This article looks at the Top 15 Lowest P/E Ratios of the S&P 500 in 2025.
The S&P 500 index gained 0.19% on Friday, December 5, to close at 6,870.40, marking the fourth successive winning day for the broad market index, as investors responded positively to economic data that revealed lower-than-expected inflation in September.
The core personal consumption expenditures price index for September, delayed by the government shutdown, showed a monthly rise of 0.2% and an annual rate of 2.8%. While the month’s increase was in line with expectations, the annual rate was 0.1% below estimates, lifting hopes of interest rate cuts from the Federal Reserve.
The broad market index has capped year-to-date gains at 16.81%, putting it on track for a third consecutive year of double-digit returns. According to a Financial Times report on December 4, nine major investment banks surveyed by the newspaper have a combined average forecast of 10% growth in the S&P 500 over the next 12 months.
All banks expect the index to cross 7,500 next year, with Deutsche Bank the most bullish, anticipating the S&P 500 rising above 8,000 in 2026.
However, Bank of America (BofA) has shared a muted outlook for 2026, expecting the S&P 500 to lose momentum after three years of robust returns. It forecasts the index to end next year at around 7,100.
Savita Subramanian, who heads equity and quantitative strategy at BofA, dismissed in a note concerns that the market was headed for a repeat of the 2000 dot-com bubble. However, she mentioned risks of an AI-driven ‘air pocket’ as mega cap stocks are yet to reap the fruits from their high-tech spend.
With that said, let’s now shift focus and see stocks with the lowest P/E ratios in the S&P 500 index.
The New York Stock Exchange building. Photo by Дмитрий Трепольский on Pexels
Our Methodology
We used screeners to identify S&P 500 index stocks with a market cap of $2 billion or more and a forward P/E ratio of 15 or less as of the close of business on December 5. From there, we selected 15 stocks that had the lowest forward P/E ratios and ranked them in descending order. When two or more stocks were tied on forward P/E ratios, we used the higher market cap as the tiebreaker. Additionally, we also included data on hedge fund holdings in these companies as of Q3 2025 to provide further insight into investor interest.
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 427.7% since May 2014, beating its benchmark by 264 percentage points (see more details here).
Top 15 Lowest P/E Ratios of the S&P 500 in 2025
15. Omnicom Group Inc. (NYSE:OMC)
Forward P/E Ratio: 9.47
Number of Hedge Fund Holders: 42
Omnicom Group Inc. (NYSE:OMC) is among the Top 15 Lowest P/E Ratios of the S&P 500 in 2025. On December 5, UBS analyst Adam Berlin lifted his price target on the stock to $108 from $99, citing accretion from the acquisition of Interpublic Group. The firm also maintained its Buy rating for the company’s shares.
The adjustment follows Omni’s announcement late last month that it had completed the acquisition of its rival firm, the Interpublic Group, after receiving all regulatory approvals.
The takeover has further cemented Omnicom Group Inc.’s (NYSE:OMC) position as an advertising powerhouse. Industry experts believe the acquisition would help the company pick up the pace in a challenging landscape marked by intense competition and increased use of AI.
Overall, Wall Street analysts have a bullish outlook on the stock, with a highly favorable opinion and a one-year average share price target of $101.56, representing 38% upside from Friday’s close.
In other news, Omnicom Group Inc. (NYSE:OMC) on November 26 announced it would raise its quarterly dividend by 10 cents from the prior period to $0.80 per common stock. The dividend is scheduled to be paid on January 9, 2026, to all shareholders on record as of December 19, 2025.
Omnicom Group Inc. (NYSE:OMC) is a marketing and sales company with expertise in providing services related to advertising, marketing, media planning, and corporate communications.
14. Norwegian Cruise Line Holdings Ltd. (NYSE:NCLH)
Forward P/E Ratio: 9.04
Number of Hedge Fund Holders: 58
Norwegian Cruise Line Holdings Ltd. (NYSE:NCLH) is among the Top 15 Lowest P/E Ratios of the S&P 500 in 2025. On December 2, Truist Securities slashed its price target on the stock to $26 from $31, while maintaining a Buy rating.
According to TipRanks’ report, the adjustment came as part of the firm’s overall analysis of the cruise line industry. Truist met with leadership from several travel companies and reviewed data on future bookings, which revealed that supply exceeded demand.
The analyst described the demand as lethargic and said that, given the low-teens growth in supply last year and forecasts of positive growth this year and in 2027, the situation is forcing cruise lines to offer promotions and discounts to fill their cabins.
This follows Wells Fargo’s update on Norwegian Cruise Line Holdings Ltd. (NYSE:NCLH) a day earlier, when it reduced its price target for the company to $29 from $30 and kept an Overweight rating on its shares.
Despite recent price target reductions, Wall Street analysts remain positive on NCLH, with more than two-thirds assigning a Buy rating and a one-year average share price target of $27.84, representing an upside potential of 47%.
Norwegian Cruise Line Holdings Ltd. (NYSE:NCLH) is a global cruise company offering itineraries to over 700 destinations. It operates Norwegian Cruise Line, Oceania Cruises, and Regent Seven Seas Cruises. The company has a combined fleet of 32 ships and over 66,500 berths.
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