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.
9. Aflac Incorporated (NYSE:AFL)
Forward P/E Ratio as of December 16: 14.79
TTM Net Income as of December 16: $4.17 billion
TTM Net Income Margin as of December 16: 23.55%
Number of Hedge Fund Holders: 42
Aflac Incorporated (NYSE:AFL) is one of the most profitable value stocks to invest in right now. On December 16, Mizuho initiated coverage of Aflac with an Underperform rating and $104 price target. Mizuho maintains a cautious outlook on Aflac’s sales performance in its key Japanese and US markets. The firm believes that stagnant sales growth will effectively cap long-term earnings potential.
Earlier on December 3, Ameriflex and Aflac announced a partnership to enhance the delivery of consumer-directed health care/CDH solutions. Under this agreement, Dallas-based Ameriflex will serve as the official administrative partner for Aflac’s CDH services, specifically targeting the public sector market. This collaboration is designed to provide a seamless experience for public sector clients by combining Aflac’s supplemental insurance products with Ameriflex’s administrative expertise.
The partnership focuses on the administration of various spending accounts, including Flexible Spending Accounts/FSAs and Health Savings Accounts/HSAs. By using Ameriflex’s proven track record, Aflac aims to increase value, savings, and financial protection for its public sector customers and their employees. Leadership from both companies emphasized that the alliance aligns with their shared mission to provide reliable, hassle-free benefits solutions and innovative customer service.
Aflac Incorporated (NYSE:AFL), through its subsidiaries, provides supplemental health and life insurance products. The company operates in two segments: Aflac Japan and Aflac US.
8. Diamondback Energy Inc. (NASDAQ:FANG)
Forward P/E Ratio as of December 16: 13.99
TTM Net Income as of December 16: $4.19 billion
TTM Net Income Margin as of December 16: 28.69%
Number of Hedge Fund Holders: 42
Diamondback Energy Inc. (NASDAQ:FANG) is one of the most profitable value stocks to invest in right now. On December 12, UBS raised the firm’s price target on Diamondback Energy to $194 from $174 and kept a Buy rating on the shares. Following three years of stagnant performance, the Energy sector is poised for a breakout in 2026. UBS believes that this recovery is underpinned by a brightening outlook for oil and gas prices, value-generating M&A activity, and disciplined capital spending.
Earlier on December 8, JPMorgan lowered the firm’s price target on Diamondback Energy to $159 from $166 with an Overweight rating on the shares. As part of its 2026 outlook for the exploration and production sector, JPMorgan updated its ratings and price targets to reflect a shifting energy landscape. The firm identifies supply-side risks regarding oil and liquids, but believes that the long-awaited demand inflection for natural gas is finally underway. The firm also warned that oil prices could face downward pressure in 2026, which is expected to partly stem from a crude oil oversupply.
In Q3 2025, Diamondback Energy reported adjusted earnings of $3.08 per share, which beat analyst estimates of $2.94, on revenues of $3.92 billion. The revenue alone rose by 48.36% year-over-year, beating expectations by $394.29 million. The company’s operational efficiency reached new heights, with average oil production hitting 503,800 barrels per day (part of a total 942,900 barrels of oil equivalent per day). Looking ahead to 2026, management established a new production baseline of 510,000 barrels of oil per day, signaling a flat growth strategy designed to prioritize cash flow generation over volume in an uncertain global market.
Diamondback Energy Inc. (NASDAQ:FANG) is an independent oil and natural gas company that acquires, develops, explores, and exploits unconventional, onshore oil and natural gas reserves in the Permian Basin in West Texas.
7. VICI Properties Inc. (NYSE:VICI)
Forward P/E Ratio as of December 16: 9.90
TTM Net Income as of December 16: $2.78 billion
TTM Net Income Margin as of December 16: 70.18%
Number of Hedge Fund Holders: 44
VICI Properties Inc. (NYSE:VICI) is one of the most profitable value stocks to invest in right now. On December 3, Barclays lowered the firm’s price target on VICI Properties to $33 from $37, while maintaining an Overweight rating on the shares. This sentiment was posted as part of the firm’s broader update on net lease estimates for the Q3 2025 reports and recent transaction announcements. Barclays cited tenant-related concerns for the price target drop.
Earlier on December 1, Evercore ISI downgraded VICI Properties to In Line from Outperform with a price target of $32, which was brought down from $36. This decision was made as Evercore ISI analysts expressed increasing concern regarding a regional gaming lease with Caesars Entertainment Inc. (NASDAQ:CZR), specifically highlighting the uncertainty surrounding the resolution of a low coverage ratio. Due to these risks, the firm adopted a cautious approach and remained on the sidelines.
In its Q3 2025 earnings report, VICI Properties announced that it is diversifying its portfolio beyond its core gaming assets. A highlight was the addition of its 14th tenant, Clairvest, which is acquiring the operations of MGM Northfield Park in Ohio. This transaction, expected to close in H1 2026, will provide an initial annual base rent of $53 million. Beyond traditional gaming, leadership is exploring mission-critical infrastructure investments in university sports, such as arenas and stadiums. While gaming remains the focus, the firm sees a unique opportunity to provide long-term capital to collegiate athletic departments navigating radical shifts in their financial landscapes.
VICI Properties Inc. (NYSE:VICI) is an S&P 500 experiential real estate investment trust that owns one of the largest portfolios of market-leading gaming, hospitality, wellness, entertainment, and leisure destinations.
6. Coterra Energy Inc. (NYSE:CTRA)
Forward P/E Ratio as of December 16: 9.73
TTM Net Income as of December 16: $1.67 billion
TTM Net Income Margin as of December 16: 24.69%
Number of Hedge Fund Holders: 47
Coterra Energy Inc. (NYSE:CTRA) is one of the most profitable value stocks to invest in right now. On December 12, UBS analyst Josh Silverstein raised the firm’s price target on Coterra Energy to $33 from $32 with a Buy rating on the shares. UBS is signaling a major turning point for the Energy sector in 2026, predicting a robust recovery after 3 years of stagnant returns. The firm’s 2026 outlook suggests that the sector is primed for a breakout, supported by improving supply-demand balances for oil and natural gas, value-generating M&A activity, and gains in operational and CapEx efficiency.
On the same day, Mizuho raised the firm’s price target on Coterra Energy to $36 from $33 with an Outperform rating on the shares. In a research note detailing its 2026 outlook for the E&P sector, Mizuho updated its ratings and argued that the industry holds underappreciated value despite prevailing negative sentiment caused by oil oversupply and high gas storage. The firm anticipates that long-term fundamentals will begin to materialize in 2026.
In Q3 2025, Coterra Energy’s production levels exceeded guidance by ~2.5% across all categories. The company reported $1.7 billion in pre-hedge oil and gas revenues, with oil production contributing 57% of that total. Oil production rose to an average of 11,300 barrels per day, a 7% increase from the previous quarter, while NGL production reached an all-time high of 136,000 barrels per day. These strong results led Coterra to increase its full-year 2025 production guidance to 777 MBoe per day and its natural gas guidance to 2.95 Bcf per day, representing a 5% and 6% increase, respectively, from initial projections.
Coterra Energy Inc. (NYSE:CTRA) is an independent oil and gas company that explores, develops, and produces oil, natural gas, and natural gas liquids in the US.
5. AerCap Holdings (NYSE:AER)
Forward P/E Ratio as of December 16: 9.95
TTM Net Income as of December 16: $3.79 billion
TTM Net Income Margin as of December 16: 45.41%
Number of Hedge Fund Holders: 55
AerCap Holdings (NYSE:AER) is one of the most profitable value stocks to invest in right now. On December 9, Truist initiated coverage of AerCap with a Buy rating and $159 price target. Truist highlighted AerCap’s dominant market position and stable operations. By prioritizing shareholder returns, the company is delivering steady book value appreciation and frequent gains from asset disposals, proving the strength of its long-term strategy.
On the same day, AerCap Holdings announced the signing of lease agreements for two new Airbus A321neo aircraft with My Freighter. This marks a significant milestone as My Freighter, which operates passenger services under the brand Centrum Air, becomes AerCap’s first customer in Uzbekistan. Both aircraft are scheduled for delivery in Q4 2027, supporting the airline’s goal of establishing Tashkent as a strategic hub connecting Eastern and Western markets.
The addition of these fuel-efficient, long-range aircraft is intended to facilitate the expansion of Centrum Air’s international network, including the upcoming launch of routes to Europe. The partnership aligns with AerCap’s mission to support emerging markets and provides My Freighter with the technology needed to enter competitive new global arenas.
AerCap Holdings (NYSE:AER) leases, finances, sells, and manages commercial flight equipment in the US, China, and internationally.
4. EOG Resources Inc. (NYSE:EOG)
Forward P/E Ratio as of December 16: 10.28
TTM Net Income as of December 16: $5.53 billion
TTM Net Income Margin as of December 16: 24.41%
Number of Hedge Fund Holders: 61
EOG Resources Inc. (NYSE:EOG) is one of the most profitable value stocks to invest in right now. On December 12, UBS analyst Josh Silverstein lowered the firm’s price target on EOG Resources to $141 from $144 and maintained a Buy rating on the shares. UBS predicts a robust 2026 for Energy after 3 years of flat returns. The firm points to several tailwinds, including better commodity pricing, efficient cost management, and a surge in merger activity.
Earlier on December 8, JPMorgan lowered the firm’s price target on EOG Resources to $121 from $131 and maintained a Neutral rating on the shares. This sentiment was posted as the firm adjusted ratings and targets in the E&P space as part of its 2026 outlook. JPMorgan sees supply side risks for oil and liquids, but says that the long-awaited demand inflection for natural gas has finally arrived. The magnitude of the crude oil oversupply, plus a potential end to the Russia-Ukraine conflict in 2026, is a double blow for lower oil prices.
In Q3 2025, EOG Resources announced a quarterly net income of $1.5 billion and adjusted earnings per share of $2.71. The company also generated $1.4 billion in free cash flow during the quarter, bringing its year-to-date total to $3.7 billion. Based on this momentum, EOG Resources increased its full-year 2025 free cash flow forecast to $4.5 billion, a $200 million upward revision from previous estimates. Revenue for the quarter totaled $5.85 billion. Furthermore, EOG Resources closed its acquisition of Encino, a move that diversifies its production base beyond its core Delaware Basin and Eagle Ford assets.
EOG Resources Inc. (NYSE:EOG), together with its subsidiaries, explores for, develops, produces, and markets crude oil, natural gas liquids, and natural gas in producing basins in the US, the Republic of Trinidad and Tobago, and internationally.
3. Newmont Corporation (NYSE:NEM)
Forward P/E Ratio as of December 16: 13.91
TTM Net Income as of December 16: $7.19 billion
TTM Net Income Margin as of December 16: 33.42%
Number of Hedge Fund Holders: 74
Newmont Corporation (NYSE:NEM) is one of the most profitable value stocks to invest in right now. On December 7, Jefferies raised the firm’s price target on Newmont to $120 from $113 with a Buy rating. This sentiment was announced as part of the firm’s 2026 preview for the metals and mining group. Jefferies anticipates a major strategic shift for the metals sector in 2026, maintaining a high-conviction bullish stance on gold equities while turning more cautious on copper stocks due to their elevated valuations. The firm expects gold miners to enter a period of record financial health, characterized by expanded margins and a significant surge in free cash flow throughout 2026.
Earlier on December 1, UBS analyst Daniel Major raised the firm’s price target on Newmont to $125 from $105.50 and kept a Buy rating on the shares. Major highlighted that gold maintained its bullish momentum throughout 2025 and remains well-supported heading into 2026, driven by consistent demand from both private and official sectors rather than speculative excess.
In Q3 2025, Newmont reported an adjusted net income of $1.9 billion, or $1.71 per share, which represented a 20% increase over the previous quarter and more than doubled its year-over-year results. This growth was supported by an average realized gold price of $3,539 per ounce, which helped generate $2.3 billion in cash flow from operations and $1.6 billion in free cash flow for the period, despite a slight 4% dip in gold production to 1.42 million ounces.
Newmont Corporation (NYSE:NEM) produces and explores gold properties. It also explores for copper, silver, zinc, lead, and other metals.
2. Barrick Mining Corporation (NYSE:B)
Forward P/E Ratio as of December 16: 13.04
TTM Net Income as of December 16: $3.58 billion
TTM Net Income Margin as of December 16: 24.53%
Number of Hedge Fund Holders: 75
Barrick Mining Corporation (NYSE:B) is one of the most profitable value stocks to invest in right now. On December 1, Canaccord raised the firm’s price target on Barrick Mining to C$70 from C$68, while keeping a Buy rating on the shares. This sentiment came out as the firm noted that Barrick Mining’s Q3 2025 earnings results were largely in line.
On the same day, UBS raised the firm’s price target on Barrick Mining to $47 from $39, while maintaining a Buy rating on the shares.
In its Q3 report, Barrick Mining announced a 4% increase in gold production (829,000 ounces) and lower overall cost metrics, with all-in sustaining costs dropping 9% to $1,538 per ounce. Year-to-date, Barrick has generated $5 billion in operating cash flow, allowing the company to end the quarter in a net cash position. EPS totaled $0.58 for the quarter, whereas revenues stood at $4.15 billion. Revenue grew by 23.16% year-over-year, although it missed Street estimates by $212.25 million.
Barrick Mining is focusing on its century’s most significant gold discovery at Fourmile in Nevada. The company increased the project’s exploration budget by $10 million for the remainder of 2025 and currently operates 16 drill rigs on-site to double the existing resource by year-end. Management also addressed the potential IPO of its Nevada Gold Mines and Pueblo Viejo interests, noting that Barrick would remain the controlling stakeholder. Additionally, the company is progressing with the Lumwana Super Pit expansion and anticipates concluding the sales of its Hemlo and Tongon assets by the end of 2025 to further streamline its portfolio.
Barrick Mining Corporation (NYSE:B) explores, develops, produces, and sells mineral properties. The company explores for gold, copper, silver, and energy materials.
1. EQT Corporation (NYSE:EQT)
Forward P/E Ratio as of December 16: 13.07
TTM Net Income as of December 16: $1.78 billion
TTM Net Income Margin as of December 16: 23.10%
Number of Hedge Fund Holders: 82
EQT Corporation (NYSE:EQT) is one of the most profitable value stocks to invest in right now. On December 12, Mizuho raised the firm’s price target on EQT Corporation to $68 from $60 and maintained an Outperform rating on the shares. This decision was made as Mizuho refreshed its 2026 outlook for the E&P sector, adjusting ratings and price targets to account for underappreciated value within the group. While broader investor sentiment remains dampened by concerns over an oil supply glut and high natural gas storage levels, the firm believes that solid long-term fundamentals will begin to drive a market re-rating by 2026.
Earlier on November 8, JPMorgan raised the price target on EQT Corporation to $64 from $62 and kept an Overweight rating on the shares. This was announced as JPMorgan adjusted its 2026 projections for the E&P sector, highlighting a pivotal shift in the energy landscape. While the firm warned of dual headwinds for oil from massive oversupply and the potential resolution of the Russia-Ukraine conflict, it noted that natural gas has finally reached a long-awaited demand inflection point.
EQT is positioning itself for the long-term global energy transition through strategic LNG offtake agreements. The company has secured contracts for 4.5 million tonnes per annum with partners like Sempra and NextDecade, set to commence in the 2030–2031 window. This strategy is designed to bypass a potential LNG oversupply cycle expected between 2027 and 2029, ensuring that EQT Corporation remains a relevant global player with a diverse direct-to-customer sales strategy.
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.
While we acknowledge the potential of EQT 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 EQT and that has 100x upside potential, check out our report about this cheapest AI stock.
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