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.
13. Verizon Communications Inc. (NYSE:VZ)
Forward P/E Ratio: 8.88
Number of Hedge Fund Holders: 60
Verizon Communications Inc. (NYSE:VZ) is among the Top 15 Lowest P/E Ratios of the S&P 500 in 2025. On December 5, Barron’s reported that it had seen a video of the company’s live employee webcast on Friday, the first since last month’s mass layoffs.
According to the report, Verizon’s CEO, Daniel Schulman, was blunt in explaining the downsizing. The company has lost between 5% and 7% of its market share over the past five years, which has pressured the telecommunications giant’s top line, according to Schulman, who also noted the growing churn rate as a result of rising rates.
Schulman further added that Verizon Communications Inc. (NYSE:VZ)’s customer satisfaction scores were lagging behind rivals, and that the company was partly responsible for the situation, as the employees did not have the ‘financial flexibility’ to do what was needed of them.
Considering these factors, the Verizon CEO described the layoffs as inevitable and said the cuts would help the company allocate funds to something larger. He was quoted as saying the following by Barron’s:
“because if we don’t have enough money to put back into our value proposition to customers, we are going to continue to shrink.”
Schulman said he presented his plans for 2026 during his first Board meeting as Chief Executive the prior week and will share more details when he speaks with Wall Street analysts next.
However, Schulman’s recent statements suggest that an increased focus on AI and improved customer service will be among his major goals for next year, according to Barron’s.
Verizon Communications Inc. (NYSE:VZ) provides communications, technology, information, and streaming services to clients worldwide.
12. Synchrony Financial (NYSE:SYF)
Forward P/E Ratio: 8.61
Number of Hedge Fund Holders: 56
Synchrony Financial (NYSE:SYF) is among the Top 15 Lowest P/E Ratios of the S&P 500 in 2025. On December 5, Baird downgraded the stock to Neutral from Outperform, while maintaining its earlier price target of $82.
According to TipRanks, the firm told investors in a research note that despite being a recognized bank, it was ‘tough to chase’ its shares, given the stock’s recent rally and its exposure to lower-end consumers.
In other related news, on November 21, BTIG reiterated its Buy rating on the stock with a share price target of $100. The reaffirmation followed the research firm’s October update, after the company comfortably beat consensus earnings estimates in the third quarter.
During the earnings call, Synchrony’s Executive Vice President and CFO, Brian Wenzel, mentioned that improvements in payment rates and credit mix were resulting in reduced interest and fees, because of which the company cut its net revenue forecast for fiscal 2025 to between $15 billion and $15.1 billion, from the prior range of $15 billion to $15.3 billion.
BTIG said that while a weaker revenue outlook for the full year may have hurt investor sentiment, the factors contributing to the decline were likely to accelerate growth for Synchrony Financial (NYSE:SYF) in fiscal 2026.
As of the close of business on December 5, the stock’s consensus opinion is broadly positive based on the recommendations of 23 Wall Street analysts. SYF has a one-year average share price target of $83.13, representing an upside potential of 3.4%.
Synchrony Financial (NYSE:SYF) is a consumer financial services company serving individuals and businesses for nearly 100 years. The stock has had an impressive run in 2025, returning 24% year-to-date.
11. Molson Coors Beverage Company (NYSE:TAP)
Forward P/E Ratio: 8.37
Number of Hedge Fund Holders: 32
Molson Coors Beverage Company (NYSE:TAP) is among the Top 15 Lowest P/E Ratios of the S&P 500 in 2025. On November 21, Piper Sandler lowered its price target for the stock to $50 from $52, while keeping a Neutral rating.
The firm said it was revising its price target, taking into account recent developments in GLP-1 drugs and regulatory factors affecting alcoholic products.
Last month, President Trump announced agreements with Eli Lilly and Novo Nordisk to reduce prices of GLP-1 drugs for patients under the Medicare and Medicaid programs in 2026. As part of the deal, these companies will also offer the treatments at discounted rates on the TrumpRx.gov website, which is scheduled for launch in January next year.
According to TipRanks, Piper Sandler believes these measures would make the drug more affordable, resulting in a growth in its usage. The firm anticipates that about one-fifth of the American population will be using the GLP-1 by 2028.
In August, Molson Coors Beverage Company (NYSE:TAP)’s then CEO and now Special Advisor, Gavin Hattersley, cited GLP-1 drugs and said that these were believed to be adversely impacting alcohol consumption.
As of December 5, based on recommendations from 21 Wall Street analysts, the consensus holds a cautious view and a one-year average share price target of $50.81, representing an upside potential of 13%.
Molson Coors Beverage Company (NYSE:TAP) manufactures, promotes, and sells beer and malt beverages in different parts of the world, including the Americas, Asia-Pacific, Europe, and Middle East.
10. HP Inc. (NYSE:HPQ)
Forward P/E Ratio: 8.30
Number of Hedge Fund Holders: 42
HP Inc. (NYSE:HPQ) is among the Top 15 Lowest P/E Ratios of the S&P 500 in 2025. On December 1, Bernstein maintained its Hold rating for the stock with a price target of $30.
The research firm expressed concerns about rising memory prices, which it believes could significantly impact the company’s earnings in fiscal 2026, including a likely 10% reduction in full-year EPS.
According to Bernstein, much of the impact is expected to be felt during the second half of the year, with HP’s inventory on hand and long-term agreements shielding it during the first half.
Tech giants are cautioning of a supply shortage for memory chips in 2026, amid surging demand for expanding AI infrastructure. Memory costs have soared in recent weeks and now account for between 15% to 18% of the cost of an average PC for HP Inc. (NYSE:HPQ), said CEO and President Enrique Lores during the Q4 2025 earnings call on November 25.
While talking to Bloomberg last week, Lores said that his company was bracing for a challenging second half of 2026, where HP could raise prices if required. Moreover, the company was onboarding new suppliers and cutting down on memory configuration in new products to mitigate the impact of these headwinds.
Several research firms since November 26 have lowered the price targets for HP Inc. (NYSE:HPQ), citing rising memory costs and their impact on the company’s financial outlook for 2026.
As of the close of business on December 5, Wall Street analysts have a consensus Hold rating for the stock, with a one-year average share price target of $25.88, which is primarily in line with Friday’s close of $25.91.
HP Inc. (NYSE:HPQ) is a leading provider of personal computers, digital access devices, printers, scanners, and other related technologies. The stock is down 21% year-to-date.
9. Pfizer Inc. (NYSE:PFE)
Forward P/E Ratio: 8.30
Number of Hedge Fund Holders: 84
Pfizer Inc. (NYSE:PFE) is among the Top 15 Lowest P/E Ratios of the S&P 500 in 2025. On December 1, Citi resumed coverage of the stock with a Neutral rating and a $26 share price target.
In a research note to investors, the analyst shared a mixed outlook for the stock. Citi noted the company’s operational gains and a clear policy environment, while adding that challenges from the Medicare Part D program offset these.
The adjustment follows Guggenheim’s recent update on Pfizer Inc. (NYSE:PFE) on November 26, in which it lifted its price target on the stock to $35 from $33, while keeping a Buy rating.
Guggenheim cited Pfizer’s acquisition of Metsera as the reason behind the revision, saying the move was likely to drive momentum for the company in the market for obesity drugs.
As of the close of business on December 5, around 60% of the 26 Wall Street analysts with recommendations on Pfizer have a Hold rating for the stock. The pharmaceuticals company has a one-year average share price target of $29.04, representing an upside potential of 12%.
Pfizer Inc. (NYSE:PFE) develops, sells, and distributes a wide range of vaccines and drugs worldwide. The stock is down 2% year-to-date.
8. Bristol-Myers Squibb Company (NYSE:BMY)
Forward P/E Ratio: 7.97
Number of Hedge Fund Holders: 76
Bristol-Myers Squibb Company (NYSE:BMY) is among the Top 15 Lowest P/E Ratios of the S&P 500 in 2025. On December 4, Scotiabank lifted its price target on the stock to $53 from $43, while maintaining a Sector Perform rating for its shares, citing Wall Street’s ‘modest expectations’ for the company’s pipeline.
The firm said that results of several clinical trials were expected in 2026, which have not received much attention from investors yet. However, Scotiabank believes these have a significant risk or reward potential and could lead to a significant upside if the outcomes are favorable.
The adjustment follows Goldman Sachs’ update on Bristol-Myers Squibb Company (NYSE:BMY) earlier in the month on December 2, when it raised its price target for the stock to $57 from $51 and kept a Neutral rating on its shares.
Based on the recommendations and price targets from 27 analysts, the stock has a consensus Hold rating and a one-year average share price target of $53.41 as of December 5, representing an upside potential of 2.4%.
In other news, on December 3, Bristol-Myers Squibb Company (NYSE:BMY) said it would expand its ADEPT-2 study of the Alzheimer’s psychosis drug Cobenfy to additional patients after irregularities were observed at certain study sites. Trial results from the program are expected to be declared by the end of 2026.
Bristol-Myers Squibb Company (NYSE:BMY) is a biopharmaceutical company engaged in the discovery and development of innovative treatments for several serious diseases.
7. Baxter International Inc. (NYSE:BAX)
Forward P/E Ratio: 7.84
Number of Hedge Fund Holders: 38
Baxter International Inc. (NYSE:BAX) is among the Top 15 Lowest P/E Ratios of the S&P 500 in 2025. On December 2, Morgan Stanley analyst Patrick Wood cut his price target on the stock to $15 from $19 while keeping an Underweight rating.
Looking ahead to 2026, the analyst told investors in a research note that medical technology companies were well-placed, given the favorable trend in hospital spending, key product launches, and low stock valuations.
The adjustment follows Argus Research’s downgrading of Baxter International Inc. (NYSE:BAX) on October 31, citing a significant dividend reduction, effective from January 2026, with the company expecting the decision to drive a $300 million or higher boost in annual cash flow. These funds will be used to support de-leveraging efforts to strengthen the balance sheet.
Argus’ analysts also expressed concerns around the weak outlook for the company’s IV fluid solutions business.
As of the close of business on December 5, Wall Street analysts have a consensus Hold rating for the stock, with a one-year average share price target of $23.80, representing an upside potential of 28%.
Baxter International Inc. (NYSE:BAX) is a global medical technology company offering a wide range of healthcare products. The stock has had a challenging year, slumping 36% year to date.
6. Fiserv, Inc. (NASDAQ:FISV)
Forward P/E Ratio: 7.71
Number of Hedge Fund Holders: 83
Fiserv, Inc. (NASDAQ:FISV) is among the Top 15 Lowest P/E Ratios of the S&P 500 in 2025. On December 4, JPMorgan downgraded the stock’s rating to Neutral from Overweight, with its share price target unchanged at $85.
In a research note to investors, the firm cited 2025 as a year to forget for payment stocks, with the sector projected to mark its worst performance in a decade and a half, excluding the pandemic years. The investment bank attributed the trend to a market slowdown and uncertainty around the ROI of new products.
JPMorgan believes next year will be a lot about these companies showing that they can deliver, and at the same time, investing in new areas. While the initiatives could work, they could also fail, and therefore the bank prefers to stay on the sidelines for stocks such as Fiserv, Inc. (NASDAQ:FISV), it said in the note.
As of the close of business on December 5, about two-thirds of the 35 Wall Street analysts with recommendations on Fiserv have a Hold rating for the stock. The company has a one-year average share price target of $95.05, representing an upside of 43%.
Fiserv, Inc. (NASDAQ:FISV) provides payments and financial services to clients across various financial sectors. The stock has had a difficult 2025, and is down 68% year-to-date.
5. APA Corporation (NASDAQ:APA)
Forward P/E Ratio: 7.56
Number of Hedge Fund Holders: 33
APA Corporation (NASDAQ:APA) is among the Top 15 Lowest P/E Ratios of the S&P 500 in 2025. On December 5, Johnson Rice upgraded its rating on the stock to Accumulate from Hold and lifted its price target to $40 from $35.
The adjustment follows Goldman Sachs’ update on December 1, when it raised its price target for the stock to $21 from $19. However, the analyst maintained a Sell rating for the company’s shares, citing a slowdown in the U.S. shale oil market after over a decade of substantial growth.
As of December 5, based on the recommendations of 29 Wall Street analysts, APA Corporation (NASDAQ:APA) has a consensus Hold rating. Despite recent price target increases, the stock has a one-year average share price target of $25.89, suggesting a potential downside of 4%.
The energy company’s shares have soared 25% over the past month, with a major spike following its third-quarter earnings beat and production exceeding guidance for the period. APA Corporation (NASDAQ:APA) credited the strong results to the successful execution of operational efficiencies, strategic initiatives, and cost reduction.
The company also strengthened its balance sheet in Q3 by reducing net debt by $431 million. It ended the quarter with $475 million in cash, boosting its liquidity ahead of 2026. Moreover, it returned $154 million to investors through dividends and share repurchases.
APA Corporation (NASDAQ:APA) is focused on exploration and production of oil and natural gas across the United States, the United Kingdom, Egypt, and offshore Suriname. The stock is up 17% year-to-date, as of the close on December 5.
4. General Motors Company (NYSE:GM)
Forward P/E Ratio: 7.42
Number of Hedge Fund Holders: 71
General Motors Company (NYSE:GM) is among the Top 15 Lowest P/E Ratios of the S&P 500 in 2025. On November 24, Evercore ISI lifted its price target on the stock to $74 from $68, while maintaining an Outperform rating.
After a challenging 2025, the firm projects a 20% upside for the automotive industry in 2026 and has a favorable outlook for the sector in 2027, amid optimism around what it described as the ‘K-economy’ and growing consumer demand for new cars.
Evercore ISI’s adjustment follows price target increases for the stock from several firms, including Wells Fargo and Citigroup, in late October, after General Motors Company (NYSE:GM) declared results for the third quarter of fiscal 2025 and raised its earnings outlook for the full year.
The Detroit automaker posted a revenue of $48.6 billion for the quarter, down slightly by 0.3% from last year. While adjusted EPS of $2.80 was also 5.4% lower year over year, it beat analysts’ forecast of $2.31.
General Motors Company (NYSE:GM) raised its full-year earnings guidance and now expects its adjusted core profit in the range of $12 billion to $13 billion, up from its initial projections of $10 billion and $12.5 billion, citing controlled tariff pressure and reduced EV losses.
As of the close of business on December 5, Wall Street analysts have a moderate Buy rating on the stock. However, its one-year average share price target of $74.27 represents a downside potential of 3%.
General Motors Company (NYSE:GM) is an automotive company that sells trucks, cars, and auto parts and provides software-enabled services and subscriptions.
3. The AES Corporation (NYSE:AES)
Forward P/E Ratio: 6.47
Number of Hedge Fund Holders: 52
The AES Corporation (NYSE:AES) is among the Top 15 Lowest P/E Ratios of the S&P 500 in 2025. On December 5, Argus Research upgraded its rating on the stock to Buy from Hold, with a share price target of $18.
The research firm cited the company’s sustainable profit growth as the reason behind the adjustment. In a research note to investors, the Argus analyst noted the potential for major improvements in the performance of the Renewables SBU in fiscal 2026, while mentioning that The AES Corporation (NYSE:AES) was set to triple renewables capacity by 2027.
As of the close of business on December 5, about 60% of the 14 Wall Street analysts with a recommendation on AES had a Buy or better rating. Moreover, its shares have a one-year average price target of $15.29, representing an upside potential of almost 10%.
On November 4, The AES Corporation (NYSE:AES) reported financial results for the third quarter of fiscal 2025. It posted adjusted EPS of $0.75, surpassing estimates of $0.712 and up 5.6% year over year. The company attributed the growth to a reduced adjusted tax rate and progress on its cost-saving initiatives.
The AES Corporation (NYSE:AES) reaffirmed its full-year guidance, with adjusted EBITDA expected to be in the range of $2.65 billion to $2.85 billion and adjusted EPS between $2.10 and $2.26.
The AES Corporation (NYSE:AES) is a power generation and utility company in the United States and internationally. The stock has had modest returns so far in 2025, gaining 8% year-to-date.
2. Comcast Corporation (NASDAQ:CMCSA)
Forward P/E Ratio: 6.47
Number of Hedge Fund Holders: 84
Comcast Corporation (NASDAQ:CMCSA) is among the Top 15 Lowest P/E Ratios of the S&P 500 in 2025. On December 1, Rosenblatt cut its price target on the stock to $30 from $33, while maintaining a Neutral rating.
The company reported a 3.5% decline in adjusted EBITDA for its Connectivity & Platforms unit in Q3 2025 and stated that it expects the trend to continue, given the ongoing investments in product, pricing, and customer experience. According to TipRanks, Rosenblatt cited the expected decline in the unit’s EBITDA as an important factor behind the adjustment.
In a research note to investors, the firm also noted the deceleration in Comcast Corporation’s (NASDAQ:CMCSA) average revenue per user (ARPU), as it shifts towards initiatives like simplified bundles and free wireless line offers to drive momentum in its broadband business, as it faces intense competition from rival providers.
During the earnings call on October 30, CFO Jason Armstrong said that he anticipates a reduction in ARPU growth during the fourth quarter and continued pressure during the early months of next year, as the company looks to avoid broadband rate increases to maintain and expand its user base.
As of the close of business on December 5, Wall Street analysts’ opinions are cautious on the stock, but its one-year average share price target of $34.65 still represents an upside potential of 27%.
Comcast Corporation (NASDAQ:CMCSA) is a media and technology company that provides broadband, wireless, and video services to millions of customers and viewers worldwide. The stock has had a difficult 2025 and is down 27.23% year-to-date.
1. Global Payments Inc. (NYSE:GPN)
Forward P/E Ratio: 6.45
Number of Hedge Fund Holders: 53
Global Payments Inc. (NYSE:GPN) is among the Top 15 Lowest P/E Ratios of the S&P 500 in 2025. On December 2, Mizuho Securities analyst Dan Dolev reiterated a Buy rating on the stock with a share price target of $125.
The adjustment follows Truist Securities’ November 13 update on the stock, when it lowered its price target to $84 from $90 while maintaining a Hold rating on the company’s shares.
Truist’s rating came as part of a broader analysis on payment firms after their Q3 earnings. The firm also added that it expects reduced share buybacks from Global Payments Inc. (NYSE:GPN) as it awaits regulatory approvals for the acquisition of Worldpay and the divestiture of the Issuer Solutions business.
In April this year, the payment technology company announced that it had reached agreements for a $24.25 billion buyout of Worldpay from GTCR and FIS, while simultaneously divesting the Issuer Solutions business to FIS for $13.5 billion. The transactions are scheduled to close during the first half of next year.
As of the close of business on December 5, 60% of the 30 Wall Street analysts covering GPN have a Hold rating. The company’s shares have a one-year average share price target of $103.74, representing an upside potential of 32%.
Global Payments Inc. (NYSE:GPN) is a payments technology company that provides software and services to customers worldwide, enabling them to operate their businesses more efficiently across a variety of channels.
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