In this article, we will look at 11 Cheap Growth Stocks to Buy Right Now.
Growth investing has been a dominant theme in recent years, but the conversation on Wall Street is starting to shift. After a stretch where a handful of large-cap names carried much of the market higher, investors are increasingly questioning how much growth is already priced in. Elevated valuations across parts of the market have made entry price a more important consideration.
Large asset managers have been highlighting this tension between growth potential and starting valuations. J.P. Morgan Asset Management notes in its long-term capital market assumptions report that “the starting point for valuations has an impact on long-term returns.” This means the price investors pay today can shape the returns they earn years down the line. Franklin Templeton strikes a similar note, observing that there are “high valuations in certain parts of the technology sector and more reasonable valuations in other parts of the market.” That gap suggests opportunities may exist outside the most crowded trades. Meanwhile, BlackRock cautions that “investors have started to fret about equity valuations”.
Taken together, the message from these institutions is that growth still matters, but price discipline is becoming harder to ignore. When investors can find companies that combine solid earnings expansion with valuations that have not already been pushed to extremes, the risk-reward looks more compelling. With that in mind, we take a closer look at 11 Cheap Growth Stocks to Buy Right Now.
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Our Methodology
We used the Finviz screener to identify stocks that have a track record of delivering earnings growth and have grown their EPS by at least 20% over the past 3 years. From this pool, we focused on equities that are trading at a forward P/E of less than 15 and 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. 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. Abercrombie & Fitch Co. (NYSE:ANF)
On February 23, 2026, UBS analyst Mauricio Serna lowered the price target on Abercrombie & Fitch Co. (NYSE:ANF) to $149 from $160 and maintained a Buy rating. Mauricio Serna said the stock’s reaction is likely to hinge on FY26 guidance, with sales growth expected to come in below the +4.6% consensus and EPS guided to $9.35-$10.35 versus the Street’s $10.47, reflecting recent sales deceleration and what Mauricio Serna described as management “conservatism.” Mauricio Serna added that expectations already appear tempered, leaving a relatively balanced risk and reward profile into the event.
Also on February 23, 2026, JPMorgan lowered its price target on Abercrombie & Fitch Co. (NYSE:ANF) to $102 from $128 previously and maintained a Neutral rating as part of an earnings preview for the retailing group.
Earlier in February, the company’s abercrombie kids brand launched a baby and toddler collection, marking its first expansion into that category. Chief Product Officer Corey Robinson said the move responds to the “number one request” from customers and allows the brand to outfit families “from newborn through kids of all ages.”
Abercrombie & Fitch Co. (NYSE:ANF) operates as an omnichannel retailer across the Americas, Europe, the Middle East, Africa, and the Asia-Pacific.
10. Banco Bilbao Vizcaya Argentaria, S.A. (NYSE:BBVA)
On February 23, 2026, Deutsche Bank raised its price target on Banco Bilbao Vizcaya Argentaria, S.A. (NYSE:BBVA) to EUR 21.24 from EUR 19.75 previously and has maintained a Buy rating on the shares. Deutsche Bank cited the improving net interest income and higher return on tangible equity forecasts on Banco Bilbao Vizcaya Argentaria, S.A. (NYSE:BBVA) as the catalyst behind the price target increase.
Earlier in February, RBC Capital raised its price target on Banco Bilbao Vizcaya Argentaria, S.A. (NYSE:BBVA) to EUR 20.25 from EUR 19.75 previously and has kept a Sector Perform rating on the shares. Less than two weeks prior to this note, RBC Capital downgraded BBVA to Sector Perform from Outperform, citing BBVA’s already-high valuation.
Morgan Stanley also updated its view during the month of February, slightly lowering its price target on Banco Bilbao Vizcaya Argentaria, S.A. (NYSE:BBVA) to EUR 20 from EUR 20.70 previously, while maintaining an Equal Weight rating on the company.
Banco Bilbao Vizcaya Argentaria, S.A. (NYSE:BBVA) provides banking and financial services across Spain, Mexico, Turkey, South America, Europe, the United States, and Asia. The company offers traditional retail, wholesale, investment, and transaction banking. It also engages in financial, insurance, asset management, and capital markets businesses, as well as digital banking.
9. Bread Financial Holdings, Inc. (NYSE:BFH)
On February 26, 2026, Bread Financial Holdings, Inc. (NYSE:BFH) announced that its board approved a $600 million increase to the company’s existing share repurchase authorization. As of December 31, 2025, Bread Financial had $240 million remaining under the program and repurchased an additional $75 million of shares during 2026, leaving $165 million available prior to the new approval. Following the announcement, the total share repurchase authorization stands at $765 million, with no expiration date.
Earlier in February, Evercore ISI analyst John Pancari upgraded Bread Financial Holdings, Inc. (NYSE:BFH) to an Outperform rating from In Line and raised the price target to $90 from $81 previously. John Pancari said the firm’s updated EPS outlook on Bread Financial Holdings, Inc. (NYSE:BFH) sits modestly above Street expectations and cited improving earnings trends, inflecting growth, well-managed credit risk, and “solid” capital returns as factors that could support upside to what John Pancari described as the stock’s discount valuation.
Bread Financial Holdings, Inc. (NYSE:BFH) provides technology-driven payment and lending solutions in North America, including credit card and loan financing services as well as underwriting, funding, and risk management for private label and co-brand credit card programs and Bread Pay partnerships.
8. Fidelis Insurance Holdings Limited (NYSE:FIHL)
On March 2, 2026, Fidelis Insurance Holdings Limited (NYSE:FIHL) announced a definitive agreement to repurchase all remaining common shares held by CVC Falcon for an aggregate purchase price of $163.35M. The company will repurchase 8,597,170 common shares at $19.00 per share. Upon completion of the transaction, CVC will no longer hold any ownership interest in Fidelis Insurance Group.
On February 27, 2026, Keefe Bruyette raised the price target on Fidelis Insurance to $26.50 from $26 and maintained an Outperform rating.
On February 25, 2026, Fidelis Insurance reported Q4 operating EPS of $1.09 compared to the consensus of $1.08. Group Chief Executive Officer Dan Burrows highlighted an “excellent fourth quarter performance,” citing an 80.6% combined ratio and an annualized Operating ROAE of 18.3%, which Dan Burrows said demonstrates the company’s platform strength and execution of its capital allocation strategy.
Fidelis Insurance Holdings Limited (NYSE:FIHL) provides insurance and reinsurance solutions in Bermuda, the Republic of Ireland, and the United Kingdom through its Insurance and Reinsurance segments.
7. KBR, Inc. (NYSE:KBR)
On February 26, 2026, KBR, Inc. (NYSE:KBR) reported Q4 adjusted EPS of 99c versus consensus of 95c and revenue of $1.9B compared to consensus of $1.91B. President and CEO Stuart Bradie said fiscal 2025 reflected “disciplined execution,” citing margin expansion, strong cash flow generation, and growth in backlog and options despite what Stuart Bradie described as a challenging award environment. Stuart Bradie also highlighted progress on the planned spin-off, which Stuart Bradie said will sharpen the strategic focus of each business.
KBR guided FY26 adjusted EPS to $3.87-$4.22 versus consensus of $4.06 and sees FY26 revenue of $7.9B-$8.36B compared to consensus of $8.16B. The company also expects FY26 adjusted EBITDA of $980M-$1.04B.
On February 23, 2026, KBR announced it had been awarded a contract by Basra Oil Company to provide Integrated Field Management Services for the Majnoon Oil Field in southern Iraq, which has estimated reserves of more than 38B barrels. The contract covers upstream engineering, project and operations management, maintenance services, and the use of AI and digital technologies to support reservoir performance and field modernization.
KBR, Inc. (NYSE:KBR) provides scientific, technology, and engineering solutions to governments and commercial customers through its Government Solutions and Sustainable Technology Solutions segments.
6. Primerica, Inc. (NYSE:PRI)
On March 3, 2026, Morgan Stanley analyst Bob Huang lowered the price target on Primerica, Inc. (NYSE:PRI) to $285 from $292 previously and maintained an Equal Weight rating. Bob Huang said the change comes as Morgan Stanley updates price targets across its Insurance – Life/Annuity North America coverage. Bob Huang added that while Morgan Stanley is not concerned about life insurers’ exposure to private credit, the broader industry could face valuation pressure.
In February, Primerica, Inc. (NYSE:PRI) reported fourth-quarter EPS of $6.13 compared with consensus of $5.68 and revenue of $853.7 million versus consensus of $839.65 million. Chief Executive Officer Glenn Williams said the company’s 2025 results reflected the “complementary balance” of its business model, noting that the Term Life segment provides stability while the Investment and Savings Products segment is increasingly driving growth. Glenn Williams also cited the strength of the company’s sales force and its focus on serving middle-income families.
Primerica, Inc. (NYSE:PRI) provides financial products and services to middle-income households in the United States and Canada through its Term Life Insurance, Investment and Savings Products, Senior Health, and Corporate and Other Distributed Products segments.
5. The Hanover Insurance Group, Inc. (NYSE:THG)
On February 25, 2026, Keefe Bruyette raised the price target on The Hanover Insurance Group, Inc. (NYSE:THG) again to $208 from $207 and maintained an Outperform rating on the shares. Just a few weeks earlier, on February 9, 2026, Keefe Bruyette also raised the price target on The Hanover to $207 from $200. The firm said the shares’ current valuation underappreciates the ongoing “margin-expanding rate increases” within the company’s Core Commercial and Specialty segments.
Earlier in February, The Hanover Insurance Group, Inc. (NYSE:THG) reported fourth-quarter non-GAAP EPS of $5.79 versus consensus of $5.03 and book value per share of $100.90, up 5.1% from September 30, 2025. President and CEO John C. Roche said the company delivered “outstanding results” in 2025, including a record annual operating return on equity of 20.1% and 23.1% in the fourth quarter while generating $6.3B in net written premiums, reflecting about 4% year-over-year growth. John C. Roche highlighted strong retention in Personal Lines driven by customers holding multiple policies, continued opportunities in small-to-middle-market accounts in Core Commercial, and growth potential in Specialty despite more competition in larger property accounts.
The Hanover Insurance Group, Inc. (NYSE:THG) provides property and casualty insurance products and services to individuals and businesses in the United States through its Core Commercial, Specialty, Personal Lines, and Other segments.
4. Universal Health Services, Inc. (NYSE:UHS)
On March 2, 2026, Wells Fargo lowered the price target on Universal Health Services, Inc. (NYSE:UHS) to $212 from $235 previously and maintained an Equal Weight rating. Wells Fargo said Q4 results were weak, primarily due to the Acute business. Wells Fargo added that 2026 guidance is in line with consensus but will require stronger volumes and core growth than seen in 2025.
On February 26, 2026, Barclays raised its price target on Universal Health Services, Inc. (NYSE:UHS) to $268 from $262 previously and maintained an Overweight rating following the Q4 report. Barclays said the company posted a modest miss as acute volumes decelerated but still guided 2026 EBITDA ahead of Street estimates.
On February 25, 2026, Universal Health Services, Inc. (NYSE:UHS) reported fourth-quarter EPS of $5.88 versus consensus of $5.90 and revenue of $4.49B compared with consensus of $4.5B. The company expects FY26 adjusted EPS of $22.64-$24.52 compared with the consensus of $23.52.
Universal Health Services, Inc. (NYSE:UHS) owns and operates acute care hospitals and outpatient and behavioral health care facilities in the United States through its Acute Care Hospital Services and Behavioral Health Care Services segments.
3. Expedia Group, Inc. (NASDAQ:EXPE)
On March 3, 2026, Mizuho analyst Lloyd Walmsley lowered the price target on Expedia Group, Inc. (NASDAQ:EXPE) to $245 from $270 and maintained a Neutral rating. Lloyd Walmsley said the firm updated its model following the Q4 report and cited peer group multiple contraction as the reason for the target reduction.
On March 2, 2026, Expedia Group announced a partnership with PredictHQ aimed at helping lodging partners better anticipate travel demand. The integration combines PredictHQ’s forward-looking demand forecasts with Expedia Group’s traveler insights to help partners identify and respond to demand shifts.
Earlier in February, Expedia reported Q4 adjusted EPS of $3.78 versus consensus of $3.37 and revenue of $3.55B compared with consensus of $3.41B. Booked room nights increased 9% in the fourth quarter, while gross bookings and revenue both rose 11% during the quarter and 8% for the full year. CEO Ariane Gorin said the company delivered a “strong finish to a great year,” citing disciplined execution and continued momentum in bookings and revenue.
Expedia Group, Inc. (NASDAQ:EXPE) operates an online travel platform globally through its B2C, B2B, and trivago segments.
2. ICON Public Limited Company (NASDAQ:ICLR)
On February 23, 2026, Jefferies analyst David Windley upgraded ICON Public Limited Company (NASDAQ:ICLR) to Buy from Hold and lowered the price target to $135 from $175. David Windley said the stock’s current valuation makes ICON “hard to ignore.” David Windley added that while AI could compress labor-intensive businesses, the market may be underestimating the “high regulatory hurdles to rapid tech adoption” and the potential for efficiency gains to be reinvested into research and development.
On February 18, 2026, TD Cowen analyst Charles Rhyee upgraded ICON to Buy from Hold with a price target of $120, down from $183. Charles Rhyee said the selloff tied to the company’s internal accounting investigation appears overdone and that the 33% pullback may overstate the potential earnings impact. TD Cowen estimates that a 2% reduction to revenue forecasts in 2026 and 2027 would translate to a 14% hit to earnings. Charles Rhyee described the risk and reward as “compelling” at current levels despite ongoing investigation risks.
Earlier in February, ICON said it plans to release its fourth quarter and full year 2025 results on or before April 30. The company also disclosed an internal investigation launched by the Audit Committee in October 2025 into certain accounting practices and controls, focusing primarily on revenue recognition from fiscal years 2023 through 2025. Preliminary findings indicate revenue for 2023 and 2024 may have been overstated by less than two percent for each year. The company is reviewing internal controls over financial reporting and expects to report one or more material weaknesses. Due to the ongoing investigation and delays in reporting processes, ICON withdrew its previously issued 2025 full-year financial guidance.
ICON Public Limited Company (NASDAQ:ICLR) provides outsourced development and commercialization services to pharmaceutical, biotechnology, and medical device companies globally.
1. Reinsurance Group of America, Incorporated (NYSE:RGA)
On March 3, 2026, Morgan Stanley raised the price target on Reinsurance Group of America, Incorporated (NYSE:RGA) to $223 from $208 and maintained an Equal Weight rating. Morgan Stanley said the update comes as the firm revises price targets across its Insurance – Life/Annuity North America coverage. Morgan Stanley added that while exposure to private credit is not viewed as a concern for life insurers, valuation pressure could still emerge across the broader industry.
On February 25, 2026, Wells Fargo raised its price target on Reinsurance Group to $261 from $238 and maintained an Overweight rating. Wells Fargo said that after Q4 guidance from most companies, the firm is generally lowering EPS estimates as outlooks came in in line with or below consensus for much of the group. Wells Fargo also said it is rolling valuation methodologies to 2027 EPS and introducing new 2028E EPS estimates.
Earlier in February, Reinsurance Group reported Q4 adjusted EPS of $7.75 versus consensus of $5.75 and revenue of $6.64B compared with consensus of $6.34B. President and Chief Executive Officer Tony Cheng highlighted a “very strong fourth quarter,” citing positive contributions across most business segments and describing the results as evidence of the company’s diversified global platform.
Reinsurance Group of America, Incorporated (NYSE:RGA) provides life and health and asset-intensive reinsurance services across the United States, Latin America, Canada, Europe, the Middle East, Africa, Asia, and Australia.
While we acknowledge the potential of RGA 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 RGA and that has 100x upside potential, check out our report about this cheapest AI stock.
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