5 Best Undervalued Large-Cap Stocks According to Hedge Funds

4. U.S. Bancorp (NYSE:USB)

Number of Hedge Fund Holders: 46 

PE Ratio: 10.39 

U.S. Bancorp (NYSE:USB) is a financial services holding firm. On February 22, the company announced that it had picked Microsoft Azure as the primary cloud computing platform to power the lending applications of the bank. The company has also expanded the partnership with Microsoft to Microsoft 265 and Microsoft Teams to integrate the professional suite of Microsoft products into the business. The firm is expanding a credit card reward program from fuel stations to EV charging stations as well. 

On March 28, Morgan Stanley analyst Betsy Graseck maintained an Equal Weight rating on U.S. Bancorp (NYSE:USB) stock with a price target of $66, noting that “war changes everything” and that longer inflation was also a “credit risk” for banks. 

At the end of the fourth quarter of 2021, 46 hedge funds in the database of Insider Monkey held stakes worth $7.9 billion in U.S. Bancorp (NYSE: USB), compared to 42 the preceding quarter worth $8.3 billion.

Among the hedge funds being tracked by Insider Monkey, Nebraska-based investment firm Berkshire Hathaway is a leading shareholder in U.S. Bancorp (NYSE:USB) with 126 million shares worth more than $7 billion. 

In its Q4 2020 investor letter, Mairs & Power, an asset management firm, highlighted a few stocks and U.S. Bancorp (NYSE:USB) was one of them. Here is what the fund said:

“On the negative side, one of the Fund’s biggest detractor in 2020 was U.S. Bancorp (USB). Like all banks, U.S. Bank was hurt by the difficult interest rate environment and credit cycle concerns. We believe banks are strong enough to survive the current sector doldrums, and they remain some of the market’s most attractive opportunities.”