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It’s not easy picking the right stocks. That’s why a lot of investing gurus advise against it and recommend simple index investing over trying to chase alpha (i.e., outperformance) through stock picks. Personally, I enjoy the process of researching and buying stocks. The existence of UVstocks.io is a testament to that.


If I’m not dollar cost averaging (DCA) into specific stocks, however, I often zoom out and invest into specific sectors via ETFs. These are groupings of stocks that can be traded like a single stock. While sifting through the daily data that the UVstocks team collects, I’ve found that Financial and Healthcare appear to be the most undervalued sectors—with respect to undervalued stock count—in the S&P 500 at the moment. This is likely due to varying government policy uncertainty and profit margin pressures. Note: The following data is as of market close on August 8, 2025.

But I’m not just looking for the highest concentration of the most intrinsically undervalued stocks coupled with “buy/strong buy” ratings, I’m screening sectors for the most intrinsic upside as well, meaning the average price target is greater than the current price but still below the intrinsic value. The idea is that if the average price target—across various analysts and stock source sites—is less than the stock’s intrinsic value, then there’s some runway for a reasonable price increase.


And if I decide to dig deeper into sectors I’ve targeted, then I can always zoom in on the companies that appear to be the most undervalued.

In the above table, an undervalued stock with high upside from current price to the average analyst price target but a small delta from intrinsic value to average price target could mean that analysts are bullish and their view is close to fundamentals.


But a stock with modest upside to average analyst price target but a large delta to intrinsic value to average price target could indicate that analysts may be underestimating potential versus the fundamentals.


So whether you’re zooming in or zooming out, be sure to keep putting into the market using cash that’s not earmarked for anything else over the next 18 - 24 months. You can always simply buy the entire S&P 500 index (SPY) if you’re not sure about individual stocks or specific sectors.


“I’m not buying individual stocks because I think I’m going to generate alpha. I just love stocks and have ever since I was 20 years old. And it’s my money, I get to do whatever.”— Josh Brown


Not sure where to start or know someone that could use the help? Help them zoom in and zoom out on stock data by sending them this article and the UVstocks.io link.


P.S. I'm sharing some investment information, but it's important to remember that what I'm providing is for informational purposes only and should not be construed as financial advice.


Happy Investing,

John


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