In this piece, we will take a look at the 16 best large cap value stocks to invest in in 2024. If you want to skip our overview of the latest stock market news, then you can skip ahead to 5 Best Large-Cap Value Stocks To Invest In in 2024.
The stock market of 2024 is driven by the same trends that saw investors glued to their screens in 2023. The primary themes in the market right now are artificial intelligence and interest rate cuts, with the final week of February providing investors with key data points and news on both fronts.
Before we get to the news, it's important to see how large cap stocks are fairing these days. These stocks are typically sizeable, mature, and established companies that command strong market positions along with comforting balance sheets. Like other stocks, their performance is also tied to the stock market, and large cap stocks typically attract investors during economic downturns or shaky conditions as they offer comfort with their ability to hedge against major losses.
Diving deeper into large cap stocks, these can be divided either along their industries or their fundamentals to further fine tune any performance expectations. Large cap stocks in stable sectors such as consumer defensive, the likes of the tobacco giant Philip Morris International Inc. (NYSE:PM) or the consumer goods behemoth Unilever PLC (NYSE:UL) are sizeable entities whose global brand following enables investors to rest in comfort knowing that even if the stock and revenue are down in a recession, both will pick up ones the economic winds become more favorable.
On the flip side, large cap stocks belonging to high risk sectors such as biotechnology are significantly vulnerable to market whims as well as any whiff that investors might get about potential troubles. For instance, consider the large cap biotechnology stocks Moderna, Inc. (NASDAQ:MRNA) and BioNTech SE (NASDAQ:BNTX). These two stocks are household names due to their coronavirus vaccine, but despite being multi billion dollar firms, the shares have painted quite an eye watering performance if we consider their performance over the course of the past couple of years.
In fact, the risky nature of these large cap stock industries means that investors have to be on constant watch out for any headwinds that could affect business performance. For Moderna, this came in the form of a report in February 2024 that its vaccine for a respiratory virus had demonstrated reduced efficacy. The shares tumbled 7% on that day, and overall, the stock is down 22% year to date, proving that just because a stock is a large cap does not mean that it will always remain stable. Similarly, BioNTech's stock is down by nearly 15% during its latest earnings report that saw the firm stress that it would return to growth in 2025 after it scales up oncology products to mitigate the effects of a bottoming out of its COVID vaccine market.
So, with some drivers of large cap stock performance out of the way, let's focus on the news before a brief primer on value stocks. The tail end of February 2024 has seen large cap artificial intelligence stock Synopsys, Inc. (NASDAQ:SNPS) beat analyst second quarter revenue and profit estimates as it shared that growth in its semiconductor design products and solutions for AI chips should help with a great second quarter. Focusing on the Fed, the central bank's January meeting minutes show that participants continued to be worried about cutting interest rates too soon. This is natural since recent producer inflation prints remain stubbornly high, and for large cap value stocks, this might be good news.
This is because, in tight economic conditions, growth stocks, such as those characterized by high price to earnings (P/E) ratios typically fall. On the flip side, value stocks tend to hold their ground as investors have set their market share price reasonably in comparison to fundamentals such as EPS.
With these details in mind, let's take a look at some top large cap value stocks to buy. A couple of major names are UnitedHealth Group Incorporated (NYSE:UNH), Berkshire Hathaway Inc. (NYSE:BRK-B), and JPMorgan Chase & Co. (NYSE:JPM).
A close-up of a laptop monitor with stock market prices scrolling up and down.
Our Methodology
To make our list of the best large cap value stocks to buy, we ranked the top 40 holdings of the Vanguard Value ETF by the number of hedge funds that had bought the shares during Q4 2023 and picked the top stocks.
For these best large cap value stocks we have also mentioned hedge fund sentiment. Hedge funds' top 10 consensus stock picks outperformed the S&P 500 Index by more than 140 percentage points over the last 10 years (see the details here). That's why we pay very close attention to this often-ignored indicator.
16. Pfizer Inc. (NYSE:PFE)
Number of Hedge Fund Investors In Q4 2023: 79
Latest P/E Ratio: 73.76
Pfizer Inc. (NYSE:PFE) is one of the biggest pharmaceutical and healthcare companies in the world. 2024 has seen limited stimulants to its stock price, with a colitis drug approval in Europe and strong efficacy results of a respirator virus treatment providing investors with some joy
As of Q4 2023 end, 79 out of the 933 hedge funds tracked by Insider Monkey had held a stake in Pfizer Inc. (NYSE:PFE). D. E. Shaw's D E Shaw was the firm's biggest investor due to its $418 million stake.
Along with Berkshire Hathaway Inc. (NYSE:BRK-B), UnitedHealth Group Incorporated (NYSE:UNH), and JPMorgan Chase & Co. (NYSE:JPM), Pfizer Inc. (NYSE:PFE) is a great value stock that hedge funds are piling into.
15. Johnson & Johnson (NYSE:JNJ)
Number of Hedge Fund Investors In Q4 2023: 81
Latest P/E Ratio: 30.52
Johnson & Johnson (NYSE:JNJ) is another sizeable American healthcare behemoth. Its investors were also in for some great news in February 2024, when the FDA approved a limited dose of its medicine for treatment resistant blood cancer.
By the end of last year's fourth quarter, 81 out of the 933 hedge funds covered by Insider Monkey's research were the firm's shareholders. Johnson & Johnson (NYSE:JNJ)'s largest hedge fund shareholder is Ken Fisher's Fisher Asset Management as it owns 6.3 million shares that are worth $996 million.
14. Elevance Health, Inc. (NYSE:ELV)
Number of Hedge Fund Investors In Q4 2023: 83
Latest P/E Ratio: 20.24
Elevance Health, Inc. (NYSE:ELV) is a healthcare finance company that provides benefits coverage and other associated products. It's one of the strongest rated large cap stocks on our list since the average share rating is Strong Buy. The average share price target of $572 prices in a 12.5% upside.
During 2023's December quarter, 83 out of the 933 hedge funds part of Insider Monkey's database had invested in Elevance Health, Inc. (NYSE:ELV). Jean-Marie Eveillard's First Eagle Investment Management owned the biggest stake that was worth $838 million.
13. Walmart Inc. (NYSE:WMT)
Number of Hedge Fund Investors In Q4 2023: 85
Latest P/E Ratio: 30.41
Walmart Inc. (NYSE:WMT) is the biggest brick and mortar retailer in the world. Amidst a global shift towards e-Commerce that has kept brick and mortar retailers on their toes, its CFO shared during Walmart Inc. (NYSE:WMT)'s Q4 earnings that it had slashed e-Commerce costs by an impressive 40% in 2023.
Insider Monkey dug through 933 hedge fund portfolios for last year's fourth quarter and discovered that 85 had bought a stake in the firm. Walmart Inc. (NYSE:WMT)'s largest investor in our database is Ken Fisher's Fisher Asset Management as it owns $1.5 billion worth of shares.
12. Exxon Mobil Corporation (NYSE:XOM)
Number of Hedge Fund Investors In Q4 2023: 85
Latest P/E Ratio: 11.73
Exxon Mobil Corporation (NYSE:XOM) is one of the biggest diversified oil and gas companies in the world. It's been a busy 2024 for the company, as amidst pressure to step up production in Guyana, it is also busy expanding its presence in the lucrative lithium mining market by moving forward with its lithium extraction programs in Arkansas.
During 2023's final quarter, out of the 933 hedge funds tracked by Insider Monkey, 85 were Exxon Mobil Corporation (NYSE:XOM)'s shareholders. Ken Fisher's Fisher Asset Management owned the biggest stake which was worth $1.3 billion.
11. Intel Corporation (NASDAQ:INTC)
Number of Hedge Fund Investors In Q4 2023: 86
Latest P/E Ratio: 107.43
Intel Corporation (NASDAQ:INTC) is the well known American semiconductor designer and manufacturer that holds the commanding position in the global processor markets. Even though it is not a major competitor NVIDIA in the GPU market, the latter's latest earnings report also saw Intel Corporation (NASDAQ:INTC)'s shares jump by 1.45% in the aftermarket as NVIDIA shared even more optimism for AI.
As of December 2023 end, 86 out of the 933 hedge funds profiled by Insider Monkey had bought and owned the firm's shares. Intel Corporation (NASDAQ:INTC)'s largest hedge fund investor is William B. Gray's Orbis Investment Management due to its $801 million investment.
10. Union Pacific Corporation (NYSE:UNP)
Number of Hedge Fund Investors In Q4 2023: 90
Latest P/E Ratio: 24.04
Union Pacific Corporation (NYSE:UNP) is a cargo railroad transportation company. An industrial firm, its fortunes depend on economic activity in the U.S. as well as global fuel prices. The shares are rated Buy on average, and the average analyst share price target is $257.56.
During Q4 2023, 90 out of the 933 hedge funds covered by Insider Monkey's research had held a stake in Union Pacific Corporation (NYSE:UNP). Eric W. Mandelblatt's Soroban Capital Partners was the firm's biggest shareholder as it owned $1.7 billion worth of shares.
9. Danaher Corporation (NYSE:DHR)
Number of Hedge Fund Investors In Q4 2023: 90
Latest P/E Ratio: 44.51
Danaher Corporation (NYSE:DHR) is a backend healthcare company that develops products to help researchers and laboratory workers with their daily responsibilities. The firm's latest earnings results provided investors with some time for reflection, as it shared that not only was the bump from pandemic era sales over, but biotechnology revenues had also dropped annually.
By the end of last year's fourth quarter, 90 out of the 933 hedge funds tracked by Insider Monkey were the firm's shareholders. Danaher Corporation (NYSE:DHR)'s largest hedge fund investor is Ken Fisher's Fisher Asset Management due to its $977 million stake.
8. Broadcom Inc. (NASDAQ:AVGO)
Number of Hedge Fund Investors In Q4 2023: 91
Latest P/E Ratio: 39.14
Broadcom Inc. (NASDAQ:AVGO) is an American semiconductor firm that designs and sells networking, signal processing, and other associated products. A key beneficiary of the AI wave, its shares popped by 3% after AI giant NVIDIA Corporation reported robust fourth quarter of 2023 earnings.
By the end of last year's fourth quarter, 91 out of the 933 hedge funds tracked by Insider Monkey had bought a stake in Broadcom Inc. (NASDAQ:AVGO). Ken Fisher's Fisher Asset Management held the most shares, which were worth $2.3 billion.
7. General Electric Company (NYSE:GE)
Number of Hedge Fund Investors In Q4 2023: 92
Latest P/E Ratio: 18.96
General Electric Company (NYSE:GE) is an American engineering company that makes jet engines, turbines, and associated products. Despite a monetarily tight environment, the firm has held up the financial fort since it has beaten analyst EPS estimates in all four of its latest quarters.
Insider Monkey's December quarter of 2023 survey covering 933 hedge funds revealed that 92 had bought and owned the firm's shares. General Electric Company (NYSE:GE)'s biggest investor in our database is Chris Hohn's TCI Fund Management courtesy of its $5.3 billion investment.
6. Bank of America Corporation (NYSE:BAC)
Number of Hedge Fund Investors In Q4 2023: 96
Latest P/E Ratio: 39.14
Bank of America Corporation (NYSE:BAC) is one of America's biggest domestic banks. It's been making quite the headlines lately, as not only did a data breach affect thousands of customers, but Bank of America Corporation (NYSE:BAC) also shared in February 2024 that its digital banking service set a new record in 2023 via 23 billion interactions.
As of Q4 2023 end, 96 out of the 933 hedge funds part of Insider Monkey's research had held a stake in Bank of America Corporation (NYSE:BAC). Warren Buffett's Berkshire Hathaway remains the bank's largest shareholder in our hedge fund database since it owns 1 billion shares that are worth $34 billion.
UnitedHealth Group Incorporated (NYSE:UNH), Bank of America Corporation (NYSE:BAC), Berkshire Hathaway Inc. (NYSE:BRK-B), and JPMorgan Chase & Co. (NYSE:JPM) are some top hedge fund large cap value stock picks.
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Disclosure: None. 16 Best Large-Cap Value Stocks To Invest In in 2024 is originally published on Insider Monkey.
