In this article, we will discuss 12 Best Very Cheap Stocks to Buy in 2026.

Stocks with a low forward price-to-earnings (P/E) ratio are often viewed as attractive because they suggest investors are paying relatively little for each dollar of expected future earnings. Unlike the trailing P/E ratio, which reflects past profitability, the forward P/E is based on analysts’ projections of future profits. This makes it a more forward-looking valuation metric and a useful tool for identifying stocks that may be undervalued relative to their earnings potential. When a company trades at a low forward P/E despite solid fundamentals or improving growth prospects, it can signal an opportunity for investors to enter at a compelling price before the broader market fully recognizes its value.

One of the primary appeals of a low forward P/E ratio is its ability to highlight potential undervaluation. If the multiple is meaningfully below that of industry peers or the broader market, it may indicate the stock is priced conservatively relative to its expected earnings trajectory. In many cases, when a company’s trailing P/E is higher than its forward P/E, it reflects expectations of rising profits in the coming years. As earnings grow, the valuation effectively becomes more attractive on a forward basis, which can support long-term share price appreciation.

For investors evaluating potential stock purchases, the forward P/E ratio serves as a particularly valuable screening tool because it focuses on future performance rather than historical results. Markets are inherently forward-looking, and valuations tend to adjust based on anticipated growth rather than past achievements. As a result, companies trading at low forward multiples can offer a favorable risk-reward profile, especially if their earnings outlook remains stable or improves.

Low forward P/E stocks are, therefore, especially appealing to value-oriented investors who prioritize a margin of safety and disciplined entry points. Rather than paying premium valuations for anticipated growth, these investors seek companies where expectations are already modest. In some cases, subdued valuations may reflect cautious market sentiment. If the company ultimately delivers stronger-than-expected results, the gap between perception and performance can lead to both earnings-driven gains and valuation multiple expansion, amplifying overall returns.

With this context in mind, here is a list of the 12 best very cheap stocks to buy in 2026.

Our Methodology

We used screeners to identify stocks that are trading below a forward P/E of 10, and limited our final selection to companies that have recently reported noteworthy developments likely to impact investor sentiment. These stocks are also popular among analysts and elite hedge funds. To make this list easier to navigate, we have ranked stocks in descending order of their forward P/E.

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 Very Cheap Stocks to Buy in 2026

12. KeyCorp (NYSE:KEY)

Forward P/E: 9.31

On March 2, Morgan Stanley raised the firm’s price target on KeyCorp (NYSE:KEY) to $26 from $24 while maintaining an Equal Weight rating on the shares. The firm said it is increasing price targets across the mid-cap banking group by a median of 8%. Although the bank group has recently outperformed the broader market—raising the bar for further upside—Morgan Stanley remains optimistic about the sector’s outlook. The firm cited several potential tailwinds, including stronger loan growth, expanding net interest margins, and continued capital return to shareholders.

On February 24, Robert W. Baird & Co. upgraded KeyCorp (NYSE:KEY) to Neutral from Underperform while keeping its price target unchanged at $19. The firm attributed the upgrade primarily to valuation after a recent selloff in regional bank stocks. According to the analyst, the sector declined amid fears about artificial intelligence potentially disrupting the banking industry, concerns that were amplified by a blog post over the weekend outlining potential macroeconomic stress scenarios. Baird argued that those projections—such as unemployment reaching 11% and severe credit deterioration tied to a weakening U.S. consumer—appear excessive. With shares trading around 1.5 times tangible book value, the firm believes the stock presents a balanced risk-reward profile. Additionally, Baird suggested that banks are more likely to benefit from AI adoption through efficiency gains rather than face meaningful disruption from the technology.

KeyCorp (NYSE:KEY) is a major U.S. regional bank headquartered in Cleveland, Ohio, with approximately $187 billion in assets as of late 2025. Operating primarily through its banking subsidiary KeyBank, the company serves customers across 15 states, offering consumer and commercial banking, mortgage lending, and investment services.

11. The Carlyle Group Inc. (NASDAQ:CG)

Forward P/E: 8.99

On March 2, Barclays lowered the firm’s price target on The Carlyle Group Inc. (NASDAQ:CG) to $68 from $71 while maintaining an Overweight rating on the shares. The firm revised its estimates across the alternative asset manager sector. Although Barclays noted that it remains too early to determine the full impact of artificial intelligence on the portfolio companies held by private equity firms, the analyst said the firm reduced earnings projections tied to business development company activity due to lower expected capital flows and realizations.

In contrast, on February 27, TD Cowen raised its price target on The Carlyle Group Inc. (NASDAQ:CG) to $67 from $65 while reiterating a Buy rating. The firm attended the company’s investor day and came away with two key conclusions. First, analysts believe Carlyle has successfully transitioned from an extended period of internal restructuring and strategic repositioning toward a phase of stronger operational execution. Second, the firm sees the company’s pathway to more than $6 in distributable earnings per share by 2028 as both compelling and conservative, suggesting potential upside if performance continues to improve.

The Carlyle Group Inc. (NASDAQ:CG) is a global investment firm headquartered in Washington, D.C. Founded in 1987, the company manages approximately $477 billion in assets across 678 investment vehicles as of early 2026. Carlyle specializes in private equity, global credit, and investment solutions, including those offered through its subsidiary AlpInvest Partners.