In this article, we explore the 11 Best Cheapest Stocks to Buy on Robinhood.
When investors talk about cheap stocks, they often mean names trading at a low forward price-to-earnings (P/E) ratio. The forward P/E compares the company’s current share price to its expected future earnings per share. This distinction is important to make because a stock’s current market price tells investors very little about its value.
That said, the S&P 500’s forward 12-month P/E stood at 21.35 as of March 18, 2026, according to MacroMicro. This is well above the index’s 10-year historical average of 18.9. Interestingly, even this heightened valuation is a pull-back from the 22.0x at year-end 2025. Goldman Sachs chief US equity strategist Ben Snider flagged the concern back in January, where he noted that the 22x multiple “matches the peak in 2021 and approaches the record 24x in 2000.” This is a signal, he said, that there is very little margin for error.
Such an environment often pushes cautious money towards cheaper stocks. This is already happening, according to James Investment Research. Their analysis shows that in February 2026 alone, the Russell 3000 Value index gained 2.59% while the Growth index fell 2.56%. This is a spread of more than 5% in a single month, and it fits a broader pattern. For instance, over the past 12 months to February 19 this year, the Morningstar US Value Index gained 18.60%. This was more than double the 8.33% posted by the Morningstar US Growth Index over the same period, Morningstar data shows. In fact, at around that time, Dave Sekera, Morningstar’s chief U.S. market strategist, argued that the rotation towards value stocks makes strategic sense. He said: “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.”
Robinhood’s platform makes this opportunity accessible to many investors. The broker introduced a fractional share purchase feature in late 2019 that allows investors to acquire shares in companies for as low as $1. As a result, more than 27 million retail investors have been able to build positions in high-quality but undervalued companies. This article discusses some of these undervalued companies that are available on Robinhood today.
Our Methodology
To compile our list of the 11 Best Cheapest Stocks to Buy on Robinhood, we used Robinhood’s built-in stock screener to identify stocks trading at a forward P/E ratio below 15x as of March 19, 2026. We then filtered for companies that have recently reported noteworthy developments likely to influence investor sentiment, and we considered each stock’s analyst consensus upside potential as of March 19. We also factored in hedge fund sentiment using Q4 2025 holdings data from Insider Monkey’s 13F filings database. The final list is ranked in descending order by forward P/E ratio, that is, from the most expensive to the cheapest.
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 498.7% since May 2014, beating its benchmark by 303 percentage points (see more details here).
Best Cheapest Stocks to Buy on Robinhood
11. Bank of America Corporation (NYSE:BAC)
Forward P/E: 10.86
Stock Upside: 32.39%
Number of Hedge Fund Holders: 118
Bank of America Corporation (NYSE:BAC) is one of the best stocks to buy on Robinhood. On March 18, Bank of America Corporation (NYSE:BAC) launched a new podcast series dubbed Breakthrough Technology Dialogues. Bank of America, or BAC, said the podcast will deliver concise expert insight on the technologies redefining how the world works. The technologies in focus include artificial intelligence, quantum computing, fusion energy, medtech, and robotics.
The show is an extension of BAC’s existing annual Breakthrough Technology Dialogue events. The events take place in the UK and Singapore, during which they bring together CEOs, investors, academics, and innovators to discuss the pace and impact of technological change. So, the podcast will simply take those conversations to a much wider audience, noted BAC.
The bank detailed that each episode is locked at exactly 19 minutes and 56 seconds. This is a deliberate nod to 1956, the year the term byte was first coined. James Harding, Editor-in-Chief of The Observer, will be the podcast’s host.
Meanwhile, on March 11, BAC declared regular cash dividends on eight series of its preferred stock. The record dates for the distributions fall in April and payment dates spread across late April and early May 2026.
The eight series and their respective per-share dividend amounts are: Series L ($18.125), Series HH ($0.3671875), Series NN ($0.2734375), Series OO ($16.5625), Series PP ($0.2578125), Series RR ($10.9375), Series TT ($15.3125), and Series UU ($15.625). The Series QQ preferred stock is absent from this round because BAC redeemed it last month, and the shares were retired on March 10.
Bank of America Corporation (NYSE:BAC) provides consumer banking, wealth management, global banking, and markets services. Its products include checking and savings accounts, credit cards, mortgages, investment advisory, and corporate lending.
10. Wells Fargo & Company (NYSE:WFC)
Forward P/E: 10.82
Stock Upside: 34.53%
Number of Hedge Fund Holders: 72
Wells Fargo & Company (NYSE:WFC) is one of the best cheapest stocks to buy on Robinhood. On March 17, Truist Securities analyst John McDonald lowered his price target on Wells Fargo & Company (NYSE:WFC) from $98 to $94, while keeping a Buy rating on the stock. McDonald explained that the cut was driven by a softer net interest income (NII) outlook. Truist trimmed its NII estimates after adopting a lower net interest margin assumption, which brought its model in line with Wells Fargo’s own FY2026 guidance of approximately $50 billion in NII.
The firm revised its model ahead of Wells Fargo’s Q1 2026 results, due in a month’s time on April 14, and followed a direct investor call between Truist and Wells Fargo’s Head of Investor Relations, John Campbell.
In the revised model, Truist held its FY2026 and FY2027 earnings per share, or EPS, estimates at $6.85 and $7.80, respectively. The firm flagged trading revenue mix and overall fee income as the key wildcards that could push numbers in either direction. On capital returns, Truist revised its share buyback assumption downward to $3.5 billion per quarter in FY2026 and $4.0 billion in FY2027.
Wells Fargo & Company (NYSE:WFC) provides consumer banking, commercial banking, investment, and mortgage services across the United States. Its products include checking and savings accounts, credit cards, auto loans, small business lending, and wealth management solutions.
9. Adobe Inc. (NASDAQ:ADBE)
Forward P/E: 10.50
Stock Upside: 28.05%
Number of Hedge Fund Holders: 91
Adobe Inc. (NASDAQ:ADBE) is one of the best cheapest stocks to buy on Robinhood. On March 16, Adobe Inc. (NASDAQ:ADBE) and NVIDIA (NASDAQ:NVDA) announced a strategic partnership to accelerate artificial-intelligence-powered content creation, marketing automation, and personalization. The partnership was inaugurated at NVIDIA’s GPU Technology Conference (GTC) 2026 in San Jose, California.
The focal point of the deal is the next generation of Adobe Firefly models, which will be built on NVIDIA’s advanced computing infrastructure. According to Adobe, the new models will tap into NVIDIA CUDA-X libraries, NeMo libraries, Cosmos open models, and the Agent Toolkit. The goal is to give brands sharper creative precision and greater control across marketing pipelines, said Adobe.
The partnership also pushes Adobe deeper into agentic AI. For starters, Adobe will draw on NVIDIA’s Agent Toolkit and Nemotron open models to power these agentic workflows. The company hopes that this will enable faster content and campaign production.
On the 3D front, Adobe will build a cloud-native 3D digital twin solution using NVIDIA Omniverse libraries, RTX rendering, and the company’s own generative AI platforms. Adobe stated that the solution will help brands automate marketing content.
The partnership extends across Adobe’s entire product stack. That is, Photoshop, Premiere Pro, Frame.io, Acrobat, GenStudio, and Adobe Experience Platform will all benefit from NVIDIA’s AI infrastructure. Notably, Adobe Acrobat will integrate NVIDIA’s Nemotron capabilities to improve document intelligence. On the other hand, Frame.io will use NVIDIA CUDA to speed up media processing and enable smarter, AI-driven content search.
Adobe Inc. (NASDAQ:ADBE) develops software products for creative design, digital media, marketing, and document management. Its portfolio includes Photoshop, Illustrator, Acrobat, and the Creative Cloud suite, which are widely used by individuals and enterprises for content creation and productivity.
8. CVS Health Corporation (NYSE:CVS)
Forward P/E: 10.44
Stock Upside: 30.10%
Number of Hedge Fund Holders: 88
CVS Health Corporation (NYSE:CVS) is one of the best cheapest stocks to buy on Robinhood. On March 13, TD Cowen analyst Charles Rhyee reaffirmed a Buy rating and a $105 price target on CVS Health Corporation (NYSE:CVS). This came after TD Cowen’s proprietary consumer pharmacy survey.
The survey polled 2,251 US consumers on their retail pharmacy preferences and found that CVS remains the most preferred pharmacy among respondents. CVS has above-market customer loyalty levels, the survey results showed. An above-market customer loyalty level indicates that the company’s retail business is holding up well despite a competitive and challenging industry backdrop.
Rhyee also noted that CVS stands to gain market share from competitor store closures. This is a nod to the ongoing reduction in pharmacy locations across rival chains. As a result, CVS has an organic growth opportunity it doesn’t need to spend to capture, said Rhyee.
Beyond the survey, Rhyee highlighted two near-term catalysts. The first is the final Medicare Advantage rates expected from the Centers for Medicare & Medicaid Services (CMS), which directly affect profitability at CVS’s Aetna health insurance arm. The analyst sees the Pharmacy & Consumer Wellness segment as another growth lever.
Also, Rhyee views CVS’s segment-level guidance as conservative. In other words, the analyst believes that the company may outperform its own forecasts. This view is backed by Q4 FY2025 results where CVS reported EPS of $1.09, beating the $1.00 estimate, on revenue of $105.7 billion, which was above the $103.63 billion consensus.
CVS Health Corporation (NYSE:CVS) operates retail pharmacies, pharmacy benefit management, and healthcare services through its CVS Pharmacy stores, Caremark division, and Aetna insurance arm. Its offerings include prescription drugs, over-the-counter medications, health insurance plans, and primary care services.
7. Delta Air Lines, Inc. (NYSE:DAL)
Forward P/E: 9.99
Stock Upside: 26.94%
Number of Hedge Fund Holders: 67
Delta Air Lines, Inc. (NYSE:DAL) is one of the best cheapest stocks to buy on Robinhood. Delta Air Lines showed its strength at the JPMorgan Industrials Conference in March 2026. CEO Ed Bastian said the airline is performing well even with challenges like rising fuel costs and global tensions. He pointed to Delta’s strong brand, loyal customers, and steady demand as reasons the company can keep growing.
In 2025, Delta Air Lines, Inc. (NYSE:DAL) generated $4.5 billion in free cash flow and cut its debt to the lowest level since 2019. Sales rose 25% year over year, and premium revenues have doubled over the past decade. The company also raised its Q1 2026 revenue forecast because demand has stayed strong, with record booking days and corporate travel up double digits. Delta continues to benefit from its partnership with American Express, which brought in $8 billion in revenue last year.
Looking ahead, Delta plans to keep paying down debt, return money to shareholders, and improve margins. New leadership roles were announced to strengthen operations, and the airline expects industry consolidation to boost returns. Despite higher fuel prices, Delta believes it can grow earnings by spreading costs across larger aircraft and maintaining strong demand. The company sees resilience and opportunity even in a volatile environment.
Delta Air Lines, Inc. (NYSE:DAL) provides passenger and cargo air transportation services through its domestic and international flight network. Its offerings include scheduled flights, loyalty programs, cargo logistics, and maintenance services.
6. Carnival Corporation & plc (NYSE:CCL)
Forward P/E: 9.65
Stock Upside: 57.28%
Number of Hedge Fund Holders: 73
Carnival Corporation & plc (NYSE:CCL) is one of the best cheapest stocks to buy on Robinhood. On March 19, Morgan Stanley analyst Jamie Rollo upgraded Carnival Corporation & plc (NYSE:CCL) from Equal Weight to Overweight, and lowered the price target to $31 from $33. Rollo argued that the stock’s sharp selloff had created a compelling buying opportunity.
According to the analyst, Carnival’s share price has fallen 28% from its year-to-date peak, which was influenced by the escalation of the U.S.-Iran conflict. The conflict sent oil prices surging and rattled investor confidence in travel stocks broadly, said Rollo. He noted that the decline is comparable in magnitude to the selloffs in cruise stocks during the 2003 Iraq War, the 2010 Arab Spring, and the 2022 Russia-Ukraine War. Rollo’s core argument is that the selloff has gone further than the fundamentals justify.
That said, Morgan Stanley revised its estimates lower alongside the rating change. The firm cut its fiscal 2026 net revenue yield growth assumption by 100 basis points to 2.0%. This is below Carnival’s own guidance of 2.5%. The firm cited expectations of softer European demand as the war’s ripple effects dampen travel appetite.
On earnings, Morgan Stanley trimmed its FY2026 EPS estimate by 14% to $2.27, compared with company guidance of $2.48. The bank also reduced its FY2027 EPS estimate by 6% to $2.62, and pegged the new price target at an average of 12x P/E and 8.4x EV/EBITDA on FY2027 estimates.
Carnival Corporation & plc (NYSE:CCL) operates cruise lines under brands such as Carnival Cruise Line, Princess Cruises, and Holland America Line. It offers leisure travel and vacation services across global destinations. Its products include cruise packages, onboard entertainment, dining, and tourism experiences.
While we acknowledge the potential of CCL 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 CCL and that has 100x upside potential, check out our report about the cheapest AI stock.
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