Top Undervalued S&P 500 Stocks (January 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: 39.4%

Market Cap: 18.86 B

First Solar, Inc., a solar technology company, provides photovoltaic (PV) solar energy solutions in the United States, France, Japan, Chile, and internationally. The company manufactures and sells PV solar modules with a thin film semiconductor technology that provides a lower-carbon alternative to conventional crystalline silicon PV solar modules.

Fair Value Upside: 40.0%

Market Cap: 8.221 B

Match Group Inc, based in Dallas, Texas, is a prominent name in the online dating industry, owning a portfolio of popular dating services such as Tinder, Match.com, and OkCupid. The company continues to expand its global reach and user base, leveraging technology to enhance the user experience and maintain its market leadership.

Fair Value Upside: 29.5%

Market Cap: 13.263 B

EPAM Systems Inc, founded in 1993, is a global leader in digital platform engineering and software development services. With its headquarters in Newtown, Pennsylvania, EPAM helps clients transform their businesses through advanced technology solutions and has built a reputation for delivering complex software engineering projects.

Fair Value Upside: 38.7%

Market Cap: 6.61 B

Qorvo, Inc. engages in development and commercialization of technologies and products for wireless, wired, and power markets worldwide. It operates through three segments: High Performance Analog (HPA), Connectivity and Sensors Group (CSG), and Advanced Cellular Group (ACG).

Fair Value Upside: 25.0%

Market Cap: 25.12 B

T. Rowe Price Group, Inc. is a publicly owned investment manager. The firm provides its services to individuals, institutional investors, retirement plans, financial intermediaries, and institutions. It launches and manages equity and fixed income mutual funds.

Fair Value Upside: 40.0%

Market Cap: 143.6 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 Residential Connectivity & Platforms segment provides residential broadband and wireless connectivity services, residential and business video services, sky-branded entertainment television networks, and advertising.

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.