In this article, we explore the 10 High-Growth Low PE Stocks to Buy Now.
The resilience of the US equity market is not showing any signs of fading, supported by a strong US economy, solid fourth-quarter 2025 earnings, and accommodative monetary policies. The easing of trade and tariff-related issues has also strengthened the case for high-growth stocks despite the premium valuations.
Wall Street strategists anticipate continued corporate earnings growth in 2026, a positive signal for equity investors. Consensus forecasts project S&P 500 company earnings will rise by 15.5% this year, compared to estimated growth rates of 13.2% for 2025 and 12.1% for 2024, supporting confidence in the market’s fundamental outlook.
“We are still pretty optimistic in terms of our outlook for U.S. equities. We’re pretty upbeat, relatively bullish,” says Kristy Akullian, head of iShares investment strategy for the Americas at BlackRock.
Growth stocks with an aggressive revenue-growth trajectory continue to outperform the market amid strengthened investor confidence. Similarly, Andrew Greenebaum, senior vice president of equity research product management at Jefferies, insists there is potential rotation in the equity market into value stocks.
“Value has gained a lot of ground versus growth recently, but if you look further back – even just to the start of the Fed’s last hike cycle – there is plenty of room for outperformance,” Greenebaum said.
While baseline expectations remain constructive, some US economists expect muted economic growth in 2026. This environment could present an opportune moment to focus on growth stocks trading at highly discounted valuations. In particular, stocks with low multiples to forward earnings may offer strong potential despite market concerns.
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Our Methodology
To curate 10 High-Growth Low PE Stocks to Buy Now, we sifted through high-growth ETFs and compiled a list of their holdings. From the list, we identified companies whose sales have grown by more than 20% and boast an upside potential of more than 10%. We trimmed the list by focusing on stocks trading with a forward price to earnings multiple of less than 15, and are popular among elite hedge funds in the third quarter of 2025. Finally, we ranked the stocks in ascending order of the upside potential.
Note: The stock’s Forward P/E and upside potential data are as of February 11, 2026.
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. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 427.7% since May 2014, beating its benchmark by 264 percentage points (see more details here).
High-Growth Low PE Stocks to Buy Now
10. Coterra Energy Inc. (NYSE:CTRA)
5-Year Revenue Growth: 22.43%
Forward P/E: 13.19
Stock Upside Potential: 11.11%
Number of Hedge Fund Holders: 47
Coterra Energy Inc. (NYSE:CTRA) is one of the high-growth, low P/E stocks to buy now. On February 6, Wolfe Research touted Coterra Energy Inc. (NYSE:CTRA) as one of its top oil-sector picks, poised to benefit from heightened merger and acquisition activity.
According to the research firm, there are unique opportunities in an industry that is consolidating and evolving in response to changing market dynamics. Consequently, it maintained an Outperform rating on the stock and raised the price target to $35 from $32.
Earlier, on February 2, Coterra Energy Inc. reached an agreement to merge with Devon Energy Corp. in an all-stock transaction. The merger will result in the largest US shale operator, with an enterprise value of about $58 billion.
Under the terms of the agreement, Coterra shareholders are to receive 0.70 shares of Devon Common stock for each share held. Once the deal closes, Devon shareholders will own 54% of the combined company, with Coterra shareholders owning the remaining 46%. The combined company is to achieve $1 billion in annual pretax synergies by the end of 2027.
Coterra Energy Inc. (NYSE:CTRA) is an independent Houston-based company focused on the exploration, development, and production of oil, natural gas, and natural gas liquids within the United States. Operating in the Permian Basin, Marcellus Shale, and Anadarko Basin, Coterra develops high-quality, low-cost assets to provide energy resources.
9. Delta Air Lines, Inc. (NYSE:DAL)
5-Year Revenue Growth: 29.96%
Forward P/E: 10.32
Stock Upside Potential: 11.20%
Number of Hedge Fund Holders: 70
Delta Air Lines, Inc. (NYSE:DAL) is one of the high-growth, low P/E stocks to buy now. On February 4, the Delta Air Lines, Inc. (NYSE:DAL) board approved a quarterly dividend of $0.1875. The dividend is to be paid on March 19, 2026, to shareholders of record as of February 26, 2026. The company has increased its dividend payments for 3 consecutive years, with 25% growth in the past year.
Earlier, on January 27, Delta Air Lines reiterated its plans to expand and modernize its international fleet. The company confirmed plans to purchase 31 Airbus wide-body jets as it seeks to address strong demand from corporate and high-income travelers.
The airline has already placed orders for 16 A330-900s and 15 A350-900s, with deliveries scheduled for 2029. In addition, the new deal combines a new order that will result in the conversion of 10 previously held options into firm purchases. It also includes options for 20 additional wide-body aircraft. The new aircraft are to be used for medium and long-haul flights.
The new orders come as Delta Airlines increasingly leans towards newer, more fuel-efficient aircraft that reduce fuel burn. It is also in the process of replacing older Boeing 767s and early-generation Airbus A330s. The push is part of an effort to capitalize on resilient premium international demand.
Delta Air Lines, Inc. (NYSE:DAL) is a major American airline providing scheduled air transportation for passengers and cargo across a vast global network. It operates thousands of daily flights to hundreds of destinations, specializing in passenger travel, cargo logistics, aircraft maintenance, and vacation packages.
8. Carnival Corporation & plc (NYSE:CCL)
5-Year Revenue Growth: 36.61%
Forward P/E: 13.37
Stock Upside Potential: 12.65%
Number of Hedge Fund Holders: 69
Carnival Corporation & plc (NYSE:CCL) is one of the high-growth, low P/E stocks to buy now. On February 6, Carnival Corporation & plc (NYSE:CCL) entered into a global service contract with Evac Group. The contract is for the provision of preventive annual maintenance and lifecycle services for Evac systems installed across the company’s eight cruise lines.
Under the terms of the agreement, Evac Group is to conduct planned maintenance and harmonize operational practices across cruise lines. The measure seeks to reduce and alleviate unplanned outages and to support Carnival Corp’s decarbonization efforts. The agreement marks an important milestone in the company’s push to safeguard the performance of its environmental systems.
‘By partnering with Evac as the original equipment supplier, we can leverage technology for a more proactive fleet-level approach that supports our operational and decarbonisation objectives efficiently and also helps ensure a smoother, more reliable onboard experience for our guests by reducing the chance of system-related disruptions.’
Earlier, on January 13, UBS reiterated its Buy rating on Carnival Corporation with a $38 price target. The positive stance comes amid expectations that the company will achieve yield growth ahead of guidance. The research firm expects the company to deliver 2.8% year-over-year growth, ahead of the 2.5% expected.
Carnival Corporation & plc (NYSE:CCL) is the world’s largest leisure travel company, operating a global fleet of over 90 ships across nine distinct cruise brands. It provides curated, all-inclusive vacation experiences, managing logistics, dining, and entertainment for millions of passengers annually.
7. LPL Financial Holdings Inc. (NASDAQ:LPLA)
5-Year Revenue Growth: 23.68%
Forward P/E: 14.33
Stock Upside Potential: 16.36%
Number of Hedge Fund Holders: 48
LPL Financial Holdings Inc. (NASDAQ:LPLA) is one of the high-growth, low P/E stocks to buy now. On February 10, Jefferies raised its price target on LPL Financial Holdings Inc. (NASDAQ:LPLA) to $464 from $440 while maintaining a Buy rating, citing strong retention from the Commonwealth deal and a renewed focus on growth through advisor recruitment. The firm sees LPL’s platform driving organic growth in 2026 and considers the stock attractive.
On February 3, research firm Citizens raised its price target of LPL Financial Holdings Inc. to $500 from $475. It also reiterated a Market Outperform rating. The price target hike is in response to the company delivering solid fourth-quarter and full-year 2025 results that affirmed underlying growth.
Net income was up by 4% to $301 million in the fourth quarter, resulting in a 23% year over year increase in adjusted earnings per share to $5.23. The net income growth came as the company’s total advisory assets increased 46% to $1.4 trillion.
Full-year net income came in at $863 million as adjusted earnings per share increased 22% to $20.09. During the year, LPL Financial Holdings achieved industry-leading organic growth while also completing the Atria integration. The company also closed the acquisition of the Investment Center and Commonwealth.
“Our fourth quarter results capped off another strong year of business and financial performance, including record client assets and adjusted earnings per share. We achieved this while continuing to invest in the long-term growth of the business,” said Matt Audette, President and CFO. “These efforts, combined with our ongoing focus on driving improved operating leverage, position us well to continue delivering long-term shareholder value.”
LPL Financial Holdings Inc. (NASDAQ:LPLA) is the largest independent broker-dealer in the United States, providing an integrated platform of technology, brokerage, and investment advisory services to over 29,000 independent financial advisors and 1,100 institutions. It enables advisors to run their practices by offering non-proprietary investment products, clearing services, compliance support, and research.
6. Apollo Global Management, Inc. (NYSE:APO)
5-Year Revenue Growth: 56.17%
Forward P/E: 14.58
Stock Upside Potential: 19.25%
Number of Hedge Fund Holders: 80
Apollo Global Management (NYSE:APO) is one of the high-growth, low P/E stocks to buy now. On February 11, Apollo Global Management (NYSE:APO) spoke at the Bank of America Financial Services Conference. President Jim Zelter gave a cautious but positive outlook, noting how Apollo is focused on origination, global expansion, and AI infrastructure financing.
He also noted challenges in equity monetization. Apollo manages over $900 billion in assets and plans to raise $22–$25 billion for Fund XI. The firm is expanding in Europe and Asia, reinventing retirement services, and sees private credit and AI infrastructure as key growth drivers.
On February 9, Apollo Global Management entered into a strategic collaboration with Schroders. The two are joining forces to develop investment solutions that combine public and private market exposures for wealth and retirement clients in the UK and US markets.
The partnership aims to develop products that blend fixed-income exposures from Schroders, Schroders Capital, and Apollo’s private markets platform. Plans are underway to launch the first UK wealth market product targeting enhanced income solutions. In the US, they will launch a Collective Investment Trust for the defined contribution pension market.
Apollo Global Management CEO Marc Rowan expects the partnership to address the large and growing societal need for reliable income solutions. The remarks come as the company seeks to expand its reach beyond offering traditional private equity and credit funds to institutional investors. The push follows the record $228 billion in capital raised last year.
“We are going from serving one market—institutional [alternative-asset] portfolios—to serving six markets,” Rowan said.
Apollo Global Management, Inc. (NYSE:APO) is a leading global alternative asset manager. It focuses on generating excess returns through three main strategies: credit, private equity, and real assets. It also operates an integrated platform that serves institutional and individual investors, and provides retirement services and annuities through its subsidiary, Athene.
5. Lululemon Athletica Inc. (NASDAQ:LULU)
5-Year Revenue Growth: 21.62%
Forward P/E: 13.35
Stock Upside Potential: 23.18%
Number of Hedge Fund Holders: 42
Lululemon Athletica Inc. (NASDAQ:LULU) is one of the high-growth, low P/E stocks to buy now. On February 12, Lululemon Athletica Inc. (NASDAQ: LULU) shares fell 2% after Bloomberg reported new complaints about its see-through leggings, the second such issue in recent weeks.
Customers flagged problems with the “heart scatter” leggings on Reddit and the company’s site, echoing earlier transparency concerns that led Lululemon to pull and later reintroduce its “Get Low” line with disclaimers. The recurring product issues come amid a 55% stock drop over the past year, slowing sales, and the search for a new CEO.
On January 22, BTIG analyst Janine Sticher reiterated that there is a significant investment opportunity in the company, driven by its execution strategy rather than immediate product innovations. Consequently, the analyst has reiterated a Buy rating on the stock with a $303 price target.
According to Sticher, Lululemon remains in the show-me camp as it lacks near-term catalysts to accelerate growth. Consequently, investors remain on edge, awaiting a turnaround to gain traction. Nevertheless, the analyst is confident that opportunities exist across presentation merchandising and marketing coordination that could improve in the long run.
The remarks come on the heels of Lululemon Athletica Inc. pausing online sales of its new workout line, ‘Get Low’. The company plans to bring the collection back to e-commerce channels in North America soon.
“The collection remains available in our stores in North America, but we have temporarily paused sales online in the market to better understand some initial guest feedback and support with product education,” said a Lululemon spokesperson.
Lululemon Athletica Inc. (NASDAQ:LULU) designs, distributes, and retails premium technical athletic apparel, footwear, and accessories for yoga, running, training, and, generally, “sweaty pursuits”. The company focuses on high-quality, innovative, and functional designs for both men and women and sells products through a network of branded physical stores, an e-commerce website, and authorized retail outlets.
4. United Airlines Holdings, Inc. (NASDAQ:UAL)
5-Year Revenue Growth: 30.93%
Forward P/E: 8.73
Stock Upside Potential: 24%
Number of Hedge Fund Holders: 66
United Airlines Holdings Inc. (NASDAQ:UAL) is one of the high-growth, low P/E stocks to buy now. On February 11, Azul S.A. announced that Brazil’s competition authority; Administrative Council for Economic Defense (CADE) unanimously approved United Airlines Holdings Inc. (NASDAQ:UAL)’s planned $100 million investment, to be made through a subscription of Azul shares and ADSs as part of a public offering. The deal, tied to Azul’s Chapter 11 plan, is scheduled to settle on February 20, 2026, with the company pledging ongoing updates in line with regulatory requirements.
On February 4, Reuters reported that Spirit Aviation is seeking court approval to offload its two O’Hare airport gates to United Airlines Holdings Inc. for $30.2 million. The push comes as Spirit seeks to raise much-needed capital to address its dwindling cash reserves and mounting losses following its bankruptcy filing. Last year, the airline reassigned two gates to United Airlines. The push to offload the O’Hare airport, the G12 and G14 gates, follows United Airlines Holdings Inc. submitting the highest bid.
Earlier, on January 20, Chief Executive Officer Scott Kirby warned that geopolitical risks threaten to disrupt a pretty hot start to the new year.
“We’re the largest global airline from the US — we’re exposed to all levels that are all around the globe,” Kirby said, noting it would cause short-term pain and his airline will “stay focused on the long term.”
The remarks come as United Airlines issued a cautious outlook in response to President Donald Trump’s push to take over Greenland just weeks after the US military incursion into Venezuela. The government shutdown last year resulted in a $250 million impact on pretax earnings.
United Airlines Holdings, Inc. (NASDAQ:UAL) is a major US-based airline holding company that operates as a holding company for United Airlines, Inc., providing scheduled passenger and cargo transportation across six continents. It serves over 370 destinations, operates major hubs in Chicago, Denver, and New York/Newark, and connects to international cities via Star Alliance.
3. Patria Investments Limited (NASDAQ:PAX)
5-Year Revenue Growth: 27.22%
Forward P/E: 8.93
Stock Upside Potential: 26.21%
Number of Hedge Fund Holders: 12
Patria Investments Limited (NASDAQ:PAX) is one of the high-growth, low P/E stocks to buy now. On February 11, Patria Investments Limited (NASDAQ:PAX) announced plans for a new Latin America private credit strategy, following the success of its first fund that raised $314 million and delivered a 15.6% gross IRR across 14 deals.
Targeting a corporate credit market where private credit is less than 1% of the $2.3 trillion system, Patria aims to leverage its 26‑year platform and $12.3 billion AUM to expand senior secured, USD‑denominated lending. The move builds on its recent acquisition of a majority stake in Brazil’s Solis Investimentos, adding $3.5 billion in fee‑earning assets and strengthening its structured credit capabilities.
On February 3, Patria Investments reported Q4 and full‑year 2025 results, with AUM rising 26% year‑over‑year to $52.6 billion and fee‑related earnings up 19% to $202.5 million. Distributable earnings reached $78.5 million in Q4 and $200.9 million for the year, beating analyst forecasts, while management fees grew to $338.7 million.
The firm highlighted strategic acquisitions, record fundraising of $7.7 billion, and strong real estate and infrastructure inflows. Looking ahead, Patria targets $7 billion in fundraising for 2026, $225–$245 million in FRE, and $70 billion in fee‑earning AUM by 2027, while declaring a $0.15 dividend and expanding share repurchases.
On February 2, Bloomberg reported that Patria Investments acquired Share Student Living. With the acquisition, the company gains access to a Brazilian real estate firm that specializes in student housing.
The acquisition also paves the way for the company to expand its portfolio in the student housing space. The company already manages 4,100 beds across 13 properties in key markets, including São Paulo, Rio de Janeiro, Campinas, Santos, and greater Porto Alegre. The expansions come amid strong, recurring structural demand, with supply below demand in the Brazilian market.
The same day, on February 2, Patria Investments confirmed the acquisition of WP Global Partners. The acquisition of the private equity solutions manager focused on the lower middle market is poised to strengthen the company’s investment capacity in North America. It will also allow the company to pursue opportunities to increase global investor demand for middle-market private equity exposure.
“This transaction immediately broadens the universe of GPs in our ecosystem and strengthens our product offering across private equity primaries, secondary’s and co-investments in the U.S. lower middle market,” Marco D’Ippolito, Managing Partner, said.
Patria Investments Limited (NASDAQ:PAX) is a leading global alternative asset management firm focused on the mid-market, with approximately $53 billion in assets under management, specializing in Latin America and expanding into Europe and the US. It manages private equity, infrastructure, credit, real estate, and public equities for long-term, sustainable returns.
2. Rithm Capital Corp. (NYSE:RITM)
5-Year Revenue Growth: 26.52%
Forward P/E: 4.88
Stock Upside Potential: 36.15%
Number of Hedge Fund Holders: 37
Rithm Capital Corp. (NYSE:RITM) is one of the high-growth, low P/E stocks to buy now. On February 3, Chief Executive Officer Michael Nierenberg reiterated that Rithm Capital Corp. (NYSE:RITM) achieved strategic progress in 2025, resulting in 19% of earnings available for distribution to equity holders.
The company delivered fourth-quarter and full-year results that underscored the durable momentum built as it completed the acquisitions of Crestline and Paramount Group. In addition, the company diversified its alternative asset management platform, therefore ending the year with over $100 billion in investable assets.
Net income came in at $53.1 million, or $0.09 a share, while earnings available for distribution totaled $418.9 million, or $0.74 a share. For the full year, net income totaled $567.2 million, or $1.04 per diluted share, with earnings available for distribution of $1.3 billion, or $1.4 per common share.
“As we enter 2026, Rithm is well-positioned for growth. The strategic investments we have made across asset management, Newrez, Genesis, and our investment portfolio provide a strong foundation to outcompete and capture strategic opportunities for our clients and shareholders. Our scale, diversity, and proprietary insight as an owner-operator give us distinctive advantages in today’s market, and I am confident in our platform and the growth trajectory ahead,” said Nierenberg, Chief Executive Officer.
Rithm Capital Corp (NYSE:RITM) is a global asset manager and a Real Estate Investment Trust (REIT) focused on the real estate, credit, and financial services sectors. It operates as an owner-operator, managing investments in mortgage servicing rights (MSRs), residential loans, commercial real estate, and consumer loans.
1. KKR & Co. Inc. (NYSE:KKR)
5-Year Revenue Growth: 40.33%
Forward P/E: 14.90
Stock Upside Potential: 45.32%
Number of Hedge Fund Holders: 89
KKR & Co. Inc. (NYSE:KKR) is one of the high-growth, low P/E stocks to buy now. On February 10, KKR & Co. Inc. (NYSE:KKR) presented at the Bank of America Financial Services Conference, where CFO Rob Lewin highlighted strengths in asset management, insurance, and strategic holdings, while noting challenges in real estate.
The firm expects Fee Related Earnings per share to exceed $4.50 and after‑tax adjusted net income to surpass $7, supported by record capital raising of nearly $130 billion and strong growth in Asia.
KKR is focused on integrating its Arctos acquisition, which it projects could grow into a $100+ billion AUM business, while expanding in private wealth and secondary markets. Management fees have risen over 50% in three years against a 25% increase in expenses, and operating earnings from insurance and strategic holdings are expected to reach $1 billion and $350 million, respectively, in 2026, underscoring confidence in long‑term growth.
Earlier on February 3, KKR & Co. Inc., as part of a consortium that included SingTel, inked a $10.9 billion deal to acquire a Singapore data center. The acquisition of the remaining stakes in ST Telemedia Global Data Center marks the company’s largest Asia-Pacific investment in the race to capitalize on the artificial intelligence frenzy.
The consortium is to buy the remaining stake in ST Telemedia Global Data Center owned by the parent company. Once the deal closes, KKR will own a 75% stake in STT GDC, with SingTel retaining the remaining 25%.
“As hyperscalers continue to invest at levels well above historical norms, the sector now requires significantly larger pools of long-term capital to support continued growth,” said Projesh Banerjea, managing director and head of Southeast Asia infrastructure at KKR.
Meanwhile, Goldman Sachs reiterated a Buy rating on the stock on February 6 but cut the price target to $145 from $190. The price target cut reflects the investment bank’s revised earnings-per-share estimates for the company, which are 3% lower on average due to a decrease in capital markets-sensitive revenue streams. The bank remains confident in the company’s ability to achieve mid-teens management fee growth following its fourth-quarter 2025 results.
KKR & Co. Inc. (NYSE:KKR) is a leading global investment firm that manages multiple alternative asset classes, including private equity, credit, infrastructure, and real estate, with a significant presence in insurance solutions.
While we acknowledge the potential of KKR 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 KKR and that has 100x upside potential, check out our report about this cheapest AI stock.
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