In this article, we will discuss the 10 Best Cheap Stocks to Buy According to Billionaire Ray Dalio.
Ray Dalio began his investing journey at just 12 years old and went on to gain experience at institutions such as the New York Stock Exchange, Dominick & Dominick LLC, and Shearson Hayden Stone. He eventually founded Bridgewater Associates in 1975, which now stands as a top-tier investment firm, co-led by Dalio, Robert Prince, and Greg Jensen.
Getting your hands on cheap stocks at the right time is of utmost importance. Following a rebound from April’s steep 17% discount, Morningstar’s June 2025 outlook suggests that U.S. equities traded just 3% below their fair value as of May 30, 2025. While expectations of easing monetary policy and tariff developments drove this rebound, risks still remain. In this regard, Bridgewater points out that over 50% of U.S. equity outperformance in the past 15 years was driven by technology. This suggests that future gains may rely heavily on productivity enhancement, particularly from AI technology deployment.
Amid all the uncertainty, Morningstar expresses its inclination toward not only the overweighting of value stocks, which presently trade at a 14% discount, but also underweighting of growth stocks trading at a premium.
Amid market risks, including tariff structure, sluggish GDP, and shifting earnings outlook, we aim to look at Dalio’s portfolio, which offers insights into quality stocks that may still be trading below their intrinsic value.
With this backdrop, let’s move on to our list of the 10 Best Cheap Stocks to Buy According to Billionaire Ray Dalio.
Methodology
To curate our list of the 10 Best Cheap Stocks to Buy According to Billionaire Ray Dalio, we scanned Billionaire Ray Dalio’s portfolio for Q1 2025, extracting stocks with their price-to-earnings ratio under 15x, as of the time of writing this article. We incorporated hedge fund sentiment into these stocks, ranking them on the basis of the number of hedge funds having stakes in the respective stocks as of Q1 2025. The stocks are ranked in ascending order of the number of hedge fund holders.
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 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here).
10. Genpact Limited (NYSE:G)
Forward Price-to-Earnings: 12.01
Number of Hedge Fund Holders: 34
Genpact Limited (NYSE:G) is one of the 10 Best Cheap Stocks to Buy According to Billionaire Ray Dalio. Bridgewater Associates holds over $35 million worth of shares of G, which represents 0.16% of its portfolio.
On June 27, 2025, TD Cowen announced its decision to raise its price target on Genpact Limited (NYSE:G) from $53 to $55, while maintaining a ‘Buy’ rating. The analyst attributed this to optimistic commentary on Q2 and full-year 2025 during the company’s Investor Day that focused on AI strategy. The analyst further highlighted the company’s medium-term outlook, which is expected to exceed the Street’s FY2026 revenue and earnings estimates. Meanwhile, the company announced a quarterly dividend of $0.17 per share on June 6, 2025, while also finalizing its acquisition of XponentL Data to strengthen its AI capabilities on June 5, 2025.
Operating across sectors like finance, healthcare, consumer goods, and manufacturing, Genpact Limited (NYSE:G) provides business process outsourcing and IT services. It operates across North America, Europe, Asia, and Latin America. It is among the list of cheap stocks to buy.
9. Incyte Corporation (NASDAQ:INCY)
Forward Price-to-Earnings: 11.46
Number of Hedge Fund Holders: 37
Incyte Corporation (NASDAQ:INCY) is one of the 10 Best Cheap Stocks to Buy According to Billionaire Ray Dalio. Bridgewater Associates holds over $38 million worth of shares of INCY, which represents 0.18% of its portfolio.
Citing uncertainties about the company’s revenue outlook, particularly the long-term sustainability of Jakafi, William Blair analyst Matt Phipps maintained a ‘Hold’ rating on Incyte Corporation (NASDAQ:INCY). M&A speculations rose with the company’s appointment of Bill Meury as CEO, who has a background in successful biotech exits. However, analysts remain cautious as the nearing Jakafi patent expiry weighs on sentiment. This expiry is expected to significantly cut the company’s earnings. While the long-term outlook of the company remains healthy, as evident from the consensus analysts’ estimated price target of $76, uncertainty regarding the company’s ongoing R&D activities is contributing to a mixed short-term outlook.
With its operations across the U.S., Europe, Canada, and Japan, Incyte Corporation (NASDAQ:INCY) develops and commercializes therapies for oncology and inflammation. Its product portfolio includes Jakafi, Monjuvi, Pemazyre, and Opzelura. It is among the list of cheap stocks to buy.
8. BP p.l.c. (NYSE:BP)
Forward Price-to-Earnings: 12.34
Number of Hedge Fund Holders: 51
BP p.l.c. (NYSE:BP) is one of the 10 Best Cheap Stocks to Buy According to Billionaire Ray Dalio. Bridgewater Associates holds over $35 million worth of shares of BP, which represents 0.17% of its portfolio.
Wells Fargo raised its price target on BP p.l.c. (NYSE:BP) from $27 to $32 on June 26, 2025, indicating an 18.5% upside potential. Maintaining an ‘Equal-Weight’ rating on the stock, the analyst attributed the revision to the company’s improving energy mix and operational stability across oil, gas, and renewable verticals. While the analyst remained cautious in the short term, the long-term expectations remain steady amid the company’s continued efforts to balance traditional hydrocarbon operations with investments in low-carbon energy, hydrogen, and bioenergy segments.
BP p.l.c. (NYSE:BP), a British multinational oil and gas company, operates through Gas & Low Carbon Energy, Oil Production & Operations, and Customers & Products segments. It is among the list of cheap stocks to buy.
7. Synchrony Financial (NYSE:SYF)
Forward Price-to-Earnings: 7.42
Number of Hedge Fund Holders: 52
Synchrony Financial (NYSE:SYF) is one of the 10 Best Cheap Stocks to Buy According to Billionaire Ray Dalio. Bridgewater Associates holds over $33 million worth of shares of SYF, which represents 0.15% of its portfolio.
Seaport Global increased its price target on Synchrony Financial (NYSE:SYF) from $66 to $76, maintaining a ‘Buy’ rating. Despite the broader concerns over rising credit losses and sluggish loan growth in the market, the analyst attributed this update to improved sentiment about the company. Despite a 41% drop in the company’s Q1 2025 net earnings, its adjusted earnings rose 54% to $491 million due to its increased operational efficiency. Moreover, Synchrony Financial (NYSE:SYF) also initiated a $2.5 billion share repurchase program, along with a 20% increase in dividend, reinforcing the analyst’s improved sentiment about the company.
Based in the U.S., Synchrony Financial (NYSE:SYF) offers private-label and co-branded credit cards, installment loans, and consumer banking services across various sectors. It is among the list of cheap stocks to buy.
6. Alaska Air Group, Inc. (NYSE:ALK)
Forward Price-to-Earnings: 11.15
Number of Hedge Fund Holders: 56
Alaska Air Group, Inc. (NYSE:ALK) is one of the 10 Best Cheap Stocks to Buy According to Billionaire Ray Dalio. Bridgewater Associates holds over $33 million worth of shares of ALK, which represents 0.16% of its portfolio.
On June 23, 2025, Alaska Air Group, Inc. (NYSE:ALK) reported a cybersecurity incident at its subsidiary Hawaiian Airlines, affecting parts of its IT systems. Despite the concerns raised by the breach, the airline confirmed that its flights and passenger services will remain unaffected. Meanwhile, the company aims to leverage the expertise of federal authorities to look into the matter.
This incident follows Alaska Air Group, Inc.’s (NYSE:ALK) acquisition of Hawaiian Airlines in September 2024 for $1.9 billion. This acquisition has already contributed significantly to the company’s Q1 earnings, which exceeded the expectations of the investors. While the incident poses short-term operational risks for the company, analysts remain cautiously optimistic given the uninterrupted flight operations.
Based in Washington, U.S., Alaska Air Group, Inc.’s (NYSE:ALK) operates scheduled passenger and cargo services through its mainline carriers, Alaska Airlines and Hawaiian Airlines. It is among the list of cheap stocks to buy.
5. EOG Resources, Inc. (NYSE:EOG)
Forward Price-to-Earnings: 13.81
Number of Hedge Fund Holders: 64
EOG Resources, Inc. (NYSE:EOG) is one of the 10 Best Cheap Stocks to Buy According to Billionaire Ray Dalio. Bridgewater Associates holds over $42 million worth of shares of EOG, which represents 0.20% of its portfolio.
On June 26, 2025, UBS maintained a ‘Buy’ rating on EOG Resources, Inc. (NYSE:EOG), while also keeping a price target of $140. This update follows EOG’s executive meeting in Europe and discussions with the investor relations team. The discussion highlighted the company’s operational strength, along with its focus on Lower48.
Furthermore, the potential upside from EOG’s acquisition of Utica was also talked about in the executive meeting. Meanwhile, UBS analysts pointed toward EOG Resources, Inc.’s (NYSE:EOG) demonstration of resilience in a volatile oil market and an opportunity to capitalize on rising natural gas prices. Moreover, EOG’s acquisition of Encino Acquisition Partners in May 2025 is expected to expand the company’s footprint in the Utica Shale.
EOG Resources, Inc. (NYSE:EOG), based in the U.S., is focused on hydrocarbon exploration, exploring, developing, and marketing crude oil, natural gas, and NGLs globally. It is among the list of cheap stocks to buy.
4. Bristol-Myers Squibb Company (NYSE:BMY)
Forward Price-to-Earnings: 7.22
Number of Hedge Fund Holders: 69
Bristol-Myers Squibb Company (NYSE:BMY) is one of the 10 Best Cheap Stocks to Buy According to Billionaire Ray Dalio. Bridgewater Associates holds over $142 million worth of shares of BMY, which represents 0.66% of its portfolio.
On June 25, 2025, Bristol-Myers Squibb Company (NYSE:BMY) announced a new update regarding its plans for breast cancer treatments. Under this new development, the company announced a new clinical trial for its experimental breast cancer drug, Iza-bren. The drug, which is considered an alternative to physician-selected chemotherapy options, targets patients with advanced breast cancer who are not suited for standard immunotherapies. The clinical trial for the drug is set to begin on July 15, 2025.
With this development, the company highlights its ongoing commitment to bringing innovation in cancer treatments. Given the competitiveness of the oncology market and Bristol-Myers Squibb Company’s (NYSE:BMY) ongoing progress in the field of breast cancer therapies, investors should expect a positive impact on the company’s long-term growth potential.
Bristol-Myers Squibb Company (NYSE:BMY), a global biopharmaceutical company, is focused on oncology, cardiovascular, and immunology treatments. It is among the list of cheap stocks to buy.
3. Gilead Sciences, Inc. (NASDAQ:GILD)
Forward Price-to-Earnings: 13.27
Number of Hedge Fund Holders: 79
Gilead Sciences, Inc. (NASDAQ:GILD) is one of the 10 Best Cheap Stocks to Buy According to Billionaire Ray Dalio. Bridgewater Associates holds over $56 million worth of shares of GILD, which represents 0.26% of its portfolio.
On June 26, 2025, Gilead Sciences, Inc. (NASDAQ:GILD) announced the development of its ongoing Phase 2/3 clinical trial that is expected to treat HIV in pediatric patients. The study began in January 2014. It is focused on evaluating the safety, dosage, and effectiveness of cobicistat-boosted Atazanavir (ATV/co), cobicistat-boosted Darunavir (DRV/co), and Emtricitabine/Tenofovir Alafenamide (F/TAF) in participants with virologically suppressed HIV-1.
This development highlights the company’s continued commitment to advancing antiretroviral therapies for all age groups. Given the limited number of competitors in the pediatric HIV market, this progress is expected to strengthen Gilead Sciences, Inc.’s (NASDAQ:GILD) market position and boost investors’ confidence.
Gilead Sciences, Inc. (NASDAQ:GILD), a U.S.-based biopharmaceutical company, researches and develops antiviral drugs for patients with HIV/AIDS, hepatitis B, hepatitis C, influenza, and COVID-19. GILD is among the list of cheap stocks to buy.
2. Capital One Financial Corporation (NYSE:COF)
Forward Price-to-Earnings: 12.36
Number of Hedge Fund Holders: 93
Capital One Financial Corporation (NYSE:COF) is one of the 10 Best Cheap Stocks to Buy According to Billionaire Ray Dalio. Bridgewater Associates holds over $30 million worth of shares of COF, which represents 0.14% of its portfolio.
Citing a strong long-term growth outlook, JPMorgan raised its price target on Capital One Financial Corporation (NYSE:COF) from $183 to $210 on June 26, 2025. Maintaining a ‘Neutral’ rating on the company’s stock, the analyst discussed the company’s Discover merger, which was finalized on May 18. While the analyst sees the merger generating synergies in the short run, its long-term outcome is quite complicated and uncertain.
The long-term growth lies in the company’s opportunity to modernize the Discover network first. While Discover operates its own payment network, upgrading it could give Capital One enhanced control. Secondly, the company could extract higher margins and improved control over customers by issuing its credit cards on the Discover Network, cutting out middlemen. Lastly, by having control over credit card issuing and payment networks, the company can leverage critical customer data for marketing, lending decisions, and product development.
Specializing in credit cards, auto loans, banking, and savings accounts, Capital One Financial Corporation (NYSE:COF) is an American bank holding company. COF is among the list of cheap stocks to buy.
1. Citigroup Inc. (NYSE:C)
Forward Price-to-Earnings: 10.95
Number of Hedge Fund Holders: 96
Citigroup Inc. (NYSE:C) is one of the 10 Best Cheap Stocks to Buy According to Billionaire Ray Dalio. Bridgewater Associates holds over $142 million worth of shares of C, which represents 0.66% of its portfolio.
Citing improved profitability, BofA increased its price target on Citigroup Inc. (NYSE:C) from $89 to $100 on June 26, 2025. Keeping a ‘Buy’ rating on the company’s stock, the analyst highlighted Jane Fraser’s continued strategic efforts to make the company competitive, ever since her hiring in 2021. The analyst also pointed toward Citigroup Inc.’s (NYSE:C) improved profitability over the last year in each of its five business segments. Accordingly, BofA raised Citi’s FY26 EPS estimate from $9.85 to $10 as the analyst sees greater clarity on the return on tangible common equity outlook.
Citigroup Inc. (NYSE:C), established in 1998, is a global, U.S.-based investment bank and financial services company. The bank also provides retail brokerage, corporate banking services, and cash management products. Citigroup is among the list of cheap stocks to buy.
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