In this article, we will look at the 13 Most Undervalued Long-Term Stocks to Buy According to Analysts.
On March 4, Tom Lee from Fundstrat appeared on a CNBC television interview to discuss market conditions amid geopolitical tensions. Lee noted that there is no doubt that there have been scary headlines all around, as no one wants to see the US in a conflict. However, the markets have been much more resilient than expected, considering the headlines. Lee highlighted that the markets are bottoming, but more importantly, this has provided a reset, suggesting that there will be numerous opportunities once we move past this phase.
He highlighted that some of the signs of the market reaching a bottom include VIX making a spike over 40, continued gold sell-off, and the market turning green. Lee believes that it seems we are close to a rebound. He pointed out that the Mag Seven and software have been through most of their declines and are expected to outperform, mainly because they are considered safe havens amid tensions, and secondly, because of AI.
With that, let’s take a look at the 13 Most Undervalued Long-Term Stocks to Buy According to Analysts.
Our Methodology
We sifted through reputable financial media to identify stocks that are trading below a forward P/E of 15, and limited our final selection to companies that have recently reported noteworthy developments likely to impact investor sentiment. These stocks are also popular among analysts and elite hedge funds.
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 498.7% since May 2014, beating its benchmark by 303 percentage points (see more details here).
13 Most Undervalued Long-Term Stocks to Buy According to Analysts
13. JPMorgan Chase & Co. (NYSE:JPM)
JPMorgan Chase & Co. (NYSE:JPM) is one of the Most Undervalued Long Term Stocks to Buy According to Analysts. On March 11, Financial Times reported that JPMorgan Chase & Co. (NYSE:JPM) is tightening lending to private credit funds by marking down the value of certain loans used as collateral.
The tightening is mainly for software companies vulnerable to AI disruption. This precautionary move limits borrowing capacity without triggering margin calls and reflects broader caution amid private credit market volatility.
According to the report, JPMorgan views software firms as high-risk due to the onset of AI.
Jamie Dimon, JPMorgan’s chief executive, noted being more prudent with such assets. Moreover, Executive Troy Rohrbaugh noted that the bank is being more conservative compared to its peers as it uses individual analysis, macro factors, and public proxies for valuations, revaluing proactively rather than waiting for crises. Following the release, Private credit stocks fell sharply as Ares declined 5.2%, KKR -2.7%, Blackstone -2.1%, and Apollo -2%.
JPMorgan Chase & Co. (NYSE:JPM) is a New York-based financial services company operating through three segments: Consumer & Community Banking, Commercial & Investment Banking, and Asset & Wealth Management.
12. Bank of America Corporation (NYSE:BAC)
Bank of America Corporation (NYSE:BAC) is one of the Most Undervalued Long Term Stocks to Buy According to Analysts. On March 10, Bank of America Corporation (NYSE:BAC) presented at the RBC Capital Markets Global Financial Institutions Conference. At the conference, Co-President Dean Athanasia noted the bank’s strategic priorities, robust financial performance, and optimistic outlook amid market volatility.
Management highlighted that consumer spending remains strong at 5% to 6% year-over-year growth, especially in entertainment and travel, supporting a K-shaped economy where higher-income groups show faster wage and spending gains. Bank of America Corporation (NYSE:BAC) noted that its wealth management oversees $5.5 trillion in assets under management, and the bank targets 4% to 5% medium-term net new asset growth. This is complemented by $600 billion in workplace benefits for 24,000 corporate clients.
Notably, the bank spends $13 billion on technology annually, including $4 billion for new initiatives. These new initiatives include AI tools like the Erica assistant, handling over 3 billion transactions. Looking ahead, management expects Basel III Endgame proposals soon, which are expected to potentially ease capital requirements. Lastly, the bank is focused on maintaining a CET1 ratio of 11.4%.
Bank of America Corporation (NYSE:BAC) delivers financial solutions to individuals, small and mid-sized enterprises, large institutions, and governments. It has a global presence with expertise in consumer banking, wealth & investment management, and capital markets. The company offers a range of financial products & services across its four broad segments.
11. Toyota Motor Corporation (NYSE:TM)
Toyota Motor Corporation (NYSE:TM) is one of the Most Undervalued Long Term Stocks to Buy According to Analysts. On March 11, Reuters reported that Toyota Motor Corporation (NYSE:TM) is recalling 550,007 vehicles in the United States over faulty seat-back issues, which may cause the seat lock failure.
The National Highway Traffic Safety Administration (NHTSA) noted that this issue increases the risk of injury. According to the report, the recalled vehicles include 2021 to 2024 Highlander and Highlander Hybrid vehicles. These models are facing issues where the second‑row seat backs may not lock into place during adjustment.
The share price of Toyota Motor Corporation (NYSE:TM) has slipped more than 4% following the release (as of 13 Mar, 4:07 pm GMT-4).
Toyota Motor Corporation (NYSE:TM) is a leading Japanese automaker that primarily designs, manufactures, and sells a wide range of vehicles, including sedans, SUVs, trucks, and minivans, along with parts and accessories.
10. Wells Fargo & Company (NYSE:WFC)
Wells Fargo & Company (NYSE:WFC) is one of the Most Undervalued Long Term Stocks to Buy According to Analysts. On March 6, Evercore ISI reiterated a Buy rating on Wells Fargo & Company (NYSE:WFC) but lowered the price target from $105 to $98.
The rating is based on the firm’s meeting with the management in San Francisco. Evercore noted that it came back confident regarding general fundamental trends, with the exception of some headwinds and an increasingly uneasy landscape.
The firm noted that Wells Fargo reaffirmed its core financial outlook amid macroeconomic headwinds, including the Iran conflict, AI uncertainties, and broader economic volatility. Management highlighted no material shifts in net interest income, loan/deposit growth, or expenses.
Moreover, the company described AI as a fast-evolving factor sparking investor concerns but not yet posing significant risks to deposits, wealth management, or fee income streams. Wells Fargo noted that consumer resilience remains steady in card and auto lending, although the bank is watching for delayed AI effects on US unemployment.
Wells Fargo & Company (NYSE:WFC) is engaged in a diverse array of financial services such as banking, mortgages, investments, and commercial finance solutions. It serves consumers, small businesses, and large institutions, offering unique products and services tailored to specific requirements.
9. Novo Nordisk A/S (NYSE:NVO)
Novo Nordisk A/S (NYSE:NVO) is one of the Most Undervalued Long Term Stocks to Buy According to Analysts. On March 9, Novo Nordisk A/S (NYSE:NVO) announced its partnership with Hims & Hers. The deal entails access to Novo’s GLP-1 drugs, Ozempic and Wegovy, at Hims & Hers’ platform.
Management noted that as part of this deal, Hims & Hers will sell FDA-approved Ozempic injections and Wegovy in tablet form and injections at “affordable self-pay prices” matching other telehealth sites. Moreover, Hims and Hers will also stop selling and advertising compounded GLP-1s; as a result, existing patients will have the opportunity to use FDA-approved treatments.
In addition, Novo Nordisk is also dropping its patent lawsuit against Hims & Hers, but can refile later. NVO’s CEO Mike Doustdar noted this as a “win for patients” by prioritizing safe, proven FDA-approved meds over riskier compounds. It counters competition from telehealth firms undercutting prices with unapproved knockoffs, which have surged amid GLP-1 demand.
Novo Nordisk A/S (NYSE:NVO) is a global healthcare company that develops, manufactures, and markets medicines for serious chronic diseases. It is a leader in diabetes care (including insulin and Ozempic), obesity management (Wegovy), haemophilia care, and rare endocrine disorders.
8. U.S. Bancorp (NYSE:USB)
U.S. Bancorp (NYSE:USB) is one of the Most Undervalued Long Term Stocks to Buy According to Analysts. On March 11, U.S. Bancorp (NYSE:USB) presented at the RBC Capital Markets Global Financial Institutions Conference. The bank highlighted positive updates regarding strong performance and future prospects.
Management noted exceeding Q1 guidance for net interest and fee income, driven by strong loan growth and capital market activity. The bank also highlighted that the BTIG acquisition is projected to boost annual revenue by $175 million to $200 million, thereby strengthening capital markets while maintaining a negligible 2026 EPS impact.
Financially, U.S. Bancorp (NYSE:USB) noted that it remains on track to reach the high end of its 3% to 4% year-over-year growth. Moreover, the fee income is also expected in the higher end of the 5% to 6% growth range. The performance is driven by growth in payments and capital markets. Looking ahead, the company is targeting 4% to 6% net revenue growth in 2026 with more than 200 bps positive operating leverage, focusing on consumer deposits and fee expansion.
U.S. Bancorp (NYSE:USB) operates as a financial services holding company. Its businesses include Wealth, Corporate, Commercial, and Institutional Banking, Consumer and Business Banking, Payment Services, and Treasury and Corporate Support.
7. Barclays PLC (NYSE:BCS)
Barclays PLC (NYSE:BCS) is one of the Most Undervalued Long Term Stocks to Buy According to Analysts. On March 11, analyst Chris Hallam of Goldman Sachs maintained a Buy rating on Barclays PLC (NYSE:BCS) and raised the price target from p550 to p590.
The analyst said in a research note that he sees Barclays and other European banks as attractive in terms of valuations relative to the risks. He noted that the recent declines in the sector due to fears of AI disruptions, private credit risks, and Middle East tensions are overblown compared to the limited impact on earnings.
He highlighted that geopolitically driven credit losses are expected to be offset by higher net interest income from elevated rates. Moreover, Hallam noted that Barclays and its peers trade at a discount to US banks and offer double-digit earnings growth potential despite risks. He highlighted that the bank now relies less on traditional lending, with diversified revenue streams and robust capital buffers.
Headquartered in London, Barclays PLC (NYSE:BCS) is a bank holding company that provides credit cards, retail banking, wealth management, and corporate and investment banking services.
6. Elevance Health, Inc. (NYSE:ELV)
Elevance Health, Inc. (NYSE:ELV) is one of the Most Undervalued Long Term Stocks to Buy According to Analysts. On March 11, Mizuho analyst Ann Hynes lowered the firm’s price target on Elevance Health, Inc. (NYSE:ELV) from $413 to $350 and maintained a Buy rating on the stock.
The analyst noted that the reduced price target reflects the company’s reaffirmed guidance amid the ongoing Centers for Medicare and Medicaid Services scrutiny. Hynes said in a research note that the company disclosed that the Centers for Medicare and Medicaid Services (CMS) sanctions target historical data submission issues. These involve noncompliance in reporting diagnosis codes through improper methods, potentially leading to enrollment suspensions.
Despite the challenges, the company reiterated its 2026 outlook at a competitor event, stating the sanctions relate only to past processes and do not affect current risk-adjustment operations. Hynes noted that the current 2026 estimates already factor in any financial impacts, hence she reiterated a Buy rating on the stock.
Elevance Health, Inc. (NYSE:ELV) is a health company that operates through the following segments: Health Benefits, CarelonRx, Carelon Services, and Corporate and Other. The Health Benefits segment offers a range of health plans and services, while the CarelonRx segment manages pharmacy services. The Carelon Services segment offers various healthcare-related services by integrating behavioral, physical, pharmacy, and social services.
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