On August 30, Ryan Detrick, Carson Group chief market strategist, joined ‘Closing Bell’ on CNBC and noted that we’re in a bull market, but seasonal weakness wouldn’t be shocking. Detrick acknowledged that September has historically been the worst month for the market, citing data showing that it’s the worst on average for the last 10 to 20 years, and even since 1950. Additionally, it ranks as the third-worst month in a post-election year. He notes that while it’s rare for both August and September to be positive in a post-election year, it’s not unprecedented. Despite the seasonal weakness, he believes a bull market is still in place and any potential downturn will be contained, likely a 4% to 6% pullback after a 30% rally and a 4-month winning streak. Detrick explained his bullish stance by emphasizing the market’s internal messages and underlying health. He pointed to the strong performance of high-beta stocks and consumer discretionary relative to staples, which are making new lows. This indicated that investors are still on the offensive side of the market.
Detrick also recommended remaining overweight in industrials, financials, and technology. While he acknowledged the rally in small caps, he cautioned against being overweight in them. He explained his reasoning by referencing core PCE, which is the Fed’s preferred inflation gauge, and noted that 45% of the 178 components of core PCE are above 3%, up from 40% at the start of the year. This may lead the Fed to cut rates fewer times than the 6 cuts currently priced in over the next 16 months. He believes the Fed will cut rates in 2.5 weeks because the labor market is weakening, but he only expects a couple more cuts this year. He concluded that with inflation still a concern, it’s best to stick with the large-cap stocks that have performed well.
That being said, we’re here with a list of the 10 best inexpensive stocks to buy according to hedge funds.
Our Methodology
We used the Finviz stock screener to compile a list of the top stocks with a forward P/E ratio of 20 or less, as of September 8. We then selected the 10 best inexpensive stocks that were the most popular among elite hedge funds and that analysts were bullish on. The stocks are ranked in ascending order of the number of hedge funds that have stakes in them, as of Q2 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 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here).
10 Best Inexpensive Stocks to Buy According to Hedge Funds
10. Hewlett Packard Enterprise Company (NYSE:HPE)
Forward P/E Ratio as of September 8: 10.41
Number of Hedge Fund Holders: 60
Hewlett Packard Enterprise Company (NYSE:HPE) is one of the best inexpensive stocks to buy according to hedge funds. On September 4, Susquehanna analyst Mehdi Hosseini raised the firm’s price target on Hewlett Packard Enterprise Company to $21 from $16, while keeping a Neutral rating on the shares. The firm updated its estimates following the company’s Q3 2025 earnings, which included the contribution from the Juniper Networks acquisition.
Hewlett Packard Enterprise achieved a total revenue of $9.1 billion, which was an 18% increase year-over-year, which was driven by the AI, networking, and hybrid cloud segments. The acquisition of Juniper, which was completed on July 2 this year, is expected to generate at least $600 million in cost synergies over the next 3 years.
The networking segment, which now includes Juniper, was a major driver, with revenue increasing by 54% year-over-year to $1.7 billion and contributing ~50% to HPE’s non-GAAP consolidated operating profit. The server segment also performed well, with revenue of $4.9 billion, a 16% increase, and AI systems revenue reaching an all-time high of $1.6 billion. AI orders nearly doubled sequentially, and the company has a record AI backlog of $3.7 billion.
Hewlett Packard Enterprise Company (NYSE:HPE) provides solutions that allow customers to capture, analyze, and act upon data seamlessly in the Americas, Europe, the Middle East, Africa, the Asia Pacific, and Japan.
9. The Allstate Corporation (NYSE:ALL)
Forward P/E Ratio as of September 8: 8.73
Number of Hedge Fund Holders: 62
The Allstate Corporation (NYSE:ALL) is one of the best inexpensive stocks to buy according to hedge funds. On September 4, the Big 12 Conference and Allstate announced a multi-year partnership to launch the Allstate Championship Series. The new platform is designed to be a year-round celebration of Big 12 Championships and student-athletes.
The Allstate Championship Series will be the foundation for the Allstate Commissioner’s Cup, which is an award given annually to the Big 12 school with the most “points” based on performance in conference championships, graduation rates, academic and student services, and community engagement. As part of the agreement, Allstate will become the presenting sponsor of all Big 12 Olympic sport championships and will be integrated into marquee events like the Big 12 Football Championship and the Men’s and Women’s Basketball Championships.
The partnership also includes digital and in-venue branding at all Big 12 Championships, original content showcasing student-athlete leadership, and the designation of Allstate as the “Official Insurance Partner of the Big 12 Conference” for home, auto, and property insurance.
The Allstate Corporation (NYSE:ALL) provides property and casualty, and other insurance products in the US and Canada. It has 5 segments: Allstate Protection, Run-off Property-Liability, Protection Services, Allstate Health & Benefits, and Corporate & Other.
8. Bristol-Myers Squibb Company (NYSE:BMY)
Forward P/E Ratio as of September 8: 7.75
Number of Hedge Fund Holders: 67
Bristol-Myers Squibb Company (NYSE:BMY) is one of the best inexpensive stocks to buy according to hedge funds. On September 8, BioNTech (NASDAQ:BNTX) and Bristol Myers Squibb presented positive interim data from a global randomized Phase 2 trial of their investigational bispecific antibody, pumitamig (BNT327/BMS986545). The trial evaluated pumitamig in combination with chemotherapy for patients with extensive-stage small cell lung cancer (ES-SCLC).
The data, consistent with a prior Phase 2 trial in China, showed encouraging anti-tumor activity and a manageable safety profile. The results were presented at the IASLC 2025 World Conference on Lung Cancer in Barcelona. The interim analysis, with a data cut-off date of August 7, included 43 patients with previously untreated ES-SCLC. The safety profile was manageable, with a discontinuation rate of 14%.
Pumitamig is a bispecific antibody that combines 2 mechanisms: PD-L1 checkpoint inhibition and the neutralization of VEGF-A. This dual action is intended to restore the immune system’s ability to fight cancer and cut off the tumor’s blood supply. The positive results from the Phase 2 trial support the ongoing global pivotal Phase 3 trial, ROSETTA LUNG-01, which is comparing pumitamig plus chemotherapy against standard-of-care treatment in first-line ES-SCLC. In 2025, pumitamig received Orphan Drug designation from the US FDA for the treatment of small-cell lung cancer.
Bristol-Myers Squibb Company (NYSE:BMY) discovers, develops, licenses, manufactures, markets, distributes, and sells biopharmaceutical products worldwide.
BioNTech (NASDAQ:BNTX) is a biotechnology company that develops and commercializes immunotherapies to treat cancer and infectious diseases in Germany.
7. Elevance Health Inc. (NYSE:ELV)
Forward P/E Ratio as of September 8: 9.92
Number of Hedge Fund Holders: 67
Elevance Health Inc. (NYSE:ELV) is one of the best inexpensive stocks to buy according to hedge funds. On September 4, Elevance’s CFO, Mark Kaye, announced at the Wells Fargo Healthcare Conference in Boston that the company is reducing its Medicare footprint. The decision is being made to improve the business’s profitability, especially in its Medicare Advantage/MA and standalone Medicare Part D prescription drug plans.
Kaye stated that these moves are intended to help Elevance achieve a firmer financial footing by the end of 2025. Elevance will be exiting certain Medicare Advantage plans where the long-term economics are not sustainable. This will affect ~150K of Elevance’s 2.3 million total individual and group MA members.
Elevance, the fourth-largest MA payer in the US, is also prioritizing plans with narrower networks, such as Health Maintenance Organizations/HMOs, to give members more control over their costs. Additionally, Elevance is fully exiting the standalone Medicare Part D plan market. The company, which is the sixth-biggest standalone Part D provider with 400K members, is making this change to focus more resources on its Medicare Advantage and dual special needs plans (D-SNPs), which are considered to have high-margin potential.
Elevance Health Inc. (NYSE:ELV) is a health benefits company in the US. It has 4 segments: Health Benefits, CarelonRx, Carelon Services, and Corporate & Other.
6. Delta Air Lines Inc. (NYSE:DAL)
Forward P/E Ratio as of September 8: 9.21
Number of Hedge Fund Holders: 69
Delta Air Lines Inc. (NYSE:DAL) is one of the best inexpensive stocks to buy according to hedge funds. On August 27, Delta Air Lines agreed to a settlement of ~$79 million to resolve a class-action lawsuit. The lawsuit came from a January 14, 2020, incident where a Delta flight, bound for Shanghai, dumped ~15K pounds of jet fuel at a low altitude over LA neighborhoods, including schools and playgrounds.
The settlement concludes 5+ years of litigation and consolidates multiple lawsuits. The total amount will be distributed among ~38K property owners and residents. After attorneys’ fees and costs are deducted, the remaining funds are expected to result in average payouts of $889 per household and $104 per resident.
Delta has consistently denied any wrongdoing, stating that its pilots followed federal regulations and training. The airline claimed that a Federal Aviation Administration/FAA investigation had cleared the pilots. It agreed to the settlement without admitting liability to resolve the uncertainty and avoid the significant legal expenses and burdens associated with a lengthy trial.
Delta Air Lines Inc. (NYSE:DAL) provides scheduled air transportation for passengers and cargo in the United States and internationally. The company operates through 2 segments: Airline and Refinery.
5. CVS Health Corporation (NYSE:CVS)
Forward P/E Ratio as of September 8: 9.73
Number of Hedge Fund Holders: 71
CVS Health Corporation (NYSE:CVS) is one of the best inexpensive stocks to buy according to hedge funds. On September 8, two Republican congressmen, House Oversight Committee Chair James Comer and Federal Law Enforcement Subcommittee Chair Clay Higgins, initiated an investigation into CVS on whether CVS violated the HIPAA privacy law by using confidential patient data for political advocacy.
The investigation was prompted by a mass text message campaign CVS sent to 1000s of its customers in Louisiana on June 11 this year. The texts used patient data, originally provided for prescription drug services, to lobby against the Louisiana bill H.B. 358. This bill would have prevented companies from operating pharmacy benefit managers and pharmacies within the state.
According to reports, the texts threatened that local pharmacies would close and drug prices would rise if the bill were passed, and urged recipients to contact their state representatives to oppose it. Louisiana’s Attorney General Liz Murrill sent a cease-and-desist letter to CVS the day after the texts were sent. The state later filed an enforcement action in state court, alleging the text campaign and CVS’s ownership structure violated the state’s trade practices law.
CVS Health Corporation (NYSE:CVS) provides health solutions in the US. It operates through Health Care Benefits, Health Services, and Pharmacy & Consumer Wellness segments.
4. The Cigna Group (NYSE:CI)
Forward P/E Ratio as of September 8: 9.26
Number of Hedge Fund Holders: 80
The Cigna Group (NYSE:CI) is one of the best inexpensive stocks to buy according to hedge funds. On August 29, Phothera announced that Cigna has updated its coverage policy for home phototherapy, effective July 15. The change eliminates prior restrictions on the treatment, expanding access for Cigna’s 19.2 million members nationwide who have chronic skin conditions like psoriasis, eczema, and vitiligo.
The policy change follows a similar decision by Elevance Health/Anthem, which covers 47.5 million lives. With both Cigna and Elevance now covering home phototherapy without restrictions, more than 66.7 million insured Americans have expanded access to this non-invasive treatment. Home phototherapy has been clinically proven to achieve clearance or significant improvement in up to 80% of patients.
In the US, an estimated 8 million people have psoriasis, over 16 million live with eczema, and about 6.5 million have vitiligo. The policy decisions by Cigna and Elevance are expected to lower patient out-of-pocket costs by up to 90%. They may also encourage earlier intervention and reduce the need for more expensive treatments, such as biologic drugs. For insurers, home phototherapy can be a cost-effective alternative, potentially reducing annual treatment expenses by thousands of dollars per patient.
The Cigna Group (NYSE:CI) provides insurance and related products and services in the US. The company was formerly Cigna Corporation and changed its name to The Cigna Group in February 2023.
3. Expand Energy Corporation (NASDAQ:EXE)
Forward P/E Ratio as of September 8: 8.00
Number of Hedge Fund Holders: 93
Expand Energy Corporation (NASDAQ:EXE) is one of the best inexpensive stocks to buy according to hedge funds. On September 3, KeyBanc lowered the firm’s price target on Expand Energy to $127 from $135, while maintaining an Overweight rating on the shares. The firm says its updated estimates reflect KeyBanc’s revised natural gas price forecast.
In Q2 2025, the company reported a net income of $968 million. The company’s average daily production was ~7.20 billion cubic feet equivalent/Bcfe, with natural gas making up 92% of this production. During the quarter, Expand Energy operated an average of 11 rigs, drilling 49 new wells and bringing 59 wells online. The company also achieved its highest average drilled footage per day across all three of its business units.
The company has reduced its full-year 2025 drilling and completion capital expenditures guidance by ~$100 million, bringing the total projected capital expenditures to around $2.9 billion. The annual synergy outlook has been raised to $600 million by the end of 2026, a significant increase from initial expectations. Furthermore, the company anticipates an additional $425 million in incremental free cash flow for 2025, primarily from improved business performance.
Expand Energy Corporation (NASDAQ:EXE) operates as an independent natural gas production company in the US. The company engages in acquisition, exploration, and development of properties to produce oil, natural gas, and natural gas liquids.
2. EQT Corporation (NYSE:EQT)
Forward P/E Ratio as of September 8: 11.89
Number of Hedge Fund Holders: 96
EQT Corporation (NYSE:EQT) is one of the best inexpensive stocks to buy according to hedge funds. On September 8, EQT Corporation announced a 20-year Sale and Purchase Agreement/SPA with Commonwealth LNG. Under this agreement, EQT has secured 1 million tonnes per annum/MTPA of liquefaction capacity at Commonwealth LNG’s export facility, which is currently under development on the Gulf Coast near Cameron, Louisiana.
The SPA will only become fully effective after a final investment decision is made on the project. According to the terms of the agreement, EQT will purchase the liquefied natural gas on a free-on-board/FOB basis at a price indexed to the Henry Hub. This allows EQT to market and optimize its own cargoes internationally.
This deal is part of EQT’s strategy to expand its wellhead-to-water approach and establish a diversified portfolio to connect U.S. natural gas supply with global demand. This agreement, along with a recent deal with NextDecade, brings Commonwealth’s committed long-term capacity to 5 MTPA, or approximately 53% of its total capacity. Commonwealth’s facility has a total capacity of 9.5 MTPA, with first LNG production targeted for 2029.
EQT Corporation (NYSE:EQT) produces, gathers, and transmits natural gas. It sells natural gas & natural gas liquids to marketers, utilities, and industrial customers located in the Appalachian Basin.
1. Citigroup Inc. (NYSE:C)
Forward P/E Ratio as of September 8: 9.74
Number of Hedge Fund Holders: 102
Citigroup Inc. (NYSE:C) is one of the best inexpensive stocks to buy according to hedge funds. On September 3, Truist analyst John McDonald raised the firm’s price target on Citi to $105 from $99, while keeping a Buy rating on the shares. Since the financial crisis, Citigroup’s shares have struggled to gain significant momentum, largely because its Return on Tangible Common Equity/RoTCE has had difficulty remaining above 10% for a prolonged period. This makes it crucial for the company to successfully meet its revenue and expense targets.
In Q2 2025, the company’s net income was $4 billion, which translated to $1.96 in EPS. Revenue saw a significant 8% year-over-year increase, which reached $21.7 billion. The company’s RoTCE was 8.7%. This strong performance was driven by 3 of the company’s 5 business segments achieving their best Q2 revenues on record.
The Markets revenue was up 16%, which marked its best Q2 since 2020, with strong performance in fixed income and equities. The Services segment’s revenue was up 8% and a notable RoTCE of 23%, due to increased loans and deposits, which both grew by 3% sequentially. Wealth revenue climbed by 20%, achieving a pre-tax margin of 29%, although the company noted a slowdown in new asset inflows due to current macroeconomic uncertainty. US Personal Banking revenue also saw an increase of 6%.
Citigroup Inc. (NYSE:C) is a diversified financial services holding company that provides various financial products and services to consumers, corporations, governments, and institutions.
While we acknowledge the potential of C 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 C and that has 100x upside potential, check out our report about this cheapest AI stock.
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