In this article, we will look at the 11 Deep Value Stocks to Buy According to Analysts.
In today’s market, where investor attention has focused on a handful of mega-cap technology names, the appeal of value investing has resurfaced. With equity valuations stretched in several high-growth sectors, deep value stocks offer investors both diversification and downside protection. Deep value stocks are companies that trade at substantial discounts to their fundamentals, and also to the broader market, such as the S&P 500. These stocks can provide long-term upside potential while reducing reliance on the smaller set of expensive names driving major indices.
Bill Nygren, portfolio manager at Oakmark Funds, recently underscored this point in a CNBC interview on August 8. He highlighted that while the S&P 500 is dominated by its five largest companies, now accounting for over 30% of the index, many undervalued names are being overlooked. At roughly 23x earnings, the S&P appears expensive compared with the average stock trading closer to 17x, and significantly higher than many Oakmark holdings, which trade below 12x earnings. Nygren suggested that investors relying heavily on the index could reduce risk by pairing it with a value-oriented strategy.
READ ALSO: 10 Best Large Cap Tech Stocks to Buy Now and 10 Best Big Tech Stocks to Buy Right Now.
Adding to these views in an August 13 interview, Liz Thomas, Head of Investment Strategy at SoFi, said market sentiment is still strong but believes a short-term consolidation or pullback may create better entry opportunities. She added that upcoming reports on inflation, employment, and consumer spending, and the Federal Reserve’s policy direction, will be key factors for investors. Thomas expects any near-term volatility to create opportunities for value investors, while broader fundamentals continue to support long-term gains.
Against this backdrop, let’s look at the 11 deep value stocks to buy according to analysts.
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Our Methodology
To identify deep value stocks to buy according to analysts, we started by screening U.S.-listed companies with a market capitalization of over $2 billion and a potential price target upside of at least 20%. We then applied three key deep-value criteria: a forward price-to-earnings (P/E) ratio of 10 or lower; return on equity of at least 10%; and a dividend yield of at least 1%. For stocks in the financial sector, we also considered the price-to-book ratio of 1.0 or below, along with the P/E ratio. Of the shortlisted stocks, we then ranked the top 10 stocks in ascending order based on the potential upside. Additionally, we also included data on hedge fund holdings in these companies as of Q1 2025 to provide further insight into investor interest.
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 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here).
Note: All pricing data is as of market close on August 14, 2025.
11 Deep Value Stocks to Buy According to Analysts
10. The Cigna Group (NYSE:CI)
Forward P/E: 9.8
Potential Upside: 26%
Dividend Yield: 2.1%
Number of Hedge Fund Holders: 74
The Cigna Group (NYSE:CI) is one of the deep value stocks to buy according to analysts. Cigna’s shares are up about 4% year-to-date, lagging the broader market. Still, the company’s favourable product mix and lack of exposure to Medicaid and Medicare have helped it avoid steeper losses seen elsewhere in the sector.
On August 4, a Guggenheim analyst trimmed his price target on Cigna to $350 from $388 but kept a Buy rating on the stock. He acknowledged that investors have been focused on several issues, foremost being the cost trends in the health insurance exchanges and pressure on pharmacy benefit management (PBM) margins, which have weighed on the sector outlook.
Moreover, the analyst highlighted some other concerns over commercial medical trends, seasonality in medical loss ratios, and uncertainty about stop-loss margin recovery.
In his view, however, these are relatively minor factors that have weighed more heavily on sentiment than fundamentals warrant. The analyst pointed to Cigna’s strengths that may be getting overlooked. The company continues to generate strong cash flow, has limited exposure to government-oriented managed care, and recently secured favourable PBM rulings in Arkansas and Oklahoma that should help counter potential drug pricing challenges.
Finally, he argued that the recent pullback in Cigna’s stock is overdone. He based his argument on the fact that the shares are now trading at less than 8x his updated 2026 EPS estimate, and the company kept its 2025 guidance unchanged. In his assessment, the current valuation represents an attractive entry point for long-term investors.
Interestingly, we also highlighted The Cigna Group (NYSE:CI) as part of our article on the best defensive stocks to invest in according to analysts.
The Cigna Group (NYSE:CI) is a health services company that provides medical, pharmacy, behavioural health, dental, and supplemental insurance products.
9. Albertsons Companies Inc. (NYSE:ACI)
Forward P/E: 9.1
Potential Upside: 26%
Dividend Yield: 3.2%
Number of Hedge Fund Holders: 52
Albertsons Companies Inc. (NYSE:ACI) is one of the deep value stocks to buy according to analysts. Albertsons’ stock was upgraded to Buy from Neutral by the UBS analyst Mark Carden on July 22, who also lifted his price target to $27 from $22. He noted that the recent decline in the stock price overlooks the company’s growth opportunities, particularly in pharmacy cross-shopping and digital channels.
Carden also expects Albertsons to support shareholder returns through buybacks while continuing to deliver quarterly results that exceed expectations, along with upward revisions to guidance. In his view, these factors should help the stock re-rate and narrow the valuation discount relative to peer Kroger.
This view is consistent with earlier commentary from BMO Capital’s Kelly Bania, who in mid-July reaffirmed her Buy rating with an unchanged price target of $25. While margin pressures have weighed on the stock, she pointed out that management expects EBITDA growth to return by 2026 after several years of decline. Bania also highlighted improving grocery unit trends, stronger momentum in e-commerce, and a relatively low valuation as supportive factors.
These perspectives suggest that Albertsons’ strategic investments and operational improvements, along with its discounted multiple, position the stock as an attractive defensive play within the sector.
Albertsons Companies Inc. (NYSE:ACI) is one of the largest food and drug retailers in the United States, with several well-known banners including Albertsons, Safeway, Vons, Pavilions, and Randalls.
