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.
10. AngloGold Ashanti plc (NYSE:AU)
Market Cap: $27.7 Billion
Fwd. P/E: 12.2
Number of Hedge Fund Holders: 25
AngloGold Ashanti plc (NYSE:AU) is one of the most undervalued and overlooked large-cap stocks. On August 11, Scotiabank’s Tanya Jakusconek raised her price target on AngloGold Ashanti plc (NYSE:AU) to $55 from $53 while maintaining a Sector Perform rating. The revision followed Q2 results and updates across the gold and precious minerals sector.
The analyst cited progress at the company’s Nevada operations, delivery at Obuasi, and completion of the Augusta Gold transaction as key drivers of the updated model. AngloGold Ashanti plc’s (NYSE:AU) continued work on its full asset potential program, aimed at lowering costs, also supported the higher valuation.
In mid-July, the company announced the acquisition of Augusta Gold Corp. in an all-cash deal valued at approximately $111 million. The deal will not only consolidate the company’s footprint in the Beatty District but will also provide incremental mineral resources, ease access, and lead to improved infrastructure sharing. The deal is expected to close in Q4 2025.
AngloGold Ashanti plc (NYSE:AU) is a global gold producer based in South Africa, operating mines and projects across Africa, the Americas, and Australia.
9. Penske Automotive Group Inc. (NYSE:PAG)
Market Cap: $12.3 Billion
Fwd. P/E: 13.5
Number of Hedge Fund Holders: 26
Penske Automotive Group Inc. (NYSE:PAG) is one of the most undervalued and overlooked large-cap stocks. On August 19, Citi’s analyst Michael Ward reiterated a Buy rating on Penske Automotive Group Inc. (NYSE:PAG) with a $200 price target. He highlighted the stock’s pattern of sharp sell-offs and consistent rebounds following earnings, which he believes are a sign of resilience and investor confidence.
Ward emphasized Penske Automotive Group Inc.’s (NYSE:PAG) premium position within the Dealer Group, suggesting it stands out relative to peers. He also noted that the stock had recovered from July losses, which reinforced his positive outlook.
Penske Automotive Group Inc.’s (NYSE:PAG) consistent recovery after earnings-related weakness has strengthened the case for long-term investors. Corroborating that view, on August 14, an analyst from Morgan Stanley increased his price target on the stock to $190 from $180, while reiterating an Overweight rating. The analyst was encouraged by the stability in auto and consumer data, which bodes well for earnings into the second half for dealers.
Penske Automotive Group Inc. (NYSE:PAG) is an international transportation services company with automotive and commercial truck dealerships.
8. Smithfield Foods Inc. (NASDAQ:SFD)
Market Cap: $10.2 Billion
Fwd. P/E: 11.8
Number of Hedge Fund Holders: 27
Smithfield Foods Inc. (NASDAQ:SFD) is one of the most undervalued and overlooked large-cap stocks. On August 13, Morgan Stanley’s Megan Alexander raised her price target on Smithfield Foods Inc. (NASDAQ:SFD) to $30 from $29 while keeping a Buy rating. She noted that the company delivered strong Q2 results and lifted full-year guidance, though she views management’s assumptions as conservative, particularly in hog production.
Alexander pointed to futures market trends suggesting higher profitability than Smithfield Foods Inc.’s (NASDAQ:SFD) guidance implies. She also highlighted the company’s ability to sustain packaged meats margins despite raw material volatility, underscoring its resilience.
With management’s constructive outlook on hog prices and disciplined execution, Smithfield Foods Inc. (NASDAQ: SFD) offers potential for re-rating closer to its industry peers. Morgan Stanley sees room for earnings growth and valuation upside if momentum continues.
Smithfield Foods Inc. (NASDAQ:SFD) is the world’s largest pork processor and hog producer, supplying packaged meats and fresh pork products. The company operates across the U.S., Europe, and Mexico.
7. Royalty Pharma plc (NASDAQ:RPRX)
Market Cap: $21.3 Billion
Fwd. P/E: 11.9
Number of Hedge Fund Holders: 30
Royalty Pharma plc (NASDAQ:RPRX) is one of the most undervalued and overlooked large-cap stocks. On August 25, Royalty Pharma plc (NASDAQ:RPRX) said it bought royalty rights to Amgen’s cancer drug ‘Imdeltra’ from BeOne Medicines for $885 million. Imdeltra is a treatment that works by directing the body’s immune T-cells to attack cancer cells through a target called DLL3. The deal also allows BeOne to sell additional royalties of up to $65 million within 12 months, bringing the potential transaction value to $950 million.
The royalty covers approximately 7% of global net sales and extends through 2038 to 2041, with BeOne retaining the commercial rights in China. Imdelltra represents a novel therapy for small-cell lung cancer, a disease with limited treatment options.
On the deal, Royalty Pharma plc (NASDAQ:RPRX) CEO Pablo Legorreta stated:
“Imdelltra is reshaping the treatment paradigm for patients with small cell lung cancer, a highly aggressive disease with few treatment options. Today’s transaction is consistent with our strategy of acquiring royalties on highly transformative products in life sciences. Imdelltra is expected to further enhance Royalty Pharma’s long-term growth and portfolio diversification, and we remain incredibly excited given our robust transaction pipeline.”
Royalty Pharma plc (NASDAQ:RPRX) acquires royalty interests in biopharmaceutical products, building a diversified portfolio across multiple therapeutic areas.
6. Baxter International Inc. (NYSE:BAX)
Market Cap: $12.6 Billion
Fwd. P/E: 10.0
Number of Hedge Fund Holders: 31
Baxter International Inc. (NYSE:BAX) is one of the most undervalued and overlooked large-cap stocks. On August 4, a Barclays analyst lowered his price target on Baxter International Inc. (NYSE:BAX) to $36 from $41, while maintaining an Overweight rating. The cut followed a sharp 24% decline in the stock after Q2 results, driven by the pause of its Novum pump program and reduced 2025 outlook.
The analyst argued that the sell-off was “significantly overdone” and sees current levels as an attractive entry point. Despite mixed Q2 results, Baxter International Inc. (NYSE:BAX) still expects 2025 operational sales growth of 3%-4%, down from 4%-5%, with EPS guidance narrowed to $2.42-$2.52 from $2.47-$2.55.
The analyst believes that investor concerns about pump delays and execution risks are overly discounted in the stock price. This, according to him, creates an opportunity for value-oriented investors willing to look past near-term uncertainty.
Baxter International Inc. (NYSE:BAX) is a healthcare company offering products in infusion systems, renal therapies, and surgical equipment, serving hospitals and clinics worldwide.
5. NetApp Inc. (NASDAQ:NTAP)
Market Cap: $22.2 Billion
Fwd. P/E: 14.2
Number of Hedge Fund Holders: 31
NetApp Inc. (NASDAQ:NTAP) is one of the most undervalued and overlooked large-cap stocks. On August 27, William Blair’s Jason Ader maintained a Hold rating on NetApp (NTAP) without assigning a price target. His neutral stance reflects the company’s mixed Q1 FY 2026 (FY ends in April) performance and its decision to reaffirm full-year guidance.
In its results announced on August 27, quarterly revenue rose modestly on a currency-adjusted basis, but earnings per share came in below expectations. Ader pointed to weaker product gross margins, driven by an unfavorable mix, as a key drag on profitability. Even so, NetApp reported solid enterprise demand in the Americas and stronger contributions from higher-margin services, which supported improvements in operating margin.
Looking ahead, second-quarter guidance was slightly above expectations, though management’s full-year revenue outlook remains conservative and trails consensus forecasts. The combination of stronger service momentum and lingering pressure on product margins leads Ader to maintain a balanced view.
Earlier, on August 25, a Bank of America analyst had raised his price target on NetApp Inc. (NASDAQ:NTAP) to $125 from $121, while maintaining a Neutral rating. The analyst expected fiscal Q1 results to come in at the upper half of guidance and anticipated Q2 guidance above street consensus, driven by strength in storage demand.
NetApp Inc. (NASDAQ:NTAP) provides cloud-led data services and enterprise storage solutions, helping organizations manage, protect, and modernize their data across hybrid and multi-cloud environments.
4. TD SYNNEX Corporation (NYSE:SNX)
Market Cap: $12.4 Billion
Fwd. P/E: 11.0
Number of Hedge Fund Holders: 36
TD SYNNEX Corporation (NYSE:SNX) is one of the most undervalued and overlooked large-cap stocks. On August 21, David Paige, an analyst from RBC Capital, raised his price target on TD SYNNEX Corporation (NYSE:SNX) to $165 from $145 while maintaining an Outperform rating. The update comes ahead of Q3 results, where RBC expects strength across multiple segments.
The analyst highlighted benefits from the ongoing PC refresh cycle, modest networking growth, and stronger Hyve performance tied to AI infrastructure investments. He also expects a focus on profitable growth to offset ES/AS mix headwinds and recent investments in Hyve capabilities.
With multiple drivers in play, Paige anticipates TD SYNNEX Corporation (NYSE:SNX) will top estimates and raise guidance, providing further support for the Outperform rating and a higher target.
TD SYNNEX Corporation (NYSE:SNX) is a global IT distributor that delivers technology products, logistics, and cloud services to resellers and enterprises.
3. Fox Corporation (NASDAQ:FOX)
Market Cap: $25.3 Billion
Fwd. P/E: 13.1
Number of Hedge Fund Holders: 36
Fox Corporation (NASDAQ:FOX) is one of the most undervalued and overlooked large-cap stocks. On August 7, Bank of America’s Jessica Reif Ehrlich reiterated a Buy rating on Fox Corporation (NASDAQ:FOX) with a $65 price target. She noted that Q4 results exceeded expectations in both revenue and EBITDA, with revenue up 6.5% year over year and EBITDA climbing 21%.
According to the analyst, the upside drivers included stronger-than-expected affiliate and advertising revenue, as well as margin expansion. Adjusted EPS and free cash flow also came in above consensus, reinforcing Fox Corporation’s (NASDAQ:FOX) financial strength.
Although questions remain around upcoming digital investments, Ehrlich emphasized Fox Corporation’s (NASDAQ:FOX) core strength in sports and news, which are segments less exposed to volatility in entertainment advertising. She also pointed to the company’s $5 billion buyback program and recent dividend increase as clear signs of management’s confidence in long-term performance, reinforcing her positive outlook.
Fox Corporation (NASDAQ:FOX) is a U.S.-based media company with leading assets in news, sports, and entertainment, including FOX News, FOX Sports, and FOX Television Stations.
2. Molson Coors Beverage Company (NYSE:TAP)
Market Cap: $10.4 Billion
Fwd. P/E: 8.9
Number of Hedge Fund Holders: 37
Molson Coors Beverage Company (NYSE:TAP) is one of the most undervalued and overlooked large-cap stocks. On August 11, Citi’s Filippo Falorni reiterated a Hold rating on Molson Coors Beverage Company (NYSE:TAP) with an unchanged price target of $51. He pointed to persistent challenges in the U.S. beer market, where management expects further declines in category trends and continued share losses.
According to the analyst, higher Midwest premium prices are adding cost pressure, which could squeeze margins in the second half of FY 2025. Despite these headwinds, Molson Coors Beverage Company (NYSE:TAP) is investing in marketing measures and has seen some good brand momentum, though not enough to shift the overall cautious stance.
Earlier, on August 7, an analyst at Roth Capital reiterated his Buy rating, though lowered his price target to $67 from $71. The analyst highlighted Molson Coors Beverage Company’s (NYSE:TAP) Q2 sales and earnings beat but flagged inconsistency between guidance cuts and recent volume improvements.
Both perspectives reflect a divided view of the stock, resulting in a mixed sentiment.
Molson Coors Beverage Company (NYSE:TAP) is a multinational brewer that produces well-known beer brands, including Coors, Miller, and Molson, with operations in North America, Europe, and select international markets.
1. Solventum Corporation (NYSE:SOLV)
Market Cap: $12.7 Billion
Fwd. P/E: 12.4
Number of Hedge Fund Holders: 37
Solventum Corporation (NYSE:SOLV) is one of the most undervalued and overlooked large-cap stocks. On August 8, analysts from Piper Sandler raised their price target on Solventum Corporation (NYSE:SOLV) to $94 from $87, while maintaining an Overweight rating. The adjustment followed Q2 results that showed revenue of $2.16 billion, up 2.8% organically, and EPS of $1.69, both ahead of consensus.
The analysts observed that Solventum Corporation (NYSE:SOLV) is steadily building a record of reliable execution, a key factor behind its recent upgrade. The latest quarterly results strengthened that view, as performance came in ahead of expectations and reinforced confidence in management’s ability to meet its guidance.
Earlier on August 8, Stifel Nicolaus analyst Rick Wise reaffirmed his confidence in Solventum Corporation (NYSE:SOLV) with a Buy rating and an unchanged price target of $88.
Solventum Corporation (NYSE:SOLV) develops healthcare products, including health information systems, purification and filtration technologies, and consumables.
While we acknowledge the potential of SOLV as an investment, 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 SOLV and that has 100x upside potential, check out our report about this cheapest AI stock.
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