10 Most Undervalued S&P 500 Stocks to Buy Now

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1. JPMorgan Chase & Co. (NYSE:JPM)

Forward P/E Ratio as of March 14: 12.24

Number of Hedge Fund Holders: 123

JPMorgan Chase & Co. (NYSE:JPM) is a global financial services firm that provides a wide range of products and services across three segments. These are the Consumer & Community Banking, Commercial & Investment Bank, and Asset & Wealth Management segments.

The company’s Consumer & Community Banking (CCB) segment reported $18.4 billion in Q4 2024 revenue, which marked a 1% year-over-year increase. This was driven by an 11% rise in card outstandings and higher Net Interest Income (NII) in its Card Services business. Nearly 10 million new card accounts were acquired in 2024. The company anticipates continued card business growth, although at a moderate pace compared to 2024.

Recently, the company’s software engineers have seen a 10% to 20% increase in productivity due to an in-house coding assistant. This efficiency boost allows its 63,000-strong tech workforce to focus on higher-value AI and data projects. With 450 current AI use cases and CEO Jamie Dimon’s projection of 1,000 by next year, the bank aims to transform operations and create significant value. President Daniel Pinto estimates AI could add $1 billion to $1.5 billion in value.

Carillon Eagle Growth & Income Fund stated the following regarding JPMorgan Chase & Co. (NYSE:JPM) in its first quarter 2024 investor letter:

JPMorgan Chase & Co. (NYSE:JPM) contributed positively to performance following solid financial results and positive guidance for the remainder of 2024. Moreover, growing chatter around rising capital markets activity likely contributed to the stock’s strong performance relative to other banks. Recall that JPMorgan has a robust capital markets franchise.”

While we acknowledge the growth potential of JPMorgan Chase & Co. (NYSE:JPM), our conviction lies in the belief that AI stocks hold great promise for delivering high returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than JPM but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires.

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