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.
8. Verizon Communications Inc. (NYSE:VZ)
Forward Price to Earnings Ratio: 9.35
Number of Hedge Fund Holders: 73
Verizon Communications Inc. (NYSE:VZ) is one of the Most Undervalued US Stocks According to Hedge Funds. On May 14, Reuters reported that Verizon Communications Inc. (NYSE:VZ), along with AT&T and T-Mobile, has agreed in principle to form a joint venture aimed at eliminating mobile dead zones across the United States, particularly in rural areas.
The report noted that this initiative is expected to use satellite-based “direct to device” technology to ensure broader connectivity and improved network reliability during natural disasters. Reuters also highlighted that the announcement follows the FCC’s approval of EchoStar’s $40 billion spectrum sale, with SpaceX acquiring 65 megahertz of spectrum for $17 billion to strengthen its Starlink direct-to-device service. Moreover, AT&T’s portion of the spectrum is expected to expand coverage in rural and underserved regions.
As per the report, some analysts view this joint venture as partly defensive, given concerns that SpaceX could eventually compete directly with traditional wireless providers.
Verizon Communications Inc. (NYSE:VZ) is a leading provider of technology, entertainment, and communications services worldwide.
7. AT&T Inc. (NYSE:T)
Forward Price to Earnings Ratio: 10.37
Number of Hedge Fund Holders: 77
AT&T Inc. (NYSE:T) is one of the Most Undervalued US Stocks According to Hedge Funds. On May 12, AT&T Inc. (NYSE:T) announced its partnership with Lexus to integrate the company’s 5G network connectivity into the Lexus vehicle lineup. This integration will make its debut on the redesigned 2026 Lexus ES.
Management noted that the Lexus Interface multimedia system will benefit from this integration by offering an improved home screen, faster responsiveness, enhanced Voice Assistant capabilities, and expanded entertainment options. Moreover, drivers would be able to access native full-screen navigation directly in the digital gauge cluster behind the steering wheel.
Notably, management noted that an AT&T Connected Car would allow passengers to connect up to five Wi-Fi-capable devices at 5G speeds, supporting streaming, browsing, and remote work on the go. AT&T has a longstanding history with automotive manufacturers and has had similar 5G connectivity for Toyota vehicles since October 2025. The company claims to cover more roads than any other carrier in the United States. The enhanced Lexus Interface will first appear on the 2026 Lexus ES before expanding to future Lexus models, laying the groundwork for next-generation connected vehicle services.
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.
6. Pfizer Inc. (NYSE:PFE)
Forward Price to Earnings Ratio: 8.56
Number of Hedge Fund Holders: 81
Pfizer Inc. (NYSE:PFE) is one of the Most Undervalued US Stocks According to Hedge Funds. On May 13, Pfizer Inc. (NYSE:PFE) announced receiving marketing authorization from the European Commission to expand the use of HYMPAVZI (marstacimab) for hemophilia A and B patients aged 12+ who have developed inhibitors.
Management noted that roughly 20% of hemophilia A patients and 3% of hemophilia B patients develop these inhibitors, which severely limit their treatment options. Moreover, recurring bleeding can cause joint damage and significantly disrupt daily life. In this situation, HYMPAVZI, which is a once-weekly subcutaneous treatment, provides a meaningful convenience advantage over existing treatments.
During the Phase 3 clinical trials, Pfizer Inc. (NYSE:PFE) noted that HYMPAVZI reduced treated bleeding rates by 93% compared to on-demand therapy. Moreover, long-term follow-up data of up to 53 months also showed sustained results. In addition to the European Commission, the FDA is reviewing an expanded application covering younger patients aged 6+. The decision is expected in Q2 2026. HYMPAVZI is already FDA-approved for patients 12+ without inhibitors.
Pfizer Inc. (NYSE:PFE) is a research-based global biopharmaceutical company focused on the discovery, development, manufacturing, marketing, sale, and distribution of biopharmaceutical products worldwide.
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