In this article, we will look at the 12 Best Affordable Stocks Under $40 to Buy.
On February 17, Jeremy Siegel, professor emeritus of finance at the University of Pennsylvania’s Wharton School of Business, appeared on a CNBC television interview to talk about the markets. Siegel noted that, despite the recent slowdown, the market still appears promising. Before the start of the year, Siegel had noted that the market would have to move past “3 speed-bumps.” The first bump was the change of Federal Reserve Chairman, the second was the government showdown, and the third is going to be the Supreme Court’s ruling on Trump’s billion-dollar tariffs. Siegel noted that once the market moves past these hurdles, the rest of the runway looks clear; however, there will be a period of digestion.
He added that the market is going through a rotation period with one of the biggest surges in value stocks as compared to growth stocks in over four years. He noted that although we are witnessing the Mag Seven spending billions of dollars on AI, the use cases still need to prove the return on investment of all the capital expenditure. Siegel sees the rotation toward value stocks as a positive factor for the overall market health.
With that, let’s take a look at the 12 Best Affordable Stocks Under $40 to Buy.
Our Methodology
To curate the list of 12 Best Affordable Stocks Under $40 to Buy, we used the Finviz stock screener, Seeking Alpha, and Insider Monkey’s Q3 2025 hedge funds database. Using the screener, we aggregated a list of stocks trading below the forward price to earnings of 14. Next, we cross-checked the P/E ratios from Seeking Alpha and ranked the stocks in ascending order of the number of hedge fund holders.
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).
12 Best Affordable Stocks Under $40 to Buy
12. Enterprise Products Partners L.P. (NYSE:EPD)
Number of Hedge Fund Holders: 26
Enterprise Products Partners L.P. (NYSE:EPD) is among the Best Affordable Stocks Under $40 to Buy. Analysts have been raising price targets on Enterprise Products Partners L.P. (NYSE:EPD) since the company released its fiscal Q4 2025 earnings on February 3.
Recently, on February 5, Michael Blum from Wells Fargo raised the firm’s price target from $36 to $38, while maintaining a Hold rating on the stock. Earlier, on February 4, Brandon Bingham from Scotiabank also reiterated a Hold rating on the stock and raised the price target from $35 to $37.
The increased price targets follow Enterprise Products Partners’ earnings beat. During fiscal Q4 2025, the company posted $13.79 billion in revenue, reflecting 2.87% decrease year-over-year but ahead of consensus by $1.43 billion. Moreover, the EPS of $0.75 also topped estimates by $0.06. Management attributed the quarterly performance to significant growth in its Natural Gas segment and Petrochemical & Refined Products segment, but this was offset by lower oil prices.
Brandon Bingham from Scotiabank described Enterprise Products Partners L.P. (NYSE:EPD)’s earnings as solid, with guidance currently exceeding consensus analyst expectations. However, the analyst maintained a Hold rating on the stock due to a notable gap between EPD’s communicated operational data points and how those translate into final modeled financial outcomes.
Enterprise Products Partners L.P. (NYSE:EPD) is a major North American midstream energy company that transports, stores, and processes natural gas, natural gas liquids (NGLs), crude oil, refined products, and petrochemicals.
11. Energy Transfer LP (NYSE:ET)
Number of Hedge Fund Holders: 35
Energy Transfer LP (NYSE:ET) is among the Best Affordable Stocks Under $40 to Buy. Energy Transfer LP (NYSE:ET) released fiscal Q4 2025 earnings on February 17. The company topped revenue estimates by $1.28 billion, but the EPS fell short by $0.11. Revenue for the quarter grew 29.57% year-over-year to reach $25.32 billion, while the EPS came in at $0.25.
Despite the EPS miss, the company continued to grow its volumes in the fourth quarter. NGL and refined product terminals volumes were up 12%, while NGL transportation volumes grew 5%. Management noted that the volume growth was driven by robust demand from data centers and power generation. Notably, the company started natural gas deliveries to Oracle’s data center in Texas. Management noted that this is the first of multiple long-term contracts totaling roughly 900 MMcf/d across three facilities.
Looking ahead, Energy Transfer LP (NYSE:ET) has set its 2026 adjusted EBITDA guidance between $17.45 billion and $17.85 billion, up from the previous range of $17.3 and $17.7 billion.
Energy Transfer LP (NYSE:ET) is a midstream energy company that owns and operates one of the largest portfolios of natural gas, crude oil, and NGL pipelines in the United States. Its assets include interstate and intrastate natural gas pipelines, storage facilities, fractionation plants, and crude oil terminals.
10. Regions Financial Corporation (NYSE:RF)
Number of Hedge Fund Holders: 39
Regions Financial Corporation (NYSE:RF) is among the Best Affordable Stocks Under $40 to Buy. On February 9, Vivek Juneja from J.P. Morgan raised the firm’s price target from $29 to $31.5, while maintaining a Hold rating on the stock. Earlier, on February 4, UBS also raised the price target from $29 to $30, while maintaining a Hold rating on the stock.
Analysts at J.P. Morgan noted that investors anticipate only two rate cuts in 2026, and the long-term interest rates are expected to stay elevated along with inflation. The firm highlighted that the regulatory environment remains favorable for banks to perform without hurdles. J.P. Morgan expects the sector to hold steady, supported by sector rotation, economic trends, and strong fundamentals.
That said, Regions Financial Corporation (NYSE:RF) reported fiscal Q4 2025 results on January 16. Although the company missed estimates during the quarter, the stock has gained more than 7% since the release. During the quarter, the company grew its revenue by 5.8% year-over-year to $1.93 billion, but fell short of expectations by $5.34 million. The EPS of $0.57 also missed expectations by $0.04.
Regions Financial Corporation (NYSE:RF) provides full-service banking, wealth management, and mortgage products through its subsidiary, Regions Bank, operating about 1,250 branches and 2,000 ATMs across the South, Midwest, and Texas.
9. Huntington Bancshares Incorporated (NASDAQ:HBAN)
Number of Hedge Fund Holders: 42
Huntington Bancshares Incorporated (NASDAQ:HBAN) is among the Best Affordable Stocks Under $40 to Buy. Wall Street has an overall positive opinion on Huntington Bancshares Incorporated (NASDAQ:HBAN), with analysts’ 12-month price target reflecting more than 21% upside from the current level.
Recently, on February 12, Brian Foran from Truist Financial reiterated a Buy rating on the stock with a $21 price target. Earlier on February 11, Manan Gosalia from Morgan Stanley also reiterated a Buy rating on the stock with a price target of $21.
Analyst Foran from Truist revised the EPS forecasts for HBAN, cutting 2026 estimates from $1.70 to $1.60 and 2027 estimates from $2 to $1.92. The lowered EPS forecasts are driven by reduced purchase accounting accretion following the acquisition of Cadence. Truist expects overall analyst estimates to drop by around 1% for 2027.
Gosalia of Morgan Stanley also has a similar view on Huntington Bancshares Incorporated (NASDAQ:HBAN). Gosalia also lowered the EPS forecasts to a range of $1.90-$1.93, down from previous estimates of $2. The reduction is based on lower provision for acquired assets from recent deals like Cadence and Veritex. The firm continues to expect that the company will hit its revenue goals via 10% core fee growth and $150 million in synergies, but doubts the bank will surpass them.
Huntington Bancshares Incorporated (NASDAQ:HBAN) is a holding company that owns and operates Huntington Bank. The bank operates in two segments: (1) Consumer and Regional Banking and (2) Commercial Banking. The company is based in Columbus, Ohio, and was founded in 1866.
8. VICI Properties Inc. (NYSE:VICI)
Number of Hedge Fund Holders: 44
VICI Properties Inc. (NYSE:VICI) is among the Best Affordable Stocks Under $40 to Buy. Wall Street has a positive outlook on VICI as the company gets close to releasing its fiscal Q4 2025 earnings on February 25. Analysts’ 12-month price target reflects more than 19.45% upside from the current level, with 76% of the 25 analysts covering the stock having a Buy rating.
However, recently, on February 2, Greg McGinniss from Scotiabank downgraded VICI Properties Inc. (NYSE:VICI) from Buy to Hold and also lowered the price target from $36 to $30. Earlier on January 5, Richard Anderson from Cantor Fitzgerald also lowered the price target from $35 to $33 but maintained a Buy rating on the stock.
Scotiabank’s analyst downgraded the stock based on concerns regarding growth and the lease agreement. McGinniss noted that the overhang from the Caesars Entertainment (CZR) Regional Master Lease is painting an uncertain picture amidst already tight rent coverage ratios. This lease agreement is pertinent as it covers multiple regional casinos and accounts for about 25% of the company’s net operating income.
On the other hand, Anderson from Cantor Fitzgerald noted that the US REIT gained only 2.9% in 2025 and underperformed the S&P 500. However, the analyst expects improvement in 2026, driven by a supportive macro environment and rising M&A activity in real estate.
Lastly, Wall Street expects VICI Properties Inc. (NYSE:VICI) to post Q4 2025 revenue around $1.01 billion along with a GAAP EPS of $0.69.
VICI Properties Inc. (NYSE:VICI) is a real estate investment trust (REIT) that owns, acquires, and develops a massive portfolio of gaming, hospitality, and entertainment destinations. It acts as a landlord for iconic properties, including Caesars Palace, the MGM Grand, and the Venetian Resort in Las Vegas.
7. Ford Motor Company (NYSE:F)
Number of Hedge Fund Holders: 44
Ford Motor Company (NYSE:F) is among the Best Affordable Stocks Under $40 to Buy. Wall Street maintains a cautious stance on Ford Motor Company (NYSE:F) after the company posted mixed results for fiscal Q4 2025.
Recently, on February 16, Elizabella Pang from DBS reiterated a Hold rating on the stock with a $13 price target. However, on February 11, Alexander Potter from Piper Sandler maintained a Buy rating on the stock with a price target of $16.
The company reported quarterly revenue of $42.45 billion, reflecting 5.54% year-over-year decline. Despite the decline, the revenue still surpassed estimates by $670.46 million. However, the EPS of $0.13 fell below expectations by $0.06. Management noted that the net income for fiscal 2025 was impacted by “a $2 billion headwind for Novelis fires and the net tariff impact of $2 billion.”
At the macro level, fiscal 2025 marked the fifth consecutive year of revenue growth. Notably, Ford Motor Company (NYSE:F) also gained 13.2% US market share in 2025, making it the best performance in six years.
Jim Farley, Ford president and CEO, noted:
We’ll continue building on our strong foundation to achieve our target of 8% adjusted EBIT margin by 2029.
For fiscal 2026, management anticipates adjusted EBIT of $8.0 billion to $10.0 billion, along with an adjusted free cash flow of $5.0 billion to $6.0 billion. Analyst Potter from Piper Sandler noted that he expects the company to meet or exceed the top-end of these guidelines, driven by market share gains for high margins Ford Pro segment.
Ford Motor Company (NYSE:F) develops, delivers, and services Ford trucks, sport utility vehicles, commercial vans, and cars, and Lincoln luxury vehicles worldwide.
6. The Kraft Heinz Company (NASDAQ:KHC)
Number of Hedge Fund Holders: 50
The Kraft Heinz Company (NASDAQ:KHC) is among the Best Affordable Stocks Under $40 to Buy. Wall Street has a mixed opinion on The Kraft Heinz Company (NASDAQ:KHC) since the company released fiscal Q4 2025 earnings on February 11.
Recently, on February 13, Leah Jordan from Goldman Sachs reiterated a Hold rating on the stock but lowered the price target from $27 to $23. Earlier on February 12, Thomas Palmer from J.P. Morgan downgraded the stock from Hold to Sell, while also lowering the price target from $24 to $22.
During fiscal Q4 2025, the company posted a revenue of $6.35 billion, down 3.38% year-over-year and below expectations by $19.5 million. However, the EPS of $0.67 topped estimates by $0.06. The revenue declined due to weaker sales in North America and International Developed Markets, which declined 5.4% and 2.4% year-over-year, respectively. On the bright side, the Emerging Markets segment improved by 2.2% during the same time.
Analysts at Goldman noted that despite the weaker performance in Q4 2025, the share price rose slightly 0.2% after the release. Moreover, the firm also highlighted that the company has increased investment to boost volume growth by the second half of 2026.
On the other hand, Analysts at J.P. Morgan noted that the company has lowered its 2026 outlook, and the ongoing issues are expected to hinder volume recovery later in the year. The firm highlighted that North American volumes have been falling for the past 19 quarters, thereby raising growth concerns.
The Kraft Heinz Company (NASDAQ:KHC) manufactures and distributes packaged food and beverages worldwide. Its offerings include cheese and dairy products, meals, tomato products, condiments, meats, sauces, refreshment beverages, and more. Its geographical segments of operation include North America and International Developed Markets.
5. Hewlett Packard Enterprise Company (NYSE:HPE)
Number of Hedge Fund Holders: 72
Hewlett Packard Enterprise Company (NYSE:HPE) is among the Best Affordable Stocks Under $40 to Buy. On February 17, Asiya Merchant from Citi lowered the price target on the stock from $28 to $26, while keeping a Buy rating. Earlier on January 13, Goldman Sachs upgraded Hewlett Packard Enterprise Company (NYSE:HPE) from Hold to Buy and raised the price target from $28 to $31.
Asiya Merchant from Citi noted that the lowered price target reflects the firm’s adjustment of the broader hardware and storage sector coverage ahead of upcoming Q4 earnings reports. The firm highlighted that the commentary on end-market demand remains mixed, signaling ongoing uncertainty in customer spending trends.
On the other hand, Goldman noted that the upgrade is based on the transformative nature of Hewlett Packard Enterprise Company’s (NYSE:HPE) Juniper Networks acquisition. The firm added that the deal has shifted the company’s revenue mix to a higher-margin and faster-growing Networking segment. Goldman expects the segment to make roughly 50% of EBIT by fiscal 2026, with the expectation to drive revenue growth of around 19% during the year. The firm finds the company to be an attractive entry point in the networking, servers, and storage sector.
Hewlett Packard Enterprise Company (NYSE:HPE), an American multinational technology company, provides high-performance computing systems, AI software, and data storage solutions for running complex AI workloads.
4. PG&E Corporation (NYSE:PCG)
Number of Hedge Fund Holders: 79
PG&E Corporation (NYSE:PCG) is among the Best Affordable Stocks Under $40 to Buy. PG&E Corporation (NYSE:PCG) has gained more than 5% since its fiscal Q4 2025 earnings, released on February 12. Wall Street maintains a positive outlook, with analysts’ 12-month price target reflecting more than 15% upside from the current levels.
Recently, on February 13, Wells Fargo reiterated a Buy rating on the stock with a $24 price target. On the same day, Ryan Levine from Citi also maintained a Buy rating on the stock with a $21 price target.
The company delivered $6.80 billion in revenue during the quarter, reflecting 2.61% year-over-year growth. Despite the growth, revenue fell short of expectations by $248.51 million. The EPS of $0.36 remained in line with expectations. Management noted that during fiscal 2025, the company delivered $1.50 core earnings per share, up 10% since 2024, marking the fourth consecutive year of double-digit growth.
Notably, management also raised the lower end of 2026 guidance by $0.02, bringing it to a range of $1.64 to $1.66. This reflects another 10% growth at the midpoint.
PG&E Corporation (NYSE:PCG), through its subsidiary, Pacific Gas and Electric Company, sells and delivers electricity and natural gas to customers in northern and central California in the US.
3. AT&T Inc. (NYSE:T)
Number of Hedge Fund Holders: 84
AT&T Inc. (NYSE:T) is among the Best Affordable Stocks Under $40 to Buy. Wall Street has a mixed opinion on AT&T Inc. (NYSE:T) since the company announced the acquisition of Lumen’s Mass Markets fiber business on February 2. The stock has gained more than 9% since the announcement.
Recently, on February 11, Jonathan Atkin from RBC Capital reiterated a Buy rating on the stock and raised the price target from $29 to $31. However, earlier on February 2, Barclays reiterated a Hold rating on the stock with a price target of $26.
AT&T Inc. (NYSE:T) completed the acquisition of Mass Markets fiber business for a $5.75 billion all-cash purchase. Management noted that the strategic acquisition adds over 1 million existing fiber subscribers right away, along with fiber infrastructure in 32 states. This speeds up the company’s fiber rollout beyond its core regions, targeting 60 million+ passable locations by 2030.
Analyst Atkin from RBC noted AT&T Inc.’s (NYSE:T) fiber expansion strategy puts the company on a long-term growth trajectory. The firm believes that this protects the company from increased competition in the wireless segment. Moreover, RBC also praised AT&T’s faster phase-out of outdated copper-based assets, which the firm believes should deliver significant free cash flow growth through 2028 and later by slashing maintenance costs.
AT&T Inc. (NYSE: T) is a leading global telecommunications company providing wireless, broadband, and, through its subsidiaries, fiber internet to consumers and businesses. It operates as a major 5G network operator in the U.S. and provides connectivity services in Mexico, focusing on high-speed internet and mobility.
2. Pfizer Inc. (NYSE:PFE)
Number of Hedge Fund Holders: 84
Pfizer Inc. (NYSE:PFE) is among the Best Affordable Stocks Under $40 to Buy. On February 17, Pfizer Inc. (NYSE:PFE) announced positive results from its key BREAKWATER trial, which is testing BRAFTOVI in combination with cetuximab and FOLFIRI in patients with metastatic colorectal cancer.
Management noted that the combination showed significant PFS improvement and better overall survival. Although the overall survival was a secondary descriptive endpoint, without statistics, it showed clinically meaningful prolonged improvement with the BRAFTOVI regimen.
Jeff Legos, Chief Oncology Officer, Pfizer, noted:
“These results build on the positive objective response rate data we recently shared, providing further evidence of the meaningful benefit this BRAFTOVI-based targeted approach may offer patients with BRAF V600E–mutant metastatic colorectal cancer.”
The combination is not yet approved by the FDA. Management plans to submit detailed results for presentation at an upcoming meeting with the FDA.
That said, recently, on February 12, Narumi Nakagiri from Daiwa downgraded Pfizer Inc. (NYSE:PFE) from Buy to Hold with a $27 price target. Earlier, on February 10, Courtney Breen from Bernstein reiterated a Hold rating on the stock with a price target of $30.
Breen from Bernstein noted that the company posted earnings beat during fiscal Q4 2025 earnings. Revenue for the quarter came in at $17.6 billion, surpassing estimates by 6%, and EPS came in at $0.66, topping consensus by 16%. However, the analyst highlighted that Pfizer has made some big bets in terms of R&D investments and oncology pipeline development. The firm sees 2026 as the year where these choices will play out; Bernstein maintains a Hold rating.
Pfizer Inc. (NYSE:PFE) operates as a research-driven global biopharmaceutical company, developing and commercializing medicines across oncology, primary care, and specialty areas for patients around the world.
1. Comcast Corporation (NASDAQ:CMCSA)
Number of Hedge Fund Holders: 84
Comcast Corporation (NASDAQ:CMCSA) is among the Best Affordable Stocks Under $40 to Buy. On February 17, Comcast Corporation (NASDAQ:CMCSA) announced positive results from a quantum computing trial in collaboration with AMD and Classiq. The goal of the trial is to prove that quantum algorithms can enhance network reliability for internet delivery.
The trial was launched last year with Classiq to test quantum software against practical network issues, including maintenance disruptions.
Elad Nafshi, Chief Network Officer, Comcast Connectivity and Platforms, noted
“What our customers want is simple: fast, secure, and reliable connectivity, but when you operate a network as large and dynamic as ours, delivering on that promise is complex, especially in the face of growing network demand.”
The progress shows that the idea of quantum computing enhancing network optimization isn’t just theoretical but practical and scalable.
That said, Comcast Corporation (NASDAQ:CMCSA) released its fiscal Q4 2025 results on January 29. During the quarter, the company grew its revenue by 1.24% year-over-year to $32.31 billion, but fell short of expectations by $26.71 million. On the bright side, the EPS of $0.84 topped the consensus by $0.08. Management notes 2025 to be the best year with 1.5 million net line additions, reaching over 9 million total lines.
Comcast Corporation (NASDAQ:CMCSA) operates as a media and technology company worldwide. It operates through Residential Connectivity & Platforms, Business Services Connectivity, Media, Studios, and Theme Parks segments.
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