On December 16, Joe Tanious, chief investment strategist at Northern Trust, appeared on CNBC’s ‘Power Lunch’ to discuss recent economic data and the market outlook. Tanious has been advising viewers for some time to diversify their portfolios beyond just big tech. He confirmed that Northern Trust is seeing data similar to other major institutions and expressed genuine excitement about the opportunities in 2026. He listed several positive drivers for the market, including a meaningful amount of fiscal stimulus resulting from the One Big Beautiful Bill Act and a more accommodative monetary policy from the Fed. Despite public debate and hesitation regarding the Fed’s specific moves, Tanious stated that a more accommodative stance is largely expected. Additionally, he pointed to double-digit earnings growth and a broadening of the market, which means that more sectors and companies are expected to participate in the growth compared to the narrow market seen previously.
Tanious also acknowledged that there is still plenty for investors to be nervous about and cited frequent client anxieties regarding a potential market bubble, the high concentration in tech and AI, and the trajectory of inflation. He predicted that inflation is likely to move higher in the early part of the year, which could pour a little bit of cold water on expectations for aggressive Fed rate cuts. However, he emphasized that despite these concerns, the material risks have come down significantly compared to just a few months ago. The fear generated by the massive gains investors have seen over the last 3 years and the sheer amount of wealth created has made people at dinner parties anxious about whether the run can continue, leading some to move to cash preemptively to avoid a potential crash. Tanious agreed that these are warranted fears and described the situation as a good problem, but a problem nonetheless.
Earlier on November 26, TD Cowen’s Managing Director and Senior Retail Analyst Oliver Chen joined CNBC’s ‘Fast Money’ to talk about the state of the consumer heading into the holiday shopping season. Chen expressed that value remains very important and described the shopper as being definitely choiceful but also struggling, with consumer confidence being very mixed. He highlighted a significant bifurcation in the market: there is intense pressure at the middle and low end, while the higher household income customer is much stronger and is supporting both the economy and spending.
That being said, we’re here with a list of the 11 most profitable value stocks to invest in right now.
Stocks
Our Methodology
We sifted through the Finviz stock screener to compile a list of value stocks with a forward P/E ratio under 15. We then used Seeking Alpha to pick profitable stocks that had high TTM net income (over $1 billion) and a high TTM net income margin (over 20%). From that list, we selected 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 December 16.
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 Most Profitable Value Stocks to Invest In Right Now
11. Kinross Gold Corporation (NYSE:KGC)
Forward P/E Ratio as of December 16: 12.20
TTM Net Income as of December 16: $1.76 billion
TTM Net Income Margin as of December 16: 27.30%
Number of Hedge Fund Holders: 35
Kinross Gold Corporation (NYSE:KGC) is one of the most profitable value stocks to invest in right now. On December 1, UBS raised the firm’s price target on Kinross Gold to $33 from $31, while keeping a Buy rating on the shares. This sentiment comes as Gold maintains its momentum from 2025 into 2026, driven by consistent demand from both private investors and central banks. UBS believes that the market lacks the speculative crowding typically associated with a bubble.
Earlier on November 24, Bank of America raised the price target on Kinross Gold to $32 from $30 with a Buy rating on the shares. This upgrade was made as BofA refreshed its outlook on North American metals and mining, acknowledging a challenging backdrop as China’s appetite for commodities wanes.
In its Q3 2025 earnings report, Kinross Gold Corporation disclosed making $1.80 billion in revenue, which was a 25.84% increase year-over-year. At the same time, the company also earned $0.44 per share, which beat expectations by $0.05. The cost of sales was recorded at $1,145 per ounce, which contributed to healthy operating margins. However, costs have trended upward sequentially due to planned mine sequencing, the timing of sustaining capital expenditures, and higher royalty payments triggered by rising gold prices. While Kinross Gold is implementing global cost-reduction initiatives, higher royalties and general inflation continue to exert pressure on all-in sustaining costs.
Kinross Gold Corporation (NYSE:KGC), together with its subsidiaries, acquires, explores, and develops gold properties principally in the US, Brazil, Chile, Canada, and Mauritania.
10. Arch Capital Group Ltd. (NASDAQ:ACGL)
Forward P/E Ratio as of December 16: 10.32
TTM Net Income as of December 16: $4.09 billion
TTM Net Income Margin as of December 16: 20.96%
Number of Hedge Fund Holders: 40
Arch Capital Group Ltd. (NASDAQ:ACGL) is one of the most profitable value stocks to invest in right now. On December 2, Roth Capital lowered the firm’s price target on Arch Capital to $110 from $125 with a Buy rating on the shares. The firm noted that the company’s earnings beat was primarily driven by an unusually low level of catastrophe losses within its reinsurance division. However, written premium growth underperformed expectations across both insurance and reinsurance. Roth Capital believes that this trend will persist in the coming periods.
Earlier on November 24, RBC Capital resumed coverage of Arch Capital with an Outperform rating and $108 price target. This sentiment was posted as part of the firm’s broader research note launching coverage on P&C insurance carriers and brokers. The firm maintains a cautious outlook for insurers in 2026 due to emerging headwinds such as a weakening P&C pricing cycle and tough comps for catastrophe losses. Regarding the company’s specific portfolio, RBC Capital expects headwinds in Mortgage and Reinsurance to be offset by strong underwriting and higher yields on investment income.
In Q3 2025, Arch Capital Group delivered $3.96 billion in quarterly revenue, with a net income of $1.3 billion, which rose by 37% year-over-year. This translated to operating earnings of $2.77 per share, which beat Street estimates by $0.52.
Arch Capital Group Ltd. (NASDAQ:ACGL), together with its subsidiaries, provides insurance, reinsurance, and mortgage insurance products in the US, Canada, Bermuda, the United Kingdom, Europe, and Australia.
