In this article, we will look at the 10 Most Undervalued Low Volatility Stocks to Buy Now.
On August 27, Cheryl Young, Rockefeller Global Family Office private advisor, appeared on CNBC’s ‘Closing Bell’ to talk about the current market sentiment, recent market performance, and more.
Young said that she has a cautious outlook for the market at present, reasoning that since she is a rock climber, she gets increasingly nervous as she goes higher and higher.
Applying the analogy to the stock market, she stated that the market has risen considerably this year, with many people corroborating this. For her, however, it isn’t the market that has gone up, but rather just a couple of stocks.
She further supported her cautious stance on the market by stating that data points support inflation will be passed on to consumers, and inflation may be stickier.
READ ALSO: 13 High Growth Low PE Stocks to Invest In Now and 15 Strong Buy Stocks Under $5 to Buy Now.
Young predicts a 25 bp cut in September, and said that if stocks were fairly valued in April, they shouldn’t be higher now with tariffs. Therefore, according to her, the market optimism might be misplaced.
With these trends in view, let’s look at the most undervalued low-volatility stocks to buy now.
Our Methodology
We used Finviz to compile a list of stocks with a forward P/E less than 20 and a beta below 1 and selected the top 10 with the highest number of hedge fund holders as of Q2 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 August 27.
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 Most Undervalued Low Volatility Stocks to Buy Now
10. Amgen Inc. (NASDAQ:AMGN)
Forward P/E: 13.74
Beta: 0.48
Number of Hedge Fund Holders: 62
Amgen Inc. (NASDAQ:AMGN) is one of the top most undervalued low volatility stocks to buy now. On August 25, Piper Sandler raised the firm’s price target on Amgen Inc. (NASDAQ:AMGN) to $342 from $328 while keeping an Overweight rating on the shares.
The rating update came after the company’s quarterly results, with the firm stating that Amgen Inc. (NASDAQ:AMGN) is well-positioned to go beyond its loss of exclusivity for denosumab, supported by continued strong execution across its commercial portfolio.
The firm added that Amgen Inc. (NASDAQ:AMGN) is experiencing continued pipeline advancement, which shows a strong case for multiple expansion from an EV/2026E EBITDA of around 13-times.
Amgen Inc. (NASDAQ:AMGN) is a biotechnology company that discovers, develops, manufactures, and markets human therapeutics. It delivers new therapies for patients with complex cancers, especially in areas with significant unmet needs.
9. PDD Holdings Inc. (NASDAQ:PDD)
Forward P/E: 12.81
Beta: 0.41
Number of Hedge Fund Holders: 65
PDD Holdings Inc. (NASDAQ:PDD) is one of the top most undervalued low volatility stocks to buy now. Analyst Joyce Ju from Bank of America Securities reiterated a Hold rating on PDD Holdings Inc. (NASDAQ:PDD) on August 26, but raised the price target to $141.00 from $120.00.
The analyst told investors that while PDD Holdings Inc.’s (NASDAQ:PDD) Q2 results surpassed expectations with a notable profit beat, concerns regarding the sustainability of the profits exist.
Management partly attributed the company’s solid performance to high seasonality, stating that it expects profitability fluctuations in the near term with continued heavy investments in merchant support and ecosystem upgrades by PDD Holdings Inc. (NASDAQ:PDD).
The analyst added that despite rapid overseas expansion and continued domestic market share gain, uncertainties such as competitive pressures and near-term margin expansion warrant a cautious outlook for PDD Holdings Inc. (NASDAQ:PDD).
PDD Holdings Inc. (NASDAQ:PDD) is a Chinese multinational online commerce group and retailer that owns and operates a range of diverse businesses. It also has a strong logistics, sourcing, and fulfillment capabilities network that supports its operations.
The company owns Pinduoduo, a popular online commerce platform in China, and also runs the fast-growing e-commerce marketplace Temu. Temu now operates in more than 50 countries worldwide.
8. Bristol-Myers Squibb Company (NYSE:BMY)
Forward P/E: 7.23
Beta: 0.37
Number of Hedge Fund Holders: 67
Bristol-Myers Squibb Company (NYSE:BMY) is one of the top most undervalued low volatility stocks to buy now. On August 25, BMO Capital analyst Evan Seigerman of BMO Capital maintained a Hold rating on Bristol-Myers Squibb Company (NYSE:BMY), retaining the price target of $47.00.
The analyst supported the rating with the present performance and future expectations for Bristol-Myers Squibb Company’s (NYSE:BMY) product, Cobenfy.
Seigerman stated that the drug exhibited solid prescription growth, but the rate did not point to a considerable market breakthrough. The analyst expects the numbers to fall short of the consensus revenue expectations for fiscal Q3 2025 despite a rise in the weekly and monthly prescriptions.
Seigerman added that the revised assumptions regarding inventory levels and gross-to-net discounts add increased uncertainty to revenue forecasts, supporting the Hold rating.
Bristol-Myers Squibb Company (NYSE:BMY) is a biopharmaceutical company that discovers, develops, and delivers advanced medicines for serious diseases. Its medicines fall into various therapeutic classes, including hematology, oncology, cardiovascular, immunology, and neuroscience.
7. CVS Health Corporation (NYSE:CVS)
Forward P/E: 11.35
Beta: 0.59
Number of Hedge Fund Holders: 71
CVS Health Corporation (NYSE:CVS) is one of the top most undervalued low volatility stocks to buy now. In a report released on August 19, Brian Tanquilut from Jefferies reiterated a Buy rating on CVS Health Corporation (NYSE:CVS), setting a price target of $80.00.
In a report released on August 18, UBS also upgraded the stock to a Buy with a $79.00 price target.
CVS Health Corporation (NYSE:CVS) reported its fiscal Q2 2025 results on July 31, with total revenues for the quarter rising to $98.9 billion, up 8.4% compared to the prior year.
GAAP diluted EPS reached $0.80, while adjusted EPS was $1.81. The company also generated $6.5 billion in year-to-date cash flow from operations.
The stock’s median price target of $71.93 implies an upside of 11.91% from current levels.
CVS Health Corporation (NYSE:CVS) is a health solutions company that operates in four segments: healthcare benefits, health services, pharmacy & consumer wellness, and corporate/other. Apart from being a prominent pharmacy chain, the company is one of the largest health insurers in the United States through its Aetna subsidiary’s operations.
6. Gilead Sciences, Inc. (NASDAQ:GILD)
Forward P/E: 14.18
Beta: 0.35
Number of Hedge Fund Holders: 71
Gilead Sciences, Inc. (NASDAQ:GILD) is one of the top most undervalued low volatility stocks to buy now. On August 26, Gilead Sciences, Inc. (NASDAQ:GILD) announced that it attained marketing authorization for Yeytuo (lenacapavir) from the European Commission (EC).
Yeytuo is the company’s twice-yearly injectable HIV-1 capsid inhibitor that is used as “pre-exposure prophylaxis (PrEP) to reduce the risk of sexually acquired HIV-1 in adults and adolescents with increased HIV-1 acquisition risk who weigh at least 35kg”.
Management reported that Yeytuo is the first and only twice-yearly PrEP option to be approved for use in the 27 member states of the European Union, including Iceland, Norway, and Liechtenstein.
Gilead Sciences, Inc. (NASDAQ:GILD) is a biotech company that advances medicines to prevent and treat serious diseases such as cancer, immunodeficiency virus (HIV), viral hepatitis, and COVID-19.
Its portfolio of drugs focuses on medical areas with unmet needs and includes AmBisome, Atripla, Biktarvy, Cayston, Complera, and others. Gilead Sciences, Inc. (NASDAQ:GILD) operates in over 35 countries.
5. Verizon Communications Inc. (NYSE:VZ)
Forward P/E: 9.35
Beta: 0.36
Number of Hedge Fund Holders: 71
Verizon Communications Inc. (NYSE:VZ) is one of the top most undervalued low volatility stocks to buy now. On August 11, TD Cowen analyst Gregory Williams maintained a Buy rating on Verizon Communications Inc. (NYSE:VZ), retaining a price target of $56.00.
The analyst reasoned that Verizon Communications Inc.’s (NYSE:VZ) management exhibited confidence in the attainment of its EBITDA growth targets, supported by strategic cost-saving measures and strong service revenue growth.
He added that Verizon Communications Inc. (NYSE:VZ) has a disciplined approach to customer acquisition, and its AI integration in customer care is anticipated to boost operational efficiency.
TD Cowen also raised the firm’s price target on Verizon Communications Inc. (NYSE:VZ) to $56 from $50 on July 22, keeping a Buy rating on the shares.
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. ConocoPhillips (NYSE:COP)
Forward P/E: 15.15
Beta: 0.68
Number of Hedge Fund Holders: 72
ConocoPhillips (NYSE:COP) is one of the top most undervalued low volatility stocks to buy now. UBS raised the firm’s price target on ConocoPhillips (NYSE:COP) to $123 from $116 on August 20, keeping a Buy rating on the shares.
The rating update came after ConocoPhillips (NYSE:COP) reported its fiscal Q2 2025 earnings on August 7, with earnings per share for the quarter reaching $1.56 and adjusted earnings per share of $1.42.
Generated cash provided by operating activities reached $3.5 billion, while cash from operations (CFO) in Q2 was $4.7 billion. ConocoPhillips (NYSE:COP) also declared a Q3 ordinary dividend of $0.78 per share.
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, the Middle East, and North Africa, Asia Pacific, and Other International.
3. Pfizer Inc. (NYSE:PFE)
Forward P/E: 8.11
Beta: 0.44
Number of Hedge Fund Holders: 83
Pfizer Inc. (NYSE:PFE) is one of the top most undervalued low volatility stocks to buy now. Pfizer Inc. (NYSE:PFE) announced on August 27 the US Food and Drug Administration’s (FDA) approval of the supplemental Biologics License Application (sBLA) for the companies’ LP.8.1-adapted monovalent COVID-19 vaccine (COMIRNATY® LP.8.1; COVID-19 Vaccine, mRNA).
The vaccine is to be used in adults aged 65 years and older, along with individuals aged 5 to 64 years with at least one underlying condition putting them at high risk for severe outcomes from COVID-19.
Management reported that the FDA based the approval on “the cumulative body of evidence supporting the safety and efficacy of the Pfizer-BioNTech COVID-19 vaccine, including clinical trial data supporting the approval for children 5 through 11 years of age.”
It added that the application also encompassed data from pre-clinical models showing that “the LP.8.1-adapted monovalent COVID-19 vaccine generates improved immune responses against multiple circulating SARS-CoV-2 sublineages, including XFG, NB.1.8.1, and other contemporary sublineages, compared to the companies’ JN.1- and KP.2-adapted monovalent COVID-19 vaccines.”
Pfizer Inc. (NYSE:PFE) is a global biopharmaceutical company that manufactures, develops, markets, and sells biopharmaceutical products worldwide. It advances wellness, prevention, treatment, and cures in developing and emerging markets.
2. AT&T Inc. (NYSE:T)
Forward P/E: 13.91
Beta: 0.39
Number of Hedge Fund Holders: 83
AT&T Inc. (NYSE:T) is one of the top most undervalued low volatility stocks to buy now. Bank of America Securities analyst Michael Funk maintained a Buy rating on AT&T Inc. (NYSE:T) on August 26, setting a price target of $34.00.
The analyst based the rating on the company’s financial outlook and competitive position, stating that AT&T Inc.’s (NYSE:T) recent acquisition of spectrum licenses from EchoStar for $23 billion is a significant factor bolstering its spectrum holdings, especially in the 600MHz and 3.45GHz bands.
The analyst expects the purchase to strengthen the company’s broadband and wireless offerings while supporting its fixed wireless access strategy, two factors critical for future growth.
AT&T Inc. (NYSE:T) provides telecommunications and technology services and operates through the Communications and Latin America segments. Its Communications segment offers wireline telecom, wireless, and broadband services in the US and globally, while the Latin America segment manages services in Mexico.
1. Merck & Co., Inc. (NYSE:MRK)
Forward P/E: 9.52
Beta: 0.5
Number of Hedge Fund Holders: 92
Merck & Co., Inc. (NYSE:MRK) is one of the top most undervalued low volatility stocks to buy now. On August 27, Merck & Co., Inc. (NYSE:MRK) announced that the first patient was dosed in the HERTHENA-Breast04 phase 3 trial that is evaluating “the efficacy and safety of investigational patritumab deruxtecan (HER3-DXd) versus investigator’s choice of treatment in patients with unresectable locally advanced or metastatic hormone receptor (HR) positive, HER2 negative (IHC 0, IHC 1+ or IHC 2+/ISH-) breast cancer with disease progression following endocrine and CDK4/6 inhibitor therapy in either the adjuvant or first-line metastatic settings.”
Discovered by Daiichi Sankyo, Patritumab deruxtecan is a specifically engineered HER3-directed DXd antibody drug conjugate (ADC) that is under joint development by Merck & Co., Inc. (NYSE:MRK) and Daiichi Sankyo.
Merck & Co., Inc. (NYSE:MRK) is a biopharmaceutical company that delivers health solutions to advance the treatment and prevention of diseases in animals and people.
Its Pharmaceutical segment offers vaccines and human health pharmaceutical products, typically therapeutic and preventive agents. Its Animal Health segment develops, discovers, manufactures, and markets a range of vaccines and veterinary pharmaceutical products.
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