In this article, we will discuss the 12 Best Undervalued Stocks to Buy According to the Financial Media.
Goldman Sachs Research lifted the forecast for the S&P 500 for year-end 2026 to 8,000, an increase from 7,600. The firm expects a 6% return as of May 26. The firm’s strategists increased the EPS forecast to $340 for 2026, implying 24% annual growth. For 2027, the forecast has been increased to $385, reflecting 13% growth. Notably, the beneficiaries of the AI infrastructure can make up for roughly half of the earnings growth this year.
The firm further added that the valuation multiple for US stocks is projected to remain flat at ~21x earnings. This is because marginal declines in treasury yields are expected to be mitigated by slowing growth, coupled with geopolitical uncertainty and investor skepticism about the durability of AI-related profits. Goldman Sachs Research believes that while conditions support a bull market for stocks, a significant increase in momentum and a narrow market breadth are some of the cautionary signals.
Let us now have a look at the 12 Best Undervalued Stocks to Buy According to the Financial Media.
Our Methodology
To list the 12 Best Undervalued Stocks to Buy According to the Financial Media, we sifted through reputable financial platforms to get an extensive list. Next, we narrowed our list down to the ones that trade at a forward P/E multiple of ~17x. We also mentioned the hedge fund sentiments around each stock, as of Q1 2026. Finally, 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 498.7% since May 2014, beating its benchmark by 303 percentage points (see more details here).
Note: All the data is as of May 29
12 Best Undervalued Stocks to Buy According to the Financial Media
12. Adient plc (NYSE:ADNT)
Forward P/E: ~10.7x
Number of Hedge Fund Holders: 27
Adient plc (NYSE:ADNT) is one of the Best Undervalued Stocks to Buy According to the Financial Media. On May 20, the company released its China business update, wherein it highlighted that, since last year’s J.P. Morgan Summit, it has seen robust new bookings that continue to support the sales growth momentum. Adient plc (NYSE:ADNT) won ~$1.1 billion in annual business in FY 2025, while it captured business from 4 new auto brands. Notably, ~70% of the wins came from C-OEMs, which demonstrates a strategic transition in the customer mix in accordance with the broader market dynamics.
Adient plc (NYSE:ADNT) also highlighted that it continues to strengthen its relationships with C-OEMs via new JVs. In December 2025, the company established a new JV via the acquisition of 49% equity stake in SCI (Zhangjiakou) Co., Ltd. The collaboration is expected to bolster the relationship with critical Chinese OEMs, reflecting a strategic move for the company in enhancing its presence in China.
Adient plc (NYSE:ADNT) is engaged in designing, developing, manufacturing, and marketing seating systems and components for passenger cars, commercial vehicles, and light trucks.
11. Ford Motor Company (NYSE:F)
Forward P/E: ~10.4x
Number of Hedge Fund Holders: 50
Ford Motor Company (NYSE:F) is one of the Best Undervalued Stocks to Buy According to the Financial Media. On May 27, WSJ reported that the company’s stock continues to rise after it announced a new energy-storage subsidiary, Ford Energy. The division was launched with an investment of $2 billion, and it can turn batteries that were intended to be used for EVs into stationary energy-storage systems for AI data centers, power utilities, and large industrial customers.
WSJ further added that Ford Motor Company (NYSE:F) can now compete with other renowned battery-making companies, including Tesla and LG Energy Solution. For the investors who are bullish on the company, this division provides an opportunity to reap the benefits of the broader AI boom and elevated energy demand in the U.S., added WSJ. This comes at a time when the overall auto industry is being impacted by the EV downturn and sees less usage for the batteries than it expected earlier.
Ford Motor Company (NYSE:F) is engaged in developing, delivering, and servicing Ford trucks, sport utility vehicles, commercial vans and cars, and Lincoln luxury vehicles.
10. The Travelers Companies, Inc. (NYSE:TRV)
Forward P/E: ~10.3x
Number of Hedge Fund Holders: 54
The Travelers Companies, Inc. (NYSE:TRV) is one of the Best Undervalued Stocks to Buy According to the Financial Media. On May 26, Piper Sandler lifted its price objective on the company’s stock to $340 from $329 and maintained an “Overweight” rating. Overall, the firm marginally lifted the price objectives for a range of insurance carriers, while it has slashed targets for a handful of the insurance brokers.
The analysis is bottom-up in the approach, and after the Q1 results, the firm opines that the focus should be on carriers rather than the insurance brokers. This is because generally the underwriting performance was better than anticipated and supported the carriers than the organic growth results did for the brokers.
Notably, The Travelers Companies, Inc. (NYSE:TRV) reported strong Q1 2026 results, with healthy underwriting performance throughout all 3 segments and a robust result from its investment portfolio.
The Travelers Companies, Inc. (NYSE:TRV)’s Q1 2026 underwriting income came at $1.2 billion pre-tax, and was aided by strong levels of underlying underwriting income and net favorable prior year development. The company’s high-quality investment portfolio garnered after-tax net investment income of $833 million.
The Travelers Companies, Inc. (NYSE:TRV) offers a range of commercial and personal property and casualty insurance products and services.
9. Carnival Corporation Ltd. (NYSE:CCL)
Forward P/E: ~12.0x
Number of Hedge Fund Holders: 57
Carnival Corporation Ltd. (NYSE:CCL) is one of the Best Undervalued Stocks to Buy According to the Financial Media. On May 22, Truist analyst C. Patrick Scholes reduced the firm’s price objective on the company’s stock to $29 from $30 and kept a “Hold” rating on the shares. After the Q1 earnings and outlooks from Norwegian and Royal Caribbean, there has been marginal pressure on mass-market and contemporary cruise booking volumes.
The analyst added that this is because of the negative rhetoric/ sensationalism in the media related to the hantavirus. Truist is updating estimates and price objectives after the Q1 earnings.
In a separate update, TD Cowen lifted its price objective on Carnival Corporation Ltd. (NYSE:CCL)’s stock to $34 from $33 and kept a “Buy” rating on the shares. As per the analyst, the company’s industry-leading yield is backed by robust execution, with Carnival Corporation Ltd. (NYSE:CCL) witnessing the least disruption in the group from the Caribbean, Iran, and Mexico headwinds.
Carnival Corporation Ltd. (NYSE:CCL) is a cruise company that is engaged in providing leisure travel services.
8. Target Corporation (NYSE:TGT)
Forward P/E: ~15.5x
Number of Hedge Fund Holders: 68
Target Corporation (NYSE:TGT) is one of the Best Undervalued Stocks to Buy According to the Financial Media. On May 21, DA Davidson analyst Michael Baker lifted the firm’s price objective on the company’s stock to $155 from $140 and kept a “Buy” rating on the shares. As per the analyst, Target Corporation (NYSE:TGT)’s Q1 results reflect early signs of a potentially strong retail turnaround story. This is backed by the revamped merchandise excellence and improvement in operations.
Target Corporation (NYSE:TGT) saw net sales of $25.4 billion in Q1 2026, reflecting an increase of 6.7% compared to the prior year, amidst 6.4% rise in merchandise sales and 24.6% growth in non-merchandise sales. In Q1 2026, capital expenditures came in at $1.0 billion, implying 31% growth relative to the last year, mainly due to the higher investments in new stores and store remodels.
For FY 2026, the company expects net sales growth of ~4% YoY, implying an increase of 2 percentage points compared to the prior range.
Target Corporation (NYSE:TGT) operates as a general merchandise retailer.
7. AT&T Inc. (NYSE:T)
Forward P/E: ~10.7x
Number of Hedge Fund Holders: 72
AT&T Inc. (NYSE:T) is one of the Best Undervalued Stocks to Buy According to the Financial Media. On May 27, the company highlighted that it maintains its long-term outlook and capital allocation plans, including its outlook for improvement in growth in adjusted EBITDA and adjusted EPS, and increased FCF through 2028.
This also includes AT&T Inc. (NYSE:T)’s plans to return more than $45 billion to shareholders during 2026-2028 in the form of dividends and share repurchases, and the anticipation that its net debt-to-adjusted EBITDA ratio would come back to the level that is consistent with its target in the 2.5x range in ~3 years after the closing of the transaction with EchoStar.
For Q2 2026, AT&T Inc. (NYSE:T) expects improved YoY growth in wireless service revenue and in consolidated adjusted EBITDA relative to the YoY growth rates that were reported in Q1 2026. Furthermore, it expects Q2 2026 FCF of between $4.0 billion – $4.5 billion.
AT&T Inc. (NYSE:T) is engaged in offering telecommunications and technology services.
6. ConocoPhillips (NYSE:COP)
Forward P/E: ~11.1x
Number of Hedge Fund Holders: 74
ConocoPhillips (NYSE:COP) is one of the Best Undervalued Stocks to Buy According to the Financial Media. On May 26, Barclays analyst Betty Jiang lifted its price objective on the company’s stock to $155 from $136 and kept an “Overweight” rating on the shares. As per the firm, depletion in inventories, coupled with shrinking OPEC spare capacity and muted US production response to the war, continues to result in a tighter oil macro backdrop. This is not entirely reflected in equities.
As per the analyst, the oil exploration and production companies will encounter a share re-rating after the conflict. The firm also slashed its gas price outlook, amidst near-term oversupply. Overall, the firm adjusted ratings and price objectives in the broader integrated oil and exploration and production group.
Amidst the macro volatility, ConocoPhillips (NYSE:COP) posted another quarter of robust financial and operational performance, with the company reporting production of 2,309 MBOED in Q1 2026, reflecting a decline of 80 MBOED on a YoY basis. Furthermore, earnings and adjusted earnings declined YoY, mainly because of reduced gas prices in the Permian and lower volumes. However, the impact was partially mitigated by the lower costs.
ConocoPhillips (NYSE:COP) is engaged in exploring, producing, transporting, and marketing crude oil, bitumen, natural gas, LNG, and natural gas liquids.
5. Apollo Global Management, Inc. (NYSE:APO)
Forward P/E: ~14.2x
Number of Hedge Fund Holders: 81
Apollo Global Management, Inc. (NYSE:APO) is one of the Best Undervalued Stocks to Buy According to the Financial Media. Piper Sandler lifted its price objective on the company’s stock to $157 from $146 and kept an “Overweight” rating on the shares after the Q1 results. Apollo Global Management, Inc. (NYSE:APO) surpassed expectations and reaffirmed its 2026 guidance. The higher multiple is backed by peer multiple expansion and the firm’s expectation that the company is one of the best-placed alternatives in the broader space.
Apollo Global Management, Inc. (NYSE:APO)’s Q1 2026 results demonstrate a robust tone for the year, with record fee-related earnings, and AUM crossing $1 trillion. The company’s FRE came in at $728 million, reflecting YoY growth of 30%, thanks to the record quarterly fee-related revenue and margin expansion. Furthermore, the SRE of $719 million was aided by healthy organic growth trends. Together, FRE and SRE came in at $1.4 billion in Q1 2026, demonstrating the strength of combined earnings streams.
Apollo Global Management, Inc. (NYSE:APO) is a private equity firm, which specializes in investments across credit, private equity, infrastructure, secondaries, and real estate markets.
4. The Progressive Corporation (NYSE:PGR)
Forward P/E: ~11.9x
Number of Hedge Fund Holders: 82
The Progressive Corporation (NYSE:PGR) is one of the Best Undervalued Stocks to Buy According to the Financial Media. On May 20, BMO Capital reduced its price objective on the company’s stock to $220 from $221.00, while maintaining a “Market Perform” rating. The analyst’s rating is backed by factors associated with The Progressive Corporation (NYSE:PGR)’s fundamentals and valuation. The analyst marginally lifted the 2026 and 2027 EPS forecasts, thanks to stronger net investment income, an increase in share repurchases, and the favorable near-term loss ratio trajectory after the underwriting outperformance.
That being said, the analyst also noted the factors capping the upside. These include softer policy-in-force growth, less favorable seasonal revenue patterns, as well as pressure on the auto insurance pricing.
On May 20, The Progressive Corporation (NYSE:PGR) released its results for the month ended April 30, 2026, with net premiums written coming at $7,278 million, reflecting 6% YoY growth. Furthermore, net premiums earned saw an increase of 7% YoY to $7,112 million.
The Progressive Corporation (NYSE:PGR) operates as an insurance company.
3. Elevance Health, Inc. (NYSE:ELV)
Forward P/E: ~14.6x
Number of Hedge Fund Holders: 87
Elevance Health, Inc. (NYSE:ELV) is one of the Best Undervalued Stocks to Buy According to the Financial Media. On May 19, Evercore ISI added the company to its Tactical Outperform list for Q2, noting that Elevance Health, Inc. (NYSE:ELV) is expected to see strong upside in EPS this year, provided current trends hold or improve.
That being said, the analyst did not upgrade the shares. This is because the firm is concerned about the potential for Medicaid to encounter some headwinds in 2027 from OBBBA work requirements, added the analyst. The firm has an “In Line” rating and a price objective of $360.
Notably, Elevance Health, Inc. (NYSE:ELV)’s Q1 2026 results surpassed expectations, demonstrating underlying business strength and improving claims experience. The company’s operating revenue came in at $49.5 billion in Q1 2026, implying a $0.7 billion or 1.5% rise versus Q1 2025. This was because of increased premium yields in the Health Benefits segment and growth in CarelonRx product revenue.
Elevance Health, Inc. (NYSE:ELV) operates as a health benefits company.
2. Salesforce, Inc. (NYSE:CRM)
Forward P/E: ~13.3x
Number of Hedge Fund Holders: 101
Salesforce, Inc. (NYSE:CRM) is one of the Best Undervalued Stocks to Buy According to the Financial Media. On May 28, BMO Capital reduced its price objective on the company’s stock to $215 from $225, while keeping an “Outperform” rating on the shares. This comes after the company reported its Q1 earnings. As per the analyst, its results and guidance will not be enough to convince bears or bulls to change their respective positions, amidst the limited changes to growth expectations for FY 2027 top-line.
The firm highlighted that investors will look for evidence of improvement in revenue growth and sustainability, and wait before they become more optimistic about Salesforce, Inc. (NYSE:CRM)’s stock. That being said, the firm noted the potential for improvement in revenue growth.
Salesforce, Inc. (NYSE:CRM) reported revenue of $11.1 billion in Q1 2027, reflecting an increase of 13% YoY and 12% in constant currency, which includes $444 million of Informatica contribution. Notably, the current remaining performance obligation amounted to $33.6 billion, reflecting 14% YoY growth and 13% in constant currency.
1. Micron Technology, Inc. (NASDAQ:MU)
Forward P/E: ~9.3x
Number of Hedge Fund Holders: 154
Micron Technology, Inc. (NASDAQ:MU) is one of the Best Undervalued Stocks to Buy According to the Financial Media. On May 28, DA Davidson lifted its price objective on the company’s stock to $1,500 from $1,000 and kept a “Buy” rating on the shares. The firm’s analyst compared the CPU and memory markets in a bid to assess why AMD and Intel are currently trading at more than ~40x earnings, while Micron Technology, Inc. (NASDAQ:MU) trades at ~9x earnings. This is despite the fact that Micron’s stock saw a strong rally.
The analyst highlighted that the conventional wisdom holds that CPUs are not commodities while memory is a commodity. This means that memory is purchased in the spot market and remains fungible. However, this might be true in the past, but the codesign of HBM into data center architecture seems to be changing this dynamic, added the analyst. Also, the long-term deals are contributing to the change.
Micron Technology Inc. (NASDAQ:MU) provides memory and storage solutions sold into client, cloud server, enterprise, graphics, networking, smartphone, mobile-device, automotive, industrial, and consumer markets, among others.
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