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.
8. Omnicom Group Inc. (NYSE:OMC)
Forward P/E: 8.9
Potential Upside: 27%
Dividend Yield: 3.7%
Number of Hedge Fund Holders: 44
Omnicom Group Inc. (NYSE:OMC) is one of the deep value stocks to buy according to analysts. On August 11, Omnicom took another step forward in its planned acquisition of Interpublic Group (IPG) by launching exchange offers for all outstanding IPG senior notes. The company is offering up to $2.95 billion in a mix of new notes and cash, while also seeking consent to amend the indentures tied to these securities. The intent is to simplify financial structures ahead of the merger.
Regulatory approvals are largely in place. The U.S. Federal Trade Commission cleared the deal in late June following its antitrust review, and competition regulators in Australia and the U.K. followed with their approvals in July and early August. These clearances remove key hurdles, leaving Omnicom well-positioned to close the acquisition.
The deal was originally announced in December 2024 and it aims to combine two of the largest names in advertising and marketing. Management expects the deal to broaden service capabilities across media, CRM, precision marketing, data, and digital commerce. Moreover, cost savings of roughly $750 million annually are projected once integration is complete, strengthening the financial case for the transaction.
Regarding consensus, around two-thirds of the analysts have a favourable opinion about the company. Both JP Morgan and Citi had reiterated a Buy rating on the stock around July 10, with price targets of $96 and $103, respectively.
Omnicom Group Inc. (NYSE:OMC) is a holding company that, together with its subsidiaries, offers advertising, marketing, sales, and corporate communications services.
7. Sealed Air Corporation (NYSE:SEE)
Forward P/E: 10.0
Potential Upside: 31%
Dividend Yield: 2.7%
Number of Hedge Fund Holders: 41
Sealed Air Corporation (NYSE:SEE) is one of the deep value stocks to buy according to analysts. On August 6, Wells Fargo’s Gabrial Hajde reaffirmed a Buy rating on Sealed Air (SEE) and kept the price target at $43. The call followed a stronger-than-expected second-quarter performance, where adjusted EBITDA came in at $293 million, ahead of both company guidance and street forecasts.
While total volumes were down slightly, the beat reflects progress from Sealed Air’s cost controls and operational efficiency measures. Hajde also noted that management’s 2025 outlook, which remains unchanged, now looks conservative in light of the recent performance. This leaves room for potential upside if execution stays on track.
Another supportive factor is the company’s leadership stability. The appointment of Kristen Actis-Grande as permanent CFO adds experience to the finance team at a time when Sealed Air is focused on driving productivity gains and advancing strategic priorities. Together, these factors support Hajde’s constructive stance on the stock and his decision to maintain the Buy rating.
Sealed Air Corporation (NYSE:SEE) designs, manufactures, and delivers packaging solutions that preserve food, protect goods, and automate packaging processes.
6. Unum Group (NYSE:UNM)
Forward P/E; P/B: 8.0; 1.0
Potential Upside: 31%
Dividend Yield: 2.6%
Number of Hedge Fund Holders: 48
Unum Group (NYSE:UNM) is one of the deep value stocks to buy according to analysts. On July 31, a Wells Fargo analyst lowered the price target on Unum Group (UNM) to $100 from $105 but kept an Overweight rating on the stock. The adjustment followed a weaker-than-expected quarterly report and cautious guidance, which weighed heavily on investor sentiment.
The analyst also pointed out that Unum’s cautious commentary on market conditions had a broader effect, dragging down sentiment across the group benefits space.
On July 29, Unum Group reported softer Q2 2025 results, which came in below street expectations. Its net income of $335.6 million, or $1.92 per diluted share, declined 14% compared to $389.5 million in the year-ago period. Adjusted operating income also fell around 12% to $361.1 million, from the prior-year quarter.
These numbers were disappointing, notably after the company reported a 4% surge in revenue to $3.4 billion. Moreover, the company has now revised its full-year outlook for adjusted operating EPS sharply down to roughly $8.50. This implies a year-over-year growth of mere 0.7%, versus its earlier guidance of 6%-10%.
That said, capital deployment remains a focus for the company, with $300 million in share repurchases during the quarter, bringing year-to-date buybacks to $500 million. Management now expects repurchases at the upper end of the $500 million-$1.0 billion guidance range for 2025.
Unum Group (NYSE:UNM) is a provider of workplace benefits and services. It offers disability, life, accident, critical illness, dental, and vision insurance; leave and absence management support; and behavioural health services.
5. Matson Inc. (NYSE:MATX)
Forward P/E: 9.5
Potential Upside: 31%
Dividend Yield: 1.4%
Number of Hedge Fund Holders: 31
Matson Inc. (NYSE:MATX) is one of the deep value stocks to buy according to analysts. In its recently reported Q2 2025 results, Matson’s earnings came in modestly below the prior year, reflecting softer performance in its China service but offset by resilience across domestic tradelanes. EPS came in at $2.92, compared with $3.31 in Q2 2024. Its consolidated revenue was $830.5 million, down 2% year-over-year, while operating income fell to $113.0 million from $124.6 million.
Management emphasized that despite near-term headwinds in China, demand rebounded in late Q2 following a temporary tariff adjustment, and customer shifts to other Asian origins helped support volumes. Matson also highlighted its new expedited Ho Chi Minh service, expanding its reach in Southeast Asia.
While the company raised its full-year outlook, the guidance reflected both resilience and caution. The company guided to operating income moderately below 2024 but ahead of earlier expectations. Q3, however, is expected to show a sharper year-over-year decline in Ocean Transportation earnings due to lower freight rates and muted peak season demand.
Analysts also remain divided on the stock. On July 17, Jefferies had cut its rating on Matson from Buy to Hold, pointing to persistent weakness in China-U.S. container volumes and renewed pressure on freight rates, despite Q2 earnings tracking above expectations. Jefferies highlighted unusually sharp rate swings, with spot prices on the Shanghai-U.S. West Coast route spiking in June before retreating in July, and lowered its price target to $115 from $135 on a more cautious outlook.
Matson Inc. (NYSE:MATX) provides ocean transportation and logistics services in the Pacific through its fleet of 22 owned vessels, including containerships, combination container and roll-on/roll-off ships, and custom-designed barges.
4. Northern Oil and Gas Inc. (NYSE:NOG)
Forward P/E: 6.6
Potential Upside: 35%
Dividend Yield: 7.2%
Number of Hedge Fund Holders: 34
Northern Oil and Gas Inc. (NYSE:NOG) is one of the deep value stocks to buy according to analysts. NOG’s shares have lost more than a third of their value so far this year, and continue to trade near the bottom of their 52-week range. Despite the share price pressure, Bank of America Securities analyst Noah Hungness reiterated a Buy rating on the shares with an unchanged price target of $33, on July 31. The update followed the company’s second-quarter earnings, which came in ahead of expectations. Adjusted EBITDAX (X stands for exploration expenses) reached $440 million, supported by record natural gas output from its Appalachian assets.
While lease operating expenses were higher, Northern Oil still generated free cash flow above expectations. Management also updated its 2025 guidance, cutting capital spending but maintaining strong free cash flow forecasts. Hungness noted that this shift should improve financial flexibility and create room to pursue incremental opportunities in the market.
Looking ahead, the analyst sees continued free cash flow growth into 2026, aided by stable production and cost discipline, which in turn supports further deleveraging.
Northern Oil and Gas Inc. (NYSE:NOG) is an independent energy company that focuses on acquiring, developing, and producing oil and natural gas properties across the United States. The company operates as a non-operator, with a primary presence in the Williston, Permian, Appalachian, and Uinta Basins.
3. Civitas Resources Inc. (NYSE:CIVI)
Forward P/E: 6.6
Potential Upside: 36%
Dividend Yield: 5.9%
Number of Hedge Fund Holders: 41
Civitas Resources Inc. (NYSE:CIVI) is one of the deep value stocks to buy according to analysts. On August 7, TD Cowen analyst David Deckelbaum reiterated a Buy rating on Civitas Resources, lowering his price target to $37 from $42.
The analyst highlighted that while production came in slightly below expectations, the company delivered stronger-than-anticipated financial results. EBITDAX was 2% above consensus, and free cash flow outperformed by 36%, underscoring its operational efficiency.
Deckelbaum also pointed to Civitas’s decision to divest non-core assets as a positive step, allowing management to sharpen its focus and improve efficiency. At the same time, the company continues to emphasize shareholder returns, with plans to allocate half of free cash flow to buybacks and the rest toward debt reduction.
The company’s strong hedging program adds further stability to cash flows. In the analyst’s view, this balanced approach to capital management supports confidence in Civitas’s long-term positioning despite near-term production variability.
Civitas Resources Inc. (NYSE:CIVI) is an independent oil and gas producer with operations in the DJ Basin of Colorado and the Permian Basin of Texas and New Mexico, where it focuses on acquiring, developing, and producing crude oil and liquids-rich natural gas.
2. LKQ Corporation (NASDAQ:LKQ)
Forward P/E: 10.1
Potential Upside: 39%
Dividend Yield: 3.8%
Number of Hedge Fund Holders: 33
LKQ Corporation (NASDAQ:LKQ) is one of the deep value stocks to buy according to analysts. On July 25, Roth Capital’s Scott Stember cut his price target on LKQ Corp. to $46 from $56 but kept a Buy rating on the stock. The revision followed a weaker-than-expected second quarter, with EPS falling short and management lowering its 2025 guidance.
The analyst emphasized on the ongoing headwinds in both the U.S. and Europe. In North America, he says that demand in the collision repair market is recovering at a slower pace than anticipated. On the other side, in Europe, operational missteps have weighed on results. Despite these challenges, he believes LKQ’s long-term fundamentals remain intact and that the stock offers value for patient investors.
From a financial standpoint, LKQ reported Q2 2025 revenue of $3.6 billion, a 2% year-over-year decrease, with organic revenue decline of 3.4% in its parts and services segment. Adjusted EPS was $0.87, reflecting an 11% decline year over year. Free cash flow generation remained good at $243 million for the quarter, keeping the company on track to achieve its revised full-year guidance of $600-$750 million (down from $750-$900 million earlier).
LKQ Corporation (NASDAQ:LKQ) is a leading provider of alternative and specialty parts to repair and accessorize automobiles and other vehicles.
1. SM Energy Company (NYSE:SM)
Forward P/E: 5.1
Potential Upside: 53%
Dividend Yield: 3.0%
Number of Hedge Fund Holders: 37
SM Energy Company (NYSE:SM) is one of the deep value stocks to buy according to analysts. On July 31, TD Cowen analyst David Deckelbaum reaffirmed a Buy rating on SM Energy and set a $42 price target. He pointed to the company’s strong second-quarter results, where production reached record levels and came in about 5% ahead of expectations, helped by solid well performance in the Uinta and Austin Chalk regions.
Lower cash costs provided an additional boost, offsetting softer pricing and driving a sharp financial beat, including free cash flow that was substantially above consensus. Deckelbaum also noted that SM Energy reduced debt by roughly $140 million during the quarter, reinforcing balance sheet strength.
Looking ahead, management raised its oil production forecast while maintaining stable guidance for the rest of the year. These operational and financial improvements support the analyst’s positive stance on the stock.
SM Energy Company (NYSE:SM) is an independent oil and gas producer focused on acquiring, developing, and operating crude oil, natural gas, and NGL assets, primarily in Texas and Utah.
While we acknowledge the potential of SM as an investment, 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 SM and that has 100x upside potential, check out our report about the cheapest AI stock.
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Disclosure: None.
