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.
While we acknowledge the potential of COP to grow, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than COP and that has 100x upside potential, check out our report about the cheapest AI stock.
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