir), Gilead Sciences, Inc. (NASDAQ:GILD)’s injectable HIV-1 capsid inhibitor, as pre-exposure prophylaxis (PrEP) in order to reduce the risk of sexually acquired HIV in adults and adolescents weighing a minimum of 35 kg. The company’s Chief Executive added that this medicine is required to be given twice a year, and it has demonstrated strong outcomes in clinical studies, meaning it can transform HIV prevention.
The approval of Gilead Sciences, Inc. (NASDAQ:GILD)’s New Drug Applications (NDAs) for Yeztugo was supported by data from Phase 3 PURPOSE 1 and PURPOSE 2 trials conducted by the company. In the US, Gilead Sciences, Inc. (NASDAQ:GILD) continues to work closely with insurers, healthcare systems, and other payers, targeting to ensure broad insurance coverage for Yeztugo. Furthermore, for eligible commercially insured individuals with commercial insurance, the company’s Advancing Access® Co-Pay Savings Program is expected to reduce out-of-pocket costs to as low as zero dollars.
Notably, HIV product sales saw an increase of 6% to $4.6 billion in Q1 2025 as compared to the same period in 2024. This was mainly driven by increased average realized price and demand. 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. Centene Corporation (NYSE:CNC)
Forward P/E as of June 30: ~7.7x
Number of Hedge Fund Holders: 64
Dollar Value of Billionaire Holdings: $1.70 billion
Number of Billionaire Investors: 15
Centene Corporation (NYSE:CNC) is one of the 10 Best Value Stocks to Buy According to Billionaires. On July 2, BofA Securities reduced its price objective on the company’s stock to $52.00 from $65.00, while maintaining a “Neutral” rating. The reduction in price target comes after Centene Corporation (NYSE:CNC)’s withdrawal of its 2025 guidance as a result of higher acuity in its Marketplace population, as well as higher-than-anticipated Medicaid trend, added the firm. It highlighted that the company saw better-than-anticipated trends in Medicare Advantage business.
For Q1 2025, Centene Corporation (NYSE:CNC) highlighted that premium and service revenues went up by 17% to $42.5 billion from $36.3 billion in the comparable period of 2024. This rise was mainly aided by premium and membership growth in the PDP business, together with healthy product positioning and overall market growth in the Marketplace business. At March 31, 2025, Centene Corporation (NYSE:CNC) had cash, investments, and restricted deposits of $37.0 billion, while it maintained $198 million of cash and cash equivalents in its unregulated entities. In Q1 2025, the company saw Membership increases of 29% in Marketplace and 22% in Medicare PDP as compared to Q1 2024.
River Road Asset Management, an investment management company, released its Q4 2024 investor letter. Here is what the fund said:
“The holding with the lowest contribution to active return was Centene Corporation (NYSE:CNC) , a managed care organization (MCO) specializing in government-sponsored plans. Historically, health insurance has been a steady business that generates consistent free cash flow (CNC has produced positive FCF since 1998), and we believe CNC stands out as the prime MCO beneficiary of any future economic weakness. The company is the leading provider of Medicaid managed care plans with 17% market share, and it also owns the leading individual exchange franchise. When the economy stumbles, CNC’s revenues should increase as more individuals qualify for CNC’s plans. We are particularly encouraged by the new management’s focus on shareholder value–since the founder stepped down in Q4 2021, the company has divested seven businesses for more than $3.5B and deployed the proceeds into share repurchases.
Despite these strong long-term fundamentals, Centene’s stock declined. This was primarily due to ongoing challenges in its Medicaid business, where the medical loss ratio continued to deteriorate due to a mismatch between reimbursement rates and patient acuity following redeterminations, with Medicaid membership declining -14% even as exchange enrollment grew 22%. While management remains confident this pressure is temporary and all states have acknowledged the need to adjust rates to match patient acuity, investors remained concerned about the timing of this recovery. The stock was further pressured by broader health care sector headwinds, including potential policy risks from a Republican sweep and changes to Medicare Part D prescription drug plans. Even though the company maintained its fiscal year (FY) 2024 adjusted earnings per share (EPS) guidance of over $6.80 and executed significant share repurchases of $1.6B in Q3 and October (~4.7% of shares outstanding), the stock traded at just 9.4x forward earnings, well below its five-year average of 12x, reflecting near-term investor skepticism. We maintained the position.”
2. Merck & Co., Inc. (NYSE:MRK)
Forward P/E as of June 30: ~8.8x
Number of Hedge Fund Holders: 93
Dollar Value of Billionaire Holdings: $4.73 billion
Number of Billionaire Investors: 16
Merck & Co., Inc. (NYSE:MRK) is one of the 10 Best Value Stocks to Buy According to Billionaires. The company announced that the US FDA approved ENFLONSIA™ (clesrovimab-cfor) for the prevention of respiratory syncytial virus (RSV) lower respiratory tract disease in neonates (newborns) and infants who were born during or entering their first RSV season. To provide a brief context, ENFLONSIA happens to be a preventive, long-acting monoclonal antibody (mAb) which has been designed to offer direct, rapid, and durable protection through 5 months, a typical RSV season, with the same 105 mg dose irrespective of weight. Merck & Co., Inc. (NYSE:MRK) further mentioned that the typical RSV season generally spans autumn to spring of the next year.
However, ENFLONSIA should not be administered to infants who have a history of serious hypersensitivity reactions, including anaphylaxis, to any of the components of ENFLONSIA. Merck & Co., Inc. (NYSE:MRK) added that the approval is basis the results from the pivotal Phase 2b/3 CLEVER trial (MK-1654-004) evaluating a single dose of ENFLONSIA administered to preterm and full-term infants. Furthermore, the focus is to ensure the availability of ENFLONSIA in the US before the upcoming RSV season begins. This is to help in reducing the significant burden of the widespread seasonal infection on families and health care systems.
Artisan Partners, an investment management company, released its Q1 2025 investor letter. Here is what the fund said:
“Shares of Merck & Co., Inc. (NYSE:MRK), a health care solutions company, were down 9%. Operating results have been solid, with Q4 earnings beating expectations, but investors were more focused on the continued weak demand in China for Gardasil, a vaccine for human papillomavirus (HPV), and the company’s decision to pause vaccine shipments through at least mid-2025 to pare inventories. Though recent Gardasil setbacks have weighed on sentiment, the overarching issue for shareholders remains the success of Merck’s late-stage pipeline to replace sales that will be lost when blockbuster oncology drug Keytruda (50% of Q4sales) comes off patent in 2028. As shares sell cheaply at just 10X earnings, Merck seems to be getting little credit from investors for the 60+ programs it has in clinical development, despite having several solid and large new product opportunities. Additionally, the company’s strong balance sheet and robust free cash flow provide it multiple options for future partnerships and acquisitions, besides return of capital to shareholders via dividends and share repurchases.”
1. Bank of America Corporation (NYSE:BAC)
Forward P/E as of June 30: ~12.7x
Number of Hedge Fund Holders: 117
Dollar Value of Billionaire Holdings: $36.2 billion
Number of Billionaire Investors: 18
Bank of America Corporation (NYSE:BAC) is one of the 10 Best Value Stocks to Buy According to Billionaires. On June 27, Baird analyst David George downgraded the company’s stock to “Neutral” from “Outperform” with an unchanged price objective of $52. The firm is not seeing attractive risk/reward profiles in the US mega-cap banking group. Notably, it remains a huge fan of Bank of America Corporation (NYSE:BAC) franchise, while highlighting that the bank should experience tailwinds from improvement in NIM, together with a favorable capital markets backdrop.
That being said, the analyst believes that Bank of America Corporation (NYSE:BAC)’s stock continues to largely reflect this at the current juncture. The company saw a good Q1 2025, with EPS of $0.90, an increase from $0.76 in the last year. This demonstrated growth in net interest income and fee income, with sales and trading delivering the 12th consecutive quarter of YoY revenue growth. Bank of America Corporation (NYSE:BAC) grew average deposits for the 7th consecutive quarter to ~$2 trillion. The company’s asset quality was stable, demonstrating a focus on responsible lending, with its robust capital and liquidity levels allowing it to support clients’ growth and return $6.5 billion to shareholders.
Ariel Investments, an investment management company, released its Q1 2025 investor letter. Here is what the fund said:
“We initiated a position in one of the world’s leading financial institutions, Bank of America Corporation (NYSE:BAC). We think the firm’s revenue momentum across its capital markets group is underappreciated at current levels. We also expect the company’s net interest income growth to exceed Wall Street expectations, despite a conservative outlook for loan growth and re-pricing. Meanwhile, a more favorable regulatory landscape, highlighted by a less restrictive capital rule should lead to a substantial increase in share buybacks. Taken together, we view the company’s earnings outlook to be attractive, supported by higher profitability and free cash flow generation amidst an improving operating environment.”
While we acknowledge the potential of BAC 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 BAC and that has 100x upside potential, check out our report about this cheapest AI stock.
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