In this article, we will look at the 10 Most Undervalued US Stocks According to Hedge Funds.
On May 13, Vivek Arya from Bank of America Securities appeared on a CNBC Television interview. He notes that the largest chip stocks are trading below market multiple despite market fears about a potential bubble. He noted that three of the largest companies under his coverage including Nvidia, Broadcom, and Micron are all trading at or below the market multiple. Arya highlighted that market is concerned about a bubble, however, he cannot recall a time in recent history when some of the biggest companies in the market were trading at cheap valuations. Arya attributed these cheaper valuations to the exponential growth potential of AI, which is presenting an optimistic earnings outlook for most companies in the technology sector.
That said, earlier on April 1, Venu Krishna, Managing Director & Head of U.S. Equity Strategy at Barclays, appeared on CNBC Television to discuss his firm’s view of the U.S. stock market during the US-Iran conflict. He noted that his firm is viewing the market from a situational standpoint, and the worst-case scenario implies a 5,900 target for the S&P 500. However, Barclays continues to expect that a resolution will be reached soon and hence has raised the price targets and earnings estimates on most US equities under the firm’s coverage. Krishna believes that the S&P 500 offers an attractive entry point for investors. Moreover, the price-to-earnings ratio of below 20 times can trigger dip buying opportunities, followed by strong earnings due to the booming technology sector.
With that, let’s take a look at the 10 Most Undervalued US Stocks According to Hedge Funds.
Our Methodology
To curate the list of 10 Most Undervalued US Stocks According to Hedge Funds, we used the Finviz Stock Screener, Seeking Alpha, and Insider Monkey’s hedge fund database. Using the screener, we aggregated a list of undervalued US stocks trading below the forward price-to-earnings ratio of 15 and ranked the stocks in ascending order of the number of hedge fund holders. We have limited our final selection to companies that have recently reported noteworthy developments likely to impact investor sentiment.
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 498.7% since May 2014, beating its benchmark by 303 percentage points (see more details here).
10 Most Undervalued US Stocks According to Hedge Funds
10. ConocoPhillips (NYSE:COP)
Forward Price to Earnings Ratio: 12.94
Number of Hedge Fund Holders: 65
ConocoPhillips (NYSE:COP) is one of the Most Undervalued US Stocks According to Hedge Funds. On May 18, Reuters reported that ConocoPhillips (NYSE:COP) and Glenfarne’s Alaska LNG project have signed a 30-year natural gas supply agreement. This marks a significant milestone towards the project’s development.
The report highlighted that, as a result of this deal, Alaska LNG now has sufficient supply commitments to support a final investment decision for Phase One and address Alaska’s domestic energy needs. Reuters noted that Phase one of the project revolves around a 739-mile pipeline designed to deliver natural gas to Alaskan consumers. This is important as the state faces challenges of supply shortfall from declining Cook Inlet production. Later, Phase Two is expected to add LNG export facilities in Nikiski.
In addition to ConocoPhillips (NYSE:COP), Alaska LNG now has supply agreements with Exxon Mobil, Hilcorp Alaska, and Great Bear Pantheon.
In separate news, earlier on May 4, RBC Capital reiterated an Outperform rating on the stock with a price target of $152. The firm noted ConocoPhillips’ first-quarter 2026 earnings performance to be better than anticipated. RBC Capital highlighted that the impact of low production from Qatar was offset by higher commodity prices.
ConocoPhillips (NYSE:COP) is an exploration and production company. Its Alaska segment focuses on exploring for, producing, transporting, and marketing crude oil, natural gas, and NGLs. The Lower 48 segment includes operations across the 48 contiguous U.S. states and the Gulf of Mexico.
9. Wells Fargo & Company (NYSE:WFC)
Forward Price to Earnings Ratio: 10.49
Number of Hedge Fund Holders: 72
Wells Fargo & Company (NYSE:WFC) is one of the Most Undervalued US Stocks According to Hedge Funds. On May 7, Wells Fargo & Company (NYSE:WFC) launched Advisor Gateway, which is a desktop platform that provides access to over 200 tools and applications for financial advisors.
Management noted that these tools include proprietary systems such as Account 360, Client Review Center, and third-party investment planning software and research tools. This platform launch is part of a broader $1 billion technology investment made by Wells Fargo’s Wealth & Investment Management division over recent years. Management highlighted that Advisor Gateway is available to advisors across all WIM channels, including those in the independent Wells Fargo Advisors Financial Network.
One of the key features of the platform is the Proposal and Portfolio Analytics tool, which is powered by BlackRock’s Aladdin Wealth technology. This feature enables real-time portfolio analysis and on-demand client proposals, helping advisors work more efficiently. Moreover, it also integrates Aladdin Wealth’s “Auto Commentary,” a generative AI feature that transforms complex risk data and client portfolio details into structured insights, helping advisors prepare more effectively for client meetings.
Wells Fargo & Company (NYSE:WFC) is a leading financial services company, providing diversified banking services across the Consumer Banking and Lending, Commercial Banking, Corporate and Investment Banking, and Wealth and Investment Management segments. The company is based in San Francisco, California, and was founded in March 1852.
