In this article, we explore the 10 Best Affordable Long Term Stocks to Buy According to Hedge Funds.
A shift is happening in institutional capital, and this is reshaping global equity allocations. This is according to HedgeCo.Net, a hedge fund data aggregator. Its analysis shows a softening demand for North America-focused hedge fund strategies, and that institutional allocators are increasingly steering capital toward Europe and Asia.
“This trend has been building for months,” stated the data aggregator, adding that, “in late 2025, wealthy investors in the US and Asia were canceling plans to allocate to US hedge funds and increasing exposure to Europe and the Middle East. The ‘why’ wasn’t a single macro variable; it was the growing belief that the balance of risks and opportunities was shifting.”
Some of the factors driving this rebalancing include mounting concerns over US trade policy uncertainty, dollar volatility, and concentration risk within mega cap technology names that have dominated the prior cycle. And, interestingly, this geographic rotation coincides with stretched domestic valuations.
Against this backdrop, hedge funds are upgrading their outlook for value-oriented stock selection strategies. For instance, Man Group’s Q1 2026 strategy outlook upgraded both Long-Biased Equity Long/Short and Market Neutral Equity Long/Short to positive. The firm cited elevated dispersion and lower single-stock correlations that favor active managers over passive beta.
It noted that while artificial-intelligence-related valuations remain susceptible to “nebulous forecasts,” the broader opportunity set for fundamental stock picking has expanded significantly. And Goldman Sachs analysts project this value tilt will persist if economic momentum holds. They also highlighted that low-valuation shares outperformed higher-multiple peers with a 15% advance during the final six months of 2025.
In this light, this article highlights several affordable, value stocks that institutions are piling into.
Our Methodology
To identify the 10 Best Affordable Long Term Stocks to Buy According to Hedge Funds, we used the Finviz stock screener to filter for companies trading at forward price-to-earnings ratios below 15, and with five-year revenue and earnings growth rates of at least 15%. We further limited the selection to stocks with market capitalizations above $2 billion and then analyzed Q3 2025 13F filings from Insider Monkey’s database to identify which of these names had the highest levels of hedge fund ownership. The final list is ranked in ascending order by the number of hedge fund holders in the third quarter of 2025.
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).
Note: The forward P/E data is as of February 5, 2026.
Best Affordable Long Term Stocks to Buy According to Hedge Funds
10. Eldorado Gold Corporation (NYSE:EGO)
Number of Hedge Fund Holders: 26
Forward P/E: 8.12
Eldorado Gold Corporation (NYSE:EGO) is one of the best affordable long term stocks to buy according to hedge funds. On February 4, S&P Global Ratings placed Eldorado Gold Corporation (NYSE:EGO) on CreditWatch positive, citing robust gold prices and progress at its nearly completed Skouries copper-gold project in Greece, which is set to start commercial production by mid-2026. With spot gold around $5,000 per ounce, far above S&P’s $3,300 assumption for 2026, the company has seen stronger cash flow, supported by a cash balance exceeding $1 billion.
Earlier, Eldorado announced a C$3.8 billion all-stock acquisition of Foran Mining, adding the nearly finished McIlvenna Bay project in Saskatchewan to its portfolio. The mine, 85% complete, is expected to produce copper, gold, silver, and zinc over an 18-year reserve life. Eldorado shareholders will own 76% of the combined company, with Foran shareholders holding 24%. The deal is expected to close in Q2 2026, pending approvals.
Although Eldorado’s stock initially fell 8.2% on the announcement, the company expects substantial long-term gains. By 2027, combined gold-equivalent production could rise more than 80% to around 900,000 ounces, with projected EBITDA of $2.1 billion and free cash flow of $1.5 billion. S&P anticipates adjusted debt-to-EBITDA to drop below 1.0x, with strong cash generation once Skouries and McIlvenna reach full production, even if gold prices moderate.
Eldorado Gold Corporation (NYSE:EGO) and its subsidiaries mine, explore, develop, and sell minerals in Turkey, Canada, and Greece, with gold as its primary product, along with silver, lead, and zinc.
9. SouthState Bank Corporation (NYSE:SSB)
Number of Hedge Fund Holders: 32
Forward P/E: 11.35
SouthState Bank Corporation (NYSE:SSB) is one of the best affordable long term stocks to buy according to hedge funds. On January 26, Stephens analyst Russell Gunther maintained an Overweight rating on SouthState Bank Corporation (NYSE:SSB) and raised the price target to $120 from $110. The analyst cited SouthState’s core pre-provision net revenue (PPNR) of $323.5 million, noting it “exceeded consensus estimates by 1.5%, or $0.03 per share.” Gunther said this PPNR performance came on the back of stronger net interest income and correspondent banking/capital markets fees. But this effect was partially offset by higher expenses.
The analyst also noted that SouthState’s net interest income grew 2.7% quarter over quarter, excluding purchase accounting adjustments. And that the bank’s core net interest margin increased two basis points sequentially to 3.86%. This growth, Gunther said, was above consensus estimates. As a result, Gunther raised his 2026 PPNR estimate for SouthState by 1.5%. He noted the bank’s differentiated fee income momentum as a contributing consideration.
Separately, on January 23, Raymond James raised its price target on SouthState shares to $120 from $115 and maintained a Strong Buy rating. The move was a reaction to SouthState’s December-ending quarter results.
Raymond James said these results were well ahead of its expectations as well as consensus estimates on core earnings per share and pre-provision revenue basis. The firm noted the bank’s performance reflects 39.42% revenue growth over the past twelve months.
SouthState Bank Corporation (NYSE:SSB) is a regional financial services company headquartered in Florida, and operates through its subsidiary SouthState Bank, N.A. The bank provides consumer, commercial, mortgage, and wealth management solutions to over 1.5 million customers across the Southeast and beyond.
8. RenaissanceRe Holdings Ltd. (NYSE:RNR)
Number of Hedge Fund Holders: 37
Forward P/E: 8.77
RenaissanceRe Holdings Ltd. (NYSE:RNR) is one of the best affordable long term stocks to buy according to hedge funds. On February 3, RenaissanceRe Holdings Ltd. (NYSE:RNR) announced Q4 2025 financial results, in which it reported operating earnings of $13.34 per share, beating analyst consensus estimates by roughly 28%. On a GAAP basis, net income per diluted common share was $16.75.
Underwriting income rose to $669 million in Q4 2025, up from $209 million a year earlier, as the combined ratio improved to 71.4% from 91.7%. And this was because Hurricane Melissa contributed only 10.6% to the property segment’s loss ratio, whereas large loss events had added 47.3 percentage points in Q4 2024.
The overall combined ratio improved to 71.4%, beating estimates of 86-91.3%, due to these lower catastrophe impacts and favorable reserve development. President and CEO, Kevin J. O’Donnell noted that the company’s “Three Drivers of Profit” collectively contributed 15 points of annual return. This, O’Donnell said, demonstrates their strategy to “absorb volatility from large loss events.”
Annual operating income reached $1.9 billion despite what CEO Kevin O’Donnell described as a “$786 million net negative impact from large events” throughout the year. O’Donnell attributed this resilience to the diversified “Three Drivers” model. The strategy allowed the company to maintain an 18.2% operating return on average common equity, O’Donnell said.
RenaissanceRe Holdings Ltd. (NYSE:RNR) is a Bermuda-based global provider of reinsurance and insurance solutions. The company specializes in catastrophe reinsurance and specialty risk coverage, offering property, casualty, and specialty reinsurance products to clients worldwide.
7. Arch Capital Group Ltd. (NASDAQ:ACGL)
Number of Hedge Fund Holders: 40
Forward P/E: 10.44
Arch Capital Group Ltd. (NASDAQ:ACGL) is one of the best affordable long term stocks to buy according to hedge funds. On January 16, Citizens analyst Matthew Carletti reaffirmed his Market Outperform rating on Arch Capital Group Ltd. (NASDAQ:ACGL) and kept a price target of $125 for the stock. Carletti cited Arch Capital’s “very strong balance sheet” as a key reason for the positive view.
The analyst said that Arch Capital is superb at managing through the cycle; that is, the company has shown resilience through different market conditions. Carletti also pointed out that this resilience will continue because the company is leaning into casualty and moderating property, which he said is a better fit for Arch Capital’s business model.
While at it, Carletti recommended that investors focus on companies with strong balance sheets. This is because persistent casualty loss cost inflation will likely continue to cause investor concerns about some companies’ casualty loss reserves, the analyst said. He specifically suggested looking at companies with earnings streams tied to both underwriting results and investment income.
Carletti stated that companies with longer-duration portfolios will benefit longer from recent interest rate rises if rates decline. He included Arch Capital among those it views as benefiting under that scenario.
Arch Capital Group Ltd. (NASDAQ:ACGL) is a Bermuda-based insurance and reinsurance company. It provides property, casualty, and mortgage insurance solutions worldwide. The firm operates through three main segments: Insurance, Reinsurance, and Mortgage, with a strong presence in the US, Europe, and Bermuda.
6. Lululemon Athletica Inc. (NASDAQ:LULU)
Number of Hedge Fund Holders: 42
Forward P/E: 13.24
Lululemon Athletica Inc. (NASDAQ:LULU) is one of the best affordable long term stocks to buy according to hedge funds. On January 22, BTIG analyst Janine Stichter reiterated a Buy rating on Lululemon Athletica Inc. (NASDAQ:LULU) and maintained a price target of $303. Sticher emphasized that the investment opportunity lies in Lululemon’s execution strategy rather than immediate product innovations.
The analyst highlighted that while Lululemon expressed excitement about its new “Get Low” performance fabric designed for weight training, investor expectations for the near-term impact of new products remain relatively low. Stichter identified the disjointed launch of the “Get Low” collection as highlighting opportunities for better internal alignment and a cleaner go-to-market strategy at the company.
To Stichter, Lululemon remains in the “show me” camp because the stock lacks near-term catalysts for growth acceleration. And, the analyst stated, investors are waiting for proof that the company’s turnaround efforts are gaining traction.
Stichter also touched on Lululemon’s performance in North America. The analyst noted that this performance is weak, and that the weakness stems partly from a lack of product newness. Nonetheless, Stichter believes opportunities exist across presentation, merchandising, and marketing coordination that may improve outcomes over time.
The analyst pointed to early positive changes in product and marketing execution. This includes what she described as a more refined color palette, less emphasis on logos, and increased online merchandising by 2-piece sets. Stichter expects that these may eventually translate into better in-store presentation.
Lululemon Athletica Inc. (NASDAQ:LULU) is a Canadian athletic apparel retailer. The company designs, distributes, and sells performance apparel, footwear, and lifestyle products through its global network of stores and e-commerce platform.
5. First Citizens BancShares, Inc. (NASDAQ:FCNCA)
Number of Hedge Fund Holders: 45
Forward P/E: 11.00
First Citizens BancShares, Inc. (NASDAQ:FCNCA) is one of the best affordable long term stocks to buy according to hedge funds. On January 26, Raymond James’ David Long lowered its price target on First Citizens BancShares, Inc. (NASDAQ:FCNCA) to $2,350 from $2,440 and kept the Strong Buy rating on the stock. Long took this action only hours after the company released its Q4 financial results.
After First Citizens reported the earnings, its shares fell about 8.5%, compared to a 2.2% decline in the broader banking index (BKX), noted Long. He linked this market reaction to the bank’s 2026 outlook, particularly its net interest margin and operating expense guidance. The analyst described the sell-off as a unique buying opportunity.
Given First Citizens’ Q4 earnings, Long said his firm has reduced its 2026 EPS estimate by $7.86 to $182.96. Its 2027 EPS estimate was also slashed by $7.98 to $213.30. And these revised estimates, the analyst said, are underlined by several factors, including a smaller projected balance sheet, tighter net interest margin, reduced loss provision expectations due to better credit metrics, increased noninterest income outlook, and higher operating expense projections for incremental investments in 2026.
On the same day, January 26, TD Cowen cut its price target on First Citizens $2,500 from $2,600 but maintained its Buy rating on the stock. And just like Raymond James, TD Cowen made the adjustment in light of First Citizens’ Q4 2025 earnings. The firm said that although First Citizens’ core earnings per share of $51.27 exceeded analyst expectations, the pre-tax pre-provision income disappointed.
First Citizens BancShares, Inc. (NASDAQ:FCNCA) is a North Carolina-based financial holding company that operates through First Citizens Bank. The bank provides retail and commercial banking services, including lending, deposits, wealth management, and treasury solutions.
4. Novo Nordisk A/S (NYSE:NVO)
Number of Hedge Fund Holders: 50
Forward P/E: 13.99
Novo Nordisk A/S (NYSE:NVO) is one of the best affordable long term stocks to buy according to hedge funds. On February 5, Novo Nordisk A/S (NYSE:NVO) said it would take legal action against Hims & Hers after the telehealth company announced plans to sell compounded versions of Wegovy at $49 per month. Novo Nordisk called the move illegal mass compounding that threatens patient safety and said it would pursue legal and regulatory steps to protect patients and its intellectual property, noting it is the only maker of an FDA-approved Wegovy pill using SNAC technology for oral semaglutide absorption.
On February 4, Novo Nordisk A/S warned that “unprecedented” pricing pressure would cause sales and profits to fall for the first time in years.
According to the company, the pricing pressure will affect its weight-loss drug Wegovy and related diabetes treatments. It said the pressure comes from increasing competition and aggressive negotiations by healthcare payers, which are pushing drug prices lower. The company pointed to increased competition from similar GLP-1 weight-loss treatments, including drugs from Eli Lilly. Regarding healthcare payer negotiations, the company said that government programs and private insurers are demanding deeper discounts and tighter reimbursement terms.
Reuters reported separately on February 4 that Novo Nordisk announced the U.S. Food and Drug Administration (FDA) has approved a pill version of Ozempic. The FDA approved Ozempic tablets in three doses for adults with type 2 diabetes to improve blood sugar control, the company stated. The company added that it has filed a supplemental drug application for a fourth (higher) dose and that the FDA will pronounce itself by the end of this year.
Novo Nordisk A/S (NYSE:NVO) is a Danish healthcare company specializing in diabetes care, obesity treatments, and rare disease therapies. Its core products include insulin, GLP-1 receptor agonists, and weight management drugs such as Wegovy and Ozempic.
3. Global Payments Inc. (NYSE:GPN)
Number of Hedge Fund Holders: 53
Forward P/E: 4.96
Global Payments Inc. (NYSE:GPN) is one of the best affordable long term stocks to buy according to hedge funds. On January 27, Cantor Fitzgerald started covering Global Payments Inc. (NYSE:GPN) with a Neutral rating and set a price target of $80. The firm pointed out that Global Payments has changed a lot recently, becoming a “pure-play merchant acquirer” after buying Worldpay and selling its Issuer Solutions business to FIS.
Cantor Fitzgerald highlighted Global Payments’ approach, the ‘divest and refresh strategy,’ which entails selling non-synergistic business segments and consolidating internal platforms to enhance customer service. This strategy, Cantor Fitzgerald said, seems to be working, as the company reported 22.33% revenue growth over the last twelve months. In this light, Cantor set the price target based on five times its estimate for Global Payments’ FY2027 earnings per share of $15.09, plus a discounted cash flow analysis.
In a different update, on January 21, UBS reaffirmed its Neutral stock rating on Global Payments and retained a $93 price target for the shares. UBS based the move on Global Payments’ merger with Worldpay.
The investment bank said that the merger expands Global Payments’ reach into new geographic regions, specifically highlighting Japan, France, the Nordics, the Middle East, and Africa. And that the enlarged company’s enhanced scale could provide pricing advantages and increased investment capabilities versus some competitors. However, UBS warned of potential execution risks in the medium term, particularly regarding platform integration.
Global Payments Inc. (NYSE:GPN) is a financial technology company that provides payment processing, software solutions, and merchant services to businesses across more than 100 countries. Its operations include integrated payments, point-of-sale software, and cloud-based solutions for industries such as retail, healthcare, education, and hospitality.
2. Bank of America Corporation (NYSE:BAC)
Number of Hedge Fund Holders: 111
Forward P/E: 12.50
Bank of America Corporation (NYSE:BAC) is one of the best affordable long term stocks to buy according to hedge funds. On February 3, Bank of America Corporation’s (NYSE: BAC) Board declared a $0.28 per share for Q1 2026. This matches the amount paid in the previous quarters since July 2024, when management raised the quarterly dividend from $0.24.
Meanwhile, on January 15, TD Cowen lowered its price target on BofA stock to $64 from $66.00 and kept the Buy rating on the stock. TD Cowen made this change after BofA’s Q4 2025 earnings report, where the bank’s $0.98 EPS surpassed the expected $0.96. Quarterly revenue also topped forecast; it came in at $28.4 billion against the expected $27.55 billion.
TD Cowen’s lead analyst, Steven Alexopoulos, noted that BofA’s earnings beat came mainly on the back of lower provisions and a slight upside in net interest income. And despite the beat, Alexopoulos noted that the bank’s stock declined after the results came out. The analyst attributed the decline to management’s outlook for operating leverage landing; it was toward the low end of what investors were hoping to hear, said the analyst.
Specifically, the bank guided to near-term operating leverage of approximately 200 basis points for FY 2026. This sits at the lower end of its medium-term target range of 200 to 300 basis points. Alexopoulos emphasized that BofA’s revenue growth outlook remains largely intact though.
Bank of America Corporation (NYSE:BAC) is a financial services company. It provides consumer banking, wealth management, corporate lending, and investment banking through its global operations. The company serves individuals, businesses, and institutions with products ranging from deposits and credit cards to capital markets and advisory services.
1. JPMorgan Chase & Co. (NYSE:JPM)
Number of Hedge Fund Holders: 120
Forward P/E: 14.79
JPMorgan Chase & Co. (NYSE:JPM) is one of the best affordable long term stocks to buy according to hedge funds. On February 3, Baird analyst David George upgraded JPMorgan Chase & Co. (NYSE:JPM) to Neutral from Underperform while maintaining his price target at $280. The analyst cited JPMorgan’s “enviable capital position” as a key factor supporting the revised rating.
The upgrade followed JPMorgan’s Q4 2025 earnings report, in which the bank posted blowout figures. Adjusted EPS came in at $5.23, beating the $5.00 consensus, while revenue reached $46.77 billion, topping the $46.20 billion estimate.
But despite this blowout performance, George, the Baird analyst, cautioned that the stock appears expensive. He said JPM trades near 3x tangible book value, a valuation level that leaves little margin for disappointment.
George stated that he now views the JPMorgan stock’s risk/reward profile as more reasonable but not attractive for new money. He added that it has become difficult to make the short case for ‘a best-in-class franchise’. In other words, JPMorgan’s fundamentals are solid and the analyst no longer expects the shares to underperform.
Separately, on January 14, TD Cowen reiterated its Buy rating on JPMorgan and kept its price target at $400 for the stock. The action followed the bank’s Q4 earnings report.
TD Cowen noted that despite the solid earnings, JPMorgan shares fell around 4% after the announcement. The analysts attributed the decline in part to investment banking fees coming in below expectations for the quarter. And they described the downturn as “unwarranted” and asserting that broader business trends are robust. The analysts further said there is a “very constructive backdrop” for both JPMorgan’s investment banking activity and loan growth in 2026. In other words, the fundamentals supporting the stock are intact.
JPMorgan Chase & Co. (NYSE:JPM) is a financial services company. It operates through segments including Consumer & Community Banking, Corporate & Investment Bank, Commercial Banking, and Asset & Wealth Management. The company provides retail banking, credit cards, mortgages, corporate lending, investment banking, and asset management services.
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