In this article, we will look at the 12 Most Undervalued S&P 500 Stocks to Buy Right Now.
On September 5, Jeremy Siegel, professor emeritus at Wharton and chief economist at WisdomTree, joined CNBC to talk about the current economic situation and what it holds for the bull market run. He believes that the first rate cut by the Federal Reserve is almost certain; however, if the job data comes weak tomorrow, there could be a possibility of two cuts. Siegel noted that the Fed wants the interest rate to fall to a near-neutral level, around 3% to 3.25%. For this to happen, several cuts are needed over the next six to nine months. Siegel believes that there is a possibility of four cuts by mid-next year.
While talking about economic health. He noted that some of the recent price increases have come from tariffs, as the inventory bought before the tariff was implemented has now been exhausted. As a result, retailers are faced with squeezed profit margins, and there’s a risk that consumers will reduce spending due to higher prices. This uncertainty makes markets closely watch for signs of consumer confidence weakening in late September and October.
However, despite this weakness, Siegel believes that the current bull market is not over yet. He expects the S&P 500 to rise another 5 to 10% this year, but is cautious about reaching very high levels like 7000.
With that, let’s take a look at the 12 most undervalued S&P 500 stocks to buy right now.
Our Methodology
To curate the list of 12 most undervalued S&P 500 stocks to buy right now, we used the Finviz Stock Screener, Seeking Alpha, and Insider Monkey’s Q2 2025 hedge funds database. Using the screener, we aggregated a list of undervalued S&P 500 stocks (those trading below a Fwd P/E of 15. Next, we cross-checked the P/E ratio from Seeking Alpha and ranked the stocks in ascending order of the number of hedge fund holders. Please note that the data was recorded on September 4, 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 S&P 500 Stocks to Buy Right Now
12. Amgen Inc. (NASDAQ:AMGN)
Forward P/E Ratio: 13.62
Number of Hedge Fund Holders: 62
Amgen Inc. (NASDAQ:AMGN) is one of the Most Undervalued S&P 500 Stocks to Buy Right Now. On September 3, William Blair analyst Matt Phipps reiterated a Buy rating on Amgen Inc. (NASDAQ:AMGN) without disclosing any price target. The analyst acknowledged that the recent results from the FORTITUDE-101 showed less survival benefit for Bemarituzumab in gastric cancer. However, he remains optimistic about the upcoming FORTITUDE-102.
Phipps highlighted that despite the initial setback, management has been focused on the upcoming FORTITUDE-102, which combines Bemarituzumab with chemotherapy and Opdivo. The results for this trial are expected to be very important for regulatory approval and market potential.
In addition, the broader portfolio of Amgen Inc. (NASDAQ:AMGN) remains strong, and Phipps anticipates the company’s strategy to adapt timelines and plans based on trial results. He sees this flexibility as a positive indicator for long-term growth.
Amgen Inc. (NASDAQ:AMGN) is a biotechnology company that discovers and develops medicines for serious diseases. It focuses on creating treatments for conditions with high unmet medical needs.
11. Verizon Communications Inc. (NYSE:VZ)
Forward P/E Ratio: 9.33
Number of Hedge Fund Holders: 71
Verizon Communications Inc. (NYSE:VZ) is one of the Most Undervalued S&P 500 Stocks to Buy Right Now. Wall Street is bullish on the communication sector, anticipating 2026 to be a pivotal year for it. Verizon Communications Inc. (NYSE:VZ) remains under the spotlight with its par-expectation results in Q2 2025.
The company topped Wall Street estimates for both EPS and revenue, with the EPS of $1.22 coming in ahead of the consensus by $0.03 and the revenue beating expectation by a margin of $793.45 million.
Following the update, several analysts have expressed their bullish sentiment towards the stock. Earlier, on August 11, Gregory Williams of TD Cowen maintained a Buy rating on Verizon Communications Inc. (NYSE:VZ) with a price target of $56. The analyst expressed his confidence in the company’s ability to meet its updated EBITDA growth targets of 2.5% to 3.5%. Williams noted that this growth would be supported by the company’s solid service revenue and its cost-saving efforts.
More recently, on September 2, Goldman Sachs assumed coverage of the stock with a price target of $49. The firm noted 2026 to be a pivotal year for the communication services sector, which has been faced with high competition for connectivity customers. The firm believes investments in network modernization, spectrum, and brand would be the key differentiating factors for companies that realize the most attractive financial gains.
Verizon Communications Inc. (NYSE:VZ) provides communication and technology services. It offers wireless and wireline services, including 5G and 4G broadband.
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