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.
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