10 Oversold Blue Chip Stocks to Buy Now

In this article, we will discuss the 10 Oversold Blue Chip Stocks to Buy Now.

Market experts believe that, so far, 2024 continues to be a strong year for the broader stock market. With the predictions of rate cuts, some strategists opine that next year can be another year for the equities. On a YTD basis, the S&P 500 saw an increase of over ~22%. On a related note, Fidelity Investments (in the note dated October 16, 2024) highlighted that equities rallied in Q3 2024, courtesy of real estate, US value, and some small-cap stocks. While volatility increased in August, it decreased later. This led to a productive September.

Fidelity Investments went on to say that the US labor market demonstrated signs of cooling. However, it remained strong overall. Despite some softness in manufacturing, some of the major global economies continued to expand. Elsewhere, in China, new policies to fuel stock prices were rolled out. While the positive impact was seen in the Chinese equities post the stimulus measures, there remains some uncertainty regarding the long-term impact.

Factors to Watch Out For in 2025

With 2024 approaching an end, global investors continue to wonder about the factors that might influence the broader financial markets in 2025. The markets are intertwined, making US stocks more sensitive to several factors. Forbes reported that the results of the 2024 presidential election, domestic inflation and rates, technology innovation, economic trends, and elevated geopolitical tensions are some of the factors likely to influence the financial markets

As per TradingBlock, the tariff measures, together with a national deficit, are some of the critical issues for the next president. While the new tariffs can slow down the broader US economy, the deficit, if left unchecked, might lead to continued devaluation of the U.S. dollar. Also, a slowdown of the US economy might result in inflation worries.

Some market experts continue to worry about the Chinese economy. As per SALT Venture Group, the slowness in China can be a constraint for the stock market growth in the next year. This is because this slowdown can weaken the demand for US exports. As per CEIC, the US total exports to China sat at ~$12.618 billion in August 2024.

READ ALSO: 7 Best Stocks to Buy For Long-Term and 8 Cheap Jim Cramer Stocks to Invest In.

What to Expect from the Stock Market in 2025?

Forbes reported that experts are predicting stock market growth to vary in the range of a 5% decline to growth of 20% in 2025. However, some experts believe that a 10% increase is expected to be the most likely scenario. UBS expects that the stock market is on track for another year of double-digit gains. The strategists made a bullish call for stocks, projecting that the S&P 500 is expected to touch 6,600 by next year’s end. The firm went on to add that the increase is expected to be aided by a “no landing” for the economy.

The improved US macroeconomic outlook has increased the bank’s degree of certainty about the positive view of equities. Notably, the job market continues to be resilient amidst tighter financial conditions and elevated interest rates. Investors might witness some volatility because of the November election, but it’s unlikely that it will be a hurdle to more positive market drivers.

10 Oversold Blue Chip Stocks to Buy Now

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Our Methodology

To list the 10 Oversold Blue Chip Stocks to Buy Now, we extracted the companies that have a market cap of over $10 billion by using a Finviz screener. After getting an initial list of 25-30 stocks, we chose the ones trading at a forward P/E multiple of less than 15.0x and which have fallen significantly on a YTD basis. Finally, the stocks were ranked in the ascending order of their hedge fund sentiments, as of Q2 2024.

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 275% since May 2014, beating its benchmark by 150 percentage points (see more details here).

10 Oversold Blue Chip Stocks to Buy Now

10) POSCO Holdings Inc. (NYSE:PKX)

Market cap (As of 25 October): $18.2 billion

Forward P/E (As of 25 October): 10.86x

% Decline on a YTD Basis: ~34%

Number of Hedge Fund Holders: 8

POSCO Holdings Inc. (NYSE:PKX) operates as an integrated steel producer in Korea and internationally.

POSCO Holdings Inc. (NYSE:PKX)’s focus on the Rechargeable Battery Materials business and strategic growth initiatives, like the expansion of the Infrastructure business and the Stage 4 Myanmar gas field development project, should drive growth in the near term. Also, the advancements in its low-carbon steelmaking efforts and improvements in operational rates can act as potential tailwinds. Wall Street remains optimistic about POSCO Holdings Inc. (NYSE:PKX) due to the adjustments related to the investments in the EV Battery Materials industry.

Additionally, the company has made progress in HyREX technology, lithium and nickel production, and natural gas upstream expansion. POSCO Holdings Inc. (NYSE:PKX) continues to focus on increasing sales in South Korea and leveraging operations in Mexico and other countries in a bid to promote sales in the Americas. In the Q2 2024 earnings call, the company highlighted that profits from overseas steel have improved because of increased sales of high-margin products.

Analysts believe that POSCO Holdings Inc. (NYSE:PKX)’s focus on low-carbon steelmaking and operational efficiency should help it generate more profit. The company’s Q2 2024 results were mainly aided by its strategic focus on expanding core businesses and improving operational efficiency. Rating agency S&P Global highlighted that POSCO Holdings Inc. (NYSE:PKX) has been increasing capital spending over the past 2 years, mainly for expansion into the supply chain for EV battery materials.

The company also stated that the operating performance of POSCO Holdings Inc. (NYSE:PKX) is expected to gradually recover over the next few months from the low base of 2022. This improvement is expected to be backed by its strong market position and favorable product mix.

9) Ecopetrol S.A. (NYSE:EC)

Market cap (As of 25 October): $16.6 billion

Forward P/E (As of 25 October): 5.40x

% Decline on a YTD Basis: ~32%

Number of Hedge Fund Holders: 11

Ecopetrol S.A. (NYSE:EC) operates as an integrated energy company.

Ecopetrol S.A. (NYSE:EC)’s focus on cost optimization and efficiency should continue to help it in navigating external challenges. The company’s investments are primarily allocated to Colombia, with a strong focus on exploration and production. Ecopetrol S.A. (NYSE:EC) continues to prioritize energy efficiency and clean energy projects in its investment plans. The company is committed to maintaining sustainable financial management and maximizing operational efficiency.

Ecopetrol S.A. (NYSE:EC)’s advancements in energy transition, which include the approval of Phase I of a sustainable aviation fuels project, and its efforts to help Colombia’s energy security and social development, should act as growth enablers. Moving forward, the company’s strategic focus on efficiency and cost optimization is expected to help it in combating the challenges related to fluctuating exchange rates and inflation.

Fitch Ratings expects that Ecopetrol S.A. (NYSE:EC) should be able to report positive FCF. Its base case assumption includes the company having an average annual capex budget of ~USD5.5 billion over the next 3 years and that it will pay 60% of the previous year’s net income in accordance with a 40% – 60% dividend policy. This, together with Fitch’s price assumptions for Brent crude oil price of USD80/bbl in 2024, USD70/bbl in 2025, and USD60/bbl in the long term, should help Ecopetrol S.A. (NYSE:EC) report positive FCF over next 3 years.

The challenges faced by the company in Q2 2024 were mitigated by its focus on maximizing operational savings, controlling costs, and improving the realization prices of crude oil.

8) STMicroelectronics N.V. (NYSE:STM)

Market cap (As of 25 October): $25.4 billion

Forward P/E (As of 25 October): 10.52x

% Decline on a YTD Basis: ~41%

Number of Hedge Fund Holders: 16

SMicroelectronics N.V. (NYSE:STM) is engaged in designing, developing, manufacturing, and selling semiconductor products in Europe, the Middle East, Africa, the Americas, and the Asia Pacific.

STMicroelectronics N.V. (NYSE:STM) announced the construction of a new high-volume silicon carbide manufacturing facility in Italy, which is supported by significant investment and state support. Wall Street analysts opine that the company’s gross margins should improve in the upcoming quarters because of a better mix and reduced loading costs. Moving forward, the growth in components related to electric vehicles is expected, primarily in China.

STMicroelectronics N.V. (NYSE:STM) remains focused on converting to 300-millimeter and 200-millimeter silicon-based technology. STMicroelectronics N.V. (NYSE:STM) and Qualcomm Technologies International, Ltd. announced a new strategic collaboration for the next generation of industrial and consumer loT solutions augmented by edge Al. This partnership focuses on integrating Qualcomm’s wireless connectivity solutions with STMicroelectronics’ STM32 microcontroller ecosystem. The products from this collaboration should be available to OEMs in Q1 2025.

Despite the challenging environment, Wall Street analysts remain optimistic about the long-term trends in the automotive sector, and the outlook of silicon carbide technology. Collectively, these factors place STMicroelectronics N.V. (NYSE:STM) well for long-term growth. The company is introducing its fourth-generation STPOWER silicon carbide (SiC) MOSFET technology.

While serving the automotive and industrial markets, this technology is particularly optimized for traction inverters, which is a critical component of EV powertrains. The company focuses on introducing further advanced SiC technology innovations through 2027 as a commitment to innovation. Wall Street believes that the shares of STMicroelectronics N.V. (NYSE:STM) have an average price target of $42.00.

7) Franklin Resources, Inc. (NYSE:BEN)

Market cap (As of 25 October): $10.6 billion

Forward P/E (As of 25 October): 7.87x

% Decline on a YTD Basis: ~30%

Number of Hedge Fund Holders: 27

Franklin Resources, Inc. (NYSE:BEN) is a publicly-owned asset management holding company.

Despite the challenges, Franklin Resources, Inc. (NYSE:BEN) continues to maintain a strong global presence in the investment management industry. This international footprint is expected to offer opportunities for the company to diversify its asset base and tap into growth markets. Through leveraging its established brand and distribution networks, Franklin Resources, Inc. (NYSE:BEN) should be able to offset outflows in certain markets with inflows from others. It can focus on regions or asset classes where it has a competitive advantage or where market conditions continue to be favorable.

During the quarter that ended June 30, 2024, the company saw positive net flows in multi-asset and alternative strategies, with a strong emphasis on retail SMAs, Canvas, and ETF offerings. Wall Street analysts remain optimistic about Franklin Resources, Inc. (NYSE:BEN)’s partnerships with Microsoft and Envestnet. These alliances should enhance technology capabilities.

It plans to grow its Wealth Management business with the help of organic investments and acquisitions, focusing on innovation and technology. It will continue to invest in the business to aid its strategic priorities in Asset Management and Wealth Management. Franklin Resources, Inc. (NYSE:BEN) is focused on product development and expansion, with ongoing product development with Great West and the expectation to broaden its allocations beyond fixed income. The expansion of its partnership with Envestnet, Inc. is seen as a growth catalyst, furthering its position as a top SMA provider.

Franklin Resources, Inc. (NYSE:BEN) highlighted that advisors who are using Envestnet will be able to access Canvas’ differentiated digital solutions and operational assurance in a bid to strengthen client relationships by personalizing investment management. As per Wall Street, the shares of the company have an average price target of $21.44.

6) Stellantis N.V. (NYSE:STLA)

Market cap (As of 25 October): $41.2 billion

Forward P/E (As of 25 October): 3.62x

% Decline on a YTD Basis: ~40%

Number of Hedge Fund Holders: 31

Stellantis N.V. (NYSE:STLA) is engaged in designing, engineering, manufacturing, distributing, and selling automobiles and light commercial vehicles, engines, transmission systems, metallurgical products, mobility services, and production systems.

Wall Street analysts believe that the company’s JV with Leapmotor, which is a rising Chinese EV brand, should support Stellantis N.V. (NYSE:STLA) over the long term. This can help leverage China’s cost advantages in EV and battery production and expertise in software and connectivity technologies. The company’s strategy minimizes direct EBIT exposure in China. It will also enable Stellantis N.V. (NYSE:STLA) to benefit from China’s manufacturing efficiencies and technological advancements.

Stellantis N.V. (NYSE:STLA)’s product portfolio, mainly its iconic US brands Ram and Jeep, should act as potential tailwinds moving forward. The company remains focused on operational improvements, cost reduction, and aligning production with market demand. Stellantis N.V. (NYSE:STLA) is committed to posting double-digit margins and positive FCF by 2030. Moreover, it plans to stabilize the situation in Europe and gain a profitable share via new product releases.

Stellantis N.V. (NYSE:STLA) has been emphasizing multi-energy and software-related technologies, with a strong commitment to electrification. The company remains comfortable with the multi-energy platform strategy and is focused on reducing structural costs. Analysts at Sanford C. Bernstein initiated coverage on the shares of Stellantis N.V. (NYSE:STLA) on 28th June. They gave a “Market Perform” rating and a $23.50 price objective.

Ariel Investments, an investment management company, released its first-quarter 2024 investor letter. Here is what the fund said:

“We added multinational automotive manufacturing company, Stellantis N.V. (NYSE:STLA), which was formed from the merger of Fiat Chrysler Automobiles and the French PSA Group in the period. With deal synergies lowering overall operating expenses and contributing to healthy free cash flow generation, management has begun increasing shareholder returns through dividends and share buybacks. Although some investors remain on the sidelines over concerns auto sales and margins have peaked, STLA’s average transaction price is growing year-over-year. We think this momentum will continue and expect STLA to deliver double-digit operating profit margin as it further expands its leading position in the Middle East and South America. Furthermore, the company’s Leapmotor joint venture presents a unique way to benefit from the strengths of Chinese original equipment manufacturers. Meanwhile, in the current electric vehicle slowdown environment, we believe STLA is best positioned to weather the storm. Management believes it can maintain profitability and is open to rationalizing its 14 brands. STLA seeks to be number one in the commercial vehicle segment by 2027, which comes with high customer stickiness, solid profitability and recurring revenue streams.”

5) Vale S.A. (NYSE:VALE)

Market cap (As of 25 October): $46.45 billion

Forward P/E (As of 25 October): 5.34x

% Decline on a YTD Basis: ~30.7%

Number of Hedge Fund Holders: 34

Vale S.A. (NYSE:VALE) is engaged in producing and selling iron ore, iron ore pellets, nickel, and copper in Brazil and internationally.

Vale S.A. (NYSE:VALE) has a strong position in the global mining industry, primarily in iron ore production. The company has been focusing on its Value-Based Management (VBM) vision in a bid to drive long-term value creation. A recent VBM asset review demonstrated potential benefits to production and unit costs extending into 2028 and beyond. Wall Street analysts believe that Vale S.A. (NYSE: VALE)’s ability to generate healthy FCF should help it sustain its growth trajectory.

The robust iron ore production and shipments and the potential benefits from the VBM initiatives form a strong foundation for positive future performance. Vale S.A. (NYSE:VALE) can enhance its competitive position in the broader mining industry through its focus on operational efficiency and cost reduction. The VBM initiatives are expected to result in increased production volumes, lower operating costs, and improved profitability throughout the company’s diverse portfolio of assets.

Moreover, these strategies can help Vale S.A. (NYSE:VALE) in sustained earnings growth and increased shareholder value. In a nutshell, strong iron ore production and sales volumes, expectation of NPV increase through VBM initiatives, strong position in the global iron ore market, and ability to generate strong FCF are expected to act as potential tailwinds.

In Q3 2024, Vale S.A. (NYSE:VALE)’s operational and sales performance saw improvement throughout business segments. Iron ore shipments went up by 1.3 Mt (+2%) YoY as a result of an 18% increase in pellet sales because of higher production and strong demand.

As per Wall Street analysts, the shares of Vale S.A. (NYSE:VALE) have an average price target of $15.39.

4) Dollar Tree, Inc. (NASDAQ:DLTR)

Market cap (As of 25 October): $14.2 billion

Forward P/E (As of 25 October): 10.8x

% Decline on a YTD Basis: ~53%

Number of Hedge Fund Holders: 38

Dollar Tree, Inc. (NASDAQ:DLTR) operates retail discount stores.

Dollar Tree, Inc. (NASDAQ:DLTR)’s multi-price point strategy at Dollar Tree stores reflects a departure from the company’s long-standing $1 price point model. This should help the company achieve topline and earnings growth in the near term. The expanded product assortment should help Dollar Tree, Inc. (NASDAQ:DLTR) expand its customer base. Overall, the company’s strong brand recognition and an extensive store network should be critical tailwinds. Its multi-price expansion and store growth acceleration strategy should help it navigate the challenging environment.

Dollar Tree, Inc. (NASDAQ:DLTR) focuses on slowing down the pace of converting stores to the multi-price format in a bid to ensure readiness. The company highlighted that its customers are responding favorably to initiatives, such as expanding multi-price offerings, and it continues to see a meaningful sales lift at its Dollar Tree stores which were converted to its newest in-line multi-price format.

During Q2 2024, Dollar Tree, Inc. (NASDAQ:DLTR) announced that it initiated a formal review of strategic alternatives for the Family Dollar business segment, including the potential sale, spin-off, or other disposition of the business. However, on 1st August 2024, First Insight, Inc. announced the strategic partnership with Family Dollar. The initiative is focused on refining Family Dollar’s merchandise assortment strategy by leveraging First Insight’s predictive analytics and actionable data.

Analysts at Sanford C. Bernstein began coverage on the shares of Dollar Tree, Inc. (NASDAQ:DLTR)  on 22nd October. They gave a “Market perform” rating and a $76.00 target price. Madison Investments, an investment advisor, released its third-quarter 2024 investor letter. Here is what the fund said:

“The bottom five detractors for the quarter were Dollar Tree, Inc. (NASDAQ:DLTR), MKS Instruments, PACCAR, Copart, and Amphenol. Dollar Tree underperformed following disappointing sales at the core Dollar Tree banner and reduced full year earnings guidance. The company, as well as its closest peers, is facing headwinds from a weak low-end consumer, less ‘trade-down’ benefit from middle-income consumers, and a tough competitive environment. Despite these headwinds, we are encouraged by the long-term prospects of the multi-price initiatives at the Dollar Tree banner, with the latest iteration of updated stores showing a strong up-lift in sales. As management more aggressively rolls out these updates, the impact to the company will be more meaningful, and, we believe, result in much higher earnings power.

The headwinds outlined above impacting Dollar Tree’s business has resulted in the stock trading at depressed levels. Given our confidence in the core strength of the Dollar Tree franchise and its potential long-term earnings power, we added to our holding.”

3) Dollar General Corporation (NYSE:DG)

Market cap (As of 25 October): $17.6 billion

Forward P/E (As of 25 October): 12.36x

% Decline on a YTD Basis: ~42%

Number of Hedge Fund Holders: 42

Dollar General Corporation (NYSE:DG) is a discount retailer, providing various merchandise products in the southern, southwestern, midwestern, and eastern US.

Dollar General Corporation (NYSE:DG) is focusing on a back-to-basics approach. This means that it is targeting core operations and enhancing customer value. Wall Street believes that the company’s efforts to improve price positioning relative to Walmart should help it in the near term, providing a competitive edge. The enhanced price competitiveness, streamlining of operations, and strengthened brand perception should drive topline growth.

Over the long term, Dollar General Corporation (NYSE:DG) is expected to be aided by its dense store network, which served as an intangible asset because of its convenient fill-in shopping locations throughout rural communities. Also, the company’s impressive scale and proximity to consumers, favorable product mix, and small basket size should help the company in tackling challenges from e-commerce competition.

As Dollar General Corporation (NYSE:DG) anticipates net sales growth, same-store sales growth, and investments in markdowns to continue, it believes that the business model remains resilient and is committed to executing a foundational back-to-basics plan. The company plans to increase efforts to gain more market share. Also, Dollar General Corporation (NYSE:DG) is focused on reducing shrink and simplifying operations in a bid to improve margins.

The shares of the company have an average price target of $102.55. Heartland Advisors, an investment management company, released its third-quarter 2024 investor letter. Here is what the fund said:

“The convenience store operator Dollar General Corporation (NYSE:DG) was our worst performer during the quarter. The retailer, with more than 19,000 stores, 80% of which are in rural towns with populations of less than 20,000, recently slashed its 2024 earnings guidance, sparking a late-summer sell-off.

Same-store comparable sales and margin guidance were cut meaningfully, implying a significant slowdown in the second half of the year. While some of the troubles may be due to the financial challenges of its core customers, with average incomes of just $35,000, Dollar General is also losing market share because of Walmart’s initiative to reduce entry-level pricing. Management acknowledged a need to invest in promotions to stimulate demand, but they refute concerns that DG needs to invest more in store-level labor.

We exited the position and harvested the tax losses, but we continue to monitor the company’s fundamentals. We’re looking for comparable sales to stabilize driven by promotional activity, a boost in labor investments, and management to downsize store expansion plans to improve free cash flow generation and accelerate deleveraging efforts.”

2) CVS Health Corporation (NYSE:CVS)

Market cap (As of 25 October): $71.0 billion

Forward P/E (As of 25 October): 7.62x

% Decline on a YTD Basis: ~30%

Number of Hedge Fund Holders: 60

CVS Health Corporation (NYSE:CVS) offers health solutions in the US.

CVS Health Corporation (NYSE:CVS) has a diverse portfolio of healthcare assets, which includes retail pharmacies, PBM services through CVS Caremark, and health insurance offerings via its Aetna division. Its integrated model targets to provide coordinated care throughout its various healthcare touchpoints. Moving forward, CVS Health Corporation (NYSE:CVS) continues to focus on implementing strategic changes in a bid to improve profitability in MA business. Such initiatives include reducing supplemental benefits and adjusting plan designs to align closely with its competitors.

The company’s integrated healthcare model, which combines retail pharmacy, PBM services, and health insurance offerings, places it well to potentially capture significant value throughout the healthcare value chain. Through leveraging the various touchpoints with patients, CVS Health Corporation (NYSE:CVS) can offer more coordinated and comprehensive care. This can help in improving health outcomes, increasing customer satisfaction, and potentially lowering overall healthcare costs.

The diverse portfolio of healthcare services enables CVS Health Corporation (NYSE:CVS) to cross-sell products and services to existing customers. This will eventually increase revenue per customer and improve retention rates. Analysts at Barclays raised the shares of the company from an “Equal-weight” rating to an “Overweight” rating, increasing the target price from $63.00 to $82.00 on 10th October.

Coho Partners, an investment management company released its second quarter 2024 investor letter. Here is what the fund said:

“While we believe each of those companies is performing in line with or better than our expectations and that the moves lower are unjustified, both CVS Health Corporation (NYSE:CVS) and Nike reported disappointing performance in recent results. In CVS’ case, management gave an optimistic outlook to 2024 at its December Investor Day, which we believed was consistent with our expectations. Unfortunately, management misestimated its medical loss ratio and the anticipated profitability in its book for Medicare Advantaged lives. This triggered a position paper violation, as the company’s financial flexibility now looks constrained in both 2024 and 2025.”

1) Humana Inc. (NYSE:HUM)

Market cap (As of 25 October): $31.3 billion

Forward P/E (As of 25 October): 13.21x

% Decline on a YTD Basis: ~44.5%

Number of Hedge Fund Holders: 71

Humana Inc. (NYSE:HUM) provides medical and specialty insurance products in the US.

Wall Street believes that Humana Inc. (NYSE:HUM)’s diversified, value-based healthcare delivery and services model should drive its topline growth. The company’s focus on serving Medicare-eligible and disabled individuals via diversified healthcare delivery and services might also strengthen its market position. Humana Inc. (NYSE:HUM) has been undergoing a leadership transition. The new CEO continues to ramp up the turnaround efforts. The analysts believe that these efforts are focused on improving operational efficiency, enhancing healthcare delivery, and potentially exploring new growth opportunities.

The company announced plans to reduce its workforce and implement cost-saving measures. These measures should help Humana Inc. (NYSE:HUM) tackle financial pressures from the star ratings decline and position for future growth. Its healthcare delivery and services infrastructure is a key growth enabler. As per analysts, this infrastructure should help the company improve outcomes and reduce costs over time. Eventually, this should provide a competitive advantage in the Medicare Advantage market.

Moving forward, Humana Inc. (NYSE:HUM)’s strong brand recognition in Medicare Advantage, healthy healthcare delivery and services infrastructure, and diversified portfolio of insurance products and health services are expected to support the company’s growth trajectory. Considering the US demographic trends, along with higher penetration of Medicare Advantage plans in the eligible population, Humana Inc. (NYSE:HUM) is well-placed to take advantage of the opportunities provided by one of the fastest-growing areas in US medical insurance.

Analysts at Cantor Fitzgerald reissued a “Neutral” rating on the shares of the company, setting a $395.00 price target on 1st October. Diamond Hill Capital, an investment management company, released its second-quarter 2024 investor letter. Here is what the fund said:

“Other top Q2 contributors included Humana Inc. (NYSE:HUM) and Boston Scientific Corporation. Shares of health insurance company Humana rebounded from their recent downturn, which was tied to investors’ concerns about weaker-than-expected Medicare Advantage rates for 2025 and was the byproduct of an overall difficult operating environment.”

While we acknowledge the potential of HUM as an investment, our conviction lies in the belief that some deeply undervalued AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for a deeply undervalued AI stock that is more promising than HUM but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

READ NEXT: 8 Best Wide Moat Stocks to Buy Now and 30 Most Important AI Stocks According to BlackRock.

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