In this article, we will look at the 10 Undervalued Counter Cyclical Stocks to Buy Now.
Counter-cyclical stocks are getting more attention as investors look for businesses tied to demand that does not disappear just because the economy slows. For this list, the focus is on consumer staples, healthcare, and gold stocks. These draw interest when investors want earnings streams linked to essential products, medical demand, or portfolio protection.
Fidelity describes consumer staples as a “defensive-oriented sector” made up of companies that sell “essential goods and services,” adding that demand for these goods “tends to remain stable, even during an economic downturn.” The firm also says, “Valuation dispersion across the sector has created investment opportunities among mispriced stocks.” Manulife Investment Management makes a similar point in healthcare, saying the sector has a “lower-volatility profile” and “defensive characteristics,” while current valuations create “an attractive entry point today.” It also points to companies serving patients in “disease states with inelastic demand.” VanEck adds the gold-stock angle, saying “gold stocks surged in 2025 but remain undervalued versus history and bullion,” while “attractive valuations and strong margins point to more upside in 2026.” In summary, the setup is about finding counter-cyclical companies where essential demand and discounted valuations overlap. Against this backdrop, undervalued counter-cyclical stocks deserve a closer look.
With that in mind, let’s take a look at the 10 Undervalued Counter Cyclical Stocks to Buy Now.
Our Methodology
We used the Finviz screener to identify consumer staples, healthcare, and gold stocks with forward P/E ratios below 25. We then 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. Insider Monkey’s quarterly newsletter 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).
10. Dollar General Corporation (NYSE:DG)
On June 4, 2026, Barclays lowered the firm’s price target on Dollar General Corporation (NYSE:DG) to $148 from $151 and maintained an Overweight rating on the shares. Barclays said the company reported a good quarter and estimates are moving higher, though the results “failed to excite the market.” The firm said Dollar General’s risk/reward remains attractive and that post-earnings concerns “could be wrong.”
On June 3, 2026, Bernstein raised the firm’s price target on Dollar General Corporation (NYSE:DG) to $149 from $146 and maintained an Outperform rating on the shares. The firm said the company’s Q1 beat was led by gross margin. Comparable sales growth of 2.0% was slightly below the sell-side consensus of 2.1%, but better than feared versus buy-side expectations. Bernstein also noted a 65bps year-over-year improvement in gross margin, driven by higher inventory markups and lower shrinkage and damages, partly offset by increased markdowns and fuel costs.
On June 2, 2026, Dollar General Corporation (NYSE:DG) reported Q1 EPS of $2.00, compared with consensus of $1.89, and revenue of $10.8B, compared with consensus of $10.81B. Q1 same-store sales increased 2%. CEO Todd Vasos said EPS exceeded the company’s expectations as operating margin expansion more than offset severe winter weather and higher fuel costs, while topline results were supported by positive customer traffic and balanced category growth.
Dollar General Corporation (NYSE:DG) is a discount retailer that provides merchandise products across the southern, southwestern, midwestern, and eastern United States.
9. Tyson Foods, Inc. (NYSE:TSN)
On June 8, 2026, Tyson Foods, Inc. (NYSE:TSN) announced the appointment of Wes Morris as COO. Morris will oversee the company’s business segments and brings more than 20 years of experience with Tyson Foods, including prior leadership roles as president of the prepared foods and poultry businesses. Morris will begin the role on June 15. Tyson Foods also said Devin Cole will be retiring from the company.
On June 1, 2026, Goldman Sachs analysts added Tyson Foods, Inc. (NYSE:TSN) to the firm’s US Conviction List as part of its monthly update. The firm said it expects above-consensus earnings growth at Tyson, supported by the company’s diversified protein portfolio and margin expansion. Goldman Sachs has a Buy rating on the shares with an $81 price target.
On May 28, 2026, Tyson Foods, Inc. (NYSE:TSN) backed its FY26 adjusted operating income view of $2.2B-$2.4B, capital expenditures view of $700M-$1B, free cash flow view of $1.2B-$1.8B, and adjusted tax rate view of 25%. The company said it remains focused on executing its strategy to drive long-term profitable growth and strong cash generation.
Tyson Foods, Inc. (NYSE:TSN) operates as a food company worldwide through its Beef, Pork, Chicken, and Prepared Foods segments.
