Top 20 Most Undervalued Stocks in the S&P 500: April 2024 - NerdWallet (2024)

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What are undervalued stocks?

Undervalued stocks are stocks that trade below their assumed value. They often have a track record of being profitable, and the potential for long-term growth, but the stock market hasn’t recognized that yet.

“I think about something that I love going on sale,” says Ali Swart, a CFP at Waldron Private Wealth, based in Pittsburgh, Pennsylvania.

For instance, if you shop a sale and see something is worth $100 but goes on sale for $75, that could be considered undervalued. Likewise, an undervalued stock trades below what it's worth.


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Why are stocks undervalued?

Sometimes, stocks are undervalued because they’re pulled down by their sector or the overall market, says Daniel Milan, managing partner of Cornerstone Financial Services in Southfield, Michigan. However, the companies of such undervalued stocks usually have strong balance sheets, good net free cash flow and a strong future outlook.

“One example could be Qualcomm — which has been pulled down with the overall tech sector — but even more specifically, within semiconductors, it's often been overlooked on its own. But it's trading at a greater discount in comparison to its peers,” Milan says.

There are downsides to hunting for undervalued stocks. There may be a reason the stock is trading below value, and that reason may not be readily apparent. For example, the company could have core issues like unexpected changes in the company structure or maybe issues with financial management.

The most undervalued stocks in the S&P 500

Below is a table of the 20 most undervalued stocks in the S&P 500 index, ordered from lowest to highest trailing PE ratio.

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Delta Air Lines, Inc.


Bunge Global SA


Valero Energy Corp.


Aptiv PLC


Arch Capital Group Ltd


Synchrony Financial


Comerica, Inc.


HP Inc


EQT Corp


M & T Bank Corp


AT&T, Inc.


Devon Energy Corp.


Marathon Petroleum Corp


Charter Communications Inc.


Altria Group Inc.


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Source: Finviz. This data is current as of Apr. 3, 2024 and is intended for informational purposes only, not for trading purposes.

» Check out our roundup of the best online brokerages for stock trading

How to find undervalued stocks

If you’re looking for undervalued stocks, there are strategies you can use. A general principle is to ensure individual stocks don’t make up more than 10% of your portfolio.

1. Look at the company’s price-to-earnings ratio and market cap

One way to find undervalued stocks is by looking at a stock's price-to-earnings ratio, also known as PE ratio. The PE ratio is calculated by dividing the company’s stock price by its earnings per share. To find the earnings per share of a company, divide its earnings from the past 12 months by the number of shares issued and held by stockholders. If you find a company’s stock has a lower PE ratio, there’s a chance you could be getting valuable stock at a discounted price.

In addition to looking at the PE ratio, a company’s market capitalization — or market cap — can also give you insight into the true value of a stock. Market cap is the total value of a company’s shares of stock, and it can tell you how profitable a company is. You can calculate the market cap by multiplying the current price of a single share by the total number of shares held by stockholders.

» Understand how price-to-earnings ratios work

2. Target undervalued sectors

You could also consider looking at specific sectors of the market while hunting for undervalued stocks.

For example, if tech stocks are on the decline, you could look for companies that have declined along with the rest of the sector, but still show potential for strong growth over the long term.

3. Do your research

Use your brokerage firm’s stock screener to narrow your search and find opportunities. A stock screener is a tool that makes it easier for you to sort through stocks by using specific search criteria. You can find stock screeners at brokerages such as Fidelity, as well as on platforms like Morningstar and Yahoo Finance.

Before choosing to invest in a stock, think about why you’re choosing it, because your "why" will carry you through market volatility. Also consider applying Warren Buffet’s advice of only investing in what you understand.

» Take a look at our list of free stock screeners

4. Explore emerging industries

Undervalued stocks aren’t just those that have seen a price dip. They could be those of a company in a new or emerging industry that isn’t mainstream yet, so consider that in your search, too. You could also play it safe by buying only a few shares and watching how your investment progresses over time.

» Learn about how to buy stocks

When undervalued stocks become popular

Undervalued stocks can become more attractive to some investors in times of stock market volatility, says Milan.

The companies whose stock is undervalued may have strong cash flow and balance sheets. So even if the prices dip, investors buy because they’re getting what they believe to be valuable stock for less money before prices shoot up.

Top 20 Most Undervalued Stocks in the S&P 500: April 2024 - NerdWallet (4)

Undervalued stocks can also become popular when a promising company experiences exponential growth but experiences some volatility or dips in price. Tesla is one example of this, says Swart. They pioneered an industry for electrical vehicles, which is an emerging technology that had growth potential. Tesla made its initial public offering in June 2010 at $17 per share. Then by March 2011, its shares were sold at about $4 a share. At this point, the stock could be considered undervalued and could be more attractive to investors who saw the company's potential.

Fast forward to 2023, and Tesla was trading above $150 a share. So investors who bought in when the price was around $4 a share reaped the benefits of undervalued stocks that end up doing well in the long-term.

All investing comes with risks, and undervalued stocks carry risk, too. You could invest in something like Tesla and make massive gains … or not. Some companies that have undervalued stock don’t end up succeeding, and sometimes investments further depreciate or take longer to decrease in value. If you’re not quite sure about a stock, consider talking to a financial advisor.

Next steps:

» Looking for cheap stocks on the rise? Here's how to find them

» Learn everything you need to know about recession-proof stocks

» Check out: Virtual reality stocks

Top 20 Most Undervalued Stocks in the S&P 500: April 2024 - NerdWallet (2024)


What stock will boom in 2024? ›

10 Best Growth Stocks to Buy for 2024
StockImplied upside from April 25 close*
Tesla Inc. (TSLA)23.4%
Mastercard Inc. (MA)19%
Salesforce Inc. (CRM)20.8%
Advanced Micro Devices Inc. (AMD)30.1%
6 more rows
5 days ago

How do you find the best undervalued stock? ›

You can find undervalued stocks by comparing their ratios, market cap, price, and overall financial health with competitors in the same industry. If you care about saving money, nothing is better than taking advantage of a great deal.

What are the top 20 stocks to invest in? ›

  • Alphabet. GOOG. +9.97%
  • NVIDIA. NVDA. +6.18%
  • Rivian Automotive. RIVN. +6.10%
  • Amazon. AMZN. +3.43%
  • Microsoft. MSFT. +1.82%
  • Meta. META. +0.43%
  • Disney. DIS. -0.04%
  • Apple. AAPL. -0.35%

Which stocks are currently undervalued? ›

Undervalued stocks
S.No.NameROCE %
1.Reliance Home257.70
2.Cons. Finvest65.96
3.Andhra Paper51.95
4.Shreyans Inds.30.99
7 more rows

What stocks will skyrocket in April 2024? ›

Best S&P 500 stocks as of April 2024
Company and ticker symbolPerformance in 2024
Constellation Energy (CEG)58.1%
Deckers Outdoor (DECK)40.8%
Micron (MU)38.1%
7 more rows

Which stock will boom in April 2024? ›

List of Best Stocks to buy April 24
Sr. NoCompany NameNSE Symbol
1Hitachi Energy India Ltd.POWERINDIA
2Graphite IndiaGRAPHITE
3Wonderla HolidaysWONDERLA
Apr 9, 2024

What are the most undervalued stocks in March 2024? ›

The top undervalued, non-penny stocks on the NYSE or the Nasdaq for March 2024 that trade below $50 per share include Joyy, Ebang International Holdings, STRATTEC Security, Central Plains Bancshares, EuroDry, Landsea Homes, Viatris, Alico, Universal Stainless & Alloy Products, EQT, and Consolidated Water Co.

What is the best stock screener to find undervalued stocks? ›

StocksToTrade — Best Overall Undervalued Stock Screener

It's also great for screening for undervalued stocks — it has indicators like EPS and P/E ratio built in. Its true strength is in trading though. If you have a strategy balanced between long-term and short-term trading, it's an awesome resource!

What are the best undervalued stocks to buy? ›

Best Undervalued Stocks in India – Overview
  • ITC Ltd. ...
  • Asian Paints Ltd. ...
  • Sun Pharmaceutical Industries Ltd. ...
  • Avenue Supermarts Ltd. ...
  • Coal India Ltd. ...
  • Varun Beverages Ltd. ...
  • Eicher Motors Ltd. ...
  • Bharat Electronics Ltd.
Feb 19, 2024

What stocks is Congress buying in 2024? ›

Join Our Market Watch Newsletter!
MSFT Microsoft Corporation - Common StockDan Newhouse R HouseApr 10, 2024
HSY The Hershey Company Common StockDan Newhouse R HouseApr 10, 2024
ACN Accenture Plc Class A Ordinary SharesDan Newhouse R HouseApr 10, 2024
GS Goldman Sachs GroupCruz, Ted R SenateApr 15, 2024
47 more rows

What are the best S&P 500 stocks? ›

Sign up for Kiplinger's Free E-Newsletters
Company (ticker)Analysts' consensus recommendation scoreAnalysts' consensus recommendation (AMZN)1.30Strong Buy
Microsoft (MSFT)1.32Strong Buy
Delta Air Lines (DAL)1.35Strong Buy
Nvidia (NVDA)1.38Strong Buy
15 more rows

Which S&P 500 index fund to buy? ›

Top S&P 500 index funds in 2024
Fund (ticker)5-year annual returnsExpense ratio
Fidelity ZERO Large Cap Index (FNILX)14.6%0%
Vanguard S&P 500 ETF (VOO)14.5%0.03%
SPDR S&P 500 ETF Trust (SPY)14.5%0.095%
iShares Core S&P 500 ETF (IVV)14.5%0.03%
4 more rows
Apr 5, 2024

What stocks will surge in 2024? ›

Microsoft Corporation (NASDAQ:MSFT), Alphabet Inc. (NASDAQ:GOOGL), and Advanced Micro Devices, Inc. (NASDAQ:AMD) are some of the stocks that will make you rich in 2024, besides Palantir Technologies Inc. (NYSE:PLTR).

What stock will double in 2024? ›

2 Stocks That Can Double Again in 2024
  • SoundHound AI and Sweetgreen are up 174% and 116% so far in 2024.
  • SoundHouse AI is seeing its platform for conversational intelligence explode in popularity.
  • Sweetgreen has quadrupled over the past year, but it's still a broken IPO with potential to harvest.
Mar 27, 2024

What will stocks do in 2024? ›

Stocks and bonds may both be poised for success in 2024. Easing inflation and a pivoting Fed should reduce headwinds that have faced both asset classes in recent years. Resilient growth may prove to be an additional tailwind for stocks.

Which stock is best for 2025? ›

10 Multibagger Penny Stocks for 2025
Name of the ShareBook Value (₹)1 Year (%)
Indian Railways Finance Corporation Ltd36.49187.84
Trident Ltd8.121.93
Yes Bank14.08-2.23
Exide Industries148.6954.70
6 more rows
Dec 20, 2023


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