In this article, we will take a look at 10 Lowest PE Ratio Stocks in S&P 500.
Big tech stocks just suffered a massive hit, with the Magnificent Seven shedding a combined $1.8 trillion in market value over two brutal trading days at the beginning of April 2025. The iPhone-maker was hit the hardest, dropping more than $533 billion, partly due to new tariffs targeting its overseas production. Elon Musk’s EV giant fell over 10% on April 4, and Wall Street’s semiconductor darling lost nearly $400 billion. Jeff Bezos’ e-commerce powerhouse also saw its worst losing streak since 2008. The selloff came after Donald Trump’s newly announced tariffs sparked fears of a global trade war and potential recession. It did not just impact the mega-caps; the pain spread across the tech sector, which saw steep declines in stock prices. Even semiconductor stocks, although not yet directly impacted by tariffs, are being dragged down by growing uncertainty.
Amidst this volatile market landscape, Veteran investor Bill Nygren noted that the chaos caused by Trump’s steep tariffs has opened up a rare window for long-term investors to scoop up undervalued stocks. While he admits the uncertainty is not great for investors and could lead to inflation and slower growth, he sees opportunity in the selloff. Nygren pointed out that many quality companies, including major airlines, banks, and media firms, are now trading at dirt-cheap valuations. Some of them are trading under 7 or 8 times earnings because of overly negative investor sentiment. Nygren believes that if you hold these types of stocks long enough, there is a good chance they will deliver solid returns.
Hedge fund billionaire Warren Buffett also endorses Bill Nygren’s approach. Buffett made his $165 billion fortune by practicing value investing. He is known for buying stocks that are undervalued compared to their true worth and holding onto them for the long run. His approach focuses on companies with robust fundamentals, solid management, and potential for future growth, rather than chasing after risky or short-term trends. Value investing involves looking for stocks with low price-to-earnings ratios, and it often requires investors to go against the market’s emotions and short-term movements.
With this outlook in mind, let’s take a look at stocks in the S&P 500 with the lowest PE ratios.
Our Methodology
For this article, we used the Finviz screener and filtered out S&P stocks. Then, we applied a filter to arrange these stocks in ascending order of P/E ratios. We picked the 10 stocks with the lowest P/E ratios to compile this list. We have also mentioned the hedge fund sentiment around the holdings as per Insider Monkey’s Q4 2024 database, ranking the list from least to most hedge fund holders.
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. APA Corporation (NASDAQ:APA)
P/E Ratio as of April 29: 7.29
Number of Hedge Fund Holders: 34
APA Corporation (NASDAQ:APA) is an independent energy company based in Houston, Texas, and it is involved in exploring and producing natural gas, crude oil, and natural gas liquids. On March 10, Raymond James analysts downgraded APA from Strong Buy to Outperform, reducing the price target to $32 from $45. Raymond James downgraded APA after Q4 results and weaker oil prices. Q1 2025 production was in line with guidance at 465 MBoe/d, but the capex of $765 million was 16% higher than expected. Despite strong margins of 69.18% and a 10% FCF yield, the outlook has turned more cautious as cost-saving measures underdelivered, in addition to no near-term catalysts and oil price uncertainty.
In Q4 2024, APA Corporation (NASDAQ:APA) posted a net income of $354 million, with adjusted earnings at $290 million. The company generated $1 billion in operating cash flow, and production averaged 488,000 BOE per day, and after adjustments, it stood at 418,000 BOE per day. APA generated $841 million in free cash flow for full-year 2024, returned $599 million to shareholders through stock buybacks and dividends, and ended the year with $625 million in cash and $6 billion in debt. Despite taking on over $2 billion in debt with the Callon acquisition, net debt only rose by $300 million.
According to Insider Monkey’s fourth quarter database, 34 hedge funds held stakes in APA Corporation (NASDAQ:APA), compared to 29 funds in the prior quarter. Harris Associates was the largest shareholder of the company, with 25.2 million shares worth $582.3 million. APA is one of the most popular stocks with a low PE ratio.
9. PulteGroup, Inc. (NYSE:PHM)
P/E Ratio as of April 29: 7.23
Number of Hedge Fund Holders: 40
PulteGroup, Inc. (NYSE:PHM) is an American homebuilding company that focuses on acquiring and developing land for residential projects, where it builds homes under popular brands like Pulte Homes, Centex, and Del Webb. The company offers a range of home types, including single-family homes, townhomes, and condos. When we mention stocks with a low PE ratio, we cannot leave out PHM.
On April 28, Raymond James analyst Buck Horne maintained an Outperform rating on PulteGroup, Inc. (NYSE:PHM) but trimmed the price target to $115 from $135. Horne’s reassessment of PulteGroup highlights its strong performance, with a 6% lead over peers this year, driven by a diverse customer base and strategic approach. The company is expected to deliver strong returns, though mortgage rate fluctuations could affect 2025 results.
PulteGroup, Inc. (NYSE:PHM) reported a net income of $523 million for Q1 2025, down from $663 million last year, due to a gain from the sale of a joint venture and an insurance benefit in the prior-year quarter. PHM also disclosed a 7% drop in home closings, with net new orders for the quarter at 7,765 homes, down from 8,379 last year due to affordability challenges and macroeconomic uncertainty. PulteGroup’s backlog stood at 11,335 homes valued at $7.2 billion. The company repurchased 2.8 million shares for $300 million and ended the quarter with a cash balance of $1.3 billion.
According to Insider Monkey’s fourth quarter database, 40 hedge funds were bullish on PulteGroup, Inc. (NYSE:PHM), compared to 33 funds in the prior quarter. Greenhaven Associates was the largest stakeholder of the company, with 5.58 million shares worth $608 million.
8. Ford Motor Company (NYSE:F)
P/E Ratio as of April 29: 6.86
Number of Hedge Fund Holders: 45
Ford Motor Company (NYSE:F), an American automotive giant, ranks 8th on our list of stocks with a low PE ratio. The company designs, builds, and sells trucks, SUVs, vans, cars, and luxury Lincoln models worldwide. On April 23, Citi began coverage of the stock with a Neutral rating and a price target of $10. Ford’s stock has been flat due to uneven production, rising warranty costs, and EV losses. Citi sees continued uncertainty, especially with potential $2-3 billion tariff impacts.
On April 28, Ford Motor Company (NYSE:F) announced a second quarter dividend of $0.15 per share on its common and Class B stock. The dividend will be paid on June 2 to shareholders on record as of May 12.
Ford Motor Company (NYSE:F) made $900 million in earnings before interest and taxes from its China business, including exports, in 2024. However, it is facing tough competition from local Chinese automakers and EV giants like BYD and Tesla, which dominate the market. With sales slowing, Ford is focusing on using China as an export hub. American tariffs on Chinese imports are also creating challenges, but Ford’s Lincoln Nautilus, assembled in China, saw a 50% jump in sales in the United States, reaching 36,544 units.
Among the hedge funds tracked by Insider Monkey in Q4 2024, 45 funds reported owning stakes in Ford Motor Company (NYSE:F), up from 36 funds in the preceding quarter.
7. The AES Corporation (NYSE:AES)
P/E Ratio as of April 29: 4.30
Number of Hedge Fund Holders: 53
The AES Corporation (NYSE:AES) is a global energy company that generates and distributes electricity using sources like coal, gas, hydro, wind, solar, and biomass. It serves residential, commercial, and government sectors. On April 10, Jefferies downgraded AES from Buy to Hold, bringing down the price target from $15 to $10. Jefferies cited a weak balance sheet, complex global operations, and limited long-term visibility on US tax credit benefits for the downgrade. The firm believes these factors could hinder investor interest and reduce the company’s growth potential beyond 2027. The AES Corporation (NYSE:AES) ranks 7th on our list of stocks with a low PE ratio.
On February 21, The AES Corporation (NYSE:AES) announced a quarterly dividend of $0.17595 per share, which will be distributed on May 15, to shareholders on record as of May 1.
In 2024, AES reported $698 million in net income, which is an $880 million increase from the year before. This was supported by strong performance from new renewable energy projects, fewer asset impairments, capital gains from selling AES Brasil, and currency exchange benefits. However, the company’s adjusted EBITDA dropped by $189 million to $2.64 billion, due to severe droughts and outages in Colombia, and lower profits in energy infrastructure. AES Corporation expects steady growth in 2025, with projected adjusted EBITDA between $2.65 and $2.85 billion. The company also forecasts adjusted earnings per share between $2.10 and $2.26 for 2025 and is maintaining its goal of 7-9% annual EPS growth through 2027.
According to Insider Monkey’s fourth quarter database, 53 hedge funds were bullish on The AES Corporation (NYSE:AES), compared to 47 funds in the last quarter. William B. Gray’s Orbis Investment Management was the biggest stakeholder of the company, with 22.5 million shares valued at nearly $291 million.
6. Devon Energy Corporation (NYSE:DVN)
P/E Ratio as of April 29: 6.92
Number of Hedge Fund Holders: 55
Devon Energy Corporation (NYSE:DVN) is an independent American energy company that explores and produces oil, natural gas, and natural gas liquids. DVN ranks 6th on our list of stocks with a low PE ratio. On April 7, Mizuho Securities reiterated an Outperform rating on Devon and lowered the price target from $49 to $46. Mizuho expects the company to meet Q1 2025 projections, despite a 3% dip in production from late 2024. According to analysts, the company is focusing on cost cuts amid market volatility and remains financially strong with $15.17 billion in revenue and a 52.83% profit margin.
In the fourth quarter of 2024, Devon Energy Corporation (NYSE:DVN) earned $639 million in net income, and the company generated $1.7 billion in operating cash flow, leaving $738 million in free cash flow. It returned $444 million to shareholders through dividends and share buybacks, and increased its quarterly dividend by 9% to $0.24 per share, which was paid on March 31. Revenues for Q4 rose 16% to $3.1 billion, driven by higher production and better prices for natural gas and NGLs, even though oil prices dipped slightly.
According to Insider Monkey’s fourth quarter database, 55 hedge funds were long Devon Energy Corporation (NYSE:DVN), compared to 41 funds in the last quarter. Ken Griffin’s Citadel Investment Group was the leading stakeholder of the company, with 11.2 million shares valued at $367.5 million.
5. Synchrony Financial (NYSE:SYF)
P/E Ratio as of April 29: 7.15
Number of Hedge Fund Holders: 64
Synchrony Financial (NYSE:SYF) is a Connecticut-based consumer financial services company that provides credit products like credit cards, loans, and private label cards. The company also offers savings and deposit products such as CDs and IRAs. It ranks 5th on our list of stocks with a low PE ratio.
On April 7, Morgan Stanley downgraded Synchrony Financial (NYSE:SYF) from Overweight to Equal Weight, while almost halving the price target from $82 to $44. Morgan Stanley downgraded SYF due to recession risks, which could impact its consumer credit business. The firm revised its 2026 earnings estimate down 18% to $7.36, expecting higher credit losses and slower loan growth. The new price target of $44 reflects a 6x P/E ratio, indicating limited upside.
Synchrony Financial (NYSE:SYF)’s Q1 2025 net earnings dropped 41% to $757 million, but adjusted earnings rose 54% to $491 million. The company announced a $2.5 billion share repurchase program and a 20% dividend increase to $0.30 per share. SYF’s flat loan fees came in at $5.3 billion, the company reported a 1% increase in net interest income, and a 17% rise in retailer share arrangements. Provision for credit losses decreased by $393 million for the first quarter.
According to Insider Monkey’s fourth quarter database, 64 hedge funds were bullish on Synchrony Financial (NYSE:SYF), compared to 44 funds in the last quarter. PAR Capital Management was the biggest stakeholder of the company, with 7.40 million shares worth $481 million.
4. General Motors Company (NYSE:GM)
P/E Ratio as of April 29: 7.42
Number of Hedge Fund Holders: 68
General Motors Company (NYSE:GM) designs, manufactures, and sells a wide range of vehicles, including trucks, cars, and parts, under brands like Buick, Cadillac, Chevrolet, and GMC. Founded in 1908, General Motors is headquartered in Detroit, Michigan. It ranks 4th on our list of stocks with a low PE ratio.
On April 23, Citi initiated coverage on General Motors Company (NYSE:GM) with a Buy rating and a price target of $62. The company is facing short-term tariff challenges but can adjust production to offset costs. Due to past cost-saving measures, the company has generated strong cash flow and returned $30 billion over three years.
General Motors Company (NYSE:GM) declared a quarterly dividend of $0.15 per share on April 28. The dividend is payable on June 19, to shareholders of record as of June 6. This is a $0.03 increase from the previous dividend. GM’s US sales jumped 17% in Q1 2025, with all four of its brands seeing double-digit growth. The company continues to dominate the full-size pickup and SUV market and is expected to be the number two electric vehicle seller in the US after a 94% boost in EV sales.
According to Insider Monkey’s fourth quarter database, 68 hedge funds were bullish on General Motors Company (NYSE:GM), compared to 64 funds in the last quarter. Harris Associates was the leading stakeholder of the company, with 30.2 million shares worth $1.6 billion.
3. Lennar Corporation (NYSE:LEN)
P/E Ratio as of April 29: 7.89
Number of Hedge Fund Holders: 70
Lennar Corporation (NYSE:LEN) is a major US homebuilder, offering a range of homes from single-family to luxury properties. The company operates in different areas, including home construction, land development, and multifamily rentals. On April 4, UBS analysts reiterated a Buy rating and a $164 price target on Lennar. The analysts are positive about Lennar’s ability to align sales with production and stay agile in a changing market. LEN ranks 3rd on our list of stocks with a low PE ratio.
On April 9, Lennar Corporation (NYSE:LEN) declared a quarterly dividend of $0.50 per share for both Class A and Class B common stock. The dividend will be paid on May 7, to shareholders on record as of April 23.
Lennar Corporation (NYSE:LEN) reported Q1 2025 earnings of $520 million, down from $719 million a year ago. When excluding tech investment losses, earnings came in at $567 million, or $2.14 per share. The company exceeded its guidance by delivering over 17,800 homes and securing more than 18,300 new orders during the quarter. Despite tighter margins, Lennar maintained a strong balance sheet, buying back $703 million in stock, issuing dividends, and ending the quarter with $2.3 billion in cash and no debt on its $3 billion credit line.
According to Insider Monkey’s Q4 data, 70 hedge funds were bullish on Lennar Corporation (NYSE:LEN), compared to 68 funds in the preceding quarter. Greenhaven Associates was the largest stakeholder of the company, with 9.4 million shares worth over $1 billion.
2. Delta Air Lines, Inc. (NYSE:DAL)
P/E Ratio as of April 29: 7.44
Number of Hedge Fund Holders: 84
Delta Air Lines, Inc. (NYSE:DAL) is a major player in global air travel that flies passengers and cargo both domestically and internationally. It ranks 2nd on our list of stocks with a low PE ratio. On April 24, Delta announced that its board approved a quarterly dividend of $0.15 per share. The dividend will be distributed on June 3, to shareholders on record as of May 13.
On April 10, TD Cowen reaffirmed a Buy rating on Delta Air Lines, Inc. (NYSE:DAL) and raised the price target from $45 to $50. Stifel has trimmed its 2025 earnings forecast for Delta from $5.52 to $4.34 per share, following the airline’s Q1 results and a cautious outlook for the rest of the year. While a temporary pause in tariffs offers some short-term relief, analysts expect revenue growth to slow into early 2026.
Delta Air Lines, Inc. (NYSE:DAL) reported $13 billion in revenue for Q1 2025, up 3.3% from last year, driven by strong premium, customer loyalty, and international travel. Premium revenue rose 7%, and Amex payments hit a record $2 billion. While domestic and corporate travel softened, international routes, especially in the Pacific, saw solid growth. Delta also cut $1.1 billion in debt, ending the quarter with $16.9 billion in net debt, $6.8 billion in liquidity, and $1.3 billion in free cash flow.
According to Insider Monkey’s fourth quarter database, 84 hedge funds held stakes in Delta Air Lines, Inc. (NYSE:DAL), up from 57 funds in the previous quarter. Harris Associates was the biggest position holder in the company, with 9.82 million shares valued at $594 million.
1. United Airlines Holdings, Inc. (NASDAQ:UAL)
P/E Ratio as of April 29: 6.26
Number of Hedge Fund Holders: 86
United Airlines Holdings, Inc. (NASDAQ:UAL) provides air travel for both passengers and cargo across the US, Canada, Latin America, and beyond. It ranks 1st on our list of stocks with a low PE ratio. On April 22, BofA Securities maintained a Buy rating on UAL and a $90 price target. BofA forecasts that United will earn $10.14 per share in 2025, slightly above Wall Street’s $10.10 estimate. The airline’s outlook includes scenarios for stable demand and a potential recession. Despite uncertainty, BofA remains positive, citing United’s strong revenue streams, loyalty program, and free cash flow.
United Airlines Holdings, Inc. (NASDAQ:UAL) reported a record $13.2 billion in revenue for the first quarter of 2025. The company saw growth in premium cabin, business, and Basic Economy fares, and international travel performed well too. The airline had an operating cash flow of $3.7 billion, and free cash flow came in at $2.3 billion. United ended the quarter with $18.3 billion in available liquidity and $27.7 billion in debt, maintaining a net leverage ratio of 2x. Year-to-date, the company has repurchased about $451 million worth of shares.
According to Insider Monkey’s fourth quarter database, 86 hedge funds were long United Airlines Holdings, Inc. (NASDAQ:UAL), compared to 54 funds in the previous quarter.
Overall, UAL ranks first among the 10 Lowest PE Ratio Stocks in the S&P. While we acknowledge the potential of low PE stocks, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns, and doing so within a shorter time frame. There is an AI stock that went up since the beginning of 2025, while popular AI stocks lost around 25%. If you are looking for an AI stock that is more promising than UAL but that trades at less than 5 times its earnings, check out our report about this cheapest AI stock.
READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires.
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