In this article, we will look at the 13 Most Undervalued S&P 500 Stocks to Invest In.
Investors hunting for value in the S&P 500 are facing a market where lofty valuations and concentrated gains have steadily pushed many stocks outside traditional “value” territory. That backdrop has some of Wall Street’s largest asset managers warning that valuation discipline matters more than ever before.
J.P. Morgan Asset Management makes the long-horizon case for why that matters. In its 2026 Long-Term Capital Market Assumptions report, the firm notes that “the starting point for valuations has an impact on long-term returns,” a reminder that long-horizon outcomes are heavily influenced by entry price.
Meanwhile, Fidelity’s 2026 stock market outlook highlights that “rising earnings have been driving returns in 2025, after years of gains driven mainly by rising valuations such as price-earnings ratios.” Fidelity warns that while the broad bull market remains intact, concentration among a handful of mega-cap names and generally high valuations could leave stocks vulnerable if earnings disappoint.
Taken together, these institutional views suggest that in a market where valuation has been elevated, and earnings remain the key engine of gains, identifying large-cap stocks trading below traditional valuation thresholds could offer both margin of safety and attractive long-run potential. With this in mind, we’ll look at the 13 Most Undervalued S&P 500 Stocks to Invest In.
Our Methodology
To identify the 13 Most Undervalued S&P 500 Stocks to Invest In, we used the Finviz screener to generate a list of S&P 500 stocks that are trading below a forward P/E of 15x. We 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 427.7% since May 2014, beating its benchmark by 264 percentage points (see more details here).
13. The AES Corporation (NYSE:AES)
On February 27, 2026, Seaport Research analyst Angie Storozynski upgraded The AES Corporation (NYSE:AES) to Neutral from Sell.
On February 20, 2026, Morgan Stanley lowered its price target on AES Corp. to $23 from $24 and maintained an Overweight rating. The firm updated price targets for its North American Regulated & Diversified Utilities and IPPs coverage for January. Morgan Stanley noted that utilities underperformed the S&P this month. Previewing Q4 earnings, the firm expects “some balance” in discussions around data center pipelines given affordability and political concerns.
Earlier in February, Barclays downgraded AES Corp. to Equal Weight from Overweight with an unchanged $15 price target. The firm said the shares are trading closer to fundamental value. The “bull case” now appears less likely, and risk/reward is more balanced following the share price rally.
Jefferies raised its price target on AES Corp. to $16 from $13 and kept a Hold rating. The firm said headlines about a possible GIP-EQT bid are “credible,” noting GIP’s history with AES and prior consideration as a buyer. Jefferies added that clean energy comparables trading higher makes valuation easier to justify.
The AES Corporation (NYSE:AES), together with its subsidiaries, operates as a power generation and utility company in the United States and internationally.
12. GoDaddy Inc. (NYSE:GDDY)
On February 26, 2026, Evercore ISI lowered its price target on GoDaddy Inc. (NYSE:GDDY) to $95 from $145 and maintained an In Line rating. The same day, Citi reduced its price target to $110 from $195 and kept a Buy rating. Citi said 2026 revenue guidance missed expectations but expressed encouragement around GoDaddy’s newer “agentic offerings.” The firm sees potential upside to 2026 and 2027 estimates.
On February 25, 2026, Cantor Fitzgerald lowered its price target on GoDaddy to $90 from $130 and maintained a Neutral rating. The firm said Q4 revenue met expectations. Bookings growth slowed to 5% year over year due to a new go-to-market strategy and one-year domain promotions. Cantor noted Q1 and FY26 revenue growth guidance of 6% year over year was slightly below prior Street estimates. Bookings are expected to decelerate in Q1 before normalizing in the second half. The firm added that ongoing AI initiatives and efficiency programs support long-term growth, though near-term AI-related sentiment may pressure multiples.
On February 24, 2026, GoDaddy reported Q4 EPS of $1.80 versus consensus of $1.59. Q4 revenue was $1.27 billion, in line with the consensus of $1.27 billion. The company guided FY26 revenue to $5.195 billion to $5.275 billion, compared to the consensus of $5.28 billion.
GoDaddy Inc. (NYSE:GDDY) designs and develops cloud-based products in the United States and internationally.
11. HP Inc. (NYSE:HPQ)
On February 25, 2026, Morgan Stanley lowered its price target on HP Inc. (NYSE:HPQ) to $16 from $18 and maintained an Underweight rating. The firm said fiscal Q1 earnings “played out largely as we expected,” noting that HP reduced EPS and free cash flow guidance only modestly despite ongoing input cost pressure and the risk of demand destruction in the second half of the fiscal year. While describing the stock as “cheap,” Morgan Stanley said it still sees “14%-plus downside” to FY26 EPS guidance. The same day, Evercore ISI reduced its price target to $20 from $22 and kept an In Line rating, stating that HP is navigating a “tough memory environment” following earnings.
On February 24, 2026, HP Inc. reported Q1 EPS of 81c versus consensus of 77c. Q1 revenue was $14.44 billion compared to the consensus of $13.93 billion. Bruce Broussard, interim CEO, said, “We are pleased to report a strong first quarter, highlighted by robust growth in Personal Systems, including the continued momentum in AI PCs. Our performance reflects the strength of our portfolio and our disciplined execution of our Future of Work strategy, even as we navigate industry-wide headwinds.”
The company said, “For fiscal 2026, HP maintains its annual guidance with estimated GAAP diluted net EPS to be in the range of $2.47 to $2.77 and non-GAAP diluted net EPS to be in the range of $2.90 to $3.20.” It added that fiscal 2026 non-GAAP EPS estimates exclude $0.43 per diluted share related primarily to restructuring and other charges, acquisition and divestiture charges, amortization of intangible assets, non-operating retirement-related credits, certain litigation charges, tax adjustments, and related tax impacts. HP expects fiscal 2026 free cash flow of $2.8 billion to $3.0 billion. However, given the “increasingly fluid operating environment,” the company expects to be at the lower end of the fiscal 2026 guidance range for GAAP EPS, non-GAAP EPS, and free cash flow. HP said its outlook reflects added costs driven by current U.S. trade-related regulations and associated mitigations.
HP Inc. (NYSE:HPQ) provides personal computing, printing, 3D printing, hybrid work, gaming, and related technologies in the United States and internationally.
10. Pfizer Inc. (NYSE:PFE)
On February 27, 2026, Pfizer Inc. (NYSE:PFE) and Astellas Pharma announced positive Phase 3 EV-304 results for PADCEV, a Nectin-4-directed antibody-drug conjugate, in combination with Keytruda in patients with muscle-invasive bladder cancer eligible for cisplatin-based chemotherapy. Perioperative enfortumab vedotin plus pembrolizumab showed a 47% reduction in the risk of tumor recurrence, progression, or death versus standard of care neoadjuvant gemcitabine and cisplatin. An estimated 79.4% of patients were event-free at two years compared to 66.2% with neoadjuvant chemotherapy.
Overall survival, a key secondary endpoint, reflected a 35% reduced risk of death with the combination. The pathological complete response rate was 55.8% versus 32.5% at surgery. Benefits in event-free survival, overall survival, and pCR were generally consistent across pre-defined subgroups, including age, gender, PD-L1 status, clinical stage, and geographic region. The safety profile was consistent with prior experience, and no new safety signals were observed. Grade greater than or equal to 3 adverse events occurred in 75.7% of patients receiving the combination compared to 67.2% with neoadjuvant chemotherapy. The data were presented in an oral session at the American Society of Clinical Oncology Genitourinary Cancers Symposium in San Francisco and will be discussed with global health authorities for potential regulatory filings.
On February 24, 2026, RBC Capital initiated coverage of Pfizer with an Underperform rating and a $25 price target, citing an “insurmountable” $15B-$20B revenue cliff through 2030 with limited near-term pipeline visibility to offset it. RBC added that while a 6% dividend yield provides downside support above the peer average, it does not offset structural headwinds and a lack of 2026 catalysts.
Pfizer Inc. (NYSE:PFE) discovers, develops, manufactures, markets, distributes, and sells biopharmaceutical products globally through its Biopharma, PC1, and Pfizer Ignite segments.
9. Prudential Financial, Inc. (NYSE:PRU)
On February 25, 2026, Wells Fargo downgraded Prudential Financial, Inc. (NYSE:PRU) to Underweight from Equal Weight and lowered its price target to $103 from $115 previously. The firm said the shares are “cheap” but lack positive catalysts. Wells Fargo cited the overhang on Prudential’s international business, potential competition in retail annuities, and a more “lackluster” pension sales backdrop as factors that outweigh the company’s positives.
Earlier in February, Prudential Financial, Inc. (NYSE:PRU) reported Q4 adjusted EPS of $3.30 versus the consensus of $3.36. CEO Andy Sullivan said the company made progress on priorities aimed at delivering stronger performance and sustained long-term value. Sullivan described 2025 as a “transformative year” for PGIM, noting the integration of asset management capabilities into one platform. He added that U.S. and International businesses delivered solid sales, cost discipline was maintained, and capital returns totaled nearly $3 billion in 2025. Sullivan also said Prudential is voluntarily suspending new sales at Prudential of Japan for 90 days to address previously disclosed misconduct incidents, including reimbursing impacted customers and strengthening oversight of sales practices, governance, and risk management.
Prudential Financial, Inc. (NYSE:PRU) provides financial products and services in the United States, Japan, and internationally through its PGIM, Retirement Strategies, Group Insurance, Individual Life, and International Businesses segments.
8. Synchrony Financial (NYSE:SYF)
On February 25, 2026, Synchrony Financial (NYSE:SYF) announced the renewal of its financing partnership with Polaris (PII), covering Sportsman all-terrain vehicles, Polaris RANGER, RZR, XPEDITION, and GENERAL side-by-side vehicles, as well as snowmobiles and Slingshot vehicles. The companies have partnered for nearly two decades to provide Polaris buyers with customized promotional financing and loan options through Polaris’ U.S. dealer network. The renewed agreement supports financing for vehicles, parts, accessories, gear, and vehicle service and protection products. Polaris dealers will continue collaborating on tailored financing solutions, and Polaris will have access to PRISM, Synchrony’s credit decisioning system designed to assess consumer creditworthiness.
On February 13, 2026, Baird analyst David George upgraded Synchrony to Outperform from Neutral with an unchanged $83 price target. David George said the risk/reward looks “a little better” following recent share weakness. Baird added that conference updates were favorable, valuations appear more reasonable, and consumer finance presents the best risk/reward. The firm described the recent “de-risking weakness” as a good entry point into Synchrony.
Synchrony Financial (NYSE:SYF) operates as a consumer financial services company in the United States, offering credit cards, commercial credit products, and consumer installment loans.
7. Molson Coors Beverage Company (NYSE:TAP)
On February 25, 2026, JPMorgan lowered its price target on Molson Coors Beverage Company (NYSE:TAP) to $45 from $50 and maintained a Neutral rating following the company’s Q4 report.
The same day, BofA downgraded Molson Coors to Underperform from Neutral and reduced its price target to $42 from $50. After Q4 results and the company’s presentation at CAGNY, BofA lowered estimates, citing a weaker-than-expected FY26 outlook and limited visibility into stabilizing volumes. The firm said the downgrade reflects rising downside risk to forward estimates if the U.S. beer category sees another year of mid-single-digit declines or if Molson Coors’ consumption trend underperforms the category.
On February 18, 2026, Molson Coors reported Q4 EPS of $1.21 versus consensus of $1.15 and revenue of $2.66 billion compared to $2.71 billion consensus. CEO Rahul Goyal said the company “navigated a tough year” to deliver on revised bottom-line expectations while narrowly missing top-line guidance. Goyal added that the company has “a solid platform” with its brands, infrastructure, people, and balance sheet, and said its “iconic brands resonate with consumers.”
Molson Coors Beverage Company (NYSE:TAP) manufactures, markets, distributes, and sells beer and other malt beverage products across the Americas, Europe, the Middle East, Africa, and the Asia Pacific.
6. Charter Communications, Inc. (NASDAQ:CHTR)
On February 25, 2026, Charter Communications, Inc. (NASDAQ:CHTR) announced the appointment of Nick Jeffery as Chief Operating Officer. Jeffery will oversee Marketing and Sales, Field Operations, and Customer Operations across Spectrum’s residential and business Seamless Connectivity and Entertainment services. Based in Stamford, Jeffery will begin on September 1. He joins from Frontier Communications, where he has served as President and CEO since 2021.
Earlier in February, TD Cowen raised its price target on Charter to $437 from $428 and maintained a Buy rating. The firm described mixed 4Q25 results but noted better broadband subscriber losses and a gain in video subscribers. Management reiterated 2026 EBITDA growth, improved 2026 cash taxes, and a stronger long-term capex cycle supporting a more favorable long-term free cash flow per share outlook.
Benchmark analyst Matthew Harrigan also raised the firm’s price target to $455 from $425 and kept a Buy rating. Matthew Harrigan said the $455 target is “admittedly more of a fair value assessment than a near-term trading expectation” based on forecasts through 2030, reflecting the Cox Communications acquisition and Liberty ownership roll-in, with a single OIBDA multiple applied pro forma for the Cox transaction.
Charter Communications, Inc. (NASDAQ:CHTR) operates as a broadband connectivity company in the United States, providing subscription-based internet, mobile, video, voice, and related broadband services.
5. Fiserv, Inc. (NASDAQ:FISV)
On February 26, 2026, Truist lowered its price target on Fiserv, Inc. (NASDAQ:FISV) to $65 from $71 and maintained a Hold rating as part of a broader Payments research note. The firm adjusted its model following Q4 results and reduced estimates for Banking revenues, particularly in the first half of the year.
On February 23, 2026, B. Riley lowered its price target on Fiserv to $69 from $72 and kept a Neutral rating. The firm expects several quarters of negative year-over-year EPS growth, projecting EPS of $8.06 for 2026 before a recovery to $9.00 in 2027, implying a 2023-2027 compound annual growth rate just under 5%. B. Riley said weakness is concentrated in the Financial Solutions segment, while Merchant Solutions continues to grow despite temporary headwinds from fee reductions.
Earlier in February, Fiserv reported Q4 adjusted EPS of $1.99 versus consensus of $1.90 and revenue of $5.284 billion compared to $4.9 billion consensus. CEO Mike Lyons said the quarter marked the first full period executing the “One Fiserv plan,” adding that the company delivered performance in line with expectations and is “increasingly confident” in its ability to create sustainable value by executing on its core pillars.
Fiserv, Inc. (NASDAQ:FISV) provides financial services technology through its Merchant and Financial segments.
4. First Solar, Inc. (NASDAQ:FSLR)
On February 26, 2026, Freedom Capital downgraded First Solar, Inc. (NASDAQ:FSLR) to Hold from Buy and reduced its price target to $250 from $310. The firm said Q4 results missed estimates and the company issued “weak” 2026 guidance, adding that uncertainty remains elevated in the utility-scale solar market.
On February 25, 2026, JPMorgan lowered its price target on First Solar to $256 from $303 and maintained an Overweight rating. The firm noted Q4 revenue came in above expectations, while earnings missed, and cited the current environment for the target cut. JPMorgan continues to view U.S. policy updates as potential upside catalysts for bookings.
On February 24, 2026, First Solar reported Q4 EPS of $4.84 versus a consensus of $5.17 and revenue of $1.68 billion compared to $1.57 billion consensus. CEO Mark Widmar said the company’s “growth journey continued into 2025” with the commissioning of a new Louisiana factory and a decision to establish a new facility in South Carolina. Widmar added that the company maintained a disciplined approach to contracting, anchored in pricing and delivery certainty.
First Solar, Inc. (NASDAQ:FSLR) provides photovoltaic solar energy solutions and manufactures thin-film semiconductor PV modules in the United States and internationally.
3. Principal Financial Group, Inc. (NASDAQ:PFG)
On February 25, 2026, Wells Fargo upgraded Principal Financial Group, Inc. (NASDAQ:PFG) to Equal Weight from Underweight and raised its price target to $91 from $85. The firm said it sees less downside following the post-earnings selloff. While noting that organic growth remains a challenge, Wells Fargo said fundamentals could improve in the real estate market, where Principal has among the most exposure in the group.
On February 10, 2026, Principal reported Q4 EPS of $2.24 versus the consensus of $2.22. Chair, President, and CEO Deanna Strable said the company delivered strong 2025 results, achieving objectives across earnings growth, return on equity, and free capital flow. Strable noted that over $1.5 billion was returned to shareholders in 2025, including $850 million in share repurchases, and said the company enters 2026 well-positioned to deliver on financial targets.
Principal also raised its quarterly dividend to 80c per share from 79c. The first-quarter dividend is payable on March 27, 2026, to shareholders of record as of March 11, 2026.
Principal Financial Group, Inc. (NASDAQ:PFG) provides retirement, asset management, and insurance products and services globally.
2. Universal Health Services, Inc. (NYSE:UHS)
On February 27, 2026, Cantor Fitzgerald lowered its price target on Universal Health Services, Inc. (NYSE:UHS) to $229 from $250 and maintained a Neutral rating.
On February 26, 2026, BofA raised its price target on Universal Health Services, Inc. (NYSE:UHS) to $215 from $190 and kept an Underperform rating. The firm updated estimates with company guidance and introduced its 2028 view but reiterated Underperform, citing above-average exposure to policy changes and weak core results. The same day, Barclays increased its price target to $268 from $262 and maintained an Overweight rating following the Q4 report. Barclays said the company posted a modest miss as acute volumes decelerated but guided 2026 EBITDA ahead of Street estimates.
On February 25, 2026, Universal Health Services, Inc. (NYSE:UHS) reported Q4 EPS of $5.88 versus a consensus of $5.90 and revenue of $4.49 billion compared to $4.5 billion consensus. The company expects FY26 adjusted EPS of $22.64 to $24.52 versus consensus of $23.52 and FY26 revenue of $18.42 billion to $18.79 billion compared to $18.25 billion consensus.
Universal Health Services, Inc. (NYSE:UHS) owns and operates acute care hospitals, outpatient facilities, and behavioral health care facilities in the United States.
1. Micron Technology, Inc. (NASDAQ:MU)
On March 1, 2026, Micron Technology, Inc. (NASDAQ:MU) announced the grand opening of its semiconductor assembly and test facility in Sanand, Gujarat, India. The facility converts advanced DRAM and NAND wafers from Micron’s global manufacturing network into finished memory and storage products. Once fully ramped, the first phase of the Sanand operation will include more than 500,000 square feet of cleanroom space.
On February 17, 2026, The Wall Street Journal reported that Micron is investing $50B in Boise to more than double the size of its 450-acre campus, including construction of two new chip factories. Silicon wafers from the first factory are expected to begin production in mid-2027, with each facility spanning 600,000 square feet. The company also recently broke ground on a $100B factory complex in New York and announced a $9.6B investment in Japan.
The same day, Needham analyst N. Quinn Bolton raised the price target on Micron to $450 from $380 and maintained a Buy rating. N. Quinn Bolton cited a tightening memory market and memory pricing moving higher. Needham added that robust hyperscaler CapEx spending and the trend toward larger reasoning models with longer context windows are increasing demand for higher-performance memory and storage.
Micron Technology, Inc. (NASDAQ:MU) designs, develops, manufactures, and sells memory and storage products globally through its Cloud Memory, Core Data Center, Mobile and Client, and Automotive and Embedded business units.
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