11 Most Undervalued Long Term Stocks to Buy According to Hedge Funds

In this article, we will discuss the 11 Most Undervalued Long Term Stocks to Buy According to Hedge Funds.

BlackRock sees risk assets in a tug-of-war between strong US corporate earnings, driven by the AI theme, and tariffs that impact growth while increasing inflation. The second quarter earnings results demonstrate that the AI theme has been winning, while the concerns regarding who will pay for tariffs remain. Early indications reveal a mix of consumers and companies. The investment firm believes that the US corporate strength might cushion the blow, while it remains overweight on the AI theme and US stocks.

Current Trends in US Equities

As per the US Bank, this year’s rapidly changing market sentiment followed the Trump administration’s trade policies. Bill Merz, head of capital markets research at U.S. Bank Asset Management Group, opines that, since April, the markets have moved past the idea that tariffs will result in a detrimental impact on growth, earnings, and inflation. Amidst the shifting tariff policy overhang, investors have been focusing on generally healthy economic fundamentals. The stable labor market, modest inflation, as well as constructive corporate earnings growth, continue to support this stance, noted the US Bank.

Amidst these trends, we will now have a look at the 11 Most Undervalued Long Term Stocks to Buy According to Hedge Funds.

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Our Methodology

To list the 11 Most Undervalued Long Term Stocks to Buy According to Hedge Funds, we used a screener and sifted through several online rankings. After getting an extensive list, we narrowed it down by shortlisting the stocks that trade at a forward P/E of less than ~15x, and that have a 5-year revenue growth of at least ~10%. Finally, we selected the ones popular among hedge funds. We also mentioned hedge fund sentiments around each stock, as of Q1 2025. The stocks are arranged in ascending order of their hedge fund sentiments.

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).

All the data is as of August 5

11 Most Undervalued Long Term Stocks to Buy According to Hedge Funds

11. Chubb Limited (NYSE:CB)

Forward P/E: ~12.3x

5-year Revenue Growth: ~10.7%

Number of Hedge Fund Holders: 55

Chubb Limited (NYSE:CB) is one of the Most Undervalued Long Term Stocks to Buy According to Hedge Funds. On August 1, HSBC downgraded the company’s stock to “Hold” from “Buy” with a price objective of $300, down from the prior target of $317, as reported by The Fly. The firm sees pricing pressure in Chubb Limited (NYSE:CB)’s commercial property, keeping investor interest subdued.  Furthermore, the downward momentum in pricing can make cycle management more difficult, noted the firm’s analyst.

Chubb Limited (NYSE:CB) reported net income for Q2 2025 of $2.97 billion, or $7.35 per share, and core operating income of $2.48 billion, or $6.14 per share. Book value per share and tangible book value per share rose 6.1% and 8.0%, respectively, from March 31, 2025, and now stand at $174.07 and $112.64. Notably, book value was favorably affected by the after-tax net realized and unrealized gains of $1.54 billion in Chubb Limited (NYSE:CB)’s investment portfolio and $700 million of foreign currency gains.

Chubb Limited (NYSE:CB) produced $2.5 billion in core operating income, reflecting a rise of ~13% from a year ago, with operating EPS rising 14%, thanks to the record underwriting and healthy investment income, and double-digit growth in life income.