In this piece we will look at the 5 Best Low Cost Stocks to Buy According to Hedge Funds. Please visit 10 Best Low Cost Stocks to Buy According to Hedge Funds if you’d like to see an extended list and how we came up with the list of Best Low Cost Stocks to Buy According to Hedge Funds.
5. Exxon Mobil Corporation (NYSE:XOM)
Forward P/E Ratio: 12.92
Number of Hedge Fund Holders: 94
Exxon Mobil Corporation (NYSE:XOM) is one of the Best Low Cost Stocks to Buy According to Hedge Funds. Wall Street is bullish on Exxon Mobil Corporation (NYSE:XOM). Recently, on May 27, Mizuho Securities reiterated a Hold rating on the stock and raised the price target from $159 to $175. Earlier, on May 26, Barclays reiterated a Buy rating on the stock and also raised the price target from $163 to $182.
In other news, on May 27, Reuters reported that the company’s shareholders voted to approve management’s plans to move its legal home from New Jersey to Texas, with 71.3% of votes in favor. This approval comes despite two major proxy advisory firms recommending that investors oppose the move based on concerns of eroding shareholder rights.
Exxon Mobil Corporation (NYSE:XOM) has been physically headquartered in Texas since 1989, making the redomiciling largely a formality in the company’s view. Management argued that Texas legislators and judges are more familiar with its business operations.
The report also highlighted that this relocation will put the company with SpaceX, Tesla , and Coinbase, who also recently relocated to Texas. Companies have been moving to Texas partly due to a state law that enhances legal protections for businesses, including higher thresholds for shareholder litigation.
Exxon Mobil Corporation (NYSE:XOM) is a multinational energy and chemical corporation. It explores for and produces crude oil and natural gas, manufactures petroleum products and petrochemicals, and develops lower-emission technologies. The company serves global energy markets and operates through major brand names, including Exxon, Esso, and Mobil.
4. Chevron Corporation (NYSE:CVX)
Forward P/E Ratio: 12.49
Number of Hedge Fund Holders: 103
Chevron Corporation (NYSE:CVX) is one of the Best Low Cost Stocks to Buy According to Hedge Funds. According to a May 29 report by Bloomberg, Chevron’s CEO Mike Wirth noted that the company will not invest fresh capital in Venezuela next year unless the country lowers its taxes and royalties on oil production.
Chevron Corporation (NYSE:CVX) is the only major US oil company operating in Venezuela, and the company currently only reinvests the revenue it makes from Venezuela under a U.S. Treasury-sanctioned program to recover debt owed by state oil company Petroleos de Venezuela SA (PDVSA). The CEO noted that, as the oil price is near $100 a barrel, he expects the debt to be fully repaid in a year.
He added that once the debt is cleared, the company will require new terms to justify further investment. Wirth noted that negotiations are already underway, with Chevron, ExxonMobil, and ConocoPhillips all meeting with Venezuela’s acting government, led by Delcy Rodriguez. Moreover, US President Trump has urged US oil companies to invest $100 billion to rebuild Venezuela’s oil industry, which holds some of the world’s largest reserves. However, executives remain cautious given the country’s history of nationalizations and contract changes.
Chevron Corporation (NYSE:CVX) is a major integrated energy company. It explores for, produces, and refines crude oil and natural gas. It also transports these resources by pipeline and tanker, manufactures fuels and lubricants, and invests in lower-carbon energy technologies such as renewables and carbon capture.
3. Bank of America Corporation (NYSE:BAC)
Forward P/E Ratio: 11.55
Number of Hedge Fund Holders: 106
Bank of America Corporation (NYSE:BAC) is one of the Best Low Cost Stocks to Buy According to Hedge Funds. Wall Street is bullish on Bank of America Corporation (NYSE:BAC) as 84% of the 25 analysts covering the stock maintain a Buy rating. The average 12-month analyst price target reflects more than 20% upside from the current level.
Recently, on May 28, Wells Fargo reiterated a Buy rating on the stock with a price target of $65. Earlier, on May 27, Truist Financial had also reiterated a Buy rating on the stock without disclosing any price targets.
That said, on May 27, Reuters reported that the CEO of Bank of America Corporation (NYSE:BAC), Brian Moynihan, projects a 15% year-over-year increase in trading revenue in the second quarter, driven by easier comparison as the market was rattled by the tariff volatility a year ago. In addition, the CEO also finds investment banking to be in good shape and expects wealth management revenue to grow in the low double digits.
Moynihan also noted that the IPO pipeline is healthy, with Wall Street looking forward to SpaceX’s anticipated debut as a potential catalyst for more listings, particularly among AI-focused companies.
Bank of America Corporation (NYSE:BAC) provides financial products and services to individual consumers, small and middle-market businesses, institutional investors, large corporations, and governments worldwide.
2. Citigroup Inc. (NYSE:C)
Forward P/E Ratio: 11.61
Number of Hedge Fund Holders: 106
Citigroup Inc. (NYSE:C) is one of the Best Low Cost Stocks to Buy According to Hedge Funds. On May 29, Bloomberg reported that OpenAI had held early discussions with Citigroup Inc. (NYSE:C) and JPMorgan Chase about roles in its upcoming IPO.
Although the talks are still in the early stages, two banks are expected to potentially join Goldman Sachs and Morgan Stanley, which are already working on preparations for the listing. OpenAI is expected to file confidentially for its IPO within weeks, with the actual offering potentially arriving later this year. The listing is expected to follow SpaceX’s highly anticipated debut, which is projected to be the largest IPO of all time at a $75 billion valuation.
In separate news, Reuters on May 22 reported that Citigroup Inc. (NYSE:C) plans to allocate a significant share of its global wealth management hiring to Asia. This is because Citi’s private bank is growing the fastest and generating more productivity in Asia compared to the other operating regions.
The report noted that the bank also recently announced its plans to hire around 100 private bankers and almost 400 other specialists globally. The head of global wealth, Andy Sieg, noted that Asia already accounts for about 35% of Citi’s global wealth revenue, generating around $3 billion in 2025. The region spans Japan, Australia, and both North and South Asia. Moreover, the bank has set ambitious return targets for its wealth unit, aiming for a return on tangible common equity of 15% to 20% by 2027 and 2028.
Citigroup Inc. (NYSE:C) is a global financial services giant offering a wide range of products through segments like Services, Markets, Banking, Wealth, and U.S. Personal Banking.
1. JPMorgan Chase & Co. (NYSE:JPM)
Forward P/E Ratio: 13.42
Number of Hedge Fund Holders: 131
JPMorgan Chase & Co. (NYSE:JPM) is one of the Best Low Cost Stocks to Buy According to Hedge Funds. On May 27, CNBC reported that JPMorgan Chase & Co. (NYSE:JPM) CEO Jamie Dimon has indicated that the bank can potentially deploy around $10 billion to $20 billion for an acquisition expected in the next couple of years. Dimon told analysts that,
“I do think there might be opportunities, and so we are on the lookout.”
The report highlighted that Dimon was careful to frame any potential deal as opportunistic rather than strategic. He expressed skepticism toward executives who chase acquisitions as a substitute for genuine organic growth. He also warned that M&A is often used to mask weak business performance.
The CEO noted that any potential acquisition would need to integrate cleanly into JPMorgan’s existing operations, align with the bank’s culture, and strengthen core businesses rather than exist as a standalone unit. CNBC also highlighted that JPMorgan has largely grown organically in recent years. Its most notable exception was the FDIC-assisted acquisition of First Republic Bank in 2023, for which it paid $10.6 billion to regulators.
JPMorgan Chase & Co. (NYSE:JPM) operates as a bank and financial holding company across the United States, the rest of North America, Europe, the Middle East, Africa, the Asia Pacific, Latin America, and the Caribbean.
While we acknowledge the potential of JPM 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 JPM and that has 100x upside potential, check out our report about the cheapest AI stock.
READ NEXT: 9 Most Undervalued Foreign Stocks to Buy Now and 10 Most Undervalued US Stocks According to Hedge Funds.
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