In this article, we will list the 5 Undervalued Large Cap Stocks to Buy. Please visit 10 Undervalued Large Cap Stocks to Buy if you would like to see the extended list and the methodology behind it.
5. CVS Health Corporation (NYSE:CVS)
Stock Upside: 29.64%
Market Capitalization: $93.49 billion
Forward P/E: 10.27
Number of Hedge Fund Holders: 88
CVS Health Corporation (NYSE:CVS) is one of the undervalued large cap stocks to buy. On March 25, UBS analyst Kevin Caliendo reiterated a Buy rating and $97 price target on CVS Health Corporation (NYSE:CVS).
Caliendo said that CVS’s proposed settlement with the Federal Trade Commission (FTC) over insulin pricing could lift a major cloud that has been hanging over the stock. The settlement relates to a lawsuit the FTC originally filed in September 2024, in which it accused three of the biggest US pharmacy benefit managers (PBMs) of manipulating insulin pricing in ways that harmed patients and consumers. The PBMs are CVS’s Caremark Rx, LLC, Cigna’s Express Scripts, and OptumRx.
On March 23, Caremark and Zinc Health Services, LLC, CVS’s group purchasing organization, jointly filed to withdraw the FTC’s complaints against the company. This came after submission and execution of a proposed consent agreement that resolves all claims against CVS’s subsidiaries. Both parties signed off on the deal, though the specific financial terms have been redacted in the docket.
Caliendo noted that if the terms of CVS’s settlement mirror those of Express Scripts’ earlier deal, the market is likely to treat this as “an overhang lifted on the stock.” Put simply, a long-standing source of investor uncertainty would be removed and potentially re-rating shares higher. He also specifically flagged that Zinc is already domiciled domestically, which could give CVS more favorable standing in how its settlement is structured relative to peers.
CVS Health Corporation (NYSE:CVS) is a healthcare company that provides pharmacy services, health insurance, and medical care solutions. Its offerings include retail and specialty pharmacy services, pharmacy benefit management, health insurance plans through Aetna, and clinical services such as in-store and virtual care.
4. Salesforce, Inc. (NYSE:CRM)
Stock Upside: 36.19%
Market Capitalization: $172.77 billion
Forward P/E: 14.22
Number of Hedge Fund Holders: 115
Salesforce, Inc. (NYSE:CRM) is one of the undervalued large cap stocks to buy. On April 1, Evercore ISI analyst Kirk Materne reiterated an Outperform rating and $260 price target on Salesforce, Inc. (NYSE:CRM). The decision came after Salesforce’s Slackbot event, which Materne said reinforced his conviction in Salesforce’s long-term positioning in what he calls the “agentic enterprise.” The analyst defined agentic enterprise as a world where AI agents, not human users, drive software actions.
According to Materne, Salesforce is repositioning Slack from a messaging and collaboration tool into the primary front door for AI-powered work. He noted that Slackbot is the interface through which AI agents receive instructions and carry out tasks across the enterprise.
Materne also noted that Salesforce’s management has been telegraphing this “agentic front door” thesis for a while. However, what made this event notable was the explicit acknowledgment that the traditional SaaS interface is going away. In its place is an entirely AI-driven interface where users interact through natural language rather than menus.
The analyst flagged the “network effect” around Slack as a key structural advantage. This is the idea that because so much institutional knowledge, conversation history, and workflows live inside Slack, the more data that accumulates in the system, the more powerful and accurate Salesforce’s AI agents become, Materne explained. He added that this creates a self-reinforcing competitive moat that is difficult for rivals to replicate.
Salesforce, Inc. (NYSE:CRM) is a software company. It provides cloud-based customer relationship management solutions for businesses and organizations. Its products include applications for sales, marketing, customer service, commerce, and data management.
3. The Walt Disney Company (NYSE:DIS)
Stock Upside: 37.10%
Market Capitalization: $170.56 billion
Forward P/E: 14.49
Number of Hedge Fund Holders: 113
The Walt Disney Company (NYSE:DIS) is one of the undervalued large cap stocks to buy. On March 24, BofA Securities analyst Jessica Reif Ehrlich reiterated a Buy rating and $125 price target on The Walt Disney Company (NYSE:DIS).
The core of Ehrlich’s thesis centers on Disney’s Experiences segment. This is the largest contributor to the company’s operating income, and it covers Disney’s theme parks, resorts, and cruise lines. For this segment, Ehrlich projects approximately 5% revenue growth in Q2 FY2026, even though the segment faces strong headwinds.
Those headwinds, noted Ehrlich, are twofold. On the one hand, there is weak international visitor attendance at domestic parks, and, on the other hand, there are cruise ship pre-opening costs tied to the newly launched Disney Adventure, Disney’s largest-ever cruise ship. The cruise ship entered service in Singapore in early 2026.
The analyst also noted that the Experiences segment is facing higher fuel costs. However, on this aspect, the analyst dismissed the risk for Disney, noting that the company hedges a portion of its fuel exposure and its fleet is more fuel-efficient and uses more alternative energy sources than peers. In other words, Ehrlich believes rising oil prices are unlikely to be a meaningful drag on Disney’s Q2 FY2026 earnings.
Shifting to the Sports segment, the analyst flagged that Disney’s operating income in this area will be back-half weighted in FY2026. This will primarily reflect the payout structure of the new NBA media rights deal. Simply put, investors should not read early-year sports results in isolation, as the bigger contribution is coming later in the year.
The Walt Disney Company (NYSE:DIS) is a media and entertainment company that produces and distributes content and operates consumer-facing experiences. Its offerings include film and television production, streaming services such as Disney+, sports content through ESPN, and theme parks, resorts, and consumer products.
2. Micron Technology, Inc. (NASDAQ:MU)
Stock Upside: 45.60%
Market Capitalization: $413.02 billion
Forward P/E: 6.30
Number of Hedge Fund Holders: 137
Micron Technology, Inc. (NASDAQ:MU) is one of the undervalued large cap stocks to buy. On April 6, KeyBanc Capital Markets senior analyst John Vinh reiterated an Overweight rating and $600 price target on Micron Technology, Inc. (NASDAQ:MU). Vinh cited a structural shift in how Micron is contracting with large cloud computing customers, or hyperscalers.
Vinh noted that Micron is establishing new long-term supply agreements with hyperscalers, which now include two critical protections that older contracts lacked. The first is pricing floors, that is, a minimum guaranteed price for memory products, and the second is upfront payments for capacity reservations. That means customers are essentially pre-paying Micron to hold production capacity for them. This shift, noted Vinh, fundamentally de-risks the stock and offers unprecedented earnings visibility in what has historically been a brutally cyclical industry.
Underpinning the near-term outlook, Vinh expects DRAM and NAND pricing to surge 30% to 50% quarter-over-quarter in Q2 2026. He expects this jump to be driven by tight supply conditions and surging AI server demand. However, he noted that price increases are expected to moderate from that level thereafter.
Meanwhile, on March 25, Micron announced cash tender offers to buy back any and all of six series of outstanding senior notes totaling up to $5.4 billion in principal. The offers expired six days later, on March 31, and were settled on April 3.
The six note series targeted were: 5.300% notes due 2031 ($1 billion), 5.650% notes due 2032 ($500 million), two series of 5.875% notes due 2033 ($750 million and $900 million), 5.800% notes due 2035 ($1 billion), and 6.050% notes due 2035 ($1.25 billion).
Holders who tendered their notes before the March 31 deadline were eligible to receive the purchase price. This price was based on a spread over a reference US Treasury security, plus any accrued and unpaid interest up to but not including the settlement date.
Micron Technology, Inc. (NASDAQ:MU) is a semiconductor company that designs, manufactures, and sells memory and storage products. These include DRAM, high‑bandwidth memory, NAND flash, and solid‑state drives for data center, mobile, automotive, and consumer markets.
1. Capital One Financial Corporation (NYSE:COF)
Stock Upside: 46.57%
Market Capitalization: $113.14 billion
Forward P/E: 9.05
Number of Hedge Fund Holders: 136
Capital One Financial Corporation (NYSE:COF) is one of the undervalued large cap stocks to buy. On April 1, Capital One Shopping, a subsidiary of Capital One Financial Corporation (NYSE:COF), entered a new distribution partnership with CardCash, the discounted gift card platform owned by Giftify, Inc. (NASDAQ:GIFT). The deal allows CardCash’s inventory of discounted gift cards to be available to Capital One Shopping’s US users.
Capital One Shopping is a free browser extension and mobile app that automatically finds deals, applies coupon codes, and earns users cash back at checkout. The partnership plugs CardCash into the platform’s reach at exactly the moment users are ready to spend, noted Giftify in a press release.
Giftify detailed in the release that the agreement runs from April 1 to June 30, 2026. It added that CardCash’s insertion into Capital One Shopping is structured as a flat fee plus commission, which means Capital One Shopping participates in performance-based upside tied to actual CardCash sales, rather than a fixed fee only.
The deal is facilitated through the Rakuten affiliate network, which Giftify said is already a top-performing channel for CardCash in 2026. The company expects the partnership to generate strong year-over-year growth in both net sales and average order value.
From Capital One Shopping’s perspective, the partnership adds another savings layer for its users beyond coupons and cash back. It lets them access gift cards at a discount before completing a purchase and deepens the platform’s value proposition as a one-stop savings tool.
Giftify CEO Ketan Thakker said Capital One Shopping reaches exactly the type of consumer CardCash targets, that is, value-oriented shoppers actively looking to save. He described getting CardCash in front of them at the point of purchase as a natural fit.
Capital One Financial Corporation (NYSE:COF) is a financial services holding company. It provides banking and lending products, including credit and debit cards, consumer and commercial loans, deposit accounts, and treasury management services.
While we acknowledge the potential of COF 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 COF and that has 100x upside potential, check out our report about the cheapest AI stock.
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