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.
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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.
11. Petróleo Brasileiro – Petrobras (NYSE:PBR)
Forward P/E Ratio as of July 4: 4.62
Market Capitalization as of July 4: $31.51 billion
Number of Hedge Fund Holders: 33
Average Upside Potential as of July 4: 18.68%
Petróleo Brasileiro – Petrobras (NYSE:PBR) is one of the most undervalued large cap stocks to buy according to analysts. It was announced on July 4 that Petrobras is set to invest ~33 billion reais (~$6 billion) in refining and petrochemical projects in Rio de Janeiro, as part of its 2025-2029 Business Plan.
Of this total, 29 billion reais will come directly from Petrobras’s CapEx, with an additional 4 billion reais allocated to a synergistic project with its assets. Service packages for these initiatives are currently in the bidding phase. An estimated 26 billion reais from this investment is dedicated to integrating the Boaventura Energy Complex and the Reduc refinery in Rio de Janeiro.
The integration will boost production capacities, which include an increase of 76,000 barrels per day (bpd) in S-10 diesel output, with 56,000 bpd from quality improvements and 20,000 bpd from additional capacity. Furthermore, jet fuel production capacity is expected to rise by 20,000 bpd, and Group II lubricating oil production by 12,000 bpd.
Petróleo Brasileiro – Petrobras (NYSE:PBR) explores, produces, and sells oil & gas in Brazil and internationally.
10. Reinsurance Group of America Incorporated (NYSE:RGA)
Forward P/E Ratio as of July 4: 8.59
Market Capitalization as of July 4: $13.07 billion
Number of Hedge Fund Holders: 39
Average Upside Potential as of July 4: 21.09%
Reinsurance Group of America Incorporated (NYSE:RGA) is one of the most undervalued large cap stocks to buy according to analysts. On June 10, a new report titled “Retirement Readiness in Japan: Financial Security and Risk Perceptions” was released by the Society of Actuaries/SOA Research Institute in collaboration with Reinsurance Group of America.
The report is based on a November 2024 survey of 750 Japanese respondents and shows challenges in a rapidly aging society where ~29% of the population is aged 65 or older. Key findings show limited financial literacy, with 17% reporting no knowledge of investment products and 42% having limited knowledge. There’s a visible gap in planning, as 37% of Prime Age Workers and 45% of Pre-Retirees haven’t done any retirement planning.
Concerns about external factors like tax increases and the impact of an aging society dominate for 90% of respondents. Many anticipate relying on full- or part-time work for retirement income and lack confidence in their savings. Still, there’s growing interest in guaranteed or fixed-income products and annuities. Engagement in retirement planning has improved since 2018, with the willingness to buy lifetime income products increasing from 22% to 35% by 2024, and active management of savings rising from 21% to 50%.
Reinsurance Group of America Incorporated (NYSE:RGA) provides reinsurance and financial solutions.
9. United Airlines Holdings Inc. (NASDAQ:UAL)
Forward P/E Ratio as of July 4: 8.47
Market Capitalization as of July 4: $26.90 billion
Number of Hedge Fund Holders: 67
Average Upside Potential as of July 4: 21.52%
United Airlines Holdings Inc. (NASDAQ:UAL) is one of the most undervalued large cap stocks to buy according to analysts. On June 25, United Airlines officially launched new and personalized mobile app features to simplify connecting flights, especially for the over 20 million United customers with connecting flights booked this summer.
The exclusive features are available for connections at United’s US hub airports and build upon the airline’s existing ConnectionSaver technology. The new app section provides customers with a countdown to their connecting flight, customized turn-by-turn directions to the connecting gate with estimated walk times, real-time flight status updates, and tips for longer layovers.
The app will also notify customers if United’s AI-powered ConnectionSaver has activated to hold their plane for a tight connection. ConnectionSaver was launched earlier in 2019 and has already saved over 3.3 million customer connections by identifying flights that can be held without delaying other passengers. During a spring beta test phase, 350,000+ customers used the new features and achieved a 98% success rate in making their connections.
United Airlines Holdings Inc. (NASDAQ:UAL) provides air transportation services in the US, Canada, the Atlantic, the Pacific, and Latin America.
8. ConocoPhillips (NYSE:COP)
Forward P/E Ratio as of July 4: 13.7
Market Capitalization as of July 4: $118.26 billion
Number of Hedge Fund Holders: 70
Average Upside Potential as of July 4: 22.76%
ConocoPhillips (NYSE:COP) is one of the most undervalued large cap stocks to buy according to analysts. On June 20, ConocoPhillips confirmed an oil discovery at the Slagugle prospect in the Norwegian Sea. This follows the drilling of a second appraisal well, 6507/5-12 S, under production license 891, where ConocoPhillips holds an 80% operating interest and Pandion Energy holds the remaining 20%.
The well is located ~22 kilometers northeast of the Heidrun field and 270 kilometers north of Kristiansund. The Slagugle oil discovery was initially proven in 2020, with preliminary estimates placing resources in the range of 30.8 million to 61.6 million barrels of oil equivalent (mboe) within Triassic reservoir rocks. The recent appraisal well, the third exploration well in this license (awarded in 2016), aimed to delineate the discovery and assess reservoir properties.
Drilled by the Deepsea Yantai rig in 341 meters of water, the well encountered a substantial 188-meter oil-bearing interval within the Åre Formation and Grey Beds, with 75 meters exhibiting very good sandstone reservoir properties. A successful formation test recorded a maximum production rate of 650 standard cubic meters of oil per flow day. Despite a dry well attempt to delineate the discovery in 2022, the latest appraisal has yielded encouraging results.
ConocoPhillips (NYSE:COP) explores for, produces, transports, and markets crude oil, bitumen, natural gas, liquefied natural gas/LNG, and natural gas liquids.
7. AbbVie Inc. (NYSE:ABBV)
Forward P/E Ratio as of July 4: 8.9
Market Capitalization as of July 4: $19.47 billion
Number of Hedge Fund Holders: 52
Average Upside Potential as of July 4: 24.18%
AbbVie Inc. (NYSE:ABBV) is one of the most undervalued large cap stocks to buy according to analysts. On June 30, AbbVie announced its intention to acquire Capstan Therapeutics in a deal valued at up to $2.1 billion in cash. The acquisition will expand AbbVie’s product pipeline, particularly in experimental treatments for autoimmune diseases.
Capstan Therapeutics Inc. is a clinical-stage biotechnology company that specializes in developing CAR-T therapies. These therapies use a patient’s immune cells, specifically T-cells, to combat diseases. The lead asset is CPTX2309, which is currently in early-stage (Phase 1) clinical development for B-cell-mediated autoimmune diseases.
AbbVie will also acquire Capstan’s CellSeeker tLNP platform technology, which is designed to deliver RNA payloads, such as mRNA, to engineer cell types in vivo. AbbVie is already projected to make over $31 billion in sales by 2027 with its autoimmune drugs Skyrizi and Rinvoq combined.
AbbVie Inc. (NYSE:ABBV) is a research-based biopharmaceutical company that researches, develops, manufactures, commercializes, and sells medicines and therapies worldwide.
6. Yum China Holdings Inc. (NYSE:YUMC)
Forward P/E Ratio as of July 4: 18.18
Market Capitalization as of July 4: $17.08 billion
Number of Hedge Fund Holders: 31
Average Upside Potential as of July 4: 24.56%
Yum China Holdings Inc. (NYSE:YUMC) is one of the most undervalued large cap stocks to buy according to analysts. On June 20, Yum China commenced a pilot program for Q-Smart, which is an AI-enabled assistant designed for enhanced restaurant management. The tool is currently undergoing trials at select KFC outlets.
Q-Smart offers support for daily operational tasks, like inventory management and labor scheduling. The system uses natural language processing to enable direct voice commands and facilitates hands-free interactions through wearable devices like wireless earphones and smartwatches.
The Q-Smart launch was unveiled at Yum China’s first-ever AI Day event in Shanghai on the said date. During the event, the CEO of the company, Joey Wat, announced the establishment of a 100 million yuan (~$13.9 million) Frontline Innovation Fund, which aims to support frontline restaurant employees and fuel technological innovation, like making the “All-Staff Hackathon,” launched in March this year with ~200 participating teams.
Yum China Holdings Inc. (NYSE:YUMC) owns, operates, and franchises restaurants in China.
5. Thermo Fisher Scientific Inc. (NYSE:TMO)
Forward P/E Ratio as of July 4: 19.16
Market Capitalization as of July 4: $162.07 billion
Number of Hedge Fund Holders: 101
Average Upside Potential as of July 4: 29.27%
Thermo Fisher Scientific Inc. (NYSE:TMO) is one of the most undervalued large cap stocks to buy according to analysts. On July 3, Thermo Fisher Scientific announced that its Oncomine Dx Express Test, running on the Ion Torrent Genexus Dx Integrated Sequencer, has received approval from the US FDA.
The approval positions the test as an in vitro diagnostic/IVD assay for use as a companion diagnostic (CDx) for Dizal’s ZEGFROVY (sunvozertinib) and general tumor profiling. The FDA approval enhances Thermo Fisher’s precision oncology portfolio by enabling rapid next-gen sequencing/NGS in decentralized clinical settings.
The Oncomine Dx Express Test is capable of generating essential genomic insights in as little as 24 hours and is specifically intended as a companion diagnostic for ZEGFROVY (sunvozertinib), which is a targeted therapy from Dizal, to identify patients with non-small cell lung cancer//NSCLC harboring EGFR exon 20 insertion mutations. It has been approved for tumor profiling in solid tumors, detecting cancer mutations with evidence of clinical significance across 46 genes.
Thermo Fisher Scientific Inc. (NYSE:TMO) provides life sciences solutions, analytical instruments, specialty diagnostics, laboratory products, and biopharma services internationally.
4. Trip.com Group Limited (NASDAQ:TCOM)
Forward P/E Ratio as of July 4: 16.47
Market Capitalization as of July 4: $38.37 billion
Number of Hedge Fund Holders: 46
Average Upside Potential as of July 4: 29.28%
Trip.com Group Limited (NASDAQ:TCOM) is one of the most undervalued large cap stocks to buy according to analysts. On July 1, Trip.com Group released its latest Sustainability Report detailing progress in fostering a greener and more inclusive global travel ecosystem.
In its commitment to sustainable travel, Trip.com Group launched a new feature that provides quantified carbon emissions data for all major transportation services. In 2024 alone, the Group encouraged over 100 million orders on more sustainable travel products. Furthermore, solar panel installations at its headquarters and rural retreats generated 457 MWh of clean electricity, offsetting 245+ tons of CO2 emissions. The company also increased its use of green electricity in leased data centers to 42.6%.
The Group’s Country Retreat Programme continued to contribute to rural development, expanding to 34 sites and generating 40,000+ indirect job opportunities. Over 80% of employees at these retreats are local residents. Notably, as of July this year, women constitute 57.1% of Trip.com Group’s global workforce.
Trip.com Group Limited (NASDAQ:TCOM) is a travel service provider for accommodation reservation, transportation ticketing, packaged tours, and other travel-related services in China and internationally.
3. Teva Pharmaceutical (NYSE:TEVA)
Forward P/E Ratio as of July 4: 6.54
Market Capitalization as of July 4: $19.51 billion
Number of Hedge Fund Holders: 64
Average Upside Potential as of July 4: 35.14%
Teva Pharmaceutical (NYSE:TEVA) is one of the most undervalued large cap stocks to buy according to analysts. On June 24, Teva Pharmaceutical announced the final analysis results from its PEARL Phase IV migraine prevention trial for Ajovy (fremanezumab), which is an anti-calcitonin gene-related peptide (CGRP) monoclonal antibody.
The study included individuals with both chronic and episodic migraine and confirmed the achievement of its primary and secondary endpoints. The final data demonstrated that over 66% of EM patients and 51.6% of CM patients who met the primary goal within the initial 6 months continued to experience significant benefits in migraine prevention for more than 24 months.
Furthermore, the trial observed high injection adherence rates, nearing 90%, throughout the study duration, with over 75% of subjects completing the full 24-month study. The long-term tolerability and safety profile of fremanezumab remained consistent with previous interim analyses and randomized controlled studies.
Teva Pharmaceutical (NYSE:TEVA) develops, manufactures, markets, and distributes generic and other medicines and biopharmaceutical products in the US, Europe, Israel, and internationally.
2. Regeneron Pharmaceuticals Inc. (NASDAQ:REGN)
Forward P/E Ratio as of July 4: 15.46
Market Capitalization as of July 4: $59.10 billion
Number of Hedge Fund Holders: 66
Average Upside Potential as of July 4: 37.02%
Regeneron Pharmaceuticals Inc. (NASDAQ:REGN) is one of the most undervalued large cap stocks to buy according to analysts. On July 2, the US FDA) granted accelerate approval to Regeneron Pharmaceuticals’s linvoseltamab-gcpt, which is marketed under the brand name Lynozyfic.
This bispecific B-cell maturation antigen (BCMA)-directed CD3 T-cell engager is approved for the treatment of adult patients with relapsed or refractory (R/R) multiple myeloma (MM) who have received at least 4 prior lines of therapy, including a proteasome inhibitor, which is an immunomodulatory agent, and an anti-CD38 monoclonal antibody.
The accelerated approval for Lynozyfic was based on positive results from the Phase 1/2 LINKER-MM1 trial. In the efficacy population of 80 patients who had received at least four prior lines of therapy, Lynozyfic demonstrated an objective response rate of 70% and a complete response rate of 45%. The FDA had previously issued a Complete Response Letter (CRL) for linvoseltamab due to findings from a pre-approval inspection at a third-party fill/finish manufacturer.
Regeneron Pharmaceuticals Inc. (NASDAQ:REGN) discovers, invents, develops, manufactures, and commercializes medicines for treating various diseases worldwide.
1. PG&E Corporation (NYSE:PCG)
Forward P/E Ratio as of July 4: 9.28
Market Capitalization as of July 4: $30.57billion
Number of Hedge Fund Holders: 76
Average Upside Potential as of July 4: 50.97%
PG&E Corporation (NYSE:PCG) is one of the most undervalued large cap stocks to buy according to analysts. On July 1, PG&E announced a commitment of $50 million towards new and existing financial assistance programs for helping eligible customers manage past-due energy bills. The initiative includes the launch of the new PG&E Match My Payment Program and continued support through the existing PG&E Relief for Energy Assistance through Community Help/REACH program.
The new PG&E Match My Payment Program offers a dollar-for-dollar match, up to $1,000, for qualifying low-to-moderate-income customers to pay down their outstanding balances and prevent service disconnections. Customers can receive matching payments for multiple bill payments throughout the year, up to the $1,000 maximum, and the program is scheduled to run until December 31 this year.
To be eligible, customers must have a minimum past-due balance of $100 and pay at least $50 towards it each time to receive matching funds. Eligibility is based on federal income guidelines, with a family of four making less than $128,600 annually potentially qualifying, which is an increase from the $62,400 limit for the same family size under the REACH program. PG&E estimates that ~400,000 customers may qualify for this program, with funding distributed on a first-come, first-served basis.
PG&E Corporation (NYSE:PCG), through its subsidiary, Pacific Gas and Electric Company, sells and delivers electricity and natural gas to customers in northern and central California, the US.
While we acknowledge the potential of PCG 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 PCG and that has 100x upside potential, check out our report about this cheapest AI stock.
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