15 Most Undervalued Large Cap Stocks to Buy According to Wall Street Analysts

Published on August 27, 2023 at 8:44 am by Ramish Cheema in News, Quantitative Investing

In this piece, we will take a look at the 15 most undervalued large cap stocks to buy according to Wall Street analysts. If you want to skip our analysis of the latest in the stock market, then take a look at 5 Most Undervalued Large Cap Stocks to Buy.

With the second half of 2023 having set in, all eyes on Wall Street were on officials of the Federal Reserve. Fed chairman Jerome Powell and other central bankers were set to meet at Jackson Hole in late August, and given the crucial role that the banks have played in the stock market for more than a year now, investors were naturally tuned in to see if anything had changed.

So far, the Federal Reserve has hiked interest rates to multi year high levels, and courtesy of the strong hype surrounding artificial intelligence, markets have reversed the massive losses that they had bled through last year. However, while the first half of 2023 was one of the best time periods on the market in history, the second half is rather muted when it comes to share price gains. In fact, major indexes have pared back some of their gains particularly since August is vacation time in the financial world and because some folks likely took profits and re balanced their portfolios.

At Jackson Hall, Chairman Powell’s comments made it clear that since inflation is high, any hopes of interest rates coming down any time soon are unwarranted. However, at the same time, it’s also clear that 2023 and ahead will be different when it comes to an extremely hawkish Fed. The Fed chair made it clear that the central bank will be more cautious moving forward and will be more cognizant of any risks to economic health from further interest rate hikes. The labor market continues to be one of the Fed’s top markers in determining future interest rate hikes, and Mr. Powell is of the view that should wages grow or unemployment drop, then the labor market could provide consumers with higher discretionary income to drive up prices. Naturally, this is unacceptable, since bringing down inflation is one of the primary objectives of the recent interest rate hiking cycle.

The key takeaway from Chair Powell’s latest remarks is that the central bank is able and willing to further increase interest rates. Yet, markets seemed to have shrugged off this willingness, as during the last trading day of the week, the S&P500 was up 29 points and the NASDAQ Composite gained 126 points. Both of these indexes had initially dropped as Mr. Powell was explaining his latest position, showing the fear that is currently prevalent in the market when it comes to the Federal Reserve. Even though markets might have been relatively calm today, the fact still remains that there is no fixed formula for the Fed chair and his team to decide when interest rates have reached the perfect level to avoid seriously damaging the economy and bringing down inflation at the same time.

This hair wrenching problem was part of his closing remarks as Mr. Powell outlined:

Two percent is and will remain our inflation target. We are committed to achieving and sustaining a stance of monetary policy that is sufficiently restrictive to bring inflation down to that level over time. It is challenging, of course, to know in real time when such a stance has been achieved. There are some challenges that are common to all tightening cycles. For example, real interest rates are now positive and well above mainstream estimates of the neutral policy rate. We see the current stance of policy as restrictive, putting downward pressure on economic activity, hiring, and inflation. But we cannot identify with certainty the neutral rate of interest, and thus there is always uncertainty about the precise level of monetary policy restraint.

That assessment is further complicated by uncertainty about the duration of the lags with which monetary tightening affects economic activity and especially inflation. Since the symposium a year ago, the Committee has raised the policy rate by 300 basis points, including 100 basis points over the past seven months. And we have substantially reduced the size of our securities holdings. The wide range of estimates of these lags suggests that there may be significant further drag in the pipeline.

. . . .These uncertainties, both old and new, complicate our task of balancing the risk of tightening monetary policy too much against the risk of tightening too little. Doing too little could allow above-target inflation to become entrenched and ultimately require monetary policy to wring more persistent inflation from the economy at a high cost to employment. Doing too much could also do unnecessary harm to the economy.

Today, we’ll take a look at some large cap stocks that are undervalued according to Wall Street analysts. Large caps are generally more stable in the time of a stock market downturn when compared to their small cap peers. At the same time, they also provide more liquidity to lock in potential gains, and the nature of the firms and their business models reduces the risks of stock market scams. There are also several ways to determine whether a stock is undervalued. One of these involves taking a look at the price to earnings ratio while another involves calculating the differential between an analyst’s projected share price and the market price.

Today we’ll rely on the latter and the top three picks are First Citizens BancShares, Inc. (NASDAQ:FCNCA), Humana Inc. (NYSE:HUM), and MercadoLibre, Inc. (NASDAQ:MELI).

source: pixabay

Our Methodology

To compile our list of undervalued large cap stocks to buy according to Wall Street analysts, we selected the stocks with the highest share price upside and Buy or better analyst ratings with market capitalization greater than $10 billion and less than $200 billion.

15 Most Undervalued Large Cap Stocks To Buy According To Wall Street

15. Markel Group Inc. (NYSE:MKL)

Latest Share Price Upside: 10%

Average Analyst Share Price Target: $1,616

Markel Group Inc. (NYSE:MKL) is a diversified American insurance firm with a global operations base. Its shares are rated Strong Buy on average and the stock is up a reasonable 10.87% year to date.

As of Q2 2023, 29 hedge funds out of the 910 part of Insider Monkey’s research were Markel Group Inc. (NYSE:MKL)’s investors. Out of these, the biggest shareholder is Warren Buffett’s Berkshire Hathaway through an investment of $652 million.

Along with Humana Inc. (NYSE:HUM), First Citizens BancShares, Inc. (NASDAQ:FCNCA), and MercadoLibre, Inc. (NASDAQ:MELI), Markel Group Inc. (NYSE:MKL) is an undervalued stock to buy according to Wall Street analysts.

14. MSCI Inc. (NYSE:MSCI)

Latest Share Price Upside: 10%

Average Analyst Share Price Target: $586

MSCI Inc. (NYSE:MSCI) is an investment advisory, management, and financial services firm. Like other financial firms, it has performed well lately and beaten analyst EPS estimates in all four of its latest quarters.

By the end of this year’s second quarter, 51 out of the 910 hedge funds part of Insider Monkey’s database had held a stake in MSCI Inc. (NYSE:MSCI). Out of these, the firm’s largest shareholder is Henry Ellenbogen’s Durable Capital Partners since it owns 678,556 shares that are worth $318 million.

13. Fair Isaac Corporation (NYSE:FICO)

Latest Share Price Upside: 11%

Average Analyst Share Price Target: $947

Fair Isaac Corporation (NYSE:FICO) is a software company that provides data analytics and other services to firms all over the world. The firm is slated to perform well in the future according to Baron Funds, as its latest investor letter cited confidence in Fair Isaac’s CEO.

As of June 2023, 46 of the 910 hedge funds polled by Insider Monkey had invested in the company. Fair Isaac Corporation (NYSE:FICO)’s biggest hedge fund shareholder is Dev Kantesaria’s Valley Forge Capital through its $763 million stake.

12. AutoZone, Inc. (NYSE:AZO)

Latest Share Price Upside: 13%

Average Analyst Share Price Target: $2,775

AutoZone, Inc. (NYSE:AZO) is a car parts retailer. The firm has been performing well this year as the car market has been resilient in a high rate environment but the shares are nearly flat year to date after dropping in May.

Insider Monkey dug through 910 hedge funds for their June quarter of 2023 investments to discover that 52 had bought the firm’s shares. AutoZone, Inc. (NYSE:AZO)’s largest stakeholder is Peter Rathjens, Bruce Clarke, and John Campbell’s Arrowstreet Capital courtesy of its $328 million investment.

11. ServiceNow, Inc. (NYSE:NOW)

Latest Share Price Upside: 13%

Average Analyst Share Price Target: $639

ServiceNow, Inc. (NYSE:NOW) is one of the dominating players when it comes to data analytics and corporate digital transformation. It has partnered up with NVIDIA to offer artificial intelligence capabilities to customers and the stock is 46% year to date.

By the end of 2023’s second quarter, 93 out of the 910 hedge funds part of Insider Monkey’s study had held a stake in ServiceNow, Inc. (NYSE:NOW). Out of these, the biggest investor is Rajiv Jain’s GQG Partners since it owns $859 million worth of shares.

10. TransDigm Group Incorporated (NYSE:TDG)

Latest Share Price Upside: 15%

Average Analyst Share Price Target: $991

TransDigm Group Incorporated (NYSE:TDG) is an aircraft component manufacturer that sells products such as pumps, actuators, and motors. It is among the handful of companies that are slated to benefit from an uptick in global air travel and the stock is rated Buy on average.

67 out of the 910 hedge funds part of Insider Monkey’s Q2 2023 database have bought the firm’s shares. TransDigm Group Incorporated (NYSE:TDG)’s largest stakeholder among these is Mark Massey’s AltaRock Partners since it owns 1.3 million shares that are worth $1.2 billion.

9. Texas Pacific Land Corporation (NYSE:TPL)

Latest Share Price Upside: 15%

Average Analyst Share Price Target: $2,186

Texas Pacific Land Corporation (NYSE:TPL) is a land management company that manages oil production activities and provides its land for other use cases. Most of the firm’s shares are owned by institutional investors, and analysts have set an average share price target of $2,186.

As of June 2023, out of the 910 hedge fund portfolios studied by Insider Monkey, 23 had held a stake in Texas Pacific Land Corporation (NYSE:TPL). Murray Stahl’s Horizon Asset Management is the company’s biggest investor since it holds a $1.8 billion stake.

8. Chipotle Mexican Grill, Inc. (NYSE:CMG)

Latest Share Price Upside: 16%

Average Analyst Share Price Target: $2,168

Chipotle Mexican Grill, Inc. (NYSE:CMG) is a popular restaurant chain in America. Resilience in the U.S. consumer has helped the firm beat analyst EPS estimates in three of its four latest quarters and the shares are rated Strong Buy on average.

After digging through 910 hedge fund holdings for their second quarter of 2023 investments, Insider Monkey discovered that 55 had bought the firm’s shares. Chipotle Mexican Grill, Inc. (NYSE:CMG)’s largest hedge fund stakeholder is Bill Ackman’s Pershing Square due to its $2 billion investment.

7. IDEXX Laboratories, Inc. (NASDAQ:IDXX)

Latest Share Price Upside: 17%

Average Analyst Share Price Target: $678

IDEXX Laboratories, Inc. (NASDAQ:IDXX) is a medical company that deals in animal health management products. The firm had good news for investors in August as it raised annual revenue and profit guidance.

Insider Monkey’s June quarter of 2023 research covering 910 revealed that 43 had invested in IDEXX Laboratories, Inc. (NASDAQ:IDXX). Terry Smith’s Fundsmith LLP is the largest shareholder out of these, owning 2.9 million shares that are worth $1.4 billion.

6. Deckers Outdoor Corporation (NYSE:DECK)

Latest Share Price Upside: 18%

Average Analyst Share Price Target: $616

Deckers Outdoor Corporation (NYSE:DECK) is a footwear company headquartered in Goleta, California. Its shares are rated Strong Buy on average and analysts have penciled in an 18% upside to the shares.

As of Q2 2023, 47 out of the 910 hedge funds polled by Insider Monkey had bought the firm’s shares. Deckers Outdoor Corporation (NYSE:DECK)’s biggest investor is Robert Pitts’ Steadfast Capital Management through its $218 million stake.

First Citizens BancShares, Inc. (NASDAQ:FCNCA), Deckers Outdoor Corporation (NYSE:DECK), Humana Inc. (NYSE:HUM), and MercadoLibre, Inc. (NASDAQ:MELI) are some undervalued large cap stocks being favored by Wall Street analysts.

Click to continue reading and see 5 Most Undervalued Large Cap Stocks to Buy.

AI, Tariffs, Nuclear Power: One Undervalued Stock Connects ALL the Dots (Before It Explodes!)

Published on June 23, 2025 at by Inan Dogan, PhD

Artificial intelligence is the greatest investment opportunity of our lifetime. The time to invest in groundbreaking AI is now, and this stock is a steal!

AI is eating the world—and the machines behind it are ravenous.

Each ChatGPT query, each model update, each robotic breakthrough consumes massive amounts of energy. In fact, AI is already pushing global power grids to the brink.

Wall Street is pouring hundreds of billions into artificial intelligence—training smarter chatbots, automating industries, and building the digital future. But there’s one urgent question few are asking:

Where will all of that energy come from?

AI is the most electricity-hungry technology ever invented. Each data center powering large language models like ChatGPT consumes as much energy as a small city. And it’s about to get worse.

Even Sam Altman, the founder of OpenAI, issued a stark warning:

“The future of AI depends on an energy breakthrough.”

Elon Musk was even more blunt:

“AI will run out of electricity by next year.”

As the world chases faster, smarter machines, a hidden crisis is emerging behind the scenes. Power grids are strained. Electricity prices are rising. Utilities are scrambling to expand capacity.

And that’s where the real opportunity lies…

One little-known company—almost entirely overlooked by most AI investors—could be the ultimate backdoor play. It’s not a chipmaker. It’s not a cloud platform. But it might be the most important AI stock in the US owns critical energy infrastructure assets positioned to feed the coming AI energy spike.

As demand from AI data centers explodes, this company is gearing up to profit from the most valuable commodity in the digital age: electricity.

The “Toll Booth” Operator of the AI Energy Boom

It owns critical nuclear energy infrastructure assets, positioning it at the heart of America’s next-generation power strategy.
It’s one of the only global companies capable of executing large-scale, complex EPC (engineering, procurement, and construction) projects across oil, gas, renewable fuels, and industrial infrastructure.
It plays a pivotal role in U.S. LNG exportation—a sector about to explode under President Trump’s renewed “America First” energy doctrine.

Trump has made it clear: Europe and U.S. allies must buy American LNG.

And our company sits in the toll booth—collecting fees on every drop exported.

But that’s not all…

As Trump’s proposed tariffs push American manufacturers to bring their operations back home, this company will be first in line to rebuild, retrofit, and reengineer those facilities.

AI. Energy. Tariffs. Onshoring. This One Company Ties It All Together.

While the world is distracted by flashy AI tickers, a few smart investors are quietly scooping up shares of the one company powering it all from behind the scenes.

AI needs energy. Energy needs infrastructure.

And infrastructure needs a builder with experience, scale, and execution.

This company has its finger in every pie—and Wall Street is just starting to notice.

Wall Street is noticing this company also because it is quietly riding all of these tailwinds—without the sky-high valuation.

While most energy and utility firms are buried under mountains of debt and coughing up hefty interest payments just to appease bondholders…

This company is completely debt-free.

In fact, it’s sitting on a war chest of cash—equal to nearly one-third of its entire market cap.

It also owns a huge equity stake in another red-hot AI play, giving investors indirect exposure to multiple AI growth engines without paying a premium.

And here’s what the smart money has started whispering…

The Hedge Fund Secret That’s Starting to Leak Out

This stock is so off-the-radar, so absurdly undervalued, that some of the most secretive hedge fund managers in the world have begun pitching it at closed-door investment summits.

They’re sharing it quietly, away from the cameras, to rooms full of ultra-wealthy clients.

Why? Because excluding cash and investments, this company is trading at less than 7 times earnings.

And that’s for a business tied to:

The AI infrastructure supercycle
The onshoring boom driven by Trump-era tariffs
A surge in U.S. LNG exports
And a unique footprint in nuclear energy—the future of clean, reliable power

You simply won’t find another AI and energy stock this cheap… with this much upside.

This isn’t a hype stock. It’s not riding on hope.

It’s delivering real cash flows, owns critical infrastructure, and holds stakes in other major growth stories.

This is your chance to get in before the rockets take off!

Disruption is the New Name of the Game: Let’s face it, complacency breeds stagnation.

AI is the ultimate disruptor, and it’s shaking the foundations of traditional industries.

The companies that embrace AI will thrive, while the dinosaurs clinging to outdated methods will be left in the dust.

As an investor, you want to be on the side of the winners, and AI is the winning ticket.

The Talent Pool is Overflowing: The world’s brightest minds are flocking to AI.

From computer scientists to mathematicians, the next generation of innovators is pouring its energy into this field.

This influx of talent guarantees a constant stream of groundbreaking ideas and rapid advancements.

By investing in AI, you’re essentially backing the future.

The future is powered by artificial intelligence, and the time to invest is NOW.

Don’t be a spectator in this technological revolution.

Dive into the AI gold rush and watch your portfolio soar alongside the brightest minds of our generation.

This isn’t just about making money – it’s about being part of the future.

So, buckle up and get ready for the ride of your investment life!

Act Now and Unlock a Potential 100+% Return within 12 to 24 months.

We’re now offering month-to-month subscriptions with no commitments.

For a ridiculously low price of just $9.99 per month, you can unlock our in-depth investment research and exclusive insights – that’s less than a single fast food meal!

Here’s why this is a deal you can’t afford to pass up:

Access to our Detailed Report on our AI, Tariffs, and Nuclear Energy Stock with 100+% potential upside within 12 to 24 months
BONUS REPORT on our #1 AI-Robotics Stock with 10000% upside potential: Our in-depth report dives deep into our #1 AI/robotics stock’s groundbreaking technology and massive growth potential.
One New Issue of Our Premium Readership Newsletter: You will also receive one new issue per month and at least one new stock pick per month from our monthly newsletter’s portfolio over the next 12 months. These stocks are handpicked by our research director, Dr. Inan Dogan.
One free upcoming issue of our 70+ page Quarterly Newsletter: A value of $149
Bonus Content: Premium access to members-only fund manager video interviews
Ad-Free Browsing: Enjoy a month of investment research free from distracting banner and pop-up ads, allowing you to focus on uncovering the next big opportunity.
Lifetime Price Guarantee: Your renewal rate will always remain the same as long as your subscription is active.
30-Day Money-Back Guarantee: If you’re not absolutely satisfied with our service, we’ll provide a full refund within 30 days, no questions asked.

Space is Limited! Only 1000 spots are available for this exclusive offer. Don’t let this chance slip away – subscribe to our Premium Readership Newsletter today and unlock the potential for a life-changing investment.

Here’s what to do next:

1. Head over to our website and subscribe to our Premium Readership Newsletter for just $9.99.

2. Enjoy a month of ad-free browsing, exclusive access to our in-depth report on the Trump tariff and nuclear energy company as well as the revolutionary AI-robotics company, and the upcoming issues of our Premium Readership Newsletter.

3. Sit back, relax, and know that you’re backed by our ironclad 30-day money-back guarantee.

Don’t miss out on this incredible opportunity! Subscribe now and take control of your AI investment future!

Subscribe Now!

No worries about auto-renewals! Our 30-Day Money-Back Guarantee applies whether you’re joining us for the first time or renewing your subscription a month later!

Insider Monkey Ads

A New Dawn is Coming to U.S. Stocks

Published on June 13, 2025 at by Insider Monkey Staff

I work for one of the largest independent financial publishers in the world – representing over 1 million people in 148 countries.

We’re independently funding today’s broadcast to address something on the mind of every investor in America right now…

Should I put my money in Artificial Intelligence?

Here to answer that for us… and give away his No. 1 free AI recommendation… is 50-year Wall Street titan, Marc Chaikin.

Marc’s been a trader, stockbroker, and analyst. He was the head of the options department at a major brokerage firm and is a sought-after expert for CNBC, Fox Business, Barron’s, and Yahoo! Finance…

But what Marc’s most known for is his award-winning stock-rating system. Which determines whether a stock could shoot sky-high in the next three to six months… or come crashing down.

That’s why Marc’s work appears in every Bloomberg and Reuters terminal on the planet…

And is still used by hundreds of banks, hedge funds, and brokerages to track the billions of dollars flowing in and out of stocks each day.

He’s used this system to survive nine bear markets… create three new indices for the Nasdaq… and even predict the brutal bear market of 2022, 90 days in advance.

Click to continue reading…