On July 3, Ben Preston, Portfolio Manager at Orbis Investments, appeared on CNBC to suggest that investors look past the constant political headlines and market volatility and find undervalued global stocks outside US mega-cap tech. Preston stated that while some opportunities existed in the US market, investors had excessively channeled their attention and capital into a small group of mega-cap US tech stocks. This herding behavior has led to many other assets becoming undervalued. Consequently, he was finding opportunities not only in the US but also in international markets such as Brazil, Korea, and even the UK.
Preston also suggested that opportunities existed in almost all sectors within these geographies, whether someone chose to look into technology, industrial, financial, or the healthcare sector. He believes that instead of paying a high multiple for a company in the MAG7, investors should be looking into the stock exchanges in other geographies. Preston advised being aware of the current situation, given the US position on tariffs and the prevalence of trade agreements, but at the same time cautioned against becoming too obsessed with it. He argued that opportunities exist regardless of tariff developments.
That being said, we’re here with a list of the 13 most undervalued large cap stocks to buy according to analysts.
An investor with a portfolio of stocks, highlighting the importance of diversified indexing investment approach.
Methodology
We sifted through the Finviz stock screener to compile a list of the top undervalued large-cap stocks that had a forward P/E ratio under 20 and were trading between $10 billion and $200 billion. We then selected the 13 stocks with an upside potential of over 15%. The stocks are ranked in ascending order of their upside potential. We have also added the hedge fund sentiment for each stock, as of Q1 2025.
Note: All data was collected on July 4.
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).
13 Most Undervalued Large Cap Stocks to Buy According to Analysts
13. Rio Tinto Group (NYSE:RIO)
Forward P/E Ratio as of July 4: 8.83
Market Capitalization as of July 4: $74.00 billion
Number of Hedge Fund Holders: 36
Average Upside Potential as of July 4: 15.64%
Rio Tinto Group (NYSE:RIO) is one of the most undervalued large cap stocks to buy according to analysts. On July 3, NRW Holdings’ subsidiary, called NRW Civil & Mining, secured an A$167 million (~ $109 million) contract from Rio Tinto. The contract is for work at the Brockman Syncline 1 mine development, which is located within the Brockman mine hub in the Pilbara region of Western Australia.
The scope of work for NRW includes significant civil construction. This includes earthworks, roadworks, and drainage specifically for the primary crusher, overland conveyor, and non-process infrastructure. Additionally, NRW will construct haul roads, access roads, and concrete structures. The project also involves drill and blast operations, as well as the supply and construction of a mechanically stabilized earth ROM (Run-of-Mine) wall, two precast concrete overpass tunnels, and in-situ concrete foundations for the primary crusher.
The contract is set to commence this July and is expected to require a peak workforce of 300+ personnel. The Brockman Syncline 1 project is located near other NRW construction sites, which include the Brockman 4 to Brockman 2 Haul Road contract and the recently completed Western Turner Northern Access Road.
Rio Tinto Group (NYSE:RIO) explores, mines, and processes mineral resources worldwide. NRW Holdings Limited provides diversified contract services to the resources and infrastructure sectors in Australia.
12. Humana Inc. (NYSE:HUM)
Forward P/E Ratio as of July 4: 15.29
Market Capitalization as of July 4: $28.93 billion
Number of Hedge Fund Holders: 73
Average Upside Potential as of July 4: 18.49%
Humana Inc. (NYSE:HUM) is one of the most undervalued large cap stocks to buy according to analysts. On July 2, Humana expanded its Medicaid offerings by introducing Humana Healthy Horizons in Virginia, which is a new Medicaid plan available to Virginians under the state’s Cardinal Care program. The initiative shows Humana’s focus on growing its presence in the Medicaid sector.
Humana Healthy Horizons is now one of five plan administrators selected by Cardinal Care as part of a statewide Medicaid managed care procurement. As part of its commitment to the community, Humana plans to invest an additional $2 million over the next 5 years into the Virginia Health Care Foundation/VHCF. This follows an initial $500,000 investment for expanding Virginia’s behavioral health workforce.
Humana Healthy Horizons manages Medicaid benefits for ~1.5 million members nationally and emphasizes a whole-person approach to healthcare. The approach integrates physical health, behavioral health, pharmacy, long-term care, and social services to improve the health and well-being of its members and the communities it serves.
Humana Inc. (NYSE:HUM) provides medical and specialty insurance products in the US.
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