On January 16, Saira Malik, Nuveen CIO, joined CNBC’s ‘Closing Bell’ to discuss her belief that earnings would propel the market forward, but valuations could bring volatility. Retail investors are enthusiastic due to a generous liquidity situation and stable growth in both the economy and corporate earnings. Malik described the current market environment as a tug of war between macro and micro factors, specifically identifying three key issues: geopolitical tensions, Fed policy, and corporate earnings. Ultimately, she believes that earnings will be the primary driver for 2026, projecting a growth rate of over 10 percent. However, she cautioned that because the market entered the year with premium valuations, ongoing tensions could result in significant volatility.
While there has been a long-standing hope for market participation to broaden beyond the largest stocks, Malik noted that the most significant growth in aggregate dollars is still concentrated in large tech firms. She pointed out that tech earnings are expected to be double those of the average S&P 500 company this year. While there is a potential pause as the market waits for massive AI spending to translate into real productivity gains, she remains confident in the sector. Malik’s advice is to follow the earnings growth, which leads her to favor materials and industrials as secondary plays behind tech. She is more skeptical of consumer staples and noted that they often look cheap but lack the earnings growth necessary to outperform unless the economy is in a recession. Instead, she points to utilities as a preferred defensive play. She concluded that while there would be policy-related noise, the market would likely find strong support in solid economic and earnings fundamentals throughout the year.
That being said, we’re here with a list of the 11 best inexpensive stocks to buy now.
Our Methodology
We used the Finviz stock screener to compile a list of inexpensive stocks that had a forward P/E ratio under 15. We then selected the 11 stocks that were the most popular among elite hedge funds and that analysts were bullish on. The stocks are ranked in ascending order of the number of hedge funds that have stakes in them, as of Q3 2025.
Note: All data was sourced on January 26.
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. 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).
11 Best Inexpensive Stocks to Buy Now
11. Antero Resources Corporation (NYSE:AR)
Number of Hedge Fund Holders: 70
Antero Resources Corporation (NYSE:AR) is one of the best inexpensive stocks to buy now. On January 21, Barclays lowered the price target on Antero Resources to $41 from $46 with an Equal Weight rating. The firm updated its ratings and price targets for the E&P sector in a Q4 2025 preview and noted that the upstream industry’s strategy of returning cash to shareholders remains durable despite market swings.
The firm highlighted US onshore operations as a source of attractive opportunities. However, at the same time, Barclays also advised investors to remain cautious in the short term due to ongoing uncertainty in commodity prices.
Earlier on January 16, Bank of America reduced its price target for Antero Resources Corporation (NYSE:AR) to $39 from $47 with a Buy rating. The firm observed that while bullish sentiment toward natural gas has lasted for 18 months, there is now an increasing risk of a market oversupply by 2027. Due to this potential surplus and lowered price forecasts, BofA applied an average 12% reduction to its price objectives across the gas-focused E&P sector.
Antero Resources Corporation (NYSE:AR) is an independent oil and natural gas company that engages in the development, production, exploration, and acquisition of natural gas, natural gas liquids, and oil properties in the US.
10. General Motors Company (NYSE:GM)
Number of Hedge Fund Holders: 71
General Motors Company (NYSE:GM) is one of the best inexpensive stocks to buy now. On January 21, JPMorgan raised its price target on General Motors to $100 from $85 with an Overweight rating. The firm raised its 2026 profit estimates for General Motors and positioned its forecasts well above the market consensus to account for strengthening global production. The firm anticipates billion-dollar tailwinds for the automaker, primarily driven by the elimination of federal penalties previously linked to non-compliance with US fuel economy and greenhouse gas standards.
On January 15, Goldman Sachs increased the firm’s price target for General Motors to $98 from $93, while maintaining a Buy rating. The firm explained that the higher target is based on recent automotive sales data. Additionally, the update accounts for positive commentary from various suppliers at recent conferences, who suggested that 2026 growth may exceed current market expectations.
Additionally, on January 13, HSBC also increased its price target for General Motors Company (NYSE:GM) to $75 from $48 while maintaining a Hold rating. This update was part of a broader adjustment of price targets across the firm’s automotive sector coverage. The firm noted that 2026 is shaping up to be a more predictable year for automobile manufacturers compared to previous periods.
General Motors Company (NYSE:GM) designs, builds, and sells trucks, crossovers, cars, and automobile parts worldwide.
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