Top Undervalued S&P 500 Stocks (March 2025)

For a company to be selected by the Index Committee and included in the S&P 500 index, it must satisfy these requirements:

• The company must be headquartered in the United States.
• Its market capitalization should be a minimum of $8.2 billion.
• The company’s shares need to exhibit high liquidity.
• At least 50% of its outstanding shares should be available for public trading.
• It must have positive earnings in the most recent quarter.
• The total earnings over the last four quarters must also be positive.

Fair Value Assessment: We considered only stocks presenting a Fair Value upside potential of at least 25%, based on InvestingPro’s fair value assessment. 

Fair Value Uncertainty (InvestingPro): To further refine our selection, we focused exclusively on companies categorized with either Low or Medium Fair Value uncertainty levels.

S&P 500 Index Inclusion: We prioritized stocks listed in the S&P 500 for this screener.

Fair Value Upside: 36.0%

Market Cap: 321.6 B

Bank of America Corporation is an American multinational investment bank and financial services holding company, which provides various financial products and services for individual consumers, small and middle-market businesses, institutional investors, large corporations, and governments worldwide, through its subsidiaries. It is among the Big Four banking institutions of the United States, founded in 1784 and based in Charlotte, North Carolina.

Fair Value Upside: 38.2%

Market Cap: 235.4 B

Merck & Co., Inc. operates as a healthcare company worldwide. It operates through two segments, Pharmaceutical and Animal Health. It is an American multinational pharmaceutical firm with headquarters in Rahway, New Jersey, and is named for Merck Group, which was founded in 1668, in Germany. Its top and renowned brands include Keytruda, Welireg, Gardasil, Noxafil, Varivax, Vaxneuvance, and Nuflor, among others.

Fair Value Upside: 29.5%

Market Cap: 147 B

Pfizer Inc. discovers, develops, manufactures, markets, distributes, and sells biopharmaceutical products in the United States, Europe, and internationally. The company offers medicines and vaccines in various therapeutic areas, including cardiovascular metabolic, migraine, and women’s health. It was founded in 1849 and is headquartered in New York, New York.

Fair Value Upside: 38.6%

Market Cap: 137.5 B

Citigroup Inc., a diversified financial service holding company, provides various financial products and services to consumers, corporations, governments, and institutions worldwide. It operates through five segments: Services, Markets, Banking, U.S. Personal Banking, and Wealth. The company was founded in 1812 and is headquartered in New York, New York.

Fair Value Upside: 38.6%

Market Cap: 137.5 B

Comcast Corporation operates as a media and technology company worldwide. It operates through Residential Connectivity & Platforms, Business Services Connectivity, Media, Studios, and Theme Parks segments. The company was founded in 1963 and is headquartered in Philadelphia, Pennsylvania.

Fair Value Upside: 34.2%

Market Cap: 90.366 B

Elevance Health, Inc., together with its subsidiaries, operates as a health benefits company in the United States. The company operates through four segments: Health Benefits, CarelonRx, Carelon Services, and Corporate & Other. It offers a variety of health plans and services to program members. The company provides its services under the Anthem Blue Cross and Blue Shield, Wellpoint, and Carelon brand names. The company was formerly known as Anthem, Inc. and changed its name to Elevance Health, Inc. in June 2022. Elevance Health, Inc. was incorporated in 2001 and is headquartered in Indianapolis, Indiana.

You can find undervalued S&P 500 stocks using Investing Pro. Here are the steps:

• Click on the Screener tool.
• Select ‘Fair Value Uncertainty (InvestingPro)’ as a filter parameter on the Screener page, and select ‘Low’ and Medium’
• Add Index Membership, is part of ‘S&P 500’ 
• Add a filter for ‘InvestingPro Fair Value Upside’ above 30%

• You can then see the list of all the companies falling in the desired screener filters’ range arranged in a descending order.

The S&P 500 is a stock market index that tracks the 500 largest publicly traded companies in the United States, weighted by market capitalization. Find out more with our guide to the S&P 500.

No, individual investors cannot directly buy shares of the S&P 500 index itself. However, they can invest in mutual funds, exchange-traded funds (ETFs), or index funds that replicate the performance of the S&P 500.

The composition of the S&P 500 can change due to corporate actions such as mergers, acquisitions, or when a company no longer meets the index criteria. Changes are announced by S&P Dow Jones Indices.

Market capitalization (market cap) is the total market value of a company’s outstanding shares of stock. It is important in the S&P 500 because the index is weighted by market cap, meaning larger companies have a greater impact on its performance. View the current largest companies by market cap.

Risks include market volatility, economic downturns affecting company earnings, sector-specific risks, and risks associated with individual companies within the index.

Yes, investors can choose to invest in specific sectors or industries within the S&P 500 through sector-specific ETFs, mutual funds, or individual stock selection.