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.
8. Diageo plc (NYSE:DEO)
Forward P/E: 13.18
On March 2, HSBC downgraded Diageo plc (NYSE:DEO) to Hold from Buy with a price target of 1,800 GBp, citing uncertainty regarding the timing of a recovery in U.S. volumes. The company recently lowered its fiscal 2026 guidance to reflect weaker-than-anticipated conditions in the U.S. spirits category, softer consumer demand in China, and continued challenges within Chinese white spirits. While near-term headwinds remain, the recalibrated expectations may provide a more conservative baseline from which performance can stabilize and recover over time.
On February 28, JPMorgan analyst Celine Pannuti reduced the firm’s price target on Diageo plc (NYSE:DEO) to 1,800 GBp from 2,000 GBp and maintained a Neutral rating. The adjustment reflects tempered near-term earnings expectations amid ongoing category and regional pressures. Nevertheless, Diageo’s global brand portfolio and geographic diversification continue to provide structural strengths that could support a rebound as macroeconomic conditions improve.
Diageo plc (NYSE:DEO) is a British multinational alcoholic beverage company headquartered in London, England. Founded in 1997, the company has grown into one of the world’s largest producers of spirits and beer. It operates from 132 sites across nearly 180 countries, supported by a portfolio of globally recognized premium brands. Despite cyclical demand pressures, Diageo’s scale, brand equity, and international footprint position it to benefit from long-term premiumization trends in the global beverage industry.
7. KKR & Co. Inc. (NYSE:KKR)
Forward P/E: 11.44
On March 2, Barclays analyst Benjamin Budish lowered the firm’s price target on KKR & Co. Inc. (NYSE:KKR) to $127 from $136 while maintaining an Overweight rating. The firm updated its estimates across the alternative asset management sector, noting that while the ultimate impact of artificial intelligence on portfolio companies remains uncertain, it has reduced business development company-related earnings assumptions due to lower projected flows and realizations.
On February 5, KKR & Co. Inc. (NYSE:KKR) reported fourth-quarter 2025 results, including fee-related earnings per share of $1.08, total operating earnings per share of $1.42, and adjusted net income per share of $1.12, or $1.30 excluding the carried interest repayment obligation. The firm raised $28 billion of new capital during the quarter and a record $129 billion for full-year 2025, marking the strongest fundraising year in its history. Its credit platform secured a record $68 billion in 2025, while K Series private-wealth products raised $4.5 billion in the fourth quarter and over $16 billion for the year, nearly doubling 2024 levels. KKR also announced an increase in its annual dividend from $0.74 to $0.78 per share, representing its seventh consecutive year of dividend growth since converting to a C corporation.
KKR & Co. Inc. (NYSE:KKR), formerly known as Kohlberg Kravis Roberts & Co., is a global investment firm founded in 1976. The company is headquartered in New York City and maintains major regional offices worldwide. Seventh on the list of 10 best affordable stocks to invest in for the long term, KKR manages a broad range of alternative asset classes, including private equity, credit, infrastructure, real estate, and energy.
6. The Travelers Companies, Inc. (NYSE:TRV)
Forward P/E: 10.99
On February 26, Morgan Stanley raised the firm’s price target on The Travelers Companies, Inc. (NYSE:TRV) to $310 from $295 and maintained an Equal Weight rating following updates across the property and casualty insurance sector after fourth-quarter results. The firm noted that while pricing trends remain subdued and artificial intelligence-related headwinds persist, insurers with differentiated underwriting capabilities and durable margins are expected to achieve superior share price performance. Travelers’ disciplined underwriting framework and margin resilience position it favorably within this competitive landscape.
On February 18, The Travelers Companies, Inc. (NYSE:TRV) announced the launch of AI Claim Assistant, developed using OpenAI model capabilities and application programming interfaces. The fully agentic intelligent voice solution leverages advanced language processing and speech recognition technologies to manage customer claim calls, initially focusing on auto damage claims. The company intends to expand this capability across additional lines of business and a broader range of claim interactions over time.
The Travelers Companies, Inc. (NYSE:TRV) is an American multinational insurance provider. The company is headquartered in New York City, New York. It is a leading provider of property and casualty insurance for automobile, home, and commercial clients, distributing coverage primarily through independent agents and brokers.
5. Micron Technology, Inc. (NASDAQ:MU)
Forward P/E: 8.80
On March 2, UBS raised the firm’s price target on Micron Technology, Inc. (NASDAQ:MU) to $475 from $450 and maintained a Buy rating on the shares. The firm’s industry channel checks indicate strengthening pricing dynamics across both DRAM and NAND markets, with supply shortages potentially extending through 2026 and, in the case of DRAM, even into 2028. UBS noted that Micron appears to be leveraging the current supply tightness to negotiate longer-term customer agreements, potentially moderating near-term pricing upside in exchange for enhanced revenue visibility and earnings durability over the coming years.
On March 1, Micron Technology, Inc. (NASDAQ:MU) announced the grand opening of its semiconductor assembly and test facility in Sanand, Gujarat, India. The facility processes advanced DRAM and NAND wafers from Micron’s global manufacturing network into finished memory and storage products. Upon full ramp of its initial phase, the Sanand site will encompass more than 500,000 square feet of cleanroom space, expanding the company’s backend manufacturing footprint and strengthening supply chain diversification.
Micron Technology, Inc. (NASDAQ:MU) was founded in 1978 and is headquartered in Boise, Idaho. The company is a leading U.S.-based manufacturer of high-performance semiconductor memory and storage solutions, including DRAM, NAND flash, and NOR memory. Micron’s products enable artificial intelligence, advanced computing, and data-intensive applications across data center, mobile, automotive, and industrial end markets, marketed under brands such as Micron and Crucial.
4. First Solar, Inc. (NASDAQ:FSLR)
Forward P/E: 8.17
On March 2, Barclays analyst Christine Cho lowered the firm’s price target on First Solar, Inc. (NASDAQ:FSLR) to $228 from $279 while maintaining an Overweight rating on the shares, reflecting updated valuation assumptions despite continued confidence in the company’s long-term positioning.
Similarly, on February 26, Freedom Capital downgraded First Solar, Inc. (NASDAQ:FSLR) to Hold from Buy with a price target of $250, reduced from $310, following fourth-quarter results that fell short of expectations and the issuance of comparatively weak 2026 guidance. The firm highlighted elevated uncertainty within the utility-scale solar market.
On February 24, First Solar, Inc. (NASDAQ:FSLR) reported fourth-quarter and full-year 2025 results, including record module sales of 17.5 gigawatts for the year and net sales of $5.2 billion, representing 24% year-over-year growth. Full-year diluted EPS increased to $14.21 from $12.20 in 2024, while fourth-quarter EPS rose sequentially to $4.84 from $4.24. For 2026, management guided net sales of $4.9 billion to $5.2 billion and adjusted EBITDA of $2.6 billion to $2.8 billion, with expected gross margins of approximately 49.5%, inclusive of Section 45X credits totaling an estimated $2.1 billion to $2.19 billion. Despite near-term demand variability, the company’s strong margin profile and policy-related incentives provide a foundation for continued profitability.
First Solar, Inc. (NASDAQ:FSLR) was founded in 1990 as Solar Cells, Inc. The company is headquartered in the United States and operates as a leading manufacturer of solar panels. First Solar specializes in rigid thin-film photovoltaic modules and produces cadmium telluride (CdTe) panels utilizing proprietary semiconductor technology.
3. Universal Health Services, Inc. (NYSE:UHS)
Forward P/E: 8.11
On February 27, UBS analyst AJ Rice raised the firm’s price target on Universal Health Services, Inc. (NYSE:UHS) to $320 from $302 and maintained a Buy rating, reflecting confidence in the company’s earnings momentum and forward guidance.
On February 25, Universal Health Services, Inc. (NYSE:UHS) reported fourth-quarter 2025 results, delivering revenue growth of 9%, adjusted EBITDA net of noncontrolling interests growth of 10%, and adjusted EPS growth of 20% compared to the prior-year quarter. For full-year 2025, revenue increased 10%, adjusted EBITDA net of NCI rose 15%, and adjusted EPS advanced 31% year-over-year.
During 2025, the company repurchased 4.65 million shares for $899 million, including 1.46 million shares in the fourth quarter, with $1.425 billion of buyback authorization remaining at year-end and approximately $900 million available under its revolving credit facility. For 2026, UHS guided revenue of $18.4 billion to $18.8 billion, adjusted EBITDA net of NCI of $2.64 billion to $2.79 billion, and adjusted EPS of $22.64 to $24.52, implying continued earnings growth supported by same-facility volume increases and disciplined pricing.
Headquartered in King of Prussia, Pennsylvania, Universal Health Services, Inc. (NYSE:UHS) is third in the list of 10 best affordable stocks to invest in for the long term. The company provides hospital and healthcare services through more than 400 acute care hospitals, behavioral health facilities, outpatient centers, and ambulatory care access points across the United States, Puerto Rico, and the United Kingdom.
2. Aura Minerals Inc. (NASDAQ:AUGO)
Forward P/E: 7.95
On February 26, BofA raised the firm’s price target on Aura Minerals Inc. (NASDAQ:AUGO) to $101 from $70 and maintained a Buy rating, following updated forecasts for 2026 metal prices across the North American metals and mining sector. The revised outlook reflects improved commodity price assumptions, which could further enhance Aura’s earnings and cash flow trajectory.
The same day, Aura Minerals Inc. (NASDAQ:AUGO) reported fourth-quarter 2025 results, posting adjusted EBITDA of $208 million, marking its sixth consecutive quarterly record and contributing to full-year adjusted EBITDA of approximately $547 million to $548 million. EBITDA has effectively doubled in successive years since 2023, rising from roughly $135 million in 2023 to approximately $270 million in 2024 and nearly $548 million in 2025. Fourth-quarter net revenues totaled $322 million, while full-year revenues exceeded $920 million. Recurring free cash flow reached approximately $94 million in the quarter and more than $250 million from mining operations for the full year, supporting growth capital expenditures and dividend distributions.
On February 25, JPMorgan initiated coverage of Aura Minerals Inc. (NASDAQ:AUGO) with an Overweight rating and a $105 price target, citing the company’s profile as an “almost pure-play” gold producer with operations spanning seven mines across four countries and highlighting a strong production growth trajectory.
Aura Minerals Inc. (NASDAQ:AUGO) is a gold and copper mining company operating across the Americas. The company maintains producing assets in Brazil, Mexico, and Honduras, alongside development projects in Brazil, Colombia, and Guatemala. Its corporate offices are located in Miami, United States, and São Paulo, Brazil.
1. Reinsurance Group of America, Incorporated (NYSE:RGA)
Forward P/E: 7.51
On February 25, Wells Fargo raised the firm’s price target on Reinsurance Group of America, Incorporated (NYSE:RGA) to $261 from $238 and maintained an Overweight rating, while rolling forward its valuation framework to incorporate 2027 EPS and introducing new 2028 earnings estimates. Although industry guidance was generally in line with or modestly below consensus, the firm continues to view RGA favorably within the life insurance and reinsurance space.
Similarly, on February 6, Piper Sandler raised its price target on Reinsurance Group of America, Incorporated (NYSE:RGA) to $263 from $230 and reiterated an Overweight rating. On the same day, Barclays increased its price target to $245 from $237 following the fourth-quarter report, also maintaining an Overweight rating. The company’s results were characterized by improved mortality experience and solid growth across geographic regions, reflecting disciplined underwriting and effective risk management.
Reinsurance Group of America, Incorporated (NYSE:RGA) was founded in 1973 and is headquartered in Chesterfield, Missouri. The company operates as a global life and health reinsurer, providing risk management, capital solutions, and underwriting expertise across mortality, morbidity, and longevity exposures. Its diversified global platform and improving underwriting trends reinforce its capacity to generate consistent returns and long-term shareholder value.
While we acknowledge the potential of RGA as one of the best affordable stocks to invest in for the long term, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than RGA and that has 100x upside potential, check out our report about this cheapest AI stock.
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