10 Cheap Stocks to Buy For the Next 3 Years

6. UWM Holdings Corporation (NYSE:UWMC)

Forward P/E Ratio as of January 9: 11.95

EPS Forward Long Term Growth (3-5 Year CAGR): 61.21%

Number of Hedge Fund Holders: 45

UWM Holdings Corporation (NYSE:UWMC) is one of the cheap stocks to buy for the next 3 years. On January 6, Goldman Sachs lowered the firm’s price target on UWM Holdings to $5 from $6 and kept a Neutral rating on the shares. The firm noted that while regional banks trailed the market by 200 to 300 basis points in 2025 due to macro and credit concerns, a 13% year-end rally provided late momentum. For 2026, Goldman Sachs anticipated a multi-year fundamental recovery driven by steady loan growth, NII momentum, and positive operating leverage, though credit risk remains the primary uncertainty.

In other news, on December 17, UWM Holdings Corporation (NYSE:UWMC) announced a definitive merger agreement to acquire Two Harbors Investment Corp. (NYSE:TWO). The all-stock transaction is valued at ~$1.3 billion in equity. This move aims to nearly double UWM Holdings’ mortgage servicing rights portfolio by adding Two Harbors’ $176 billion in unpaid principal balance, resulting in a combined servicing book of roughly $400 billion. This scale would rank the merged entity as the 8th largest mortgage servicer in the US.

The acquisition is expected to generate ~$150 million in annual cost and revenue synergies. Beyond financial gains, the deal serves a dual purpose for UWM Holdings: it accelerates the company’s initiative to bring servicing in-house and significantly increases its public float. The transaction is projected to raise UWM Holdings’ public float by 93%, reaching ~513 million shares (valued at $2.6 billion as of mid-December 2025).

UWM Holdings Corporation (NYSE:UWMC) originates, sells, and services residential mortgage lending in the US.