5 Best Large-Cap Value Stocks To Buy

In this article, we discuss 5 best large-cap value stocks to buy. If you want to read our detailed analysis of value stocks and their performance, go directly to read 15 Best Large-Cap Value Stocks To Buy. 

5. The Cigna Group (NYSE:CI)

Number of Hedge Fund Holders: 79
P/E Ratio: 12.63

The Cigna Group (NYSE:CI) is an American multinational managed healthcare and insurance company, based in Connecticut. In June, Bank of America upgraded the stock to ‘Buy’ rating with a $320 price target, highlighting the company’s performance. The stock has a price-to-earnings ratio of 12.63, which makes it one of the best value stocks in the large-cap space.

The Cigna Group (NYSE:CI) generated $46.5 billion in revenue in the first quarter of 2023, up by 5.7% from the same period last year. The company’s adjusted income from operations came in at $1.6 billion.

As of the end of March, 79 hedge funds followed by Insider Monkey reported stakes in The Cigna Group (NYSE:CI), up from 76 in the previous quarter. The consolidated value of these stakes is over $3 billion.

Artisan Partners mentioned the performance of The Cigna Group (NYSE:CI) in its Q1 2023 investor letter. Here is what the firm has to say:

“The Cigna Group (NYSE:CI) delivered strong operating results that came in well ahead of the company’s initial guidance, yet the stock has continued to sell off since the beginning of 2023. It seems there are a few reasons for it: 1) concerns over the government targeting pharmacy benefit managers and trying to directly negotiate drug prices under the president’s new budget, 2) a potential normalization of elective procedures that increases medical costs, 3) a rotation by dedicated health care investors toward medical technology and technology areas and away from the safety of big pharma and HMOs, 4) disenrollment trends as it relates to the commercial book of business heading into a potential downturn, and 5) selling in the space as we approach another presidential election in 2024. Pick your poison, but the selling has taken the stock price back to its levels of mid-2022. Our investment case hasn’t changed. Cigna is one of the few managed care organizations in the US with the scale and size to compete effectively. In 2022, free cash flow was $7.4 billion, up $1.3 billion from 2021. Cigna paid down $3.5 billion of debt, repurchased $7.6 billion in stock and sold its life, accident and supplemental benefits business in Asia to Chubb that helped fund the share repurchases. In short, the business in performing well, and management is smartly allocating capital. Additionally, the stock is selling for less than 11X next year’s earnings, which is inexpensive.”

4. Citigroup Inc. (NYSE:C)

Number of Hedge Fund Holders: 79
P/E Ratio: 6.41

Citigroup Inc. (NYSE:C) is an American investment banking company that provides services to over 200 million customers. The company was a part of 79 hedge fund portfolios in the first quarter of 2023, according to Insider Monkey’s database. The stakes owned by these funds have a consolidated value of over $7.72 billion.

Citigroup Inc. (NYSE:C) has a price-to-earnings ratio of 6.41.

3. Charter Communications, Inc. (NASDAQ:CHTR)

Number of Hedge Fund Holders: 80
P/E Ratio as of June 24: 10.88

Charter Communications, Inc. (NASDAQ:CHTR) is an American telecommunications and mass media company that offers related services and products to its consumers. For the first quarter of 2023, the company posted revenue of $13.6 billion, which was up by 3.4% from the prior-year period. Its operating cash flow came in at $3.3 billion and its free cash flow amounted to $664 million.

The number of hedge funds tracked by Insider Monkey owning stakes in Charter Communications, Inc. (NASDAQ:CHTR) grew by six to 80 during the first quarter of 2023. The total value of these stakes is over $4.8 billion. Harris Associates was among the company’s leading stakeholder at the end of March, with a stake worth over $1.5 billion.

2. Bank of America Corporation (NYSE:BAC)

Number of Hedge Fund Holders: 91
P/E Ratio as of June 24: 8.38

An American investment bank and financial services company, Bank of America Corporation (NYSE:BAC);s stock has a price-to-earnings ratio of 8.38. In the first quarter of 2023, the company registered a revenue of $26.3 billion, up by 13.4% on the year. Its net interest income for the quarter came in at $14.4 billion.

At the end of Q1 2023, 91 hedge funds owned stakes in Bank of America Corporation (NYSE:BAC), according to our data. The total value of these stakes is over $31.7 billion.

Artisan Partners discussed reasons to invest in Bank of America Corporation (NYSE:BAC) in its Q1 2023 investor letter. Here is what the firm has to say:

“At the end of Q1, we had an ~7% weighting in banks consisting of PNC, US Bancorp and Bank of America Corporation (NYSE:BAC). All 3 are among the 10 largest US banks. We believe the range of probabilities and long-term outcomes are tilted in our favor at current prices but are proceeding with caution for several reasons. First, while we believe deposit-runs have likely burned themselves out, there is a non-zero risk these runs spread wider than our base case. Second, we expect more regulation in coming years which will increase the cost of doing business, potentially in exchange for higher FDIC limits. Third, at the very least we expect banks to cease buybacks for the rest of the year to build up liquidity and capital ratios. There is an increasingly more likely outcome that banks issue equity capital and preferred stock once markets stabilize. Fourth, with the banking system in shock, it will likely retrench, which will constrict capital to the US economy. Coupled with the “long and variable lags” of Fed policy, this will slow US economic growth beyond what private credit markets can make up.”

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

Number of Hedge Fund Holders: 112
P/E Ratio as of June 24: 10.25

JPMorgan Chase & Co. (NYSE:JPM) tops our list of the best value stocks in the large-cap space. In the first quarter of 2023, the financial services company returned $3 billion to shareholders in dividends. It generated $38.3 billion in revenues during the quarter, up by 24.8% from the prior-year period.

At the end of March, 112 hedge funds tracked by Insider Monkey were bullish on JPMorgan Chase & Co. (NYSE:JPM), up from 100 in the previous quarter. These stakes have an aggregate value of over $4.1 billion.

Mairs & Power mentioned JPMorgan Chase & Co. (NYSE:JPM) in its Q1 2023 investor letter. Here is what the firm has to say:

“Financials were roiled in the quarter thanks to the Silicon Valley Bank and Signature Bank failures. Even though the Fund has a similar weight to Financials as the index, our bank stocks—US Bank (USB), JPMorgan Chase & Co. (NYSE:JPM), Wells Fargo (WFC), and Charles Schwab (SCHW)—fell more than the Financials sector and hurt relative performance. We have performed a thorough analysis of our banking stocks and believe that they will exit this banking event intact, and a few may even benefit from the sector turmoil. For example, JP Morgan, one of the banks deemed “too-big-to-fail,” has benefited from an inflow of deposits from smaller institutions. As such, the Fund took advantage of the volatility in the quarter and added to its position.

With the selloff in the quarter, we have added to US Bank selectively, but more so to JPMorgan as it appears better positioned to gather deposits in the current environment.”

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