Earlier on June 27, John Stoltzfus, chief investment strategist at Oppenheimer, appeared on CNBC to state that he remains bullish on equities and favours growthier value. Stoltzfus also recommended seeking out dividend growers rather than just dividend payers, where possible. He expressed a preference for US markets, maintaining an overweight position in US equities, but also retaining long-standing exposure to developed international and emerging markets. Overall, he viewed the current environment as favorable for equities, recommending an overweight allocation to stocks, with some exposure to fixed income for traditional diversification and current income.
Stoltzfus also explained his positive outlook on the consumer discretionary sector and attributed this to the remarkable resilience of the consumer coming from robust job market conditions and resilient businesses. Additionally, he dismissed the potential market risk associated with the idea of a shadow Fed president as a concern.
That being said, we’re here with a list of the 8 most profitable value stocks to buy according to analysts.
Our Methodology
We sifted through the Finviz stock screener and financial media reports to compile a list of the top companies with a TTM net income greater than $1 billion and a forward P/E ratio under 15. We then selected 8 stocks that were the most popular among elite hedge funds and had an upside potential of over 25%. The stocks are ranked in ascending order of their upside potential. We have also added the hedge fund sentiment for each stock, as of Q1 2025, which was sourced from Insider Monkey’s database.
Note: All data was collected on July 29.
Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here).
8 Most Profitable Value Stocks to Buy According to Analysts
8. Centene Corporation (NYSE:CNC)
TTM Net Income: $2.06 billion
Forward P/E Ratio as of July 29: 12.89
Number of Hedge Fund Holders: 64
Average Upside Potential as of July 29: 25.34%
Centene Corporation (NYSE:CNC) is one of the most profitable value stocks to buy according to analysts. On July 28, Truist lowered its price target on Centene to $35 from $42 but maintained a Buy rating on the shares following the company’s Q2 2025 results. Truist noted better performance in Centene’s Prescription Drug Plan/PDP and Medicare Advantage lines of business.
In Q2 2025, the company reported premium and service revenue of $42.5 billion, which contributed to total revenues of $48.7 billion. However, Centene reported an adjusted diluted loss per share of $0.16 for Q2 2025, which missed analyst expectations for a profit, and a GAAP diluted loss per share of $0.51. The Marketplace business also faced a $2.4 billion full-year headwind expected for 2025.
For 2026, Centene aims to reprice 100% of its book to improve profitability and focus on margin over membership. The company is also advocating for greater transparency and earlier data availability to improve market stability.
Centene Corporation (NYSE:CNC) is a healthcare enterprise that provides programs and services to under-insured and uninsured families, and commercial organizations in the US.
7. Devon Energy Corporation (NYSE:DVN)
TTM Net Income: $2.79 billion
Forward P/E Ratio as of July 29: 9.17
Number of Hedge Fund Holders: 58
Average Upside Potential as of July 29: 25.66%
Devon Energy Corporation (NYSE:DVN) is one of the most profitable value stocks to buy according to analysts. On July 22, Raymond James increased its price target for Devon Energy to $45 from $40, while maintaining an Outperform rating on the shares. Raymond James expects minimal changes in activity from Devon Energy’s management teams.
In Q1 2025, the company’s oil production reached 388,000 barrels per day, which exceeded the upper limit of its guidance. Devon generated $1 billion in free cash flow during Q1, with nearly half, or $464 million, returned to shareholders through dividends and share buybacks. Specifically, $301 million was spent on share repurchases, contributing to a total buyback program of $3.6 billion.
Devon also announced the expected sale of its interest in the Matterhorn Pipeline for ~$375 million, expected to close in late Q2. For the full year, Devon increased its oil production outlook to 382,000 to 388,000 barrels per day and simultaneously reduced its full-year capital investment by $100 million, setting it at $3.7 billion to $3.9 billion.
Devon Energy Corporation (NYSE:DVN) is an independent energy company that explores, develops, and produces oil, natural gas, and natural gas liquids in the US.
6. CVS Health Corporation (NYSE:CVS)
TTM Net Income: $5.28 billion
Forward P/E Ratio as of July 29: 9.90
Number of Hedge Fund Holders: 73
Average Upside Potential as of July 29: 33.33%
CVS Health Corporation (NYSE:CVS) is one of the most profitable value stocks to buy according to analysts. On July 23, Pediatric Solutions announced the nationwide launch of its dermatologist-tested skincare brand, Happy Cappy, at over 6,800 CVS Pharmacy locations across the US.
The CVS launch features the brand’s two primary products: Happy Cappy Medicated Shampoo, Face & Body Wash, and Happy Cappy Daily Shampoo, Face & Body Wash to address issues like cradle cap, seborrheic dermatitis, eczema, and dry, sensitive skin.
The Happy Cappy Medicated Shampoo, Face & Body Wash is clinically tested to alleviate flaking, redness, scaling, and irritation associated with seborrheic dermatitis and dandruff. The Happy Cappy Daily Shampoo, Face & Body Wash is for daily use on dry, sensitive, and eczema-prone skin.
CVS Health Corporation (NYSE:CVS) provides health solutions in the US and operates through Health Care Benefits, Health Services, and Pharmacy & Consumer Wellness segments.
5. Universal Health Services Inc. (NYSE:UHS)
TTM Net Income: $1.20 billion
Forward P/E Ratio as of July 29: 8.60
Number of Hedge Fund Holders: 47
Average Upside Potential as of July 29: 35.12%
Universal Health Services Inc. (NYSE:UHS) is one of the most profitable value stocks to buy according to analysts. On July 16, BofA downgraded Universal Health Services from Neutral to Underperform, while concurrently lowering its price target to $185 from $215. Analyst Joanna Gajuk cited the One Big Beautiful Bill as the primary reason for the downgrade and stated that the legislation poses a range of negative implications and creates downside risk to growth estimates for the healthcare sector.
BofA contends that the bill’s subsidy cuts to Medicaid and Affordable Care Act/ACA exchanges are not adequately reflected in current consensus estimates or stock prices for many companies. In Q1 2025, Universal Health Services achieved a net income per diluted share of $4.80, with an adjusted net income per diluted share of $4.84. In acute care hospitals, same-facility adjusted admissions increased by 2.4%, and same-facility net revenues rose by 5.0% in Q1.
However, the delays in receiving funds related to certain Medicaid supplemental payments also impacted cash flow. Behavioral health hospital patient days remained relatively flat compared to the prior year, which was also affected by weather and leap year impacts. The company acknowledges continued uncertainty in the external operating environment, particularly concerning Medicaid supplemental payments.
Universal Health Services Inc. (NYSE:UHS) owns and operates acute care hospitals and outpatient & behavioral health care facilities.
4. Coterra Energy Inc. (NYSE:CTRA)
TTM Net Income: $1.29 billion
Forward P/E Ratio as of July 29: 14.16
Number of Hedge Fund Holders: 43
Average Upside Potential as of July 29: 36.25%
Coterra Energy Inc. (NYSE:CTRA) is one of the most profitable value stocks to buy according to analysts. On July 17, Piper Sandler increased its price target for Coterra Energy to $37 from $36, while maintaining an Overweight rating on the shares. The firm noted that the exploration and production/E&P investing environment remains challenging following Q2, characterized by volatile oil prices due to increased geopolitical risk, partially offset by higher OPEC+ supplies.
Simultaneously, strong secular natural gas demand trends have been hampered by stubbornly high supplies and significant inventory builds. Despite these challenges, the long-term gas demand story received a boost earlier this week from the PA Power and Innovation Summit, which announced $90 billion in investment for power and data center infrastructure projects.
In Q1 2025, the company’s oil production was 2% above the midpoint of guidance, and natural gas production exceeded the high end of guidance. The company reported revenue of $2 billion, which was an increase from $1.4 billion in Q4 2024.
Coterra Energy Inc. (NYSE:CTRA) is an independent oil & gas company that engages in the exploration, development, and production of oil, natural gas, and natural gas liquids in the US.
3. PG&E Corporation (NYSE:PCG)
TTM Net Income: $2.35 billion
Forward P/E Ratio as of July 29: 9.33
Number of Hedge Fund Holders: 76
Average Upside Potential as of July 29: 50.11%
PG&E Corporation (NYSE:PCG) is one of the most profitable value stocks to buy according to analysts. On July 15, PG&E announced that it achieved a 42% reduction in methane emissions from its gas pipeline system in 2024, which surpassed its initial commitment.
In 2017, the California Public Utilities Commission/CPUC and the California Air Resources Board/CAR directed PG&E to achieve a 20% methane emissions reduction below 2015 baseline levels by 2025. By outperforming, PG&E set a new target to achieve a 45% reduction by 2030.
In June, PG&E submitted its annual 2024 emissions data to the CPUC to detail the methods used to achieve the 42% reduction. Additionally, PG&E continued implementing gas mitigation technologies for planned ventings on transmission pipelines, compressor stations, and underground storage facilities.
PG&E Corporation (NYSE:PCG), also known as Pacific Gas & Electric Company, engages in the sale and delivery of electricity and natural gas to customers in northern and central California in the US.
2. Charter Communications Inc. (NASDAQ:CHTR)
TTM Net Income: $5.27 billion
Forward P/E Ratio as of July 29: 7.65
Number of Hedge Fund Holders: 59
Average Upside Potential as of July 29: 51.42%
Charter Communications Inc. (NASDAQ:CHTR) is one of the most profitable value stocks to buy according to analysts. On July 28, BofA lowered its price target on Charter to $440 from $500 but maintained a Buy rating on the shares. The adjustment followed the company’s Q2 2025 results, which were lower than forecasts. BofA anticipates that broadband trends will improve year-over-year in H2 2025 and into 2026.
In Q2 2025, the company reported a 0.6% year-over-year increase in revenue, which reached $13.8 billion, while Adjusted EBITDA grew by 0.5% to $5.7 billion. Despite this modest growth, the stock experienced a significant decline, falling over 30% in the days following the release on July 25, as the earnings per share of $9.18 fell short of the $10.05 consensus estimate.
In the mobile segment, Charter added 500,000 Spectrum Mobile lines in Q2, which contributed to a growth of ~25% over the last 12 months. However, the company continued to face challenges in its core broadband business and lost 117,000 Internet customers in the quarter.
Charter Communications Inc. (NASDAQ:CHTR) is a broadband connectivity and cable operator company serving residential and commercial customers in the US.
1. Novo Nordisk (NYSE:NVO)
TTM Net Income: $15.17 billion
Forward P/E Ratio as of July 29: 13.05
Number of Hedge Fund Holders: 60
Average Upside Potential as of July 29: 73.45%
Novo Nordisk (NYSE:NVO) is one of the most profitable value stocks to buy according to analysts. On July 25, Novo Nordisk announced that the European Medicines Agency’s Committee for Medicinal Products for Human Use/CHMP adopted a positive opinion, recommending an expansion of the Alhemo (concizumab) label.
This recommendation includes the treatment of severe haemophilia A and moderate or severe haemophilia B in patients without inhibitors. If approved by the European Commission/EC, Alhemo, which is administered via a pen-injector device, will become available to all adult and paediatric patients aged 12 years and older living with these conditions.
The positive CHMP opinion is based on results from the Phase 3 explorer8 trial. This study met its primary endpoint and showed that Alhemo prophylaxis reduced spontaneous and traumatic bleeds for patients with haemophilia A and B without inhibitors compared to no prophylaxis. Specifically, Alhemo prophylaxis led to an 86% reduction in treated spontaneous and traumatic bleeds for haemophilia A patients without inhibitors, and a 79% reduction for haemophilia B patients without inhibitors.
Novo Nordisk (NYSE:NVO) researches, develops, manufactures, and distributes pharmaceutical products internationally and operates in two segments: Diabetes & Obesity Care and Rare Disease.
While we acknowledge the potential of NVO 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 NVO and that has 100x upside potential, check out our report about this cheapest AI stock.
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