In this article, we will look at the 10 Most Undervalued American Stocks to Invest In.
Undervalued American stocks are getting another look as investors try to separate cheap stocks with real earnings support from companies that are simply lagging for good reason. The broader U.S. market is still shaped by high index concentration and expensive mega-cap leadership, so the value case is becoming more selective. Smaller companies, quality value stocks, and businesses with improving earnings expectations appear to be drawing more attention as investors look for places where sentiment has not fully caught up with fundamentals.
Franklin Templeton says “valuations remain discounted” while “fundamentals are starting to turn,” a setup that points to stocks where the market may still be underpricing an earnings recovery. In a separate outlook, Franklin Templeton says “small-cap quality and value are poised for meaningful rebounds,” adding that “earnings expectations are still conservative.” That suggests the opportunity is not about buying every beaten-down name, but finding companies where expectations remain low despite improving business conditions. T. Rowe Price adds that “earnings have accelerated,” and argues the move is not just a short-term bounce.
Against this backdrop, undervalued American stocks deserve a closer look. With that in mind, let’s take a look at the 10 Most Undervalued American Stocks to Invest In.
Our Methodology
We used the Finviz screener to identify American stocks that are trading below a 15x forward PE ratio. We then limited our final selection to companies that have recently reported noteworthy developments likely to impact investor sentiment. These stocks are also popular among analysts and elite hedge funds.
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. Insider Monkey’s quarterly newsletter strategy selects 14 small-cap and large-cap stocks every quarter and has returned 599.2% since May 2014, beating its benchmark by 372 percentage points (see more details here).
10. Wells Fargo & Company (NYSE:WFC)
On June 29, 2026, Morgan Stanley raised its price target on Wells Fargo & Company to $102 from $97 and kept an Equal Weight rating. Morgan Stanley said that even after the bank group’s 17% quarter-to-date rally, it remains positive on banks heading into earnings season as revenue momentum continues to build.
On June 26, Truist analyst John McDonald raised the firm’s price target on Wells Fargo to $94 from $90 and kept a Buy rating as part of a broader note on Universal and Regional Banks. McDonald said Wells Fargo is leaning into commercial deposit gathering and growing the market’s balance sheet, with both adding to client relationships and franchise value.
On June 25, Wells Fargo announced that it had completed the Federal Reserve’s 2026 supervisory stress test process. The company said this year’s stress test results do not impact bank capital requirements, and its stress capital buffer remains at 2.5%. Wells Fargo also said it expects to increase its third-quarter 2026 common stock dividend by 11% to $0.50 per share from $0.45 per share, subject to board approval in July, and has the capacity to continue repurchasing common stock.
Wells Fargo & Company provides banking, investment, mortgage, and consumer and commercial finance products and services in the United States and internationally.
9. Verizon Communications Inc. (NYSE:VZ)
On June 29, 2026, Verizon Communications Inc. (NYSE:VZ) said ongoing transformation initiatives are expected to affect Q2 reported results. The company expects a severance charge of $350M-$450M from continued headcount reduction initiatives and asset rationalization charges of $200M-$300M, mainly tied to the decision to stop using certain real estate and network assets.
Also on June 29, Verizon Communications Inc. said in a regulatory filing that the net assets representing the Verizon Contributed Business were classified as assets and liabilities held for sale in Q2 2026. In connection with the classification, Verizon expects to record an estimated loss of $700M-$800M. The company also expects the transaction with BT (BTGOF) to be accretive to Verizon Business Group EBITDA in Q2 2026, as the contributed business was moved from Verizon Business Group to Corporate and other.
BT Group and Verizon also announced an agreement to combine their international enterprise operations into a 50:50 joint venture focused on multinational organizations. The new venture is expected to serve more than 3,000 customers across more than 180 countries, representing about $4B in combined annual revenue. Martijn Blanken has been appointed CEO-designate, conditional on completion, and the transaction remains subject to regulatory clearances and required employee consultations.
Verizon Communications Inc. provides communications, technology, information, and streaming products and services to consumers, businesses, and governmental entities worldwide.
8. The PNC Financial Services Group, Inc. (NYSE:PNC)
On June 29, 2026, Morgan Stanley analyst Manan Gosalia raised the firm’s price target on The PNC Financial Services Group, Inc. (NYSE:PNC) to $278 from $267 and kept an Equal Weight rating. Gosalia said that even after the bank group’s 17% quarter-to-date rally, Morgan Stanley remains positive on banks heading into earnings season as revenue momentum continues to build. Meanwhile, Citi raised its price target on PNC Financial to $280 from $255 and kept a Buy rating. The firm expects PNC to report a strong Q2 despite low expectations.
On June 25, PNC announced that it plans to recommend an 18%, or 30c per share, increase in its quarterly cash dividend on common stock to $2.00 per share in the third quarter of 2026. PNC’s board is expected to consider the recommendation at its next scheduled meeting on July 6. PNC also received the results of the Federal Reserve’s 2026 Comprehensive Capital Analysis and Review. The company said its start to minimum Common Equity Tier 1 depletion during the stress test horizon is 0.3%, reflecting the best performance in its peer group. PNC’s stress capital buffer will remain at the current regulatory minimum of 2.5% until new requirements based on the 2027 supervisory stress test take effect. Its CET1 ratio was 10.1% as of March 31, 2026, above the SCB-based requirement of 7.0%.
The PNC Financial Services Group, Inc. operates as a diversified financial services company in the United States.
7. U.S. Bancorp (NYSE:USB)
On June 29, 2026, Morgan Stanley analyst Manan Gosalia raised the firm’s price target on U.S. Bancorp (NYSE:USB) to $67 from $64 and kept an Equal Weight rating. Gosalia said that even after the bank group’s 17% quarter-to-date rally, Morgan Stanley remains positive on banks heading into earnings season as revenue momentum continues to build.
On June 26, Truist raised its price target on U.S. Bancorp to $66 from $62 and kept a Buy rating as part of a broader note on Universal and Regional Banks. Truist said the bank’s net interest margin expansion remains in focus as U.S. Bancorp moves closer to its near-term goal of reaching a 3% margin at some point in 2027. The firm also pointed to management’s expectation for another record in total consumer deposits in Q2, along with improving the deposit mix.
On June 25, U.S. Bancorp commented on the Federal Reserve’s Dodd-Frank Act Stress Test results. The company said its stress capital buffer will remain unchanged at 2.6% until October 1, 2027, requiring a CET1 ratio at or above 7.1%. U.S. Bancorp’s CET1 ratio using the Basel III standardized approach was 10.8% as of March 31, 2026. The company’s planned capital actions include a 3.8% increase in its quarterly common stock dividend to $0.54 per share from $0.52, subject to board approval, and it had $4.1 billion of remaining capacity under its $5 billion share repurchase program as of March 31, 2026.
U.S. Bancorp provides financial services to individuals, businesses, institutional organizations, governmental entities, and other financial institutions in the United States.
6. Bank of America Corporation (NYSE:BAC)
On June 29, 2026, Morgan Stanley analyst Manan Gosalia raised the firm’s price target on Bank of America Corporation (NYSE:BAC) to $67 from $61 and kept an Overweight rating. Gosalia said that even after the bank group’s 17% quarter-to-date rally, Morgan Stanley remains positive on banks heading into earnings season as revenue momentum continues to build.
On June 26, Truist analyst John McDonald raised the firm’s price target on Bank of America to $64 from $61 and kept a Buy rating as part of a broader note on Universal and Regional Banks. McDonald said the bank’s first sales and trading guide for the quarter was raised to “better than” 15% year-over-year in early June, supported by strong equities performance, particularly in APAC markets. McDonald also noted that this was one factor pushing up expenses for the quarter.
On June 23, Citi raised its price target on Bank of America to $66 from $62 and kept a Buy rating as part of a Q2 preview. Citi said Bank of America’s commentary at recent conferences has been constructive and sees upside to Q2 estimates from stronger banking and trading.
Bank of America Corporation provides financial products and services to individual consumers, small and middle-market businesses, institutional investors, large corporations, and governments worldwide.
5. HCA Healthcare, Inc. (NYSE:HCA)
On June 29, 2026, HCA Healthcare, Inc. (NYSE:HCA) announced new research published in The New England Journal of Medicine showing promising results from a gene-editing therapy being investigated in children ages 5-11 with severe sickle cell disease and transfusion-dependent beta thalassemia. The study evaluated exa-cel, a CRISPR-based cell therapy currently approved by the U.S. Food and Drug Administration for eligible patients ages 12 and older with sickle cell disease and transfusion-dependent beta thalassemia. Among participants followed long enough to evaluate the primary endpoints, all eight children with beta thalassemia achieved transfusion independence for at least 12 months, while all eight children with sickle cell disease remained free from severe vaso-occlusive crises for at least 12 months.
On June 22, TD Cowen analyst Ryan Langston lowered the firm’s price target on HCA Healthcare to $431 from $500 and kept a Buy rating. Langston reduced TD Cowen’s 2026 and 2027 growth assumptions after its May hospital survey showed flat year-over-year revenue. Survey commentary pointed to weaker surgical volumes that were partially offset by growth in medical volumes.
In an 8-K filing, HCA Healthcare said Dr. Michael Cuffe and the company agreed on June 15 that Dr. Cuffe will step down as Executive Vice President and Chief Clinical Officer effective August 31, 2026. Dr. Cuffe will then continue in a transitional role with the company until February 2027 and will be eligible to receive benefits under HCA Healthcare’s executive severance policy and applicable incentive plans.
HCA Healthcare, Inc. provides health care services in the United States.
4. EOG Resources, Inc. (NYSE:EOG)
On June 29, 2026, Morgan Stanley analyst Devin McDermott lowered the firm’s price target on EOG Resources, Inc. (NYSE:EOG) to $156 from $160 and kept an Equal Weight rating. McDermott noted that oil prices have declined since the U.S. and Iran announced a memorandum of understanding on June 14, with WTI now only slightly above pre-conflict levels. Morgan Stanley refreshed its estimates for the latest energy prices.
Last month, Barclays raised its price target on EOG Resources to $153 from $140 and kept an Equal Weight rating. Barclays said depleting inventories, shrinking OPEC spare capacity, and a “muted” U.S. production response to the Middle East war are reinforcing a tighter oil macro backdrop that is not fully reflected in equities. The firm said this sets up “oily” exploration and production companies for a share re-rating after the conflict. Barclays also cut its gas price outlook on near-term oversupply and adjusted ratings and price targets across integrated oil and exploration and production names.
Also in May, Mizuho raised its price target on EOG Resources to $157 from $149 and kept a Neutral rating. Mizuho expects the impact of the Iran crisis on global oil prices and refining cracks to be prolonged. The firm increased its 2026 and 2027 oil price outlook by 25% and 6%, respectively, while raising its forecast for U.S. refining cracks by 61% and 51%. Mizuho said a pullback in stock valuations despite elevated commodity prices creates an opportunity to seek “alpha” in U.S. oil and gas.
EOG Resources, Inc. explores for, develops, produces, and markets crude oil, natural gas liquids, and natural gas in the United States, the Republic of Trinidad and Tobago, and internationally.
3. Truist Financial Corporation (NYSE:TFC)
On June 26, 2026, Truist Financial Corporation (NYSE:TFC) announced the release of the results of its annual company-run stress test. The test was conducted in accordance with Dodd-Frank Act regulations issued by the Board of Governors of the Federal Reserve System and the Federal Deposit Insurance Corporation.
On June 15, Stephens resumed coverage of Truist Financial with an Overweight rating and $59 price target. Stephens resumed coverage of nine super-regional banks and said it is “broadly constructive” on the group’s setup, noting that operating leverage has improved over the past year. The firm said capital return for 2026 is forecast at levels not seen since 2019 and could accelerate depending on the Basel 3 Endgame proposals.
Also on June 15, Fiserv (FISV) announced that Takis Georgakopoulos was appointed CEO and joined the board of directors, effective immediately. Georgakopoulos succeeds Mike Lyons, who stepped down as Fiserv CEO and board member to return to banking and become CEO of Truist Financial. Fiserv said Georgakopoulos joined the company in late 2024 and brings more than two decades of payments, technology, financial services, AI, and cybersecurity experience.
Truist Financial Corporation provides banking and trust services in the Southeastern and Mid-Atlantic United States.
2. Delta Air Lines, Inc. (NYSE:DAL)
On June 30, 2026, Wells Fargo raised its price target on Delta Air Lines, Inc. (NYSE:DAL) to $105 from $75 and kept an Overweight rating. Wells Fargo raised its estimates and price targets as fuel falls and demand holds. The firm said the “skip ’26” earnings thesis is set up well, and that shares can perform even after the recent rally. Wells Fargo remains most constructive on premium carriers United Airlines (UAL) and Delta Air Lines.
On June 26, Citi raised its price target on Delta Air Lines to $106 from $79 and kept a Buy rating as part of a Q2 earnings preview for the airline group. Citi said nearly every airline is likely to beat Q2 estimates and provide Q3 guidance above consensus estimates. However, the firm noted that recent share rallies already price in much of this upside.
On June 25, Barclays analyst Brandon Oglenski raised the firm’s price target on Delta Air Lines to $105 from $85 and kept an Overweight rating. Oglenski said airlines will likely guide Q3 unit revenues higher, supporting a stronger margin outlook in 2027, especially if energy prices continue trending lower. Barclays said Middle East peace has “revived interest” in U.S. airline stocks as “robust” travel demand faces flat industry capacity growth.
Delta Air Lines, Inc. provides scheduled air transportation for passengers and cargo in the United States and internationally.
1. Devon Energy Corporation (NYSE:DVN)
On June 29, 2026, Morgan Stanley lowered its price target on Devon Energy Corporation (NYSE:DVN) to $63 from $66 and kept an Overweight rating. Morgan Stanley noted that oil prices have declined since the U.S. and Iran announced a memorandum of understanding on June 14, with WTI now only slightly above pre-conflict levels. The firm refreshed its estimates for the latest energy prices.
On June 24, Goldman Sachs analyst Neil Mehta reinstated coverage of Devon Energy with a Buy rating and $54 price target. Mehta was positive on the company’s focus on optimizing its Delaware Basin asset, management’s outlook to capture $1.0b in run-rate merger synergies by 2027-end, and its updated return of capital framework to return up to 70% of free cash flow to shareholders. Mehta also cited the stock’s valuation, with shares trading at a 15% free cash flow yield compared with the large-cap peer average of 11%.
On June 15, Raymond James lowered its price target on Devon Energy to $66 from $72 and kept a Strong Buy rating. Raymond James said updated guidance was roughly in line with previous estimates, while the market’s attention is focused on upcoming portfolio rationalization as the next major catalyst to help narrow the valuation gap to peers.
Devon Energy Corporation explores for, develops, and produces oil, natural gas, and natural gas liquids in the United States.
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