In this article, we will take a look at the 15 best large-cap value stocks to buy in 2025.
Why is this Portfolio Manager Cautiously Optimistic?
The market outlook is as uncertain as it gets. On January 18, Robert Pavlik, senior portfolio manager at Dakota Wealth Management, appeared in an interview on Wealth at Yahoo Finance to share his market outlook, which happens to be rather optimistic or “cautiously optimistic.”
Pavlik shared that as the new administration takes over he is optimistic about how the market will play out in the near future. He added that the new government is expected to do some deregulation and cut corporate taxes, which are supposedly going to boost earnings despite inflation being a concern. He also explained why he was cautious earlier. He stated that the easing cycle was more uncertain and the new government was emphasizing tariffs earlier, however, as time has passed, Pavlik has grown to become more optimistic about the market.
He also expects the economy to grow, suggesting that the US is nowhere near a recession. In addition to that, Pavlik is confident that valuations are expected to ease, tariffs seem to be a “bargaining chip,” and mass deportations are “not going to happen.” In addition to that, he believes new energy policies to lower the price of oil and gas, resulting in lower costs incurred by firms across nearly every industry.
By the middle of 2025, Pavlik expects the Fed to be back issuing multiple rate cuts. Overall, he expects 2025 to be a solid year for equities, with expectations of the S&P 500 reaching 6,750, representing a 13-14% growth from January 18, 2025. While he agrees that in the near term, especially in the first 100 days of the new government, there are reasons to be slightly cautious, he remains confident that the new policies will work out as the market goes forward.
Speaking of inflation, Pavlik reiterated that the new energy policies will definitely push oil companies to produce more oil as a result of cost reductions. These cost reductions are expected to have a multiplier effect on grocery companies which will ultimately cater to inflationary pressures, added the portfolio manager. This coupled with his expectation of the Fed returning to its planned easing cycle will likely fuel shared investor sentiment and consumer confidence.
While the first 100 days of the new administration may be uncertain and volatile, there are some stocks known to have been stable through rough or smooth market conditions. That said, let’s take a look at the 15 best large-cap value stocks to buy in 2025.
A senior executive looking up at a large boardroom filled with the stocks their company manages.
Our Methodology
We used Finviz to look for companies operating in value sectors such as consumer defensive, financials, healthcare, and utilities. We only focused on companies with a market cap of more than $10 billion. We then examined the analyst upside surrounding 25 stocks and picked the 15 stocks with the highest upside as of January 20, 2025. We have also included the hedge fund sentiment around each stock.
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).
15 Best Large-Cap Value Stocks to Buy in 2025
15. HDFC Bank Limited (NYSE:HDB)
Analyst Upside as of January 20, 2025: 20%
Number of Hedge Fund Holders: 41
HDFC Bank Limited (NYSE:HDB) is a financial services company based in India, ranking 15th on our list of the best large-cap value stocks to buy in 2025. The company offers personal banking and online net banking services. As of September 30, 2024, the HDFC has more than 9,000 branches and nearly 21,000 ATMs across 4,088 cities and towns across the country.
The company’s expansion across India is remarkable. On December 31, 2024, HDFC Bank Limited (NYSE:HDB) announced that it will now offer 40 products and services in Rajasthan digitally using its e-Mitra platform, an incredible feat for its transition to become a fully digital organization. Similarly, towards the end of November 2024, the company launched a new and improved savings program for rural India, paving the way for socioeconomic development in the country.
In the fiscal second quarter of 2024, the company grew its revenue by 9.2% and net interest income by 10%, explaining why analysts are bullish on the stock and their median price target implies an upside of 20% from current levels.
14. AbbVie Inc. (NYSE:ABBV)
Analyst Upside as of January 20, 2025: 20%
Number of Hedge Fund Holders: 68
AbbVie Inc. (NYSE:ABBV) is a pharmaceutical company with an immense focus on advanced research. ABBV is making strides in drug development and treatment discovery. In the third quarter of 2024, the company generated $14.46 billion in worldwide net revenues, an increase of nearly 4%. Global net revenues for its immunology portfolio were $7.05 billion, up by nearly 4%. The company also saw significant revenue growth rates in its oncology and neuroscience portfolio, up by 12% and 16% respectively.
As part of its growing portfolio and expansion plans, on January 13, AbbVie Inc. (NYSE:ABBV) announced a partnership with Simcere Zaiming to develop a new antibody candidate, SIM0500. As of now, the candidate is in phase 1 of clinical trials in patients with multiple myeloma in China and the United States. Earlier in December 2024, the company announced an agreement to acquire Nimble Therapeutics to strengthen its immunology portfolio.
Over the past few months, AbbVie Inc. (NYSE:ABBV) received approvals for major drugs and secured crucial strategic deals, positioning it as a leader in the pharmaceutical industry. At the end of Q3 2024, 68 hedge funds were bullish on the stock.
13. The Coca-Cola Company (NYSE:KO)
Analyst Upside as of January 20, 2025: 20%
Number of Hedge Fund Holders: 69
The Coca-Cola Company (NYSE:KO) is a popular beverage company known to nearly every kid globally. Over the past few months, the company has announced new product lines and additions to existing product lines and brands. For instance, earlier in December 2024, KO announced the acquisition of Billson’s, an Australian alcohol brand. The acquisition will be completed on January 31, as an interesting addition to KO’s portfolio.
In addition to these key strategic decisions, The Coca-Cola Company (NYSE:KO) has been extremely focused on allocating resources to prioritize growing brands that will contribute to the long-term growth trajectory of the firm and increase profits incrementally. For example, its water, sports, and tea business comprises 12 billion dollar brands and KO has added almost $9 billion in additional brand value to the segment since 2020.
The Coca-Cola Company (NYSE:KO) also exhibits a sound financial performance. In the third quarter of 2024, the company logged $11.9 billion in revenue, with organic revenues growing 9% year-over-year. For the complete fiscal year of 2024, the company expects to increase its organic revenue by nearly 10%, due to solid operating performance and its long-term growth strategy.
12. Banco Santander, S.A. (NYSE:SAN)
Analyst Upside as of January 20, 2025: 24%
Number of Hedge Fund Holders: 15
Banco Santander, S.A. (NYSE:SAN) is a financial service company based in Santander, Spain. The company has 171 million customers in over 10 markets. Banco Santander offers financial services such as savings and mortgages, loans, insurance and alarms, and online banking to individuals, companies, institutions, and corporations. As of September 2024, SAN has EUR 1.8 billion in total assets, EUR 1.17 billion in customer deposits and mutual funds, and EUR 1.01 billion in customer loans.
Over the past few months, the company has worked to establish a single model across all its markets for a standardized and automated consumer experience. Earlier in November 2024, Banco Santander, S.A. (NYSE:SAN) debuted Openbank in Mexico with a completely digital proposition and competitive rates. More recently, on January 8, its fintech subsidiary, PagoNxt Payments, launched real-time payment services in China, allowing people to process payments in their preferred currencies.
The Street is bullish on SAN and their median price target implies an upside of 24% from current price levels. Similarly, on January 20, Marta Sanchez Romero, an analyst at Citi, maintained a buy rating on Banco Santander, S.A. (NYSE:SAN).
11. ICICI Bank Limited (NYSE:IBN)
Analyst Upside as of January 20, 2025: 25%
Number of Hedge Fund Holders: 32
ICICI Bank Limited (NYSE:IBN) is a financial services company based in India that ranks 11th on our list of the best large-cap value stocks to buy in 2025. The company offers personal and business banking products and services such as deposits, cards, loans, and insurance. In the fiscal second quarter of 2025, the company grew its profit before tax by 7.9% year-over-year and 5.2% sequentially. IBN also saw a 15.6% year-over-year increase in average deposits, as of September 30, 2024.
IBN has forged prominent partnerships recently, aligning with its long-term goals and strategies. Earlier in December 2024, ICICI Bank Limited (NYSE:IBN) announced a partnership with the Commonwealth Bank of Australia (CBA) supporting people financially in the two countries. According to the partnership, the two entities will facilitate customers interested in investing or creating businesses in the other bank’s home country, while supporting cross-border payments. Additionally, on December 18, 2024, the company partnered with Times Internet to launch a super-premium credit card that provides travel benefits, exceptional experiences, and a luxury lifestyle.
Overall, ICICI Bank Limited (NYSE:IBN) is garnering immense traction from the investment world and its solid financial performance is not the only reason for it. The company is growing and its strategic partnerships are evidence of that, explaining why 32 hedge funds held stakes in IBN at the close of Q3 2024.
10. UnitedHealth Group Incorporated (NYSE:UNH)
Analyst Upside as of January 20, 2025: 26%
Number of Hedge Fund Holders: 112
UnitedHealth Group Incorporated (NYSE:UNH) is a multinational health insurance and services company based in the United States that operates several subsidiaries. Over the past months, the company has expanded its services to several new locations. UNH also expects to reduce the cost of healthcare for patients as part of its Medicare Advantage Plan for 2025.
On January 21, Ryan Langston, an analyst at TD Cowen, maintained a buy rating on UNH and set a price target of $609. Langston has given a buy rating on the stock due to UNH’s ability to exceed market expectations and exhibit solid financial results. The analyst emphasizes that UnitedHealth Group Incorporated (NYSE:UNH) logged a better-than-consensus medical loss ratio, explaining the reason behind its noteworthy guidance for 2025. While Langston is aware of the challenging operating environment, he remains bullish on the company’s strategic initiatives and pricing strategies which are expected to drive growth in the year ahead.
UnitedHealth Group Incorporated (NYSE:UNH) is one of the best large-cap value stocks to buy in 2025 and analysts concur. Analysts share a positive outlook on the stock and their median price target represents an upside of 26% from current levels.
9. NIKE, Inc. (NYSE:NKE)
Analyst Upside as of January 20, 2025: 30%
Number of Hedge Fund Holders: 75
NIKE, Inc. (NYSE:NKE) is an athletic footwear and apparel company, with a market share of almost 35% in the sports footwear category in the United States. In December, the company signed major agreements with sports organizations such as the Brazilian Football Confederation and the Uruguayan Football Association. NIKE, Inc. (NYSE:NKE) also launched new exclusive shoes in collaboration with major players. These key branding strategies and partnerships allow NKE to establish a strong footing in the industry.
NIKE’s turnaround strategy is the talk of the town. Like NKE’s successful comebacks, analysts are expecting the footwear company to change the game yet again. On January 11, Anna Andreeva, an analyst at Piper Sandler upgraded NIKE, Inc. (NYSE:NKE) to overweight and raised her price target to $90, up by 25%, due to the company’s ability to make a successful comeback each time historically. She expects the stock to become profitable within three to four quarters, especially with its turnaround strategy enforced. She also added that the company’s growth strategy heavily depended on its full-price and off-price sales in its direct-to-consumer digital strategy.
Overall, Andreeva expects that margin growth for the fiscal year 2026 will be driven by selling prices, minimal discounting, and stronger margins from the Nike Direct and Converse segments. 75 hedge funds held stakes in NIKE, Inc. (NYSE:NKE) at the close of Q3 2024.
8. Elevance Health, Inc. (NYSE:ELV)
Analyst Upside as of January 20, 2025: 31%
Number of Hedge Fund Holders: 67
Elevance Health, Inc. (NYSE:ELV) is a prominent health benefits company in the United States. In the third quarter of 2024, Elevance Health, Inc. (NYSE:ELV) generated revenue worth $44.7 billion, up by 2.2%, and an adjusted operating gain of $2.4 billion. In addition to that, the company generated an operating cash flow worth $2.7 billion year-to-date, an increase of $0.1 billion year-over-year.
The company is extremely confident in its long-term potential to expand its earnings growth, especially in the Medicaid business. The company is committed to providing affordable Medicaid solutions to members and improving operational efficiencies immensely, explaining its ranking on our list and popularity among hedge funds. Overall, the company’s financial results were driven by its diversified portfolio and the efficient execution of its strategic initiatives.
Elevance Health, Inc. (NYSE:ELV) has strong fundamentals positioning it as an important name in the industry. On January 16, Andrew Mok CFA from Barclays maintained a buy rating on ELV with a price target of $501.
7. AstraZeneca PLC (NASDAQ:AZN)
Analyst Upside as of January 20, 2025: 31%
Number of Hedge Fund Holders: 42
AstraZeneca PLC (NASDAQ:AZN) ranks seventh on our list of the best large-cap value stocks to buy in 2025. AstraZeneca is a pharmaceutical company headquartered in Cambridge, United Kingdom. In the third quarter of 2024, the company logged $39.18 billion in revenue, up by 19%. Of this, product revenue was $37.6 billion, accounting for most of the sales. For the fiscal year 2024, AstraZeneca PLC (NASDAQ:AZN) upgraded its revenue guidance to grow by a high-teen percentage.
AZN is positioned for long-term success, given it aims to make $80 billion in revenue by 2030 and register sustained growth ahead of 2030. The company expects to reach this parameter by launching at least 20 new medicines by 2030 and accelerating the processing of existing medicines. Beyond 2030, AstraZeneca PLC (NASDAQ:AZN) intends to invest in disruptive categories that will shape the future of healthcare such as cell therapy, gene therapy, and next-generation immunotherapy.
On January 20, Sachin Jain, an analyst from Bank of America Securities, reiterated a buy rating on the stock with a $91.70 price target. Jain gave a buy rating on the stock because AZN has displayed robust growth from key products. In addition to that, the analyst remains particularly optimistic about the company’s future growth potential and promising pipeline.
6. Merck & Co., Inc. (NYSE:MRK)
Analyst Upside as of January 20, 2025: 33%
Number of Hedge Fund Holders: 86
Merck & Co., Inc. (NYSE:MRK) is a pharmaceutical giant in the United States that specializes in producing vaccines and providing hospital care services. The company has more than 60 programs in phase 2 clinical trials, 30 plus in phase 3 trials, and over 5 are under review. In the third quarter of 2024, MRK generated $16.7 billion in worldwide sales, of which Keytruda, its star drug, generated $7.4 billion, an increase of 17%. In addition to that, during Q3 the company presented data for four of its approved medicines and six in the pipeline.
On January 14, Akash Tewari, an analyst at Jefferies maintained a buy rating on the stock with a price target of $150. Tewari gave a buy rating on the stock because of MRK’s plans to launch the subcutaneous version of Keytruda earlier than expected. The analyst believes that the decision to accelerate the program will allow Merck & Co., Inc. (NYSE:MRK) to capture greater market share and generate robust revenue. He was also optimistic about the company’s strategic upgrades to other therapeutics.
In the full fiscal year of 2024, Merck & Co., Inc. (NYSE:MRK) expects revenue to range between $63.6 billion and $64.1 billion. The company remains confident in its diversified portfolio and sustainable engine for innovation, which is expected to drive growth in the future.
5. Eli Lilly and Company (NYSE:LLY)
Analyst Upside as of January 20, 2025: 38%
Number of Hedge Fund Holders: 106
Eli Lilly and Company (NYSE:LLY) is a pharmaceutical company that sells medicines for serious illnesses in 125 countries and has offices in 18. During the third quarter of 2024, the company received product approvals and launched new pipeline data for crucial drugs. The company’s performance and growth trajectory coupled with its diverse portfolio of drugs and medicines contributes to its position on our list. Analysts are also bullish on the stock and their median price target implies an upside of 38% from current levels.
On January 15, Chris Schott, an analyst at JPMorgan, suggested that the Q4 miss puts forward a buying opportunity as LLY is positioned for robust growth in 2025. Schott added that the company’s 2025 sales guidance is driven by its expanded label and growing geographic footprint. As a result, dosage sales of incretins are expected to grow by 60% year-over-year in the first half of 2025. The analyst also added that the Q4 miss is primarily due to an unexpected decline in wholesaler volumes and inventory. He maintained an overweight rating on the stock.
The stock also received a buy rating from Jefferies on January 15 and a buy from Bank of America Securities on January 21, 2025. LLY is positioned for tremendous growth, making it one of the best large-cap value stocks to buy in 2025.
4. Itaú Unibanco Holding S.A. (NYSE:ITUB)
Analyst Upside as of January 20, 2025: 41%
Number of Hedge Fund Holders: 26
Itaú Unibanco Holding S.A. (NYSE:ITUB) is a financial services company that ranks fourth on our list. The company is headquartered in Brazil and has more than 70 million clients. It provides corporate and investment banking, private banking, asset management, and retail business services to customers in 18 countries.
On January 17, Thiago Batista, an analyst at UBS upgraded his rating on Itaú Unibanco Holding S.A. (NYSE:ITUB) to buy from neutral with a price target of R$41. According to Batista, the stock has an impressive valuation in Brazil, keeping in mind the country’s high cost of equity. He expects ITUB to report decent profitability going forward and a double-digit dividend yield. Similarly, on January 13, Carlos Gomez-Lopez, an analyst at HSBC, upgraded his rating on ITUB from buy to hold with a price target of $6.8.
Itaú Unibanco Holding S.A. (NYSE:ITUB) is a prominent name in the financial services industry and we say that because of its dominance in the industry. Analysts are also bullish on the stock and their median price target represents an upside of 41% from current levels.
3. The Cigna Group (NYSE:CI)
Analyst Upside as of January 20, 2025: 41%
Number of Hedge Fund Holders: 66
The Cigna Group (NYSE:CI) is a managed healthcare and insurance company that ranks third on our list of the best large-cap value stocks to buy in 2025. The company serves its customers through two segments, Cigna Healthcare, and Evernorth Health Services. Cigna Group provides health services to more than 178 million customers across 30 countries and jurisdictions. Some of its services include health insurance plans, individual insurance plans, family plans, dental plans, and related medical plans.
Aligning with its expansion strategy, on January 13, Cigna Healthcare, the health benefits business of The Cigna Group (NYSE:CI), launched a new program in partnership with Progyny, Inc. to make fertility and family-building services more accessible to employers. The plan will allow employers to not only expand coverage for their employee’s fertility journey but also for postpartum care, family building, surrogacy, and adoption.
On January 15, Lance Wilkes, an analyst from Bernstein maintained a buy rating on the stock with a price target of $345. Overall, Cigna has a consensus buy rating and analysts’ median price represents an upside of 41% from current levels.
2. PG&E Corporation (NYSE:PCG)
Analyst Upside as of January 20, 2025: 47%
Number of Hedge Fund Holders: 49
PG&E Corporation (NYSE:PCG) is a gas company that engages in the generation, transmission, and distribution of electricity and natural gas to customers. The company was founded in 1995 and now provides natural gas and electric service to nearly 16 million people in northern and central California.
On January 13, James Thalacker, an analyst at BMO, initiated the stock with an Outperform rating and a $21 price target. The analyst initiated the rating for a number of reasons, but primarily due to PCG’s robust growth and solid fundamentals. Thalacker believes that PG&E Corporation (NYSE:PCG) is a key player in the utility sector and is positioned to have a promising growth trajectory. According to the company’s financials, PCG expects its EPS to grow by nearly 9.2% over the next five years. In addition to that, he is also very happy with the company’s valuation and emphasizes the affordability factor of crucial importance to the company’s success.
Overall, in the third quarter of 2024, PG&E Corporation (NYSE:PCG) raised its 2024 EPS GAAP guidance to range between $1.09 and $1.14 per share. In addition to that, the company has added $1 billion to its 2024-28 capital plan due to growing customer demand, reaffirming its solid position in the industry.
1. Constellation Brands, Inc. (NYSE:STZ)
Analyst Upside as of January 20, 2025: 62%
Number of Hedge Fund Holders: 36
Constellation Brands, Inc. (NYSE:STZ) is a leading beverage company headquartered in New York, United States. The company produces, imports, and sells beer, wine, and spirits in several countries across the globe including the United States, Italy, Canada, Mexico, and New Zealand. The company is one of the fastest-growing beer brands in the USA. Some of its popular brands include Woodbridge by Robert Mondavi, Clos du Bois, Blackstone, Estancia, Ravenswood, and more.
The company recently reported earnings for the fiscal third quarter of 2025. During the quarter, the company generated $2.46 billion in net sales and operating income worth $793 million. The company’s wine and spirits business is expected to complete the divestiture of SVEDKA this month, resulting in performance improvements. Consequently, Constellation Brands, Inc. (NYSE:STZ) raised its cash flow target for fiscal 2025 to $2.9-3.1 billion and free cash flow expectations to $1.6-$1.8 billion.
On January 14, Lauren Lieberman from Barclays maintained a buy rating on STZ with a price target of $214. In addition to Barclays, Constellation Brands, Inc. (NYSE:STZ) also received a buy rating from Filippo Falorni, an analyst at Citi. Overall, 36 hedge funds were bullish on the stock at the close of Q3 2024.
While we acknowledge the potential of STZ to grow, our conviction lies in the belief that certain AI stocks hold greater promise for delivering higher returns, and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than STZ 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 Complete List of 59 AI Companies Under $2 Billion in Market Cap.
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