On July 8, Brenda Vingiello, Sand Hill Global Advisors’ CIO joined ‘Closing Bell Overtime’ on CNBC to talk about the day’s market action. Vingiello believes that investors have gained significant understanding over the past few months, particularly regarding President Trump’s negotiation tactics, especially concerning tariffs. She believes the market has moved past the point of peak uncertainty. Additionally, she highlighted that the underlying economy and Q1 corporate earnings have shown positive health.
As Q2 earnings reports begin, she anticipates more good news, expecting earnings to surpass projections. She attributed these low projections to analysts reducing full-year estimates after companies provided limited guidance in the first quarter, even though Q1 growth itself was double what was projected. This scenario, where earnings increased but full-year estimates decreased, created a pretty low bar for companies to beat. While acknowledging that trade negotiations are still a concern, she noted that the postponement for another month, if considered good news, at least allows more time to work through the details.
That being said, we’re here with a list of the 12 most undervalued NYSE stocks to buy now.
A portfolio manager in front of their computer screen, evaluating a variety of mid-cap stocks.
Methodology
We sifted through the Finviz stock screener to compile a list of the top NYSE stocks that had a forward P/E ratio under 20 as of July 8. We then selected the 12 stocks that were the most popular among elite hedge funds and that analysts were bullish on. The stocks are ranked in ascending order of the number of hedge funds that have stakes in them, as of Q1 2025.
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).
12 Most Undervalued NYSE Stocks to Buy Now
12. The Kroger Co. (NYSE:KR)
Forward P/E Ratio as of July 8: 19
Number of Hedge Fund Holders: 64
The Kroger Co. (NYSE:KR) is one of the most undervalued NYSE stocks to buy now. On July 8, Grocery Dive reported that the labor unions representing 45,000+ employees of Kroger and Albertsons in Southern California reached a tentative agreement on a new contract. The announcement was made last week by the United Food and Commercial Workers/UFCW locals involved in the bargaining process.
The proposed deal is subject to worker approval and includes provisions for higher pay, increased pension contributions, and improvements to health benefits. Workers are scheduled to vote on this proposal over three days beginning on July 9. The agreement followed 40+ hours of negotiations between the grocers and UFCW Locals 135, 324, 770, 1167, 1428, and 1442.
The breakthrough came weeks after these grocery workers had voted to authorize an unfair labor practice/ULP strike. The strike authorization was a response to what UFCW Locals 324 and 770 described as “labor violations throughout negotiations.” Specifically, a June 27 statement from UFCW Local 770 alleged that Kroger and Albertsons had broken the law by surveilling and interrogating employees.
The Kroger Co. (NYSE:KR) is a food and drug retailer in the US.
11. Verizon Communications Inc. (NYSE:VZ)
Forward P/E Ratio as of July 8: 9.18
Number of Hedge Fund Holders: 65
Verizon Communications Inc. (NYSE:VZ) is one of the most undervalued NYSE stocks to buy now. In response to the severe flash floods that struck Central Texas on July 4, Verizon pledged support for affected customers. The company is donating $100,000 to Texas Search and Rescue/TEXSAR, which is a volunteer-based first responder organization dedicated to rescue and recovery operations across the state.
Verizon is also offering direct relief to its customers in the hardest-hit areas. From July 7 to August 3, the company will waive domestic call, text, and data usage charges for consumer prepaid, postpaid, and small business customers with 50 lines or fewer, located in 95 zip codes across 28 affected Central Texas counties.
The waiver extends to users of Verizon’s prepaid brands. Customers in impacted areas will receive this relief without needing to take any action. Verizon’s commitment also extends to providing technological support for emergency responders.
Verizon Communications Inc. (NYSE:VZ) provides communications, technology, information, and entertainment products & services to consumers, businesses, and governmental entities worldwide.
10. IQVIA Holdings Inc. (NYSE:IQV)
Forward P/E Ratio as of July 8: 13.89
Number of Hedge Fund Holders: 67
IQVIA Holdings Inc. (NYSE:IQV) is one of the most undervalued NYSE stocks to buy now. On June 11, IQVIA unveiled new custom-built AI agents at GTC Paris. These AI agents are developed in collaboration with NVIDIA Corp. (NASDAQ:NVDA) and are designed to streamline workflows and accelerate insights within the life sciences sector.
The initiative represents an advancement in how IQVIA’s Healthcare-grade AI platform uses agentic architectures to improve business processes and patient outcomes. The collaboration with NVIDIA involves using NVIDIA NIM Agent Blueprints for rapid development, NeMo Customizer for fine-tuning, and NeMo Guardrails for secure deployment of these AI agents.
The development builds upon a collaboration announced in January this year between IQVIA and NVIDIA. The initial partnership aimed to develop custom foundation models and agentic AI workflows to accelerate research, clinical development, and access to new treatments. Following GTC Paris, IQVIA plans to further explore the future of life sciences at its TechIQ 2025 conference.
IQVIA Holdings Inc. (NYSE:IQV) provides clinical research services, commercial insights, and healthcare intelligence to the life sciences & healthcare industries in the Americas, Europe, Africa, and the Asia-Pacific.
9. The PNC Financial Services Group Inc. (NYSE:PNC)
Forward P/E Ratio as of July 8: 13.19
Number of Hedge Fund Holders: 69
The PNC Financial Services Group Inc. (NYSE:PNC) is one of the most undervalued NYSE stocks to buy now. On July 8, PNC Bank announced the launch of a new feature within its mobile application called PNC Direct Deposit.
The new functionality enables clients to set up or modify direct deposits for various income sources, such as payroll and Social Security payments, directly through the PNC Mobile app.
It also reduces the risk of user errors and payment delays by removing the need for manual data entry of account numbers. All PNC consumer clients with a consumer checking or savings account can access PNC Direct Deposit within the PNC Mobile app.
The PNC Financial Services Group Inc. (NYSE:PNC) is a diversified financial services company in the US.
8. The Cigna Group (NYSE:CI)
Forward P/E Ratio as of July 8: 10.63
Number of Hedge Fund Holders: 74
The Cigna Group (NYSE:CI) is one of the most undervalued NYSE stocks to buy now. On July 8, the Cigna Group Foundation, which is the philanthropic arm of The Cigna Group, announced a new round of grants totaling $3 million to improve the mental health of military veterans. The funding is part of a larger $9 million, 3-year commitment initiated in 2024, with $3 million allocated annually through 2026.
The current grants specifically target nonprofits addressing the profound impact of social determinants of health on veteran mental health, particularly housing stability. The application period for eligible organizations in select states is now open for the 2025 grants, with a deadline of 5 p.m. ET on August 7 this year. The Cigna Group Foundation will prioritize grant distribution in regions where The Cigna Group serves customers facing very high social determinants of health risks.
The initiative is critical given the increased risk of homelessness among military veterans. According to the US Department of Housing and Urban Development/HUD, an estimated 40,000 veterans experience homelessness on any given night, and the number of veterans experiencing homelessness increased by 7% between 2022 and 2023.
The Cigna Group (NYSE:CI) provides insurance and related products and services in the US.
7. PG&E Corporation (NYSE:PCG)
Forward P/E Ratio as of July 8: 9.12
Number of Hedge Fund Holders: 76
PG&E Corporation (NYSE:PCG) is one of the most undervalued NYSE stocks to buy now. On July 8, Pacific Gas and Electric Company (more commonly known as PG&E) announced a collaboration with Bridger Photonics Inc., which is a global leader in methane detection technology. The partnership aims to enhance PG&E’s efforts in detecting and repairing system leaks, thereby reducing methane emissions across its extensive natural gas transmission and distribution pipeline system.
PG&E serves ~16 million people across a 70,000 square mile service territory in northern and central California. The company operates 42,141 miles of natural gas distribution pipelines and 6,438 miles of transmission pipelines, and serves 4.5 million natural gas distribution customer accounts. Bridger’s Gas Mapping LiDAR/GML technology offers improved speed and accuracy in natural gas leak detection compared to traditional methods.
In 2024, PG&E surpassed its 2025 methane emission reduction target and achieved a 42% reduction compared to its 2015 baseline. The company was also ranked number one overall on the 2024 US Utilities Decarbonization Index, compiled by the National Public Utilities Council.
PG&E Corporation (NYSE:PCG) through its subsidiary, Pacific Gas and Electric Company, engages in the sale and delivery of electricity & natural gas to customers in northern & central California in the US.
6. General Motors Company (NYSE:GM)
Forward P/E Ratio as of July 8: 5.72
Number of Hedge Fund Holders: 79
General Motors Company (NYSE:GM) is one of the most undervalued NYSE stocks to buy now. In the first week of July, General Motors initiated a recall for over 42,000 Blazer EV vehicles from the 2024-2025 model years due to a potential issue with the rear parking brake wiring harness.
This harness may become damaged or corroded, which could lead to the unintended activation of the parking brake or a complete loss of its function. The recall specifically impacts Blazer EVs built before January 31 this year, when an updated wiring harness was introduced.
Owner notification letters are expected to be mailed starting on August 11 this year. The Blazer EV is one of GM’s best-selling electric vehicles, with sales of 6,187 units in Q1, representing a 931% year-over-year increase.
General Motors Company (NYSE:GM) designs, builds, and sells trucks, crossovers, cars, and automobile parts worldwide.
5. Johnson & Johnson (NYSE: JNJ)
Forward P/E Ratio as of July 8: 14.68
Number of Hedge Fund Holders: 91
Johnson & Johnson (NYSE:JNJ) is one of the most undervalued NYSE stocks to buy now. On July 8, Johnson & Johnson announced the submission of a supplemental New Drug Application/sNDA to the US FDA for its schizophrenia drug called CAPLYTA (lumateperone). The submission is based on long-term Phase 3 clinical data demonstrating CAPLYTA’s safety and efficacy in preventing relapse in adults with schizophrenia.
The Phase 3, double-blind, multicenter, placebo-controlled, and randomized withdrawal trial showed compelling results. The primary endpoint indicated that the time to relapse during the 26-week double-blind treatment phase was significantly longer in patients receiving CAPLYTA®compared to those on placebo (p=0.0002).
Schizophrenia is a complex and chronic brain disorder affecting an estimated 2.8 million adults in the US, yet ~40% of those affected do not receive adequate care. Relapses are characterized by a recurrence of symptoms and can disrupt lives, undo treatment progress, and increase the risk of hospitalization. On average, an adult with schizophrenia experiences 9 relapses in less than 6 years.
Johnson & Johnson (NYSE:JNJ) engages in the research and development, manufacture, and sale of various products in the healthcare field worldwide.
4. EQT Corporation (NYSE:EQT)
Forward P/E Ratio as of July 8: 17.33
Number of Hedge Fund Holders: 91
EQT Corporation (NYSE:EQT) is one of the most undervalued NYSE stocks to buy now. On June 24, EQT Corporation released its 2024 Environmental, Social, and Governance/ESG Report, titled: “Promises Made, Promises Delivered.” The report highlights EQT’s progress over the past 5 years in becoming the world’s first large-scale traditional energy company to achieve net-zero Scope 1 and Scope 2 greenhouse gas/GHG emissions across its upstream operations, ahead of its 2025 goal.
EQT achieved a 67% reduction in Scope 1 GHG emissions for historical production assets since 2018. The company increased the percentage of produced water recycled from 81% in 2019 to 96% in 2024. EQT also achieved a company-wide Production segment Scope 1 methane emissions intensity of 0.0070%, surpassing its 2025 target of 0.02%.
The company received a 1st place award from the West Virginia Department of Environmental Protection for site reclamation efforts in 2023. EQT also partnered with the West Virginia Division of Natural Resources to implement a first-of-its-kind nature-based carbon sequestration project across over 400,000 acres of land to promote CO2 absorption and benefit Appalachia’s woodlands.
EQT Corporation (NYSE:EQT) produces, gathers, and transmits natural gas.
3. Capital One Financial Corporation (NYSE:COF)
Forward P/E Ratio as of July 8: 14.22
Number of Hedge Fund Holders: 93
Capital One Financial Corporation (NYSE:COF) is one of the most undervalued NYSE stocks to buy now. On July 7, Capital One announced its decision to wind down Discover’s home equity lending business, as confirmed by a spokesperson for the McLean, Virginia-based bank. This move follows an extensive strategic business review conducted by Capital One after it acquired Discover.
The $35.3 billion purchase of Riverwoods, Illinois-based Discover was finalized in May this year, which marked the largest banking deal in the past 6 years and resulted in the creation of the largest credit card issuer in the US. After the acquisition, Capital One undertook a review of Discover Home Loans, which primarily focused on home equity loans and refinancing for existing homeowners.
While Capital One will cease accepting new applications for home equity or mortgage refinance loans, as indicated by a notification on Discover’s home loans webpage, it will continue to process applications that are already in progress.
Capital One Financial Corporation (NYSE:COF) is the financial services holding company for the Capital One, National Association, which provides various financial products and services in the US, Canada, and the UK.
2. Merck & Co. Inc. (NYSE:MRK)
Forward P/E Ratio as of July 8: 9.1
Number of Hedge Fund Holders: 93
Merck & Co. Inc. (NYSE:MRK) is one of the most undervalued NYSE stocks to buy now. On July 9, Merck announced its acquisition of UK-based Verona Pharma for ~$10 billion. This move aims to diversify Merck’s portfolio, particularly in light of its blockbuster cancer drug Keytruda facing patent expirations starting in 2028, which could lead to a loss of its ~$30 billion in annual sales.
This acquisition is Merck’s first of the year and its largest since the $10.8 billion buyout of Prometheus Biosciences in 2023. It provides Merck with Verona’s newly approved respiratory treatment called Ohtuvayre. Ohtuvayre is designed to treat chronic obstructive pulmonary disease/COPD, commonly known as smoker’s lung.
Merck projects that Ohtuvayre could generate peak multibillion-dollar annual revenue by the mid-2030s. Since 2021, Merck has ~tripled its late-stage pipeline, combining internal development with acquisitions such as the $11.5 billion purchase of Acceleron in 2021, which added the pulmonary arterial hypertension drug Winrevair to its portfolio.
Merck & Co. Inc. (NYSE:MRK) is a healthcare company that operates through two segments: Pharmaceutical and Animal Health.
1. Exxon Mobil Corporation (NYSE:XOM)
Forward P/E Ratio as of July 8: 17.83
Number of Hedge Fund Holders: 94
Exxon Mobil Corporation (NYSE:XOM) is one of the most undervalued NYSE stocks to buy now. Recently, Golden Pass LNG, which is a joint venture between Exxon Mobil and QatarEnergy, has formally requested permission from US regulators to re-export liquefied natural gas/LNG starting October 1 this year.
This request comes as the export plant in Sabine Pass, Texas, nears the completion of its construction and prepares to begin production following previous delays. The company’s immediate need for re-export authorization pertains to a cargo of LNG it intends to import for the crucial cool-down process of the plant. This cooling down is typically the final step before an LNG facility commences full production.
Golden Pass LNG is developing an 18 million metric tons per annum/mtpa LNG export facility and anticipates beginning LNG exports later this year. Once it commences shipping, Golden Pass is expected to become the 9th US LNG exporter.
Exxon Mobil Corporation (NYSE:XOM) explores and produces crude oil & natural gas in the US.
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