16 Most Undervalued Large Cap Stocks To Buy According To Analysts

Fatima Farooq
14 min read

In This Article:

In this article, we will be taking a look at the 16 most undervalued large-cap stocks to buy according to analysts. To skip our detailed analysis of current stock market dynamics, you can go directly to see the 5 Most Undervalued Large-Cap Stocks To Buy According To Analysts.

The Fed's March Decision

On March 20, Jerome Powell, the Chairman of the US Federal Reserve, spoke at a press conference where he highlighted the Fed's interest rate policy moving forward. He noted that the Fed would remain committed to its "dual mandate" to promote "maximum employment and stable prices" to the population of the United States. While Powell spoke about the resilience of the US economy so far in 2024, he also commented on the fact that inflation being reduced is not an assured development for the year as of yet. The Fed's March decision also highlighted that the Fed would maintain its federal funds rate in the range of 5.25% to 5.5%. Additionally, Powell stated that the Fed will also continue to remain committed to bringing US inflation down to the Fed's 2% target.

While the Fed meeting this March did not pinpoint any month for potential rate cuts this year, many financial professionals expect the first rate cut of 2024 to come in June. Additionally, the Fed is currently anticipating a total of three rate cuts this year, though this may be subject to change depending on external factors influencing the state of the US economy. Chairman Powell noted in the March press conference that high interest rates also impacted business investment in the US throughout 2023. Considering this, keeping updated on the Fed's latest moves in the rate cut department can be vital for investors in the US today.

Investing in Large-Cap Stocks

After the Fed's announcements, US equities and the S&P 500 rallied to record levels. During times of economic uncertainty, investors may be considering where to put their money to ensure higher returns and profitability for themselves and their portfolios. We believe that a good place to start would be the type of stocks that are well-rounded and renowned in the market, particularly stocks with higher market capitalizations, that is, large-cap stocks. This assumption comes from the fact that these stocks have much to offer to investors, both in terms of market capitalization, which typically ranges from $10 billion to $200 billion in the large-cap bracket and in terms of revenue growth.

By way of example, let's look at the earnings brought in by some of the stocks on our list below. In the fourth quarter, Uber Technologies, Inc. (NYSE:UBER) had an EPS of $0.66, beating estimates by $0.49, while its $9.9 billion revenue beat estimates by $174.1 million. Intel Corporation (NASDAQ:INTC) brought in an EPS of $0.54, beating estimates by $0.09, while its $15.4 billion revenue beat estimates by $231.1 million. Finally, ServiceNow, Inc. (NYSE:NOW) had an EPS of $3.11 for the fourth quarter, beating estimates by $0.33. The company's revenue came in at $2.4 billion and beat estimates by $35.3 million. These are merely three examples of the value and potential of large-cap stocks, and yet an even more exciting prospect for investors in today's market may be the rise of some of the most undervalued stocks in this group since these stocks would offer investors the chance to buy into attractive stock opportunities offering more value than many other stocks in the market. We have thus compiled a list of some of the most undervalued stocks in the market today, including some of the most profitable cheap stocks to buy and some of the most undervalued blue chip stocks to buy.

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