In this article, we will discuss 10 Best Affordable Stocks to Invest In for the Long Term.
Affordable stocks, particularly those trading at a low forward price-to-earnings (P/E) ratio, are often attractive because they allow investors to pay less for each dollar of expected future profit. Since the forward P/E is based on projected earnings, it provides a forward-looking measure of valuation. When this ratio is low relative to industry peers or the broader market, it can signal that a company is undervalued or that its growth prospects are not fully reflected in the share price.
A low forward P/E can also indicate implied earnings growth. If a company’s trailing P/E is higher than its forward P/E, analysts are expecting profits to rise, effectively making the stock cheaper on a forward basis as earnings expand. In many cases, subdued valuations reflect cautious or pessimistic market sentiment. If the company outperforms those expectations, the result can be both earnings growth and an expansion in valuation multiples, driving meaningful price appreciation.
For long-term investors, this setup offers an appealing margin of safety. Buying quality companies at reasonable or discounted valuations reduces the risk of overpaying during periods of optimism. Over time, steady earnings growth combined with disciplined capital allocation— such as reinvestment, debt reduction, or dividends— can compound returns significantly. Even if growth moderates, starting from a lower valuation can help cushion downside risk.
Ultimately, low forward P/E stocks can provide a balanced path to long-term wealth creation by blending valuation discipline with the potential for sustainable earnings expansion and future re-rating by the market.
With this context in mind, here is a list of the 10 best affordable stocks to invest in for the long term.
Our Methodology
We used screeners to identify stocks that are trading below a forward P/E of 15, and limited our final selection to companies that have recently reported noteworthy developments likely to impact investor sentiment. These stocks are also popular among analysts and elite hedge funds.
Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 427.7% since May 2014, beating its benchmark by 264 percentage points (see more details here).
10 Best Affordable Stocks to Invest In for the Long Term
10. Willis Towers Watson Public Limited Company (NASDAQ:WTW)
Forward P/E: 13.72
On February 26, Morgan Stanley lowered the firm’s price target on Willis Towers Watson Public Limited Company (NASDAQ:WTW) to $330 from $345 and maintained an Equal Weight rating on the shares. The revision follows updated assumptions across the property and casualty insurance sector after fourth-quarter earnings reports. While the firm acknowledged that industry pricing remains under pressure and that artificial intelligence-related headwinds persist, it emphasized that insurers demonstrating differentiated underwriting capabilities and durable margins are likely to outperform. Morgan Stanley indicated that companies with superior risk selection and consistent profitability should be better positioned to navigate a softer pricing environment, reinforcing the long-term appeal of high-quality operators such as WTW.
On February 4, Truist raised the firm’s price target on Willis Towers Watson Public Limited Company (NASDAQ:WTW) to $400 from $380 and reiterated a Buy rating following the company’s fourth-quarter earnings outperformance. Management reaffirmed guidance for organic growth in the mid-to-high single digits within the Risk & Broking segment and mid-single-digit growth in Health, Wealth & Career, implying sustainable mid-single-digit organic growth overall.
Willis Towers Watson Public Limited Company (NASDAQ:WTW) is a global advisory, broking, and solutions provider that assists clients in managing risk, optimizing employee benefits, and enhancing workforce performance. The company operates through two primary segments: Health, Wealth & Career and Risk & Broking. Although formally established in 2016 through the merger of Willis Group Holdings and Towers Watson, its heritage dates back to 1828 with the founding of Henry Willis & Company in London.
9. The Goldman Sachs Group, Inc. (NYSE:GS)
Forward P/E: 13.28
On February 4, UBS raised the firm’s price target on The Goldman Sachs Group, Inc. (NYSE:GS) to $990 from $970 and maintained a Neutral rating on the shares, reflecting continued confidence in the firm’s earnings power and capital markets positioning.
On January 15, The Goldman Sachs Group, Inc. (NYSE:GS) reported fourth-quarter 2025 results that exceeded expectations, with earnings per share of approximately $14.01, return on equity (ROE) of 16%, and return on tangible equity (RoTE) of 17.1%. For the full year, EPS reached $51.32, representing 27% year-over-year growth, while ROE and RoTE improved to 15% and 16%, respectively, expanding roughly 230–250 basis points compared to 2024. Full-year equities net revenues reached a record $16.5 billion, more than $3 billion above the prior year, with fourth-quarter equities net revenues of $4.3 billion. Equities financing generated a quarterly record $2.1 billion in Q4, increasing 42% year-over-year, and more durable FICC and equity financing revenues rose to a record $11.4 billion for the year, producing segment returns exceeding 16%.
The Goldman Sachs Group, Inc. (NYSE:GS) returned approximately $4.2 billion to shareholders in the fourth quarter through $3 billion of share repurchases and $1.2 billion of dividends, with $32 billion of remaining buyback authorization. Additionally, the firm announced a $0.50 increase in its quarterly dividend to $4.50, reinforcing its commitment to capital return and shareholder value creation.
The Goldman Sachs Group, Inc. (NYSE:GS) is a leading global investment banking, securities, and investment management firm founded in 1869. The company is headquartered in New York City and serves corporations, governments, and individuals worldwide. Its operations are organized primarily into Global Banking & Markets and Asset & Wealth Management. Goldman Sachs’ record revenues, expanding returns, and substantial capital return capacity highlight its strengthened earnings profile and support a favorable long-term investment outlook.
