The P/E ratio of the is almost 29, and on the rise. That's nearly double the index's historic median of 15. This is a sign investors are eager to own stocks, and hopeful that continue their recent strength.

The enthusiasm is not being applied uniformly, however. Investors are enamored with (AI) and other trending growth sectors, leaving many other options overlooked. Dozens of companies with mundane business models or those facing temporary headwinds are trading at bargain prices as a result.

There are advantages to buying stocks that are undervalued right now. Two big ones are downside protection and long-term upside potential. If those characteristics fit your investing strategy, join me to review six large-cap undervalued stocks that have upbeat outlooks and promising valuation metrics.

Several metrics can indicate undervaluation, including the PEG ratio and related earnings multiples like price-to-earnings and price-to-sales. Since each highlights a slightly different view of the business, they're best used in combination.

We relied on three screening metrics to surface undervalued stocks: PEG ratio below 2, forward PE ratio less than 20 and target price upside above 16%. Those screens produced dozens of options, so we limited the list to the top 10 in terms of market capitalization.

We then removed competing businesses. Specifically, Disney (DIS), Alibaba (BABA) and Pfizer (PFE) fit the screening criteria but were excluded because they overlap with Comcast (CMCSA), PDD Holdings (PDD) and Johnson & Johnson (JNJ), respectively.

The resulting list is a sector-diversified group of potentially undervalued large-caps. The smallest company in the group has a respectable market cap of $116 billion. If you are in the market for smaller companies, see our list of . You might also want to review the .

The table below includes the six biggest and most interesting undervalued stocks right now, based on PEG ratio, forward PE ratio and price target upside, as described. All but PDD pay a dividend and four pay yields above 2%.

The metrics below come from corporate reporting, Tradingview.com and Stockanalysis.com.

Stock price: $145.56

PEG: 0.89

Forward PE ratio: 13.53

Price target: $171.77

Price target upside: 18%

Dividend yield: 3.4%

Johnson & Johnson makes and sells a range of health care products, including medicines, therapies and medical equipment. Customers include wholesalers, hospitals, clinics and retailers.

The positives for JNJ include a solid portfolio with multiple market-leading products, a proven product development practice, strong free cash flow performance, healthy balance sheet and a . Despite those appealing qualities, the JNJ stock price is down more than 6% since January.

A primary issue for investors is the legal trouble surrounding JNJ's talc powder. Tens of thousands of lawsuits allege JNJ's baby powder contains cancer-causing asbestos. For years, JNJ has attempted to limit its exposure to these claims by moving the liability into a subsidiary and then bankrupting it.

Cancer victims recently tried to block the bankruptcy, but a federal judge ruled in favor of JNJ. This does not clear the path for the pharma company, but it eliminates one roadblock. JNJ also recently agreed to pay $700 million to settle complaints by state attorneys general.

Full resolution of the talc liabilities would likely win back investor support for JNJ.

Stock price: $135.78

PEG: 0.57

Forward PE ratio: 13.26

Price target: $202.85

Price target upside: 49%

Dividend yield: NA

PDD Holdings operates e-commerce websites Temu and Pinduoduo. Competitors include Alibaba and JD.com (JD). PDD has Chinese roots but moved its headquarters to Ireland in 2023.

PDD has a track record of innovating to engage customers and drive new business. One example is Temu's social media campaign that encouraged consumers to band together for large orders that would qualify for bulk discounts. Pinduoduo also recruited farmers to supply fresh produce for sale to consumers, bypassing middlemen to enable lower prices.

The company's creative strategies and impressive growth record have some comparing it to a young Amazon. That prospect combined with PDD's reasonable valuation metrics makes this stock worth a look.

Stock price: $37.85

PEG: 0.81

Forward PE ratio: 8.65

Price target: $46.94

Price target upside: 27%

Dividend yield: 3.3%

Comcast provides broadband and wireless connectivity services to residences and businesses plus film and television content, streaming entertainment and theme park experiences through its NBCUniversal subsidiary.

Comcast delivered record revenue, adjusted Ebitda and adjusted EPS in 2021, 2022 and 2023. The company then produced consensus-beating revenue and EPS in the first quarter of 2024.

Even so, the media company's stock is down more than 13% for the year. Investors have been spooked by a downward trend in cable subscribers and Peacock's ongoing adjusted Ebitda losses.

The Peacock streaming business is growing quickly in subscribers and engagement, but it will continue to consume Comcast's cash in the short term. Investors who can handle that headwind will benefit from Comcast's predictable broadband business, ability to produce free cash flow, ample dividend yield of 3.3% and heavy share repurchase activity.

Stock price: $112.31

PEG: 0.72

Forward PE ratio: 12.29

Price target: $144.50

Price target upside: 29%

Dividend yield: 2.1%

ConocoPhillips is an explorer, producer and transporter of oil, natural gas and natural gas liquids. The company owns unconventional and conventional reservoirs. Unconventional resources use extraction methods like fracking or directional drilling, which are more modern and complex than vertical wells.

In November 2023, J.P.Morgan analysts a supply-demand gap in energy beyond 2025—a fancy way of saying energy prices will go up and remain high. Key factors are geo-political unrest in Russia and the Middle East plus rising demand in the U.S.

Rising oil prices benefit COP. The predicted trend hasn't played out in a linear way, as prices year-to-date have been up and down. But an increase since early-June has not been mimicked by COP stock as it has been historically. This could mean upside for COP later this year.

Analysts expect COP to deliver EPS of $8.93 in 2024, versus $8.77 in the prior year.

Stock price: $59.67

PEG: 0.93

Forward PE ratio: 17.24

Price target: $71.28

Price target upside: 19%

Dividend yield: 1.1%

Anheuser-Busch InBev produces, markets and distributes 500 brands of beer and other beverages. Key brands in the portfolio include Budweiser, Corona, Stella Artois, Michelob Ultra and Skol. Market segments include the Americas, Europe, Middle East, Africa and Asia Pacific.

BUD enjoys leading market share within its brand portfolio plus global distributionBangalore Stock Exchange. Those qualities combined with operational excellence can deliver a nice stream of growing cash flows and profits.

Anheuser-Bush InBev appears to be on that path. In 2024, the beverage company delivered Ebitda growth of 7% to $19.98 million on a volume decline of 1.7%. One factor in the decline was a major U.S. boycott of Bud Light that began in 2023, the impact of which still lingers.

The strategic direction of the company involves digital transformation to streamline orders from retailers and consumers, deleveraging and advancing sustainability goals.

Stock price: $135.83

PEG: 1.79

Forward PE ratio: 15.23

Price target: $161.60

Price target upside: 19%

Dividend yield: 4.8%Jaipur Wealth Management

UPS provides transportation and related services in the U.S. and around the world.

2023 was a challenging year for UPS. Delivery volumes fell short of expectations and the threat of a strike by the Teamsters prompted some customers to switch to other providers.

UPS executives, led by CEO Carol Tome, are confident the troubled days are behind. In March 2024, the company published aggressive three-year targets for revenue, consolidated adjusted operating margin and free cash flow. Should UPS meet those targets, which include double-digit revenue and cash flow growth, the stock is a good value at today's price.

Importantly, UPS has a track record of operational improvements under Tome's "better not bigger" and "better and bolder" strategies. The company has also invested in automation to reduce costs and made inroads in higher-margin health care delivery.

If you don't find the appreciation upside compelling, there's one more consideration. UPS pays the on this list, a generous 4.8%.

Undervalued stocks offer downside protection and long-term upside potential in one package. Many undervalued companies, including five on this list, also pay out a nice dividend—meaning you get paid to wait for that upside to materialize.