In this article, we will look at the 12 Cheap NASDAQ Stocks To Buy in 2026.
The NASDAQ Composite Index has fallen more than 2.5% year-to-date, driven by stock rotation, a software sell-off, geopolitical tensions, and other factors. To talk about the state of the markets, Tom Lee from Fundstrat appeared on a CNBC Television interview on February 19. Lee expects the S&P 500 will hit 7,300 in the near-term. He noted that the stock market has taken some recent hits from the rotation away from the “Mag Seven”, software sell-off, and Gold surge. However, these hits are expected to be overturned with the strong earnings season and better economic data.
Lee highlighted that the earnings season has been impressive, with most of the companies posting huge beats. However, the stock prices have not reflected the earnings season. He added that while the fundamentals of the companies are strong, the overall geopolitical environment has impacted the multiples, thereby causing investor concerns. Lee highlighted that he expects the market to anchor on the strong fundamentals to continue to move higher, maybe at a slower-than-expected pace.
With that, let’s take a look at the 12 Cheap NASDAQ Stocks To Buy in 2026.
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Our Methodology
We used screeners to identify stocks that are trading on the NASDAQ exchange and below a forward P/E of 15, 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.
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 Cheap NASDAQ Stocks To Buy in 2026
12. Ferrovial SE (NASDAQ:FER)
Ferrovial SE (NASDAQ:FER) is one of the Cheap NASDAQ Stocks To Buy in 2026. On February 16, Ferrovial SE (NASDAQ:FER) announced landing a new £80 million contract to upgrade the Slough Sewage Treatment Works (STW) for Thames Water in the UK.
Management noted that this project will be handled by a joint venture with Cadagua. The project is aimed at modernizing the plant so that it meets stricter Environment Agency rules on wastewater quality. The joint venture plans to do this by cutting ammonia and phosphorus levels and by better handling of the storm overflows.
Moreover, the companies also plan to expand the treatment capacity by adding a new power supply and will also add a backup system for reliability and sustainability. This will result in cleaner rivers and healthier ecosystems. The project design started in November 2025, and the construction is expected to start in 2027. Management noted that this project aligns with the company’s strategy to integrate global expertise with local delivery.
Ferrovial SE (NASDAQ:FER) is a European infrastructure company that builds and operates large transport and energy assets such as roads, airports, and power networks.
11. PayPal Holdings, Inc. (NASDAQ:PYPL)
PayPal Holdings, Inc. (NASDAQ:PYPL) is one of the Cheap NASDAQ Stocks To Buy in 2026. On February 19, Jason Kupferberg from Wells Fargo reiterated a Hold rating on the stock and lowered the price target from $58 to $48. Earlier on February 10, Matthew Coad from Truist Financial downgraded PayPal Holdings, Inc. (NASDAQ:PYPL) to Sell and also lowered the price target from $58 to $39.
The cautious ratings follow the company’s fiscal Q4 2025 earnings miss. The company posted Q4 results on February 3. Revenue grew 3.71% year-over-year to $8.68 billion, but fell short of expectations by $111.49 million. Moreover, the EPS of $1.23 also fell short of the expectations by $0.06.
Management noted that they delivered growth in revenue, transaction margin dollars, and EPS. However, the company expressed a lack of satisfaction with its current execution and announced the appointment of Enrique Lores as the new CEO and President.
Earlier, Wells Fargo had also noted the earnings miss to be driven by an execution problem rather than industry challenges. The firm noted that the shares are expected to be volatile in the short term until the new CEO executes the strategy in a better way.
PayPal Holdings Inc. (NASDAQ:PYPL) operates a technology platform that enables digital payments for merchants and consumers worldwide. The company operates a two-sided network at scale that connects merchants and consumers.
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