12 Most Undervalued Quality Stocks to Buy According to Hedge Funds

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8. First Citizens BancShares Inc. (NASDAQ:FCNCA)

Forward P/E Ratio as of August 7: 11.12

Number of Hedge Fund Holders: 42 

First Citizens BancShares Inc. (NASDAQ:FCNCA) is one of the most undervalued quality stocks to buy according to hedge funds. On July 28,  Goldman Sachs raised the firm’s price target on First Citizens BancShares to $2,250 from $2,150, while keeping a Buy rating on the shares, to reflect its view on excess capital and rates. This sentiment followed the release of the company’s Q2 2025 earnings.

First Citizens BancShares’ adjusted earnings per share were $44.78, with an adjusted net income of $607 million in Q2. Net interest income grew by 2% sequentially, while the adjusted non-interest income increased by $34 million, or 7.2%.

On the balance sheet, loans saw a slight sequential decline of $89 million, or 0.1%, mainly due to a decrease in the Tech & Healthcare portfolio. In contrast, deposits grew by $610 million, or 4.4% sequentially. Net charge-offs declined by 0.08% sequentially, reaching their lowest level since Q2 2024, but management noted they could be lumpy in the future.

First Citizens BancShares Inc. (NASDAQ:FCNCA) is the holding company for First-Citizens Bank & Trust Company, which provides retail and commercial banking services to individuals, businesses, and professionals in the US and internationally.

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