In this article, we explore the 10 Undervalued Large Cap Stocks to Buy.
Determining whether a stock is fairly priced is one of the most enduring questions in investing. Market value reflects what investors are willing to pay for a stock today, but that figure does not always capture what a stock is truly worth. One of the most widely followed gauges of that gap is the forward price-to-earnings (P/E) ratio, which measures how much investors are paying today for every dollar of expected future earnings. A stock trading at a low forward P/E relative to its peers or its own historical average is generally considered undervalued. This signals that the market may have yet to fully account for its earnings potential.
That gap between price and value has widened considerably in recent weeks. US equities have taken a beating since the geopolitical conflict involving the U.S. and Iran started on February 28. The S&P 500, which stood at around 6,880 before the conflict began, has declined roughly 4.7% as of April 7. Because of the hostilities, oil has surged past $116 per barrel, stagflation fears have resurfaced, and the index endured five consecutive weeks of losses at one point.
Yet, even against this choppy backdrop, Wall Street is of the opinion that the worst of the market disruption may already be priced in. In a March 30 podcast, Morgan Stanley’s CIO and Chief US Equity Strategist Mike Wilson argued that the stock market has already discounted a wide range of disruptions. He listed geopolitics, oil, and artificial intelligence, and added that a bull case is closer than many investors realize. That optimistic outlook is also a key theme of Franklin Templeton’s Global Investment Management Survey for March 2026, which projects the S&P 500 to close the year between 7,000 and 7,400. The survey also anticipates earnings to grow 8%-13% against the consensus estimate of 15.8%, growth the firm says will particularly favor large-cap stocks.
Even valuations agree with the optimistic outlook. According to Morningstar, heading into the second quarter of 2026, US stocks were trading roughly 14% below the firm’s composite fair value estimate. Large-cap growth stocks were among the most undervalued at a 25% discount, the firm noted.
In that environment, large-cap stocks with low forward P/E ratios stand out as particularly compelling. This article identifies 10 of them.
Our Methodology
To create this list, we used the Finviz stock screener to filter for companies with a market capitalization above $10 billion, and then applied a forward P/E ratio ceiling of 15. We further narrowed the list by requiring a minimum upside potential of 20% as of April 8, 2026. From the result, we selected the top 10 stocks with the highest upside potential and ranked them in ascending order. We also considered institutional interest by reviewing hedge fund holdings data from Insider Monkey’s 13F database (Q4 2025).
Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research shows 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).
Undervalued Large Cap Stocks to Buy
10. ING Groep N.V. (NYSE:ING)
Stock Upside: 21.13%
Market Capitalization: $76.22 billion
Forward P/E: 9.54
Number of Hedge Fund Holders: 21
ING Groep N.V. (NYSE:ING) is one of the undervalued large cap stocks to buy. On April 7, ING Groep N.V. (NYSE:ING) announced that it had terminated its agreement to sell its Russian subsidiary, ING Bank (Eurasia) JSC, to Global Development JSC. The Dutch banking giant cited no realistic expectation that the buyer would obtain the necessary regulatory approvals.
The deal was originally announced on January 28, 2025. At the time, ING expected to complete the sale by Q3 2025 and exit Russia after more than 30 years of operating in the country. The deal required regulatory approvals from both Russian authorities and the EU, and by September 2025, ING had already flagged that the transaction was unlikely to close in the originally planned Q3 2025 window because the buyer had not yet received those approvals.
The buyer, Global Development JSC, is a Russian company owned by a Moscow-based financial investor with a background in factoring services. It would have acquired all shares of ING Bank (Eurasia) and run the business under a new brand.
ING said the exit will still come at a financial cost. It added that any alternative path out of Russia is expected to have a broadly similar negative financial impact to the failed sale, which had been estimated to hit ING’s CET1 capital ratio by approximately 7 basis points.
ING Groep N.V. (NYSE:ING) is a financial services company. It provides banking, investment, and asset management services to individuals, businesses, and institutions. Its offerings include savings and current accounts, mortgages, consumer and business lending, payments, and corporate finance services across retail and wholesale banking segments.
9. Wells Fargo & Company (NYSE:WFC)
Stock Upside: 22.17%
Market Capitalization: $251.69 billion
Forward P/E: 11.70
Number of Hedge Fund Holders: 72
Wells Fargo & Company (NYSE:WFC) is one of the undervalued large cap stocks to buy. On April 1, HSBC analyst Saul Martinez upgraded Wells Fargo & Company (NYSE:WFC) from Hold to Buy, and lowered the price target to $94 from $104. The move was driven purely by valuation, considering that Wells Fargo had fallen about 17% year-to-date, making it the worst-performing stock among all banks and brokers in HSBC’s coverage, noted Martinez.
The analyst added that the stock’s decline pushed its valuation to levels he described as an “attractive entry point.” Also, Martinez views Wells Fargo as a “long-term winner in U.S. banking,” citing its national scale, its strong capital base, and the fact that the asset cap, the regulatory restriction that had long constrained its balance sheet growth, has now been lifted.
However, the analyst acknowledged that those big regulatory catalysts are now behind the stock rather than ahead of it. He added that the bank’s January 2026 net interest income guidance disappointed markets, but argued that guidance could prove conservative. In other words, actual results may beat expectations.
Independent of the analyst action, on March 26, Wells Fargo said its artificial-intelligence-powered virtual assistant, Fargo, had passed 1 billion customer interactions. The tool hit this milestone in less than three years since launch, the lender said, and added that it had surpassed 33 million mobile active users the previous month.
Wells Fargo framed the update as part of its broader digital transformation, saying the figures show more customers are using its mobile banking tools for everyday financial tasks. The bank said Fargo has become a regular part of the mobile app experience since its 2023 debut. During this time, it has helped customers do routine jobs such as sending money with Zelle, paying bills, finding routing numbers, and checking spending patterns and account balances.
Wells Fargo & Company (NYSE:WFC) is a financial services company. It provides banking, lending, investment, and wealth management services to individuals, businesses, and institutions.
