10 Undervalued S&P 500 Stocks to Buy According to Hedge Funds

2. Citigroup Inc. (NYSE:C)

Forward P/E Ratio as of June 25: 11.24

Number of Hedge Fund Holders: 96

Citigroup Inc. (NYSE:C) is one of the undervalued S&P 500 stocks to buy according to hedge funds. On June 25, Citi announced the results of its fifth annual CitiFX Vendor Review, which is a comprehensive analysis of the foreign exchange/FX landscape based on internal vendor evaluations and an annual client survey.

The review emphasizes the need for FX vendors to innovate and prioritize market impact considerations to remain competitive. 94% of clients underscored the importance of vendor adherence to the FX Global Code, while 85% stressed that vendors must consider market impact when developing execution tools. Client feedback indicates a high level of satisfaction with primary FX vendors, with 90% of respondents expressing contentment.

However, 85% of these satisfied clients also have enhancement requests, primarily for execution and workflow solutions designed to mitigate operational and settlement risks. The increasing demand for innovative FX solutions has led to a notable decline in vendor switching. The rate of clients changing FX vendors has dropped from 51% in 2021 to 22% in 2025.

Citigroup Inc. (NYSE:C) is a diversified financial services holding company that provides various financial products and services to consumers, corporations, governments, and institutions.