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.
10. Gilead Sciences, Inc. (NASDAQ:GILD)
Forward P/E Ratio: 13.92
Number of Hedge Fund Holders: 71
Gilead Sciences, Inc. (NASDAQ:GILD) is one of the Most Undervalued S&P 500 Stocks to Buy Right Now. On September 2, Daina Graybosch from Leerink Partners maintained a Buy rating on Gilead Sciences, Inc. (NASDAQ:GILD) with a price target of $114.
The analyst highlighted the strong position of the company in the HIV prevention market. He particularly noted the strong performance of Descovy. Despite having challenges in accessing Yeztugo, Descovy has seen solid year-over-year sales growth and is expected to continue this growth momentum. Analyst Graybosch explained that this is due to the new policy by the US Health and Human Services that requires coverage without cost-sharing starting in 2025.
While discussing the future of Yeztugo, he noted that some current users of Descovy are expected to shift to Yeztugo as access improves. Moreover, although the market access is expected to stay uneven at first but a wider acceptance is anticipated after it receives a strong recommendation from the US Preventive Services Task Force. As a result, the analyst remains optimistic about Gilead Sciences, Inc.’s (NASDAQ:GILD) PrEP products.
Gilead Sciences, Inc. (NASDAQ:GILD) is a biopharmaceutical company that develops medicines to prevent and treat serious diseases like HIV, viral hepatitis, COVID-19, and cancer.
9. Wells Fargo & Company (NYSE:WFC)
Forward P/E Ratio: 13.9
Number of Hedge Fund Holders: 75
Wells Fargo & Company (NYSE:WFC) is one of the Most Undervalued S&P 500 Stocks to Buy Right Now. On August 25, Wells Fargo & Company’s (NYSE:WFC) Wealth & Investment Management division announced partnering with InvestCloud to offer alternative investments within its Personalized Unified Managed Account program.
Management noted that alternative investment goes beyond stocks, bonds, and cash. It includes hedge funds, private equity, real estate, and other specialized assets. Management highlighted that adding these options will help clients diversify their portfolios more effectively.
The new offering lets advisors and clients hold both traditional and alternative investments in one account. Thereby, simplifies managing portfolios and enhances customization based on individual goals. Moreover, InvestCloud noted that this partnership brings innovative tools that strengthen client-advisor relationships.
Wells Fargo & Company (NYSE:WFC) is a financial services firm that offers banking, investment, mortgage, and lending products.
8. QUALCOMM Incorporated (NASDAQ:QCOM)
Forward P/E Ratio: 13.35
Number of Hedge Fund Holders: 76
QUALCOMM Incorporated (NASDAQ:QCOM) is one of the Most Undervalued S&P 500 Stocks to Buy Right Now. On August 26, QUALCOMM Incorporated (NASDAQ:QCOM) announced the Qualcomm Dragonwing Q-6690. It is the world’s first enterprise mobile processor with fully integrated UHF RFID capabilities.
Management highlighted that having fully integrated UHF RFID capabilities means that RFID technology is built into the chip itself, removing the need for separate RFID reader modules. In addition, the processor includes advanced wireless technologies like 5G, Wi-Fi 7, Bluetooth 6.0, and ultra-wideband. It also supports smart, proximity-aware experiences and global connectivity.
The processor is designed for varied devices, from rugged handhelds to retail point-of-sale systems and smart kiosks. Management believes that Dragonwing will be a key enabler in many use cases, including access control, asset tracking, inventory management, and product authentication.
QUALCOMM Incorporated (NASDAQ:QCOM) is a global leader in wireless technology. It designs and develops semiconductor chips and software for mobile devices, automotive, IoT, and networking.
7. Comcast Corporation (NASDAQ:CMCSA)
Forward P/E Ratio: 7.93
Number of Hedge Fund Holders: 82
Comcast Corporation (NASDAQ:CMCSA) is one of the Most Undervalued S&P 500 Stocks to Buy Right Now. On September 2, Comcast Corporation (NASDAQ:CMCSA) announced the official introduction of Xfinity Mobile Arena in Philadelphia.
The arena now features a major Wi-Fi upgrade with speeds 10 times faster than before. Management highlighted that this is the first East Coast arena that uses high-power Wi-Fi technology. Moreover, the upgrade supports thousands of devices at once. The arena also has strong 5G coverage throughout, ensuring fast service everywhere. Management noted that it has plans to extend the Wi-Fi to nearby parking lots, keeping fans connected from the tailgate through the game.
The arena was recently renovated with over $400 million in private funding. Comcast Corporation (NASDAQ:CMCSA), along with partners like the Flyers and 76ers, sees this upgrade as a way to improve fan experiences and create lasting memories.
Comcast Corporation (NASDAQ:CMCSA) is a global media and technology company that provides broadband, wireless, and video services through brands like Xfinity, Comcast Business, and Sky.
6. AT&T Inc. (NYSE:T)
Forward P/E Ratio: 14.16
Number of Hedge Fund Holders: 83
AT&T Inc. (NYSE:T) is one of the Most Undervalued S&P 500 Stocks to Buy Right Now. On August 26, Goldman Sachs analyst James Schneider maintained a Buy rating on AT&T Inc. (NYSE:T) with an associated price target of $32.
The rating comes after the company, on the same day, announced acquiring certain wireless spectrum licenses from EchoStar for approximately $23 billion. The analyst noted this acquisition to be a smart move, which will help the company grow in core mobile and fixed wireless areas. He noted that even though the license came at a high price, it strengthens the company’s position in the mobile market.
Schneider also highlighted AT&T Inc.’s (NYSE:T) focus on capital returns through share buybacks. In addition, he pointed out the importance of wireless net additions and fiber subscriber growth. He believes that these efforts are expected to boost investor confidence.
AT&T Inc. (NYSE:T) is a global telecommunications and technology company. It offers wireless and wireline services, including broadband, voice, and fiber connections.
5. Pfizer Inc. (NYSE:PFE)
Forward P/E Ratio: 8.13
Number of Hedge Fund Holders: 83
Pfizer Inc. (NYSE:PFE) is one of the Most Undervalued S&P 500 Stocks to Buy Right Now. On September 2, Pfizer Inc. (NYSE:PFE) announced a new trial collaboration with Olema Pharmaceuticals for metastatic breast cancer.
The study will test the safety and effectiveness of combining Olema’s drug Palazestrant with Pfizer’s investigational drug Atirmociclib. Both drugs target estrogen receptor-positive, HER2-negative metastatic breast cancer. Under the trial agreement, Pfizer Inc. (NYSE:PFE) will supply Atirmociclib, while Olema will lead the trial.
Both companies will jointly own data and inventions from the study; however, Olema keeps commercial rights for Palazestrant. This is Olema’s second trial with Pfizer Inc. (NYSE:PFE), following an earlier study with Pfizer’s palbociclib.
Pfizer Inc. (NYSE:PFE) is a global biopharmaceutical company that discovers, develops, manufactures, and markets medicines and vaccines for various diseases.
4. Merck & Co., Inc. (NYSE:MRK)
Forward P/E Ratio: 9.57
Number of Hedge Fund Holders: 92
Merck & Co., Inc. (NYSE:MRK) is one of the Most Undervalued S&P 500 Stocks to Buy Right Now. On August 26, Daina Graybosch from Leerink Partners maintained a Buy rating on Merck & Co., Inc. (NYSE:MRK) with a price target of $107.
The analyst noted promising clinical trial results as one of the key reasons behind the bullish sentiment. Graybosch noted HARMONi-A, which showed that combining ivonescimab with chemotherapy significantly improved overall survival compared to chemotherapy alone. The analyst believes that this highlights the potential of VEGF-A/PD-(L)1 drug class in treating some lung cancers.
Moreover, ivonescimab offers durable benefits through VEGF-A antagonism. This is important because, unlike similar drugs like bevacizumab, it may avoid common side effects, making it a better option.
Merck & Co., Inc. (NYSE:MRK) is a global health care company that develops and sells prescription medicines, vaccines, and animal health products.
3. Citigroup Inc. (NYSE:C)
Forward P/E Ratio: 12.44
Number of Hedge Fund Holders: 102
Citigroup Inc. (NYSE:C) is one of the Most Undervalued S&P 500 Stocks to Buy Right Now. On September 3, Citigroup Inc. (NYSE:C) announced that it has extended its partnership with SMRT as both companies mark 20 years of working together.
The joint effort began in 2006 with the launch of the Citi SMRT Credit Card, which was Singapore’s first to combine transit fare payments with credit card benefits. The card quickly became popular as it offered cashback on transport, groceries, and online shopping.
The partnership aims to make commuting in Singapore easier and more rewarding. Management of Citigroup Inc. (NYSE:C) noted that the public transport in Singapore increasingly uses credit cards for payments. Moreover, digital transactions via digital wallets linked to the Citi SMRT Card grew sevenfold from 2019 to 2024.
With the renewal, both companies have launched new benefits, and now new card benefits include a limited-time offer of up to S$400 cashback, 5% savings on spending in Malaysian Ringgit, and 20-cent food treats starting September 19.
Citigroup Inc. (NYSE:C) is a global financial services company that offers a wide range of banking, investment, and wealth management services.
2. Bank of America Corporation (NYSE:BAC)
Forward P/E Ratio: 13.73
Number of Hedge Fund Holders: 115
Bank of America Corporation (NYSE:BAC) is one of the Most Undervalued S&P 500 Stocks to Buy Right Now. On September 4, Bank of America Corporation’s (NYSE:BAC) Bank of America Private Bank and Merrill Wealth Management announced launching the Alts Expanded Access Program for ultra-high-net-worth clients. This new program is available to investors with a net worth of $50 million or more.
The program offers exclusive access to private market alternative investments. Management noted that these opportunities are usually reserved for institutional investors but are now being made available to select UHNW clients. The investments focus on emerging themes, niche strategies, and evolving sectors, providing more ways to diversify portfolios.
The program will be available in fall 2025 and is designed to complement the investment options available through Merrill’s and Bank of America Private Bank’s core Alternative Investments platform.
Bank of America Corporation (NYSE:BAC) is a major financial company that provides banking and investment services. It serves individuals, small businesses, and large corporations through its various segments.
1. Capital One Financial Corporation (NYSE:COF)
Forward P/E Ratio: 12.69
Number of Hedge Fund Holders: 132
Capital One Financial Corporation (NYSE:COF) is one of the Most Undervalued S&P 500 Stocks to Buy Right Now. Wall Street is bullish on Capital One Financial Corporation (NYSE:COF), despite the company missing the revenue consensus by $372.55 million in its fiscal second quarter of 2025. However, the EPS topped the consensus by $1.75, driven by solid core performance.
During the fiscal second quarter of 2025, Capital One Financial Corporation (NYSE:COF) reported a net loss of $4.3 billion compared to net income of $1.4 billion in the previous quarter and $597 million in the same quarter last year. Management attributed this loss to the one-time costs related to acquiring Discover, completed on May 18, 2025.
Several analysts have expressed their bullish sentiment on the stock since its earnings call release. Earlier on August 15, Mihir Bhatia from BoFA raised the firm’s price target from $244 to $245, while maintaining a Buy rating on the stock. Later, Terry Ma from Barclays also reiterated a Buy rating on the stock with a price target of $253 on August 18. Most recently, on August 26, John Hecht from Jefferies also reiterated a Buy rating on Capital One Financial Corporation (NYSE:COF) without disclosing any price target.
Capital One Financial Corporation (NYSE:COF) is a diversified financial services company. The company offers a wide range of financial products, including credit cards, banking services, auto loans, and commercial banking.
While we acknowledge the potential of COF 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 COF and that has 100x upside potential, check out our report about this cheapest AI stock.
READ NEXT: The Best and Worst Dow Stocks for the Next 12 Months and 10 Unstoppable Stocks That Could Double Your Money.
Disclosure: None. Insider Monkey focuses on uncovering the best investment ideas of hedge funds and insiders. Please subscribe to our free daily e-newsletter to get the latest investment ideas from hedge funds’ investor letters by entering your email address below.
