In this article, we will look at the 10 Cheap Stocks to Buy for High Returns in 2026.
On March 16, Mike Wilson from Morgan Stanley appeared on a CNBC Television interview to discuss the latest market trends and the impact of the Iran war. He told investors in a research note that the S&P 500 could trade as low as 6,300 by early April 2026. Wilson noted that the current market situation is very similar to last year, when the market was worrying about many things, but the tariffs came in as a final blow for the market. This year, the market was already concerned about AI disruptions, software issues, and problems with private credit; however, the reset began with the Iran war.
On the bright side, Wilson believes that compared to last year, markets were stronger going into this crisis. He believes that the markets are likely to struggle for another month, during which the S&P 500 can hit 6,300. However, Wilson expects the strong fundamentals to take hold again and move markets higher.
With that, let’s take a look at the 10 Cheap Stocks to Buy for High Returns in 2026.
Stocks
Our Methodology
We used stock screeners to aggregate a list of stocks trading below the forward P/E ratio of 15, with more than 30% analyst upside potential and more than 30% EPS growth expected in the next 12 months. We 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 498.7% since May 2014, beating its benchmark by 303 percentage points (see more details here).
10 Cheap Stocks to Buy for High Returns in 2026
10. Nu Holdings Ltd. (NYSE:NU)
Nu Holdings Ltd. (NYSE:NU) is one of the Cheap Stocks to Buy for High Returns in 2026. On March 10, Nu Holdings Ltd. (NYSE:NU) announced the appointment of Kim Farrell as Global Marketing Director to help boost international growth and global branding.
Kim Farrell will oversee global brand architecture, governance, and campaigns. Moreover, she will also work towards forming strategic partnerships to ensure brand consistency as the bank expands beyond Latin America. The report noted that Farrell will report to Cristina Junqueira, co-founder and CEO of the emerging US business.
She brings more than 15 years of experience from TikTok and Google. Most recently, she was serving as Global Head of Creators at TikTok, with prior roles at Google and Booking.com.
Nu Holdings Ltd. (NYSE:NU) operates as Nubank, one of the largest digital banking platforms in the world. The company ranks ninth in the list of 12 low price high volume stocks to buy right now. It was founded in 2013 and operates primarily across Brazil, Mexico, and Colombia. Nubank offers mobile-first financial products, including credit cards, digital accounts, loans, and investment services designed to deliver low-fee banking solutions to underserved consumers.
9. Vistra Corp. (NYSE:VST)
Vistra Corp. (NYSE:VST) is one of the Cheap Stocks to Buy for High Returns in 2026. On March 10, analysts at Morgan Stanley released a research note highlighting the firm’s bullish sentiment on AI infrastructure. Morgan Stanley has a Buy rating on Vistra Corp. (NYSE:VST) with a $215 price target.
The firm noted that the demand for computing power is expected to keep outpacing supply despite increased power costs and other regulatory pushbacks. Morgan Stanley noted that AI advancements, particularly the capabilities of large language models, are accelerating non-linearly along with the rising economic value from adoption. In this situation, the firm believes that providers of key technologies, including AI infrastructure, power, and other elite hardware, are expected to witness an increase in value.
The firm also noted that bitcoin miners have pivoted towards AI; moreover, neocloud companies are securing large prepayments for capital expenditure to build high-performance computing data centers. Morgan Stanley believes that companies, including Vistra Corp. (NYSE:VST), GE Vernova (NYSE:GEV), Bloom Energy (NYSE:BE), and other power and utilities companies, are expected to benefit from AI infrastructure growth.
Vistra Corp. (NYSE:VST) is a power generation company with a 44,000 megawatt generation portfolio composed of nuclear, coal, solar, gas, and other sources.
8. Rocket Companies, Inc. (NYSE:RKT)
Rocket Companies, Inc. (NYSE:RKT) is one of the Cheap Stocks to Buy for High Returns in 2026. On March 16, Keefe Bruyette analyst Bose George upgraded Rocket Companies, Inc. (NYSE:RKT) from Market Perform to Market Outperform and also raised the price target from $20 to $22.
The analyst noted the stock’s recent decline as one of the key reasons behind the bullish sentiment. The stock has fallen around 24.5% year-to-date, which far outpaces the S&P 500’s 2.5% drop. The firm sees this as an attractive entry point as it projects 50% return over the next 12 months based on the mortgage industry fundamentals and the company’s earnings outlook.
Moreover, the analyst also noted that the fundamental shifts in the company’s ecosystem and earnings mix are expected to deliver long-term profitability. This also increases the chances of ongoing market share gains in purchase and refinance segments.
Rocket Companies, Inc. (NYSE:RKT) provides mortgage, real estate, and personal finance services in the United States and Canada through its Direct to Consumer and Partner Network segments.
7. Fifth Third Bancorp (NASDAQ:FITB)
Fifth Third Bancorp (NASDAQ:FITB) is one of the Cheap Stocks to Buy for High Returns in 2026. On March 13, Truist analyst Brian Foran lowered the firm’s price target on Fifth Third Bancorp (NASDAQ:FITB) from $60 to $53, while maintaining a Buy rating on the stock.
The analyst noted that they are updating the firm’s valuation model following the weaker Q1 guidance and RBC 2026 conference. On March 11, Fifth Third Bancorp (NASDAQ:FITB) presented at the 2026 RBC Capital Markets Global Financial Institutions Conference. The company highlighted that they are integrating Comerica to accelerate growth and improve efficiency. As a result, the company expects $400 million in expense synergies by 2026.
Management highlighted its Q1 2026 outlook at the conference. The company expects average loans between $158 billion and $159 billion. Moreover, net interest income is expected to be around $1.93 billion, along with fee income in the range of $0.9 billion and $0.93 billion.
Fifth Third Bancorp (NASDAQ:FITB) operates as a diversified financial services company and serves as the indirect holding company of Fifth Third Bank, National Association. Its Commercial Banking segment provides credit intermediation, cash management, and financial services to large and middle-market businesses, as well as government and professional clients.
6. JD.com, Inc. (NASDAQ:JD)
JD.com, Inc. (NASDAQ:JD) is one of the Cheap Stocks to Buy for High Returns in 2026. On March 13, Reuters reported that JD.com, Inc. (NASDAQ:JD) and BYD have formed a strategic partnership on building and expanding fast charging electric vehicle stations.
Both companies have already launched the first jointly developed charging station at Shenzhen. The station includes a JD.com-run convenience store, coffee shop, and retail space to enhance user experience during charging.
The companies aim to develop more stations combining EV charging with retail and services. Under the partnership, both companies will decide on site selection and vehicle ecosystem services. The partnership will also leverage JD.com’s office parks and logistics sites to accelerate network growth across China.
JD.com, Inc. (NASDAQ:JD) is a leading technology-driven, supply chain-based e-commerce giant in China, often described as the “Amazon of China.” It primarily operates through online retail and marketplace platforms (JD Retail), offering a wide range of products including electronics, appliances, and groceries, alongside comprehensive logistics services (JD Logistics).
While we acknowledge the potential of JD 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 JD and that has 100x upside potential, check out our report about the cheapest AI stock.
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