8 Undervalued Stocks Getting Help From the U.S.

BOSTON (TheStreet) -- Conservative investors may well want to consider stocks with the highest market values, especially those with a U.S. focus.

An analysis of their valuations by Fidelity Investments concludes they are selling at 20-year lows and "appear significantly undervalued" and, thus, ready for a breakout after a decade of middling performance.

Mega-cap stocks, represented in the study by the 200 biggest companies in the Russell 1000 Index, have traded at an average trailing price-to-earnings (P/E) ratio of about 19 over the past 20 years, but currently have a P/E of less than 14, a low for the 20-year period. They would need to rise more than 20% just to revert back to their historical norm, the report said.

And on a relative valuation basis, they are also trading at a 20%-plus discount to midcap stocks now.