5 Most Undervalued Dow Stocks To Buy According To Hedge Funds

In this piece, we will take a look at the five most undervalued Dow stocks to buy according to hedge funds. If you want to take a deeper look at the index and its history, then check out 11 Most Undervalued Dow Stocks To Buy According To Hedge Funds.

5. American Express Company (NYSE:AXP)

Number of Hedge Fund Investors In Q2 2023: 73

Latest P/E Ratio: 16.11

American Express Company (NYSE:AXP) is one of the oldest companies to be added to the current variant of the Dow index since it was added in 1982. Considering that it is a stable business, the shares have delivered a reasonable 48% return over the past five years and analysts have penned in a hefty upside through an average share price target of $182.

73 out of the 910 hedge funds part of Insider Monkey’s database had invested in American Express Company (NYSE:AXP) as of Q2 2023 end. Out of these, the firm’s largest shareholder is Warren Buffett’s Berkshire Hathaway since it owns 151 million shares that are worth $26 billion.

4. Chevron Corporation (NYSE:CVX)

Number of Hedge Fund Investors In Q2 2023: 73

Latest P/E Ratio: 10.07

Chevron Corporation (NYSE:CVX) is a petro giant with a global operations base. Like its peers, it’s also coming down from the 2022 oil industry boom, and the firm aims to increase LNG production in Australia – at a site where it is currently negotiating with workers.

During this year’s June quarter, 73 out of the 910 hedge funds polled by Insider Monkey had bought a stake in the company. Chevron Corporation (NYSE:CVX)’s biggest stakeholder is Warren Buffett’s Berkshire Hathaway through a stake worth $19.3 billion.

3. The Walt Disney Company (NYSE:DIS)

Number of Hedge Fund Investors In Q2 2023: 92

Latest P/E Ratio: 22.22

The Walt Disney Company (NYSE:DIS) is an entertainment company fraught with problems these days. Not only have ESPN+ subscribers started to drop, but the firm’s latest film releases haven’t done so well due to what some believe is ‘superhero fatigue’.

Insider Monkey profiled 910 hedge funds for their second quarter of 2023 shareholdings and found out that 92 had invested in The Walt Disney Company (NYSE:DIS). Out of these, the firm’s largest investor is Ken Fisher’s Fisher Asset Management through its $580 million investment.

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

Number of Hedge Fund Investors In Q2 2023: 106

Latest P/E Ratio: 9.49

JPMorgan Chase & Co. (NYSE:JPM) is a diversified bank with personal, investment, and other banking services. The firm joined other U.S. big banks in August to pay a massive $499 million settlement in a lawsuit that alleged them of misusing their position to harm the stock lending market.

During this year’s June quarter, 106 out of the 910 hedge funds surveyed by Insider Monkey had bought a stake in the bank. JPMorgan Chase & Co. (NYSE:JPM)’s biggest hedge fund stakeholder is Ken Fisher’s Fisher Asset Management through a stake worth $1.3 billion.

1. UnitedHealth Group Incorporated (NYSE:UNH)

Number of Hedge Fund Investors In Q2 2023: 111

Latest P/E Ratio: 21.91

UnitedHealth Group Incorporated (NYSE:UNH) is a health care benefits plans provider. It is another rare stock on our list which is rated Strong Buy on average and the firm has beaten analyst EPS estimates for all four of its latest quarters.

111 of the 910 hedge funds part of Insider Monkey’s Q2 2023 database had invested in UnitedHealth Group Incorporated (NYSE:UNH). Rajiv Jain’s GQG Partners is the largest shareholder since it owns 4.8 million shares that are worth $2.3 billion.

Disclosure: None.  You can also take a look at 16 Growing Dividend Stocks with Low PE Ratios and 11 Most Undervalued Renewable Energy Stocks to Buy.

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