In this article, we will look at the 12 Cheap NASDAQ Stocks to Buy Now.
On December 3, Michael Kantrowitz, Chief Investment Strategist at Piper Sandler, appeared on CNBC television to discuss the market outlook for 2026. He believes that the backdrop is strong for the stock market heading into 2026. Kantrowitz highlighted that the market has been focused a lot on interest rates, similar to the 2022-23 market, where inflation was in the spotlight. Currently, the softer labor market has emerged as a new concern. Kantrowitz noted that investors need to look further back in history to be able to better understand the market today.
He suggests that the current market set-up points towards a softer labor market, paving the way for lower interest rates. Kantrowitz added that examples from recent times suggest that the stock market performance has an inverse relation with interest rates. Therefore, lower interest rates induced by a weaker labor market will help the stock market go even higher in 2026.
Kantrowitz added that higher interest rates have been one of the key factors preventing the broadening of the market. He expects 2026 to be a year of broadening out, favored by a lower interest rate environment, which will help underperforming sectors, including manufacturing, transportation, and housing, to rebound.
With that, let’s take a look at the 12 Cheap NASDAQ Stocks to Buy Now.
Our Methodology
To compile the list of 12 Cheap NASDAQ Stocks to Buy Now, 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 on the NASDAQ stock exchange with a forward price-to-earnings ratio below 15. Next, we sorted the list by market capitalization and cross-checked the P/E ratios from Seeking Alpha. Lastly, we ranked the stocks in ascending order of the number of hedge fund holders. Please note that the data was recorded on Friday, December 5, 2025.
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 Now
12. Sanofi (NASDAQ:SNY)
Forward P/E Ratio: 10.7
Number of Hedge Fund Holders: 32
Sanofi (NASDAQ:SNY) is one of the Cheap NASDAQ Stocks to Buy Now. On December 4, Sanofi (NASDAQ:SNY) announced the completion of the Vicebio acquisition. Vicebio is a clinical-stage biotechnology company focused on developing transformative multi-pathogen vaccines for respiratory viral infections.
Management noted that this strategic acquisition brings Vicebio’s early-stage vaccine candidate for respiratory syncytial virus and human metapneumovirus under Sanofi’s portfolio. Moreover, the company also noted that the acquisition will allow it to enhance vaccine design and development using Vicebio’s Molecular Clamp technology.
Earlier on November 25, Sanofi (NASDAQ:SNY) announced that its jointly developed program with Regeneron called Dupilumab was approved by the European Commission to treat moderate-to-severe chronic spontaneous urticaria in adult and adolescent patients 12 years and above. Management noted that Dupilumab can be used as a first-line targeted treatment option.
The EU approval was based on positive results from the Phase 3 study, which showed Dupilumab reduced symptoms at 24 weeks compared to the placebo. The addressable market in the EU is significant, as there are over 270,000 adults and adolescents aged 12 years and older with chronic spontaneous urticaria.
Sanofi (NASDAQ:SNY) researches, produces, and distributes pharmaceutical products. The company’s operations are divided into the Pharmaceuticals, Consumer Healthcare, and Vaccines segments.
11. Trip.com Group Limited (NASDAQ:TCOM)
Forward P/E Ratio: 11.01
Number of Hedge Fund Holders: 37
Trip.com Group Limited (NASDAQ:TCOM) is one of the Cheap NASDAQ Stocks to Buy Now. Wall Street has a positive outlook on Trip.com Group Limited (NASDAQ:TCOM) since the company topped estimates during its fiscal Q3 2025 earnings release on November 17.
On November 26, Yang Liu, CFA from Morgan Stanley, reiterated a Buy rating on the stock with a price target of $86. Earlier on November 20, Joyce Ju from Bank of America Securities raised the firm’s price target from $83 to $85, while reiterating a Buy rating on the stock.
Trip.com Group Limited (NASDAQ:TCOM) during the fiscal Q3 grew its revenue by 17.64% year-over-year to $2.58 billion, surpassing estimates by $18.41 million. Moreover, the EPS of $3.88 also topped estimates by $2.75. The performance was mainly driven by strong cross-border travel momentum. Management noted the overall bookings on its international OTA platform grew by 60% year-over-year, whereas the inbound travel bookings increased by more than 100% during the same time.
Joyce Ju from Bank of America Securities expects Trip.com Group Limited (NASDAQ:TCOM) to grow its international revenue by around 50% to 60% during Q4. He anticipates the international segment will represent a high teen percentage of the total revenue.
Trip.com Group Limited (NASDAQ:TCOM) provides end-to-end solutions for the corporate travel, lodging, tour, and transportation sectors.
10. Fifth Third Bancorp (NASDAQ:FITB)
Forward P/E Ratio: 12.82
Number of Hedge Fund Holders: 39
Fifth Third Bancorp (NASDAQ:FITB) is one of the Cheap NASDAQ Stocks to Buy Now. On December 3, Fifth Third Bancorp (NASDAQ:FITB) reached a major milestone in the Southeast expansion strategy by announcing the opening of its 200th financial center in Florida and 100th center in the Carolinas.
The new openings reflect the bank’s execution of its commitment to expanding in high-growth markets. Fifth Third Bancorp (NASDAQ:FITB) has accelerated its expansion during the year and now has more than 1,100 banking centers nationwide. Management noted that the expansion will further accelerate after the completion of the planned acquisition of Comerica in the first half of 2026. The Comerica acquisition was announced earlier on October 6.
Earlier on November 7, management of Fifth Third Bancorp (NASDAQ:FITB) presented at The BancAnalysts Association of Boston Conference. Management noted that they expect the Comerica acquisition to drive growth over the next 5 to 10 years. Moreover, the company also pointed towards its plan to expand in Texas and the Southeast.
Fifth Third Bancorp (NASDAQ:FITB) is an American diversified financial services company that offers comprehensive banking solutions according to the needs of small businesses, middle-market companies, and large corporations.
9. Arch Capital Group Ltd. (NASDAQ:ACGL)
Forward P/E Ratio: 10.03
Number of Hedge Fund Holders: 40
Arch Capital Group Ltd. (NASDAQ:ACGL) is one of the Cheap NASDAQ Stocks to Buy Now. On December 2, Harry Fong from Roth MKM lowered the firm’s price target on the stock from $125 to $110, while reiterating a Buy rating. Earlier on November 24, Rowland Mayor from RBC Capital initiated Arch Capital Group Ltd. (NASDAQ:ACGL) with a Buy rating and $108 price target.
Harry Fong from Roth MKM lowered the price target on the stock mainly due to the mixed results from its Q3 2025 earnings release on October 27. He noted that the written premium growth during the quarter was below expectations, and he sees this trend continuing in the future.
During the quarter, the company reported a 2.05% year-over-year decrease in revenue to $3.96 billion, which fell short of expectations by $446 million. However, the EPS of $2.77 topped consensus by $0.52. The soft performance was attributed to a 0.6% decrease in gross premium written and a 2.1% decrease in net premium written.
On the other hand, RBC Capital’s Rowland Mayor noted that he sees strong return on equity and book value per share growth amongst insurance carriers. Regarding Arch Capital Group Ltd. (NASDAQ:ACGL), the analyst expects a slowdown in top-line due to a slower mortgage and reinsurance environment. However, he expects the slowdown to be offset by strong underwriting margins and growing net investment income.
Arch Capital Group Ltd. (NASDAQ:ACGL), headquartered in Pembroke, Bermuda, is a company that offers insurance, reinsurance, and mortgage insurance products. Founded in 1995, the company is dedicated to sustainable financial growth.
8. Diamondback Energy, Inc. (NASDAQ:FANG)
Forward P/E Ratio: 12.26
Number of Hedge Fund Holders: 42
Diamondback Energy, Inc. (NASDAQ:FANG) is one of the Cheap NASDAQ Stocks to Buy Now. On December 2, Neil Mehta from Goldman Sachs reiterated a Buy rating on Diamondback Energy, Inc. (NASDAQ:FANG) with a $179 price target. On the same day, UBS reiterated a Buy rating on the stock with a price target of $174.
Wall Street has had a positive sentiment on the stock since the company topped estimates during its fiscal Q3 2025 earnings release on November 3. The share price has gained more than 12% since the release. During the quarter, the company grew its revenue by 48.36% year-over-year to $3.92 billion, surpassing estimates by $394.29 million. Moreover, the EPS of $3.08 also topped the consensus by $0.14. The performance was driven by increased average oil production of 503.8 MBO/d, up from 495.7 MBO/d during the quarter.
In addition, Diamondback Energy, Inc. (NASDAQ:FANG) also raised its full-year production guidance to 495 MBO/d – 498 MBO/d, up from the previous range of 485 – 492 MBO/d. The annual BOE guidance was also raised further from the 2% increase in Q2 2025 to 910 MBOE/d – 920 MBOE/d in Q3 2025.
Diamondback Energy, Inc. (NASDAQ:FANG) is an independent oil and natural gas company that focuses on exploring, acquiring, and developing onshore unconventional reserves in the Permian Basin, West Texas.
7. Charter Communications, Inc. (NASDAQ:CHTR)
Forward P/E Ratio: 5.55
Number of Hedge Fund Holders: 53
Charter Communications, Inc. (NASDAQ:CHTR) is one of the Cheap NASDAQ Stocks to Buy Now. On December 2, Keith Snyder CFA from CFRA downgraded Charter Communications, Inc. (NASDAQ:CHTR) from Hold to Sell and lowered the price target from $285 to $165. Earlier on November 4, Timothy Horan from Oppenheimer also downgraded the stock from Buy to Hold, without disclosing any price target.
The share price of the company has fallen more than 41% year-to-date and more than 12% since the fiscal Q3 2025 earnings release announced on October 31. Charter Communications, Inc. (NASDAQ:CHTR) reported a 0.89% year-over-year decrease in revenue, which missed estimates by $77.39 million. Moreover, the EPS of $8.34 also missed expectations by $0.98.
The shares have been weighed down due to dropping broadband subscribers, which became more evident in fiscal Q3. The company reported a decline of 109,000 internet customers during the quarter. Management noted that the revenue was also impacted by lower residential video and advertising sales.
Keith Snyder CFA from CFRA noted that the continuous decline in broadband customers questions the management’s ability to turn its business around. The analyst added that the company’s deal with Cox Communications, announced on May 16, to combine and create an industry leader in mobile, broadband communications, will play little role in addressing the negative trends in the industry.
Charter Communications Inc. (NASDAQ:CHTR) operates as a broadband connectivity and cable operator company serving residential and commercial customers in the US.
6. JD.com, Inc. (NASDAQ:JD)
Forward P/E Ratio: 11
Number of Hedge Fund Holders: 55
JD.com, Inc. (NASDAQ:JD) is one of the Cheap NASDAQ Stocks to Buy Now. On December 3, JD.com, Inc.’s (NASDAQ:JD) subsidiary JD Cloud announced the launch of an AIGC content generation platform, called JD Cloud Lingjing.
The platform is an enterprise-level one-stop AIGC platform that has all the latest services from models, including Vidu, Paiwo AI, Hailuo AI, and Keling AI, integrated within a single platform. Management noted that as a result of these integrations, the platform will allow users to access all capabilities, including text-to-image, image-to-image, text-to-video, and image-to-video. Moreover, users will also have the leverage to choose between different models for content creation to achieve effective collaborative creation.
In other news, on November 26, the company’s infrastructure investment and management platform called JINGDONG Property announced signing a MoU with Saudia’s MODON. The MoU entails JD.com, Inc.’s (NASDAQ:JD) partnership with MODON to develop and operate two million square meters of industrial and logistic projects across the industrial cities. Management noted that this collaboration is an important step that aligns with the company’s investment and expansion plan in the region. The MoU was signed at the UNIDO General Conference (UNIDO GC21) in Riyadh.
JD.com, Inc. (NASDAQ:JD) is an e-commerce company that focuses on online retail and marketplace services. It allows users to sell and purchase a wide range of products from technology equipment to day-to-day products.
5. United Airlines Holdings, Inc. (NASDAQ:UAL)
Forward P/E Ratio: 9.83
Number of Hedge Fund Holders: 66
United Airlines Holdings, Inc. (NASDAQ:UAL) is one of the Cheap NASDAQ Stocks to Buy Now. On December 5, John Godyn from Citi initiated United Airlines Holdings, Inc. (NASDAQ:UAL) with a Buy rating and a $132 price target. Earlier on December 3, Catherine O’Brien from Goldman Sachs reiterated a Buy rating on the stock with a price target of $115.
Godyn of Citi sees a positive setup for airline stocks heading into 2026. He anticipates that 2026 will see the beginning of an elongated mid-cycle for the airline stocks. Moreover, he added that the setup will benefit large airline companies as they offer better risk/reward, while the lower-cost carriers are expected to underperform during this time.
In addition, on December 2, United Airlines Holdings, Inc. (NASDAQ:UAL) announced its long-term strategic partnership with Travelport to accelerate modern airline retailing. Travelport is a multi-source content provider. Through this partnership, Travelport will gain access to UAL’s New Distribution Capability technology and enable the accelerated development and deployment of next-level New Distribution Capability functionality for travel agencies and corporate buyers.
According to the report, the partnership is expected to enhance Travelport+’s retail platform and will also see the integration of UAL’s Online Booking Tool into Travelport’s Deem OBT and Travelport+ platforms. Management expects the initial rollout in 2026, followed by phased feature launches.
United Airlines Holdings, Inc. (NASDAQ:UAL) is an Illinois-based provider of air transportation services through its subsidiaries. Founded in 1968, the company also engages in ground handling, flight academy, and maintenance services for external parties.
4. PDD Holdings Inc. (NASDAQ:PDD)
Forward P/E Ratio: 10.93
Number of Hedge Fund Holders: 73
PDD Holdings Inc. (NASDAQ:PDD) is one of the Cheap NASDAQ Stocks to Buy Now. On December 1, Reuters reported that Tom Cotton, who is a Republican Senator in the United States, sent a letter to Attorney General Pam Bondi asking for the US Department of Justice and Homeland Security to investigate PDD Holdings Inc.’s (NASDAQ:PDD) online retail platform Temu and privately held Shein for large-scale intellectual property theft and counterfeiting.
PDD Holdings Inc. (NASDAQ:PDD) had faced similar accusations regarding Temu from the European Commission. The European Commission in July noted that Temu was breaking EU rules by not preventing counterfeit goods on its platform. As a result, management had assured the European Commission of its full cooperation to ensure compliance with EU rules.
The holding company of Temu, PDD Holdings Inc. (NASDAQ:PDD), is facing challenges due to increased competition and evolving global regulations. The company posted its fiscal Q3 2025 results on November 18. It grew its quarterly revenue by 10.97% year-over-year to $15.23 billion, but fell short of expectations by $64.64 million. However, the EPS of $2.97 topped estimates by $0.63.
Management noted that the revenue growth during the quarter remained under pressure, mainly due to intensified competition in the e-commerce sector. The company has launched several initiatives to improve its platform, including a RMB 10 billion fee reduction program and the RMB 100 billion support program. Management highlighted that these initiatives continue to weigh down the revenue growth and that the quarterly performance should not be considered guidance for future performance.
After the release, Benchmark maintained a Buy rating on PDD Holdings Inc. (NASDAQ:PDD) with a $160 price target. The firm noted that the quarterly performance reflected expected fluctuations due to the company’s strategic initiatives. Benchmark believes that these initiatives will improve the platform and also help the company build a long-term ecosystem.
PDD Holdings Inc. (NASDAQ:PDD) is a multinational commerce company that connects businesses and consumers through digital platforms.
3. Fiserv, Inc. (NASDAQ:FISV)
Forward P/E Ratio: 7.69
Number of Hedge Fund Holders: 83
Fiserv, Inc. (NASDAQ:FISV) is one of the Cheap NASDAQ Stocks to Buy Now. On December 4, Tien Tsin Huang from J.P. Morgan downgraded Fiserv, Inc. (NASDAQ:FISV) from Buy to Hold while maintaining a price target of $85. Earlier on December 2, UBS also maintained a Hold rating on the stock with a $75 price target
Analyst Tsin Huang of J.P. Morgan expects 2026 to mark the reset for the Fintech sector. He noted 2025 to be the worst year for the sector in 15 years, characterised by slower growth. While Huang likes companies with pricing power, solid front-book momentum, and strong incremental margins, he suggested investors “steer clear of turnarounds such as Fiserv, Inc. (NASDAQ:FISV).” He added that 2026 will demand execution and investment from the company, therefore “a lot can go right,” and “a lot can disappoint too,” noted Huang of J.P. Morgan.
Similarly, analysts at UBS also have a conservative outlook on the stock. The firm noted that the company expects full-year margins to decline by around 200 basis points, while the fourth quarter margins are expected to drop by more than 750 basis points. The firm added that the Financial Solutions segment of the company is also not expected to deliver any solid margin change from its 500 basis point decline in Q3 2025. Therefore, considering the muted performance, the firm maintained a Neutral stance on Fiserv, Inc. (NASDAQ:FISV).
Fiserv, Inc. (NASDAQ:FISV) is a global leader in financial technology and payments, providing services to financial institutions, businesses, and merchants. The company offers solutions for account processing, digital banking, e-commerce, fee processing, risk management, and data analytics.
2. Comcast Corporation (NASDAQ:CMCSA)
Forward P/E Ratio: 6.44
Number of Hedge Fund Holders: 84
Comcast Corporation (NASDAQ:CMCSA) is one of the Cheap NASDAQ Stocks to Buy Now. On December 3, Comcast Corporation (NASDAQ:CMCSA) announced that its Board of Directors had approved the separation of cable television networks and complementary digital platforms from its remaining businesses. This will result in the creation of a new independent publicly traded company called Versant Media Group, Inc.
Management noted that the separation will be achieved through pro rata distribution of 100% of the outstanding shares of Versant Class A common stock and Versant Class B common stock. Shareholders of Comcast A and Comcast B will receive one share of Versant for every 25 shares of Comcast. The distribution is expected on January 2, 2026.
On the other hand, Wall Street has a conservative outlook on Comcast Corporation (NASDAQ:CMCSA) due to a more than 27% fall in share price year-to-date. On December 2, Kannan Venkateshwar from Barclays lowered the firm’s price target on the stock from $34 to $30 and maintained a Hold rating. Earlier, on December 1, Barton Crockett from Rosenblatt Securities also lowered the price target from $33 to $30, while keeping a Hold rating on the stock.
Analyst Crockett noted that Comcast Corporation (NASDAQ:CMCSA) faces a reset in its Connectivity & Platforms segment. The firm expects 2026 to be a reset year as the company absorbs lower ARPU due to its transition to simpler broadband packaging and free wireless. However, 2027 is anticipated to be the year of growth as the company would build upon its base to resume regular price hikes and roll out free wireless offers.
Comcast Corporation (NASDAQ:CMCSA) is a major American media, tech, and telecom conglomerate.
1. PayPal Holdings, Inc. (NASDAQ:PYPL)
Forward P/E Ratio: 11.53
Number of Hedge Fund Holders: 86
PayPal Holdings, Inc. (NASDAQ:PYPL) is one of the Cheap NASDAQ Stocks to Buy Now. PayPal Holdings, Inc. (NASDAQ:PYPL) has declined more than 14.5% since its fiscal Q3 2025 earnings release on October 28. Wall Street maintains a cautious outlook on the stock despite the earnings beat in the latest quarter, mainly due to anticipated weakness in its Branded Checkout total payment volume during the next quarter.
On December 5, Nate Svensson from Deutsche Bank lowered the firm’s price target on the stock from $75 to $65, while reiterating a Hold rating. Earlier on December 4, Timothy Chiodo from UBS also reiterated a Hold rating on the stock with a $80 price target.
Analyst Timothy Chiodo of UBS noted that Jamie S. Miller, PayPal’s Chief Financial and Operating Officer, pointed towards a deceleration in the company’s Branded Checkout total payment volume in Q4 2025. This is mainly due to a challenging year-over-year comparison, which the management anticipates fading in Q4, and the ongoing macroeconomic pressures.
However, regardless of the ongoing pressure, PayPal Holdings, Inc. (NASDAQ:PYPL) raised its full-year guidance during the Q3 2025 earnings release. Management now expects GAAP EPS in the range of $5.11 – $5.15, up from the previous range of $4.90 – $5.05.
PayPal Holdings, Inc. (NASDAQ:PYPL) is a technology company that provides digital and mobile payment solutions for consumers and merchants through platforms like PayPal, Venmo, and Braintree. It facilitates online and in-person transactions, allowing users to send and receive money and make payments securely without directly sharing their financial information.
While we acknowledge the potential of PYPL 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 PYPL and that has 100x upside potential, check out our report about this cheapest AI stock.
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