In this article, we will examine overlooked large-cap stocks with low multiples.
A couple of days ago, the brokerage firm Jefferies increased its 2025 target for the S&P 500 index to 6,600, from its earlier target of 5,600. According to a Reuters report dated August 25, it was the only one among the leading brokerages to have a target below 6,000. However, the reason for the higher target was unanimous – market sentiment has improved, earnings have been upbeat, and the U.S. economy is in much better shape.
In the report, Reuters quoted Jefferies analyst Desh Peramunetilleke, who highlighted that the robust performance by AI-exposed companies, the “Magnificent Seven,” and financials indicate that the macroeconomic environment remains resilient. As a strong argument, the report highlights that 80% of S&P 500 companies that have reported Q2 results by Friday, August 22, have exceeded street earnings expectations, as per data from LSEG. This was above the prior four-quarter average of 76.4%, thereby reinforcing the robustness of corporate earnings.
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In an interview with CNBC on August 27, Tom Lee, Head of Research at Fundstrat, reiterated his positive stance on equities despite recent market volatility. He said that investor concerns over Nvidia’s earnings track record are valid, but underscored the company’s pivotal role in what he described as a major structural transformation in the global economy. A weak reaction to results, he argued, would not alter the broader investment case for AI leaders.
Lee noted that anxiety has grown around artificial intelligence after a flood of capital inflows and rapid company growth, with some questioning whether valuations are already stretched. While he conceded that a small universe of investable AI stocks could fuel bubble-like dynamics, he stressed that the cycle is still in its early stages.
With this backdrop, let’s now turn to the 12 overlooked large-cap stocks with low multiples.
Our Methodology
To identify undervalued and overlooked large-cap stocks, we began by screening companies with market capitalizations between $10 billion and $200 billion that are trading at a price-to-earnings ratio of less than 15. From this pool, we selected 12 stocks that showed lower hedge fund interest compared to their industry peers, indicating they were under-the-radar. We then ranked these companies in ascending order based on the number of hedge funds holding positions, using data from Insider Monkey’s Q2 2025 hedge fund database.
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).
Note: All pricing data is as of market close on August 26, 2025.
12 Overlooked Large-Cap Stocks with Low Multiples
12. Plains All American Pipeline L.P. (NASDAQ:PAA)
Market Cap: $12.5 Billion
Fwd. P/E: 9.8
Number of Hedge Fund Holders: 8
Plains All American Pipeline L.P. (NASDAQ:PAA) is one of the most undervalued and overlooked large-cap stocks. Considering the volatile energy price environment, a recently released report by Scotiabank reflected both the opportunities in natural gas exposure and the financial discipline required to balance growth against cost inflation.
On August 14, Scotiabank’s analyst Brandon Bingham cut his price target on Plains All American Pipeline L.P. (NASDAQ:PAA) to $18 from $19, but still reiterated an Outperform rating. He noted that Q2 earnings across the U.S. Midstream sector produced mixed results, with basin-level production growth slowing in some areas.
Despite that backdrop, the analyst highlighted that gas-levered names such as Plains All American Pipeline L.P. (NASDAQ:PAA) could still benefit from the inherent characteristics of shale wells and hydrocarbon streams. The key question, however, is whether these gains can offset rising capital expenditures, which risk eroding cash flows.
The lower price target by the analyst signals a more cautious stance, but his Outperform rating suggests confidence in the positioning of Plains All American Pipeline L.P.’s (NASDAQ:PAA) within the sector. Although the analyst sentiment is mixed, the consensus price target still indicates nearly 17% potential upside.
Plains All American Pipeline L.P. (NASDAQ:PAA) is a U.S. midstream energy infrastructure company that specializes in the transportation, storage, and marketing of crude oil and natural gas liquids, with operations spanning key producing basins.
11. Venture Global Inc. (NYSE:VG)
Market Cap: $32.3 Billion
Fwd. P/E: 12.8
Number of Hedge Fund Holders: 22
Venture Global Inc. (NYSE:VG) is one of the most undervalued and overlooked large-cap stocks. Venture Global is the second-largest U.S. LNG exporter after Cheniere Energy. On August 25, UBS analyst Manav Gupta upgraded Venture Global Inc. (NYSE:VG) to a Buy rating from Neutral, maintaining his price target at $18.
Gupta highlighted the stronger-than-expected commissioning activity at the company’s Plaquemines facility, which he now projects at roughly 600 commissioning cargoes versus company guidance of 550. He estimates this could translate into nearly $1 billion of additional earnings potential, a figure not yet captured in consensus forecasts.
In his view, sustained operational momentum at Plaquemines should narrow Venture Global Inc.’s (NYSE: VG) valuation discount relative to its peers and reinforce confidence in its execution. The upgrade also reflects the analyst’s greater confidence in the company’s execution at Plaquemines and its ability to translate operational outperformance into stronger financial results.
Notably, on August 27, the stock was also upgraded to a Buy rating from Hold by Deutsche Bank analysts, who assigned a $17 price target.
Venture Global Inc. (NYSE:VG) is a U.S. liquefied natural gas (LNG) exporter with projects in Louisiana, including Calcasieu Pass and Plaquemines, which supply low-cost LNG to international energy markets.