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.
10. Telefonaktiebolaget LM Ericsson (NASDAQ:ERIC)
Telefonaktiebolaget LM Ericsson (NASDAQ:ERIC) is one of the Cheap NASDAQ Stocks To Buy in 2026. On February 18, Telefonaktiebolaget LM Ericsson (NASDAQ:ERIC) announced its partnership with Mastercard to make international money transfers earlier and faster.
As part of this partnership, Ericsson’s fintech platform will be integrated with Mastercard Move to allow telecoms, banks, and fintech companies to quickly add new digital wallet features and payment services, especially for unbanked or underbanked people.
Management noted that this partnership eases the process of adding the digital wallet feature by Ericsson’s pre-built APIs, cloud setup, and compliance tools. Moreover, the broader reach of Mastercard Move in over 200 countries enhances international connectivity. Both the partnership targets Middle Eastern and African markets, which are emerging in terms of digitization and financial technology.
Pavan Bachwal, Head of Mobile Financial Services, Ericsson, said:
“Joining forces with Mastercard marks a bold step toward the future of money movement. Combining Ericsson’s trusted, scalable platform with Mastercard Move enables our customers to launch secure and efficient payment solutions faster than we ever have before.”
Telefonaktiebolaget LM Ericsson (NASDAQ:ERIC) provides telecom infrastructure, services, and software to carriers and other industries. Its key segments include Networks, IT & Cloud, and Media.
9. Charter Communications, Inc. (NASDAQ:CHTR)
Charter Communications, Inc. (NASDAQ:CHTR) is one of the Cheap NASDAQ Stocks To Buy in 2026. On February 13, Charter Communications, Inc. (NASDAQ:CHTR) announced that it is expanding its fiber internet network in rural Harrison County. The expansion targets more than 6,700 homes and businesses.
Management noted that this expansion is part of the company’s broader strategy to add more than 100,000 miles of fiber nationwide. The company aims to reach 1.7 million new spots with symmetric multi-gigabit speeds. Notably, management noted that this multiyear expansion policy is driven by more than $7 billion in investment from the company, with no government funding.
That said, on the same day, Charter Communications, Inc. (NASDAQ:CHTR) also announced a similar expansion in rural areas of Orange County, including Orange and Vidor. Management noted expanding its fiber broadband services to over 4,000 additional homes and offices in the said region.
Charter Communications, Inc. (NASDAQ:CHTR) is a leading American broadband connectivity company and cable operator, operating under the Spectrum brand. It provides internet, TV, mobile, and voice services to over 57 million residential and business customers across 41 states.
8. Cognizant Technology Solutions Corporation (NASDAQ:CTSH)
Cognizant Technology Solutions Corporation (NASDAQ:CTSH) is one of the Cheap NASDAQ Stocks To Buy in 2026. On February 17, Cognizant Technology Solutions Corporation (NASDAQ:CTSH) announced expanding its partnership with Wallenius Wilhelmsen, which is a leading international logistics company.
Under the expanded partnership, Cognizant will provide broader technology services to Wallenius, including support for core business applications and IT infrastructure. This will enable Wallenius to evolve as an integrated supply chain provider. The partnership is pivotal as Wallenius moves away from outsourcing to forming a strategic partnership with Cognizant. Management noted that they would also modernize outdated systems and introduce AI tools for efficiency.
That said, Cognizant Technology Solutions Corporation (NASDAQ:CTSH) released fiscal Q4 2025 earnings on February 4. The company grew its quarterly revenue by 4.94% year-over-year to $5.33 billion and surpassed estimates by $22.01 million. Moreover, the company’s EPS of $1.35 also topped estimates by $0.03. Management attributed the growth to be driven by North America, particularly the financial services segment, which grew 9% year-over-year. Notably, Q4 bookings grew 9% year-over-year, driving a record quarterly total contract value.
Cognizant Technology Solutions Corporation (NASDAQ:CTSH) uses AI to help clients modernize their businesses by integrating AI into their technology, processes, and experiences to drive efficiency, growth, and innovation. Their AI strategy centers on a platform called Cognizant Neuro AI, which offers a full range of tools and services for responsible enterprise-wide AI adoption.
7. Expand Energy Corporation (NASDAQ:EXE)
Expand Energy Corporation (NASDAQ:EXE) is one of the Cheap NASDAQ Stocks To Buy in 2026. On February 17, Expand Energy Corporation (NASDAQ:EXE) released its fiscal Q4 2025 earnings. The company posted $2.31 billion in revenue, reflecting 44.51% year-over-year growth and surpassing estimates by $17.63 million. The EPS of $2 also topped the consensus by $0.11.
Management noted that they operated 12 rigs during the quarter on average. Moreover, the company drilled 51 wells and turned 66 wells in line. This resulted in a net production of roughly 7.40 Bcfe/d, out of which 92% came from natural gas.
For the full-year, management noted that they exceeded their synergy targets while improving Haynesville breakevens by approximately 15%. Looking ahead, Expand Energy Corporation (NASDAQ:EXE) expects to run 11 to 12 rigs in 2026 and also plans to invest roughly $2.85 billion, which is expected to yield daily production of approximately 7.5 Bcfe/d.
Following the release, the Street has been bullish on the stock. Recently, on February 23, Betty Jian from Barclays reiterated a Buy rating on the stock but lowered the price target slightly from $126 to $125. On the same day, Josh Silverstein from UBS also reiterated a Buy rating on the stock but lowered the price target from $150 to $135.
Expand Energy Corporation (NASDAQ:EXE) has also been under pressure from the recent decline in natural gas prices, driven by increased production and forecasts of warmer weather, which reduces the commodity’s demand for heating and energy production.
6. Cincinnati Financial Corporation (NASDAQ:CINF)
Cincinnati Financial Corporation (NASDAQ:CINF) is one of the Cheap NASDAQ Stocks To Buy in 2026. On February 9, Cincinnati Financial Corporation (NASDAQ:CINF) released its fiscal Q4 2025 earnings results. The company topped EPS and revenue estimates, but the share price has fallen more than 4% since the release.
The company grew its quarterly revenue by 21.79% year-over-year to $3.09 billion and surpassed estimates by $182.45 million. The EPS of $3.37 also topped the consensus by $0.48. Management noted Q4 2025 to be another quarter of investment income growth and net investment gains. Notably, the net income reached $676 million, reflecting 67% increase year-over-year.
Management noted that during the quarter, insurance operations produced a combined ratio of 85.2%, which was the best fourth-quarter ratio in over a decade. Moreover, the quarterly pretax investment income also grew 9% year-over-year, including a 10% increase in bond interest income.
Recently, on February 13, Joshua Shanker from Bank of America Securities reiterated a Buy rating on the stock without disclosing any price targets. Earlier on February 12, Meyer Shields from KBW also reiterated a Buy rating on Cincinnati Financial Corporation (NASDAQ:CINF) with a $191 price target.
Cincinnati Financial Corporation (NASDAQ:CINF) mainly sells business, home, and auto insurance through The Cincinnati Insurance Company and its two standard market property casualty insurance subsidiaries.
5. Fox Corporation (NASDAQ:FOX)
Fox Corporation (NASDAQ:FOX) is one of the Cheap NASDAQ Stocks To Buy in 2026. On February 10, Fox Corporation (NASDAQ:FOX) announced that Red Seat Ventures, which is a division of the company, acquired Supercast. Supercast is an online platform that helps podcast creators earn money through paid subscriptions.
Management noted that the company was launched in 2019 and its top 10 users have been pulling in roughly $26 million in annual recurring revenue. Fox Corporation (NASDAQ:FOX) noted that the acquisition is expected to enhance its creator economy play as the company targets the fast-growing podcast market. The financial details of the transaction were not disclosed, and Supercast is expected to stay independent, led by its founder/CEO, Jason Sew Hoy.
That said, Fox Corporation (NASDAQ:FOX) released its fiscal Q2 2026 earnings on February 4. The company grew its quarterly revenue by 2.05% year-over-year to $5.18 billion, and surpassed expectations by $156.19 million. The EPS of $0.82 topped consensus by $0.28. Management noted the performance was driven by distribution revenue, which grew 4% year-over-year, led by a 5% increase in Cable Network Programming revenue.
Fox Corporation (NASDAQ:FOX) operates as a news, sports, and entertainment company in the United States across its Cable Network Programming, Television, Credible, and The FOX Studio Lot segments.
4. lululemon athletica inc. (NASDAQ:LULU)
lululemon athletica inc. (NASDAQ:LULU) is one of the Cheap NASDAQ Stocks To Buy in 2026. On February 23, lululemon athletica inc. (NASDAQ:LULU) announced the launch of its 100th store in the EMEA region, which is expected to open in Poland on March 13.
Management noted that this marks a significant milestone in the company’s expansion strategy. The expansion strategy entails a blend of company and franchise-operated stores. The new store in Poland will be a franchise operated by the Arion Retail Group. lululemon athletica inc. (NASDAQ:LULU) announced the expansion strategy a year ago, under which it plans to enter six new markets through a franchise partnership model. After Poland, the company plans to enter other markets, including Hungary, Romania, Greece, India, and Austria.
Earlier, on February 10, the company also launched a new line of high-performance gym wear designed specifically for heavy weightlifting and intense strength training. The new line is called Unrestricted Power, and management noted that it is available in North American stores immediately.
Founded in 1988, Lululemon Athletica Inc. (NASDAQ:LULU) is a luxury athletic apparel, footwear, and accessories retailer that sells leisure-athletic wear and accessories such as socks, bags, and yoga mats for fitness activities.
3. T. Rowe Price Group, Inc. (NASDAQ:TROW)
T. Rowe Price Group, Inc. (NASDAQ:TROW) is one of the Cheap NASDAQ Stocks To Buy in 2026. On February 11, T. Rowe Price Group, Inc. (NASDAQ:TROW) announced its assets under management for January 2026.
The company reported $1.797 trillion in assets under management, up from $1.776 trillion in January 2025. The major increase was recorded in multi-assets, which grew from $627 billion a year ago to $646 billion in 2026. Moreover, both the fixed income and alternatives grew by $1 billion during the year. Lastly, the Equity assets remained the same at $879 billion.
T. Rowe Price Group, Inc. (NASDAQ:TROW) announced its fiscal Q4 2025 earnings results on February 4. The company posted a revenue of $1.94 billion, reflecting 6.41% year-over-year growth and surpassing estimates by $3.54 million. However, the EPS of $2.44 fell short of the expectations by $0.02.
Management noted closing 2025 with $1.78 trillion in assets under management, up 10% year-over-year despite $56.9 billion in net outflows. The company saw contracted net outflows in its equity and mutual fund business. Moreover, the gross sales for 2025 were also more than 40% higher than in 2023, but were offset by greater-than-anticipated redemptions, driven by performance shortfalls and portfolio rebalancing due to elevated equity markets.
T. Rowe Price Group, Inc. (NASDAQ:TROW) is a financial services holding company that offers investment advisory services worldwide. Its platform spans equity, fixed income, multi-asset, and alternative strategies, serving a broad client base that includes individual investors, financial advisors, institutions, and retirement plan sponsors.
2. Plains All American Pipeline, L.P. (NASDAQ:PAA)
Plains All American Pipeline, L.P. (NASDAQ:PAA) is one of the Cheap NASDAQ Stocks To Buy in 2026. On February 6, Plains All American Pipeline, L.P. (NASDAQ:PAA) released its fiscal Q4 2025 earnings. The company missed Wall Street estimates; however, the stock has gained more than 7% since the release.
The company posted a revenue of $10.57 billion in revenue, reflecting a 14.81% year-over-year decline and also missed estimates by $1.31 billion. The EPS of $0.40 also fell short of the consensus by $0.10. Management noted that the muted performance was due to multiple market challenges, including the geopolitical unrest, actions from OPEC to increase oil supply, and uncertainty on the economic impact from tariffs.
Despite these challenges, Plains All American Pipeline, L.P. (NASDAQ:PAA) remains focused on its transition to become a pure play crude company. Management noted that they are targeting $100 million in annual savings through 2027, out of which 50% are expected to be realized in 2026.
Founded in 1998, Plains All American Pipeline, L.P. (NASDAQ:PAA) is a midstream master limited partnership specializing in the transportation, storage, and marketing of crude oil and NGLs. The Texas-based company operates a massive infrastructure network across the United States and Canada.
1. XP Inc. (NASDAQ:XP)
XP Inc. (NASDAQ:XP) is one of the Cheap NASDAQ Stocks To Buy in 2026. On February 12, XP Inc. (NASDAQ:XP) released its fiscal Q4 2025 earnings. The stock has gained around 10% since the release. Wall Street is also bullish on the stock, with 77% of the 13 analysts covering the stock having a Buy rating.
During the quarter, the company grew its revenue by 20.35% year-over-year to $949.81 million, surpassing estimates by $37.46 million. The EPS of $0.49 also came in ahead of the expectations by $0.01. Management noted growing their full-year gross revenues by 8% year-over-year to BRL 19.5 billion. The company had noted that the second half of 2025 would witness double-digit growth, and fourth quarter results revealed that the company achieved more than 10% year-over-year growth in the second half.
Despite the 8% revenue growth in 2025, management noted it to be a challenging year due to a conservative mix, with shorter investment duration and lower market activity. Looking ahead, the company plans to continue focusing on its three-pillar strategy that includes leadership in investment, complementary retail offering, and wholesale banking.
XP Inc. (NASDAQ:XP) is a technology-enabled platform offering a range of investment, credit, and pension products at low fees. They deliver wealth management, investment funds, and private pension services, covering diverse asset classes including equities, fixed income, and alternatives across both public and private markets.
While we acknowledge the potential of XP 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 XP and that has 100x upside potential, check out our report about this cheapest AI stock.
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