In this article, we will discuss the 10 Deep Value Stocks to Invest In Now.
Value stocks are on the move, after years of underperformance, amid heightened market volatility and a shift away from mega-cap concentration. Investors are increasingly favoring lower valuations and quality fundamentals after three years of blockbuster gains sent markets to all-time highs, triggering premium valuations.
According to JPMorgan, the rotation away from growth into value stocks is underpinned by supportive fiscal and monetary policy, backed by a broad-based recovery in economic activity.
“Although the current environment is laden with risks and uncertainty, Value stocks, which typically exhibit high dividend yields with lower valuations, appear set to turn the tides in 2026,” JPMorgan said in a blog post.
Ongoing tensions and conflict in the Middle East could also benefit select value sectors, with the energy sector the biggest beneficiary. Renewed interest in value stocks also stems from their low valuation multiples, which provide a margin of safety rarely available with growth stocks.
Additionally, value stocks have delivered more consistent returns in 2026 than growth stocks, despite uncertainties around AI and geopolitical tensions in the Middle East.
Investors are increasingly using value stocks to hedge against elevated market volatility.
“If the market sells off, we’d expect value stocks to hold their value better and can be sold, and the proceeds used to increase positions in those technology and AI stocks that will have sold off too far into undervalued territory,” said Morningstar Chief US Market Strategist Dave Sekera.
With that in mind, let’s take a look at some of the best deep value stocks to buy.
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Our Methodology
To identify deep-value stocks to buy based on analysts’ price targets, we started by screening U.S.-listed companies with a market capitalization of over $2 billion and a potential upside of at least 20%. We then applied three key deep-value criteria: a forward price-to-earnings (P/E) ratio of 10 or lower; return on equity of at least 10%; and a dividend yield of at least 1%. These stocks are also popular among elite hedge funds in Q1 2026. Finally, we ranked the stocks in ascending order based on their upside potential.
Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research shows 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).
Deep Value Stocks to Invest In Now
10. ConocoPhillips (NYSE:COP)
Stock Upside Potential: 21.07%
Market Cap: $145.26 Billion
Dividend Yield: 2.8%
Forward P/E: 13.26
Number of Hedge Fund Holders: 74
ConocoPhillips (NYSE:COP) is a deep value stock to invest in now. On May 18, ConocoPhillips (NYSE:COP) signed a long-term natural gas supply deal with Glenfarne’s Alaska LNG. The 30-year agreement secures natural gas produced on Alaska’s North Slope, as part of the Alaska LNG project.
The agreement underscores ConocoPhillips’ commitment to developing Alaska’s resources for the long-term benefit. The agreement also aligns with the company’s push to enable access to reliable natural gas while completing ongoing investment in Alaska.
The agreement coincides with the company confirming that it expects delays of months for the increase in liquefied natural gas production capacity at a joint venture with Qatar. The delays were necessitated by damage to the Ras Laffan facilities in Qatar from the ongoing US-Iran war.
Meanwhile, ConocoPhillips continues to reward investors with dividends. The company pays an annualized dividend of $3.36 per share, yielding 2.8%. Its most recent dividend was on June 1, whereby it paid a regular dividend of $0.84 a share.
ConocoPhillips (NYSE:COP) is a leading global independent exploration and production (E&P) company. They explore for, develop, and produce crude oil, natural gas, bitumen, and liquefied natural gas (LNG) across 14 countries.
9. Gilead Sciences, Inc. (NASDAQ:GILD)
Stock Upside Potential: 23.64%
Market Cap: $160.39 Billion
Dividend Yield: 2.5%
Forward P/E: 13.39
Number of Hedge Fund Holders: 77
Gilead Sciences, Inc. (NASDAQ:GILD) is a deep value stock to invest in now. On June 2, Gilead Sciences, Inc. (NASDAQ:GILD) announced topline results of the Phase 3 IDEAL study for its candidate drug Livdelzi in people with primary biliary cholangitis (PBC).
Study results showed that treatment with Livdelzi (seladelpar) led to significantly more patients achieving normalization of alkaline phosphatase. Additionally, the safety profile observed in IDEAL was consistent with previously reported studies and raised no new concerns. The study results affirm Livdelzi as the first and only PBC treatment with statistically significant reductions in disease markers and pruritus versus placebo.
The study results make the case for Gilead Sciences to target the more than 130,000 Americans struggling with PBC, a chronic autoimmune disease. Livdelzi has already received FDA accelerated approval for the treatment of PBC.
On the other hand, the US Food and Drug Administration has approved Hepcludex, a Gilead Sciences therapy for the treatment of hepatitis delta virus. The approval marks an important milestone in the treatment of a rare and severe liver infection.
Additionally, Gilead Sciences boasts of an impressive dividend growth history, having initiated quarterly dividends in 2015. It pays an annualized dividend of $3.28 per share, translating to a yield of 2.5%.
Gilead Sciences, Inc. (NASDAQ:GILD) is a research-based biopharmaceutical company that discovers, develops, and commercializes innovative medicines for life-threatening illnesses. Their primary therapeutic focus areas include virology (particularly HIV and viral hepatitis), oncology (cancer), and inflammation.
