5 Most Undervalued Large Cap Stocks To Buy According To Hedge Funds

In this article, we discuss 5 most undervalued large cap stocks to buy according to hedge funds. If you want to see more stocks in this selection, 15 Most Undervalued Large Cap Stocks To Buy According To Hedge Funds. 

5. ConocoPhillips (NYSE:COP)

Number of Hedge Fund Holders: 64

P/E Ratio as of January 24: 8.50

ConocoPhillips (NYSE:COP) was founded in 1917 and is headquartered in Houston, Texas. The company explores for, produces, transports, and markets crude oil, bitumen, natural gas, liquefied natural gas, and natural gas liquids worldwide. At the end of November 2022, ConocoPhillips (NYSE:COP) and QatarEnergy announced agreements to supply 2 million metric tons of liquefied natural gas per year to Germany for 15 years starting in 2026, as Germany seeks to cover future gas needs following the conclusion of its energy relationship with Russia. ConocoPhillips (NYSE:COP) is one of the most undervalued large cap stocks to invest in. 

On January 23, Barclays analyst Jeanine Wai raised the firm’s price target on ConocoPhillips (NYSE:COP) to $160 from $151 and kept an Overweight rating on the shares. The analyst expects a weaker Q4 for the integrated oil and exploration and production sector compared to Q3, but the key factors for the sector’s investment thesis such as capital discipline and cash returns, support a positive view.

According to Insider Monkey’s data, ConocoPhillips (NYSE:COP) was part of 64 hedge fund portfolios at the end of Q3 2022, compared to 71 in the last quarter. Ken Fisher’s Fisher Asset Management is the biggest stakeholder of the company, with nearly 7 million shares worth $708.5 million. 

In its Q1 2022 investor letter, Diamond Hill Capital, an asset management firm, highlighted a few stocks and ConocoPhillips (NYSE:COP) was one of them. Here is what the fund said:

“We redeployed capital into ConocoPhillips (NYSE:COP), which was trading at a discount to our estimate of intrinsic value and is well positioned over the long run due to its low-risk asset base.”