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.
9. Bristol-Myers Squibb Company (NYSE:BMY)
Number of Hedge Fund Holders: 76
Bristol-Myers Squibb Company (NYSE:BMY) is one of the best inexpensive stocks to buy now. On January 20, Bristol Myers Squibb announced a partnership with Microsoft (NASDAQ:MSFT) to enhance the early detection of lung cancer. The collaboration centers on integrating Bristol Myers’ oncology expertise with Microsoft’s advanced AI-enabled radiology platform. By using these digital tools, the companies aim to streamline the identification of non-small cell lung cancer, ensuring patients are guided toward optimal care pathways and precision therapies more efficiently.
The initiative will deploy FDA-cleared radiology AI algorithms through the Microsoft Precision Imaging Network. This network is currently used by hospitals across the US to analyze X-ray and CT images. These specific algorithms are designed to assist clinicians in spotting hard-to-detect lung nodules, which is critical for identifying the disease at its earliest, most treatable stages.
A primary objective of this partnership is to bridge the gap in healthcare equity by expanding access to early detection in medically underserved communities. The rollout will specifically target rural hospitals and community clinics across the US, where advanced diagnostic resources may be limited. This unique AI-enabled workflow combines scalable tech with drug delivery expertise to improve patient outcomes.
Bristol-Myers Squibb Company (NYSE:BMY) discovers, develops, licenses, manufactures, markets, distributes, and sells biopharmaceutical products worldwide.
8. Cheniere Energy Inc. (NYSE:LNG)
Number of Hedge Fund Holders: 76
Cheniere Energy Inc. (NYSE:LNG) is one of the best inexpensive stocks to buy now. On January 15, Barclays analyst Theresa Chen lowered the price target on Cheniere Energy to $259 from $262 and maintained an Overweight rating. Ahead of Q4 2025 earnings reports, the firm revised its price targets for the midstream and refining sectors. The firm noted that companies with high exposure to crude and refined liquids remain vulnerable to broader macroeconomic shifts. Conversely, natural gas-focused operators are expected to continue performing well, supported by a strong and improving fundamental outlook for the gas market.
Earlier on January 12, Wells Fargo reduced its price target for Cheniere Energy to $280 from $284 with an Overweight rating on the stock. This adjustment is based on lower international spreads and an anticipated one-year delay in the FID for expansion projects. Despite this, the firm contends that Cheniere remains undervalued, even in a scenario where no additional expansions reach the FID stage.
On the same day, Citi lowered its price target for Cheniere Energy Inc. (NYSE:LNG) to $280 from $283 while maintaining a Buy rating. This adjustment was made as the firm updated its financial model for the company as part of a Q4 2025 preview.
Cheniere Energy Inc. (NYSE:LNG) is an energy infrastructure company that primarily engages in the LNG (liquefied natural gas) related businesses in the US.
7. Expand Energy Corporation (NASDAQ:EXE)
Number of Hedge Fund Holders: 77
Expand Energy Corporation (NASDAQ:EXE) is one of the best inexpensive stocks to buy now. On January 21, Barclays lowered its price target on Expand Energy to $126 from $136 while keeping an Overweight rating. In a Q4 2025 preview of the E&P sector, Barclays updated its ratings and price targets and noted that the upstream industry’s model for returning cash to shareholders remains durable despite broader market volatility.
The firm identified promising opportunities within the US onshore operations. However, at the same time, Barclays also cautioned investors to remain vigilant as they navigate short-term uncertainty in commodity prices.
A day before the Barclays rating, Stephens also reduced its price target for Expand Energy Corporation (NASDAQ:EXE) to $140 from $143 while maintaining an Overweight rating on the stock. The firm expects the company’s Q4 2025 results to align with expectations and noted that its own estimates for Q4 cash flow per share are 2% below consensus, while its adjusted EBITDA projections match consensus levels.
Expand Energy Corporation (NASDAQ:EXE) is an independent natural gas production company in the US. The company acquires, explores, and develops properties to produce oil, natural gas, and natural gas liquids.
6. PG&E Corporation (NYSE:PCG)
Number of Hedge Fund Holders: 79
PG&E Corporation (NYSE:PCG) is one of the best inexpensive stocks to buy now. On January 21, Morgan Stanley raised the price target on PG&E to $21 from $20 while keeping an Equal Weight. Morgan Stanley is refreshing its outlook on North American Regulated & Diversified Utilities and Independent Power Producers. The firm noted that the utility sector trailed the S&P 500’s performance in December 2025, leading to updated coverage across the group.
Earlier on December 16, Morgan Stanley lowered its price target on PG&E to $20 from $21 while maintaining an Equal Weight. The firm informed investors that utility performance in 2026 will be largely influenced by data center demand and potential growth upside.
Additionally, on December 12, JPMorgan reduced its price target for PG&E Corporation (NYSE:PCG) to $21 from $22 with an Overweight rating. This adjustment occurred as the firm updated its financial models across the North American utilities group.
PG&E Corporation (NYSE:PCG), through its subsidiary, Pacific Gas and Electric Company, sells and delivers electricity and natural gas to customers in northern and central California in the US.
5. EQT Corporation (NYSE:EQT)
Number of Hedge Fund Holders: 82
EQT Corporation (NYSE:EQT) is one of the best inexpensive stocks to buy now. On January 21, Scotiabank analyst Cameron Bean lowered the firm’s price target on EQT Corporation to $63 from $67 with a Sector Perform rating. Scotiabank revised its price targets for North American natural gas stocks, driven by a bullish outlook on the sector. The firm anticipated persistent supply deficits in both the US and Western Canada, a fundamental imbalance that it believes will push both commodity prices and energy equities higher over the coming year.
On the same day, Barclays also reduced its price target for EQT Corporation (NYSE:EQT) to $64 from $67 while maintaining an Overweight rating. This change was part of a broader adjustment of ratings and targets within the exploration and production group for a Q4 2025 preview.
The firm stated that the upstream sector’s cash return model remains resilient despite macroeconomic volatility and highlighted attractive opportunities in the US onshore. However, at the same time, Barclays also advised investors to tread carefully, given the current near-term commodity uncertainty.
EQT Corporation (NYSE:EQT) produces, gathers, and transmits natural gas. It sells natural gas and natural gas liquids to marketers, utilities, and industrial customers located in the Appalachian Basin.
4. Pfizer Inc. (NYSE:PFE)
Number of Hedge Fund Holders: 84
Pfizer Inc. (NYSE:PFE) is one of the best inexpensive stocks to buy now. On January 20, Novavax announced a non-exclusive licensing agreement with Pfizer, granting the pharmaceutical giant access to its Matrix-M adjuvant tech. This technology is designed to boost immune responses to vaccines and will be utilized by Pfizer for up to two infectious diseases. While Pfizer will oversee the development, manufacturing, and commercialization of the resulting products, Novavax remains responsible for the delivery and supply of the Matrix-M adjuvant itself.
Earlier on January 10, Pfizer Inc. (NYSE: PFE) announced positive results from Cohort 3 of its pivotal BREAKWATER trial. This specific randomized cohort evaluated the BRAFTOVI regimen in combination with cetuximab and FOLFIRI for patients with previously untreated metastatic colorectal cancer harboring a BRAF V600E mutation.
The study showed that adding the chemotherapy backbone to the BRAFTOVI regimen significantly increased response rates. The analysis showed an objective response rate of 64% for the BRAFTOVI combination, compared to 39% for the standard-of-care treatment (FOLFIRI with or without bevacizumab). Pfizer noted these statistically significant results highlight potential flexibility in chemotherapy options for this patient population.
Pfizer Inc. (NYSE:PFE) discovers, develops, manufactures, markets, distributes, and sells biopharmaceutical products in the US and internationally.
3. The Progressive Corporation (NYSE:PGR)
Number of Hedge Fund Holders: 84
The Progressive Corporation (NYSE:PGR) is one of the best inexpensive stocks to buy now. On January 16, HSBC downgraded Progressive to Hold from Buy with a $224 price target.
Earlier, on January 15, BMO Capital lowered the price target on Progressive Corporation to $239 from $253 with a Market Perform rating. The firm informed investors that the adjustment follows Progressive Corporation’s recent filing for rate decreases within its Florida subsidiaries, specifically a 9% reduction for agent-sold policies and a 6% reduction for DTC plans. The firm expects these changes to have a slightly negative revenue impact on the company.
Additionally, on January 14, Mizuho reduced the price target for The Progressive Corporation (NYSE:PGR) to $240 from $242, while maintaining a Neutral rating. This adjustment follows a post-quarter update to the firm’s financial models within the insurance sector.
Wells Fargo also lowered its price target for Progressive Corporation to $240 from $242 while maintaining an Equal Weight rating on January 13. In a preview of quarterly results for the insurance sector, the firm advised investors to focus on specific key metrics across different sub-sectors.
The Progressive Corporation (NYSE:PGR) operates as an insurance company in the US.
2. PayPal Holdings Inc. (NASDAQ:PYPL)
Number of Hedge Fund Holders: 86
PayPal Holdings Inc. (NASDAQ:PYPL) is one of the best inexpensive stocks to buy now. On January 20, Truist analyst Matthew Coad lowered the firm’s price target on PayPal to $58 from $66 with a Sell rating. This decision was made as part of a broader research note that previewed the Q4 2025 earnings in fintech. Truist anticipates solid quarterly results for the sector, though Coad cautioned that difficult year-over-year comparisons might make it harder for companies to significantly exceed volume expectations.
Additionally, on January 16, Stephens reduced its price target for PayPal to $65 from $75 while maintaining an Equal Weight rating. The adjustment was detailed in the firm’s 2026 outlook note for the fintech group. Following a difficult 2025, the firm informed investors that it expects market sentiment toward the Payment and IT Services sector to improve over the coming year.
Ahead of the company’s quarterly results, Piper Sandler also cut its price target for PayPal Holdings Inc. (NASDAQ:PYPL) to $74 from $76 on January 14, while holding a Neutral rating on the stock.
PayPal Holdings Inc. (NASDAQ:PYPL) operates a technology platform that enables digital payments for merchants and consumers worldwide.
1. Capital One Financial Corporation (NYSE:COF)
Number of Hedge Fund Holders: 129
Capital One Financial Corporation (NYSE:COF) is one of the best inexpensive stocks to buy now. On January 23, Bank of America analyst Mihir Bhatia lowered the firm’s price target on Capital One to $280 from $294 with a Buy rating after the company reported Q4 2025 earnings and announced the acquisition of Brex, which the firm believes complements and expands Capital One’s current small business card offering, Spark.
Since the Discover acquisition, some bullish investors have made the case that Capital One’s multiple could expand closer to that of American Express as both companies operate a three-party network model. The firm noted it lowered its 2025/26 EPS forecasts to account for higher operating expenses.
In Q4 2025, Capital One Financial Corporation (NYSE:COF) reported net income of $2.1 billion. The company’s quarterly revenue totaled $15.5 billion, which was a 52.92% year-over-year increase, driven largely by the Discover acquisition, which helped push domestic card revenue up 58%. Excluding Discover, domestic card growth was 6.2%, while consumer banking revenue rose 36%.
Capital One Financial Corporation (NYSE:COF) operates as the financial services holding company for Capital One, National Association, which provides various financial products and services in the US, Canada, and the UK.
While we acknowledge the potential of COF 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 COF and that has 100x upside potential, check out our report about this cheapest AI stock.
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