In this article, we will discuss the 10 Best Bargain Stocks to Buy in June.
On June 8, Reuters reported that Citigroup raised its 2026 year-end target for the S&P 500 index to more than 8,100, thanks to corporate earnings and AI-driven growth. Furthermore, the firm increased its S&P 500 EPS forecast to $350 for 2026, an increase from $320 that was set in December 2025. It gave the preliminary target for 2027 of $400.
Citigroup, just like other brokerages, believes that AI momentum and robust corporate earnings are expected to mitigate the inflationary pressures as well as supply risks because of the Middle East conflict in the short term, reported Reuters. That being said, the firm also warned that the continuation of AI-led growth beyond 2027 is the critical question.
Reuters, while citing the Citi strategists, reported that the AI-associated ecosystems are projected to move beyond the technology firms. However, the focus would shift to whether or not, beyond 2027, the US companies will be able to deliver on productivity gains guaranteed by AI.
Amidst such views, we will now have a look at the 10 Best Bargain Stocks to Buy in June.
Our Methodology
To list the 10 Best Bargain Stocks to Buy in June, we used a screener to shortlist stocks that trade at a forward P/E of less than ~17x. We also mentioned hedge fund sentiments around each stock, as of Q1 2026. Finally, the stocks are arranged in an ascending order of their hedge fund sentiments.
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. Insider Monkey’s quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 599.2% since May 2014, beating its benchmark by 372 percentage points (see more details here).
Note: All the data is as of June 12
10 Best Bargain Stocks to Buy in June
10. The Allstate Corporation (NYSE:ALL)
Forward P/E: ~8.7x
Number of Hedge Fund Holders: 52
The Allstate Corporation (NYSE:ALL) is one of the Best Bargain Stocks to Buy in June. On June 7, Keefe Bruyette downgraded the company’s stock to “Market Perform” from “Outperform” with a price objective of $242, down from the previous target of $266. As per the analyst, The Allstate Corporation (NYSE:ALL)’s previously accelerating YoY personal auto policies in force growth touched its peak in February.
The analyst, Meyer Shields, further added that the increasing personal auto rate competition might prevent the significant reacceleration. Also, The Allstate Corporation (NYSE:ALL) added that it would stop reporting monthly PIF numbers after the May data. This further suggests that, more or less, its return to positive PIF growth has already played out, added Shields. However, The Allstate Corporation (NYSE:ALL) will continue reporting its policies in force growth in the quarterly earnings releases.
In a different update, The Allstate Corporation (NYSE:ALL) highlighted that its strategy and execution capabilities resulted in robust earnings in Q1 2026, with revenues coming at $16.9 billion and net income at $2.4 billion.
The Allstate Corporation (NYSE:ALL) offers property and casualty, and other insurance products.
9. Marathon Petroleum Corporation (NYSE:MPC)
Forward P/E: ~7.5x
Number of Hedge Fund Holders: 54
Marathon Petroleum Corporation (NYSE:MPC) is one of the Best Bargain Stocks to Buy in June. On June 12, Morgan Stanley lifted its price objective on the company’s stock to $265 from $233 and maintained an “Overweight” rating on the shares. As per the analyst, the refining margins have eased from the peak that was witnessed in mid-May. However, they are still elevated compared to the pre-conflict levels. The analyst also updated the estimates for the latest strip prices through 2027.
Even with the reopening of the Strait of Hormuz, the cracks are expected to be aided by tight product inventories as well as stability in demand trends.
Notably, the company’s Q1 2026 results demonstrate the strength and reliability of the integrated system and sound approach to capital deployment, with net income coming at $511 million and adjusted net income at $487 million. As of March 31, 2026, Marathon Petroleum Corporation (NYSE:MPC) had $2.2 billion of cash and cash equivalents.
Marathon Petroleum Corporation (NYSE:MPC) operates as an integrated downstream energy company.
8. Devon Energy Corporation (NYSE:DVN)
Forward P/E: ~8.5x
Number of Hedge Fund Holders: 58
Devon Energy Corporation (NYSE:DVN) is one of the Best Bargain Stocks to Buy in June. On June 12, Morgan Stanley analyst Devin McDermott reiterated a “Buy” rating on the company’s stock, setting a price objective of $66.00. The analyst’s rating is backed by factors that are related to Devon Energy Corporation (NYSE:DVN)’s merger integration and strategic positioning.
The management articulated a detailed post-merger roadmap, which aids confidence in production levels, capital allocation discipline, and delivery of targeted synergies. Also, a diversified and multi-basin portfolio supports operational resilience. The analyst also noted Devon Energy Corporation (NYSE:DVN)’s commitment to strong shareholder returns, which includes a rising base dividend and sizable share repurchase program supported by the strong FCF.
Considering the identified synergies, further upside stemming from the technology and AI initiatives, and shares that trade at a discount to peers, the analyst expects an opportunity for multiple expansion.
Devon Energy Corporation (NYSE:DVN) is an independent energy company, which is in the business of exploration, development, and production of oil, natural gas, and natural gas liquids.
7. Medtronic plc (NYSE:MDT)
Forward P/E: ~13.4x
Number of Hedge Fund Holders: 60
Medtronic plc (NYSE:MDT) is one of the Best Bargain Stocks to Buy in June. On June 12, BofA reduced its price objective on the company’s stock to $95 from $110 and maintained a “Buy” rating on the shares. The firm’s services team has been highlighting a lower utilization environment, and thus, the analyst became more conservative with respect to the 2027 med-tech company estimates. Also, the valuations are demonstrating the utilization risk.
The analyst opines that inflation is a hurdle in 2027 with less margin expansion for med-tech. As a result, the analyst lowered 2027 estimates throughout the firm’s larger-cap coverage where companies are exposed to utilization and inflation.
In a different update, David Roman, an analyst from Goldman Sachs, maintained a “Hold” rating on the company’s stock. The rating was due to several factors that result in Medtronic plc (NYSE:MDT)’s risk‑reward profile being fairly balanced. While the analyst sees strong top‑line momentum, with cardiovascular and neuroscience franchises continuing to gain share and offsetting the lagging areas, he also noted that earnings are not able to benefit fully. This is because of increased reinvestment, portfolio mix, etc.
Medtronic plc (NYSE:MDT) is engaged in developing, manufacturing, and selling device-based medical therapies to healthcare systems, physicians, clinicians, and patients.
6. Valero Energy Corporation (NYSE:VLO)
Forward P/E: ~9.3x
Number of Hedge Fund Holders: 67
Valero Energy Corporation (NYSE:VLO) is one of the Best Bargain Stocks to Buy in June. On June 12, Morgan Stanley lifted its price objective on the company’s stock to $255 from $232 and maintained an “Equal Weight” rating on the shares. While the refining margins have softened from the mid-May peak, they are still elevated compared to the pre-conflict levels, added the firm’s analyst. Furthermore, the analyst updated the estimates for the latest strip prices through 2027.
In a different release, Valero Energy Corporation (NYSE:VLO) reported net income of $1.3 billion for Q1 2026 as compared to a net loss of $595 million for Q1 2025. The refining segment saw operating income of $1.8 billion for Q1 2026 as compared to an operating loss of $530 million in Q1 2025.
Capital investments came in at $448 million in Q1 2026. Out of this, $404 million was for sustaining the business, which includes costs for turnarounds, catalysts, and regulatory compliance.
Valero Energy Corporation (NYSE:VLO) is engaged in manufacturing, marketing, and selling petroleum-based and low-carbon liquid transportation fuels and petrochemical products.
While we acknowledge the potential of VLO to grow, 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 VLO and that has 100x upside potential, check out our report about the cheapest AI stock.
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