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.
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