In this article, we will look at the 10 Cheap Large Cap Stocks to Buy According to Hedge Funds.
On July 9, Katie Stockton, Fairlead Strategies founder, appeared on CNBC’s ‘Closing Bell Overtime’ to talk about the current market dynamics. She acknowledged that while it is necessary to wait to add exposure, the market did recently witness a confirmed breakout to new highs, and that’s something that she wouldn’t want to fight against.
There has been a loss of momentum relative to the initial push off of the April low, which she considers quite natural. However, even still, she said that the momentum was strong enough to lift major industries to new highs, making it significant to honor this breakout.
READ ALSO: 13 Stocks Under $5 With High Upside Potential and 13 Best Pharma Stocks to Buy According to Wall Street Analysts.
Stockton further said that price is king, and all the indicators used by technical analysts are based on price. Ultimately, it is essential to defer to the price action to gain insight into what is happening. In that backdrop, she stated that the market had big breakouts.
With these trends in view, let’s look at the cheap large cap stocks to buy according to hedge funds.
An overhead view of a bustling stock exchange, highlighting the company’s presence in the financial markets.
Our Methodology
We used Finviz to make a list of the best large cap stocks (market capitalization between $10 billion and $200 billion) and a forward P/E below 15. We then chose the top 10 with the highest number of hedge fund holders as of Q1 2025, sourcing the hedge fund sentiment data from Insider Monkey’s database. The list is sorted in ascending order of hedge fund sentiment.
Note: All data was recorded on July 9.
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 Cheap Large Cap Stocks to Buy According to Hedge Funds
10. United Parcel Service, Inc. (NYSE:UPS)
Market Cap: $86.69 billion
Forward P/E: 14.66
Number of Hedge Fund Holders: 57
United Parcel Service, Inc. (NYSE:UPS) is one of the 10 Cheap Large Cap Stocks to Buy According to Hedge Funds. On July 9, Citi analyst Ariel Rosa maintained a Buy rating on United Parcel Service, Inc. (NYSE:UPS), raising the price target to $127 from $122.
The analyst told investors that Citi sees balanced risk/rewards associated with transport stocks as the market heads into fiscal Q2 reports, with a backdrop of macro uncertainty and “still-soft” demand.
The firm also stated that it is “less enthusiastic” about the sector as compared to its sentiments three months ago, primarily due to the recent rally in the shares.
United Parcel Service, Inc. (NYSE:UPS) is a parcel delivery company that provides global supply chain management solutions. The company’s operations are divided into the following segments: US Domestic Package, International Package, and Supply Chain Solutions.
9. Charter Communications, Inc. (NASDAQ:CHTR)
Market Cap: $63.02 billion
Forward P/E: 10.88
Number of Hedge Fund Holders: 59
Charter Communications, Inc. (NASDAQ:CHTR) is one of the 10 Cheap Large Cap Stocks to Buy According to Hedge Funds. On July 1, analyst Jessica Reif Ehrlich from Bank of America Securities maintained a Buy rating on Charter Communications, Inc. (NASDAQ:CHTR), raising the price target to $500.00 from $450.00.
The analyst supported the optimistic rating with the company’s performance, stating that it is anticipating improvements in broadband subscriber losses, primarily driven by losses related to the Affordable Connectivity Program and the continued success of its Spectrum Life Unlimited offering.
Ehrlich further stated that Charter Communications, Inc.’s (NASDAQ:CHTR) introduction of a new seamless video offering and its expansion into rural areas are expected to increase subscriber numbers and reduce churn. The company is poised for stability, according to the analyst, with a modest drop in revenue estimates offset by simultaneous expense reductions, resulting in no impact on EBITDA.
Charter Communications, Inc. (NASDAQ:CHTR) provides broadband communications services. The company’s offerings include Spectrum TV, Spectrum Internet, and Spectrum Voice. Charter Communications, Inc. (NASDAQ:CHTR) also offers data networking, business-to-business Internet access, video and music entertainment services, business telephone, and wireless backhaul.
8. US Bancorp (NYSE:USB)
Market Cap: $74.25 billion
Forward P/E: 11.03
Number of Hedge Fund Holders: 63
US Bancorp (NYSE:USB) is one of the 10 Cheap Large Cap Stocks to Buy According to Hedge Funds. On July 7, HSBC maintained a Buy rating on US Bancorp (NYSE:USB), raising the firm’s price target on the stock to $61 from $54.
The firm told investors in a research note that it is adopting a more cautious stance on universal banks and brokers after the recent rally in the shares. The firm, however, recommends a more constructive stance on super-regionals.
HSBC also told investors that while the banks and broker group appear to have healthy operating fundamentals, the share valuations are “increasingly stretched.”
US Bancorp (NYSE:USB) is a bank holding company that offers financial services including cash management, lending and depository services, foreign exchange, and trust and investment management. It also offers refinance, mortgage, boat and RV loans, credit card services, credit lines, auto, merchant, checking, and savings accounts, ATM processing, debit cards, insurance, and more.
7. EOG Resources, Inc. (NYSE:EOG)
Market Cap: $67.65 billion
Forward P/E: 13.07
Number of Hedge Fund Holders: 64
EOG Resources, Inc. (NYSE:EOG) is one of the 10 Cheap Large Cap Stocks to Buy According to Hedge Funds. On July 9, Roth Capital analyst Leo Mariani downgraded EOG Resources, Inc. (NYSE:EOG) to Neutral from Buy, lowering the price target to $134 from $140.
The firm supported this downward revision in rating to global oil prices, which are close to a near-term top, and stated that it is seeing risk to the downside for oil prices in the second half of the year.
The analyst also told investors in a research note that OPEC+ seems likely to add back a certain amount of oil to global markets between April 1 and September 30. These volumes are expected to put the global oil markets into an oversupplied state.
EOG Resources, Inc. (NYSE:EOG) explores, develops, produces, and markets natural gas and crude oil. Its operations are divided into the following geographical segments: United States, Trinidad, and Other International.
6. Newmont Corporation (NYSE:NEM)
Market Cap: $64.12 billion
Forward P/E: 12.42
Number of Hedge Fund Holders: 65
Newmont Corporation (NYSE:NEM) is one of the 10 Cheap Large Cap Stocks to Buy According to Hedge Funds. On July 8, Goldman Sachs downgraded Newmont Corporation (NYSE:NEM) to Neutral from Buy with a $60.90 price target. The firm stated that it sees more limited valuation upside after the recent outperformance by the stock.
The analyst further told investors in a research note that while Newmont Corporation’s (NYSE:NEM) business “remains defensive,” its valuation now appears fairer when compared to its peers, with cost improvement being a 2-3 year story.
Newmont Corporation (NYSE:NEM) explores and acquires gold properties containing silver, copper, lead, zinc, or other metals. Its operations are divided into the following geographical segments: Canada, Mexico, Suriname, Argentina, Peru, Australia, Papua New Guinea, Ghana, and the US.
5. Verizon Communications Inc. (NYSE:VZ)
Market Cap: $181.55 billion
Forward P/E: 9.21
Number of Hedge Fund Holders: 65
Verizon Communications Inc. (NYSE:VZ) is one of the 10 Cheap Large Cap Stocks to Buy According to Hedge Funds. On July 7, BofA analyst Michael Funk reinstated coverage of Verizon Communications Inc. (NYSE:VZ) with a Neutral rating and a $45 price target.
The firm told investors that it anticipates reduced promotional intensity from Verizon Communications Inc. (NYSE:VZ) as compared to its peers, which is “financially prudent.” However, it also stated that it presents risk to reporting of consensus net add forecasts.
The analyst further stated that the upcoming Frontier Communications acquisition is free cash flow dilutive, which may present a risk to consensus FCF forecasts once closed.
Verizon Communications Inc. (NYSE:VZ) provides communications, information, and entertainment services and products. Its operations are divided into the Consumer and Business segments.
The Consumer segment manages consumer-focused wireline and wireless communication products and services. In contrast, the Business segment focuses on services and products such as data, FWA broadband, video and conference services, corporate networking solutions, and more.
4. The PNC Financial Services Group, Inc. (NYSE:PNC)
Market Cap: $78.32 billion
Forward P/E: 14.65
Number of Hedge Fund Holders: 69
The PNC Financial Services Group, Inc. (NYSE:PNC) is one of the 10 Cheap Large Cap Stocks to Buy According to Hedge Funds. On July 9, Keefe Bruyette analyst Christopher McGratty upgraded The PNC Financial Services Group, Inc. (NYSE:PNC) to Market Perform from Underperform, raising the price target to $212 from $185.
The rating followed a transfer of coverage, and the firm stated that it is bullish on the long-term structural advantages of scale for the large-cap banks.
The firm prefers business models capable of producing leading returns with high degrees of predictability, and sees a balanced risk/reward for shares of The PNC Financial Services Group, Inc. (NYSE:PNC).
The PNC Financial Services Group, Inc. (NYSE:PNC) provides financial services. Its operations are divided into the following segments: Retail Banking, Corporate and Institutional Banking, Asset Management Group, and Other.
3. ConocoPhillips (NYSE:COP)
Market Cap: $120.93 billion
Forward P/E: 13.07
Number of Hedge Fund Holders: 70
ConocoPhillips (NYSE:COP) is one of the 10 Cheap Large Cap Stocks to Buy According to Hedge Funds. On July 8, Barclays analyst Betty Jiang maintained a Buy rating on ConocoPhillips (NYSE:COP) and set a price target of $120.00.
ConocoPhillips (NYSE:COP) reported $2.8 billion in fiscal Q1 2025 earnings, translating to around $2.23 per share and up when compared to the $2.6 billion reported in the same period last year.
Adjusted earnings for the quarter also experienced growth, increasing from $2.4 billion in fiscal Q1 2024 to $2.7 billion in fiscal Q1 2025.
ConocoPhillips (NYSE:COP) is an exploration and production company that explores, transports, produces, and markets natural gas, crude oil, and bitumen. It operates through the following geographical segments: Alaska, Lower 48, Canada, Europe, Middle East, and North Africa, Asia Pacific, and Other International.
2. Elevance Health, Inc. (NYSE:ELV)
Market Cap: $78.95 billion
Forward P/E: 10.14
Number of Hedge Fund Holders: 75
Elevance Health, Inc. (NYSE:ELV) is one of the 10 Cheap Large Cap Stocks to Buy According to Hedge Funds. On June 18, Wells Fargo analyst Stephen Baxter maintained a Buy rating on Elevance Health, Inc. (NYSE:ELV) and set a price target of $478.00.
The company reported positive fiscal Q1 2025 results, with operating revenue for the quarter reaching $48.8 billion, up 15.4% from fiscal Q1 2024. Elevance Health, Inc. (NYSE:ELV) also reported $3.3 billion in adjusted operating gains, reflecting a 4.1% growth compared to the same period last year.
Elevance Health, Inc. (NYSE:ELV) offers telehealth services to its customers, reporting in 2024 that the company conducted more than 800,000 virtual visits in 2023. This health company operates through the following segments: Health Benefits, CarelonRx, Carelon Services, and Corporate and Other.
The Health Benefits segment offers a range of health plans and services, while the CarelonRx segment manages pharmacy services. The Carelon Services segment offers various healthcare-related services by integrating behavioral, physical, pharmacy, and social services.
1. Citigroup Inc. (NYSE:C)
Market Cap: $159.82 billion
Forward P/E: 11.74
Number of Hedge Fund Holders: 96
Citigroup Inc. (NYSE:C) is one of the 10 Cheap Large Cap Stocks to Buy According to Hedge Funds. In a report released on July 7, HSBC maintained a Buy rating on Citigroup Inc. (NYSE:C), raising the price target on the stock to $97 from $86.
The firm told investors in a research note that it is more cautious towards universal banks and brokers after the recent share rally in the domain. It stated that although the healthy fundamentals in the banks and broker group are obvious, share valuations appear “increasingly stretched.” The firm suggests a more constructive stance on super-regionals.
Headquartered in New York, Citigroup Inc. (NYSE:C) provides financial products and services. Its operations are divided into the following segments: Services, Markets, Banking, Wealth, US Personal Banking (USPB), and All Other.
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