In this article, we discuss the 12 Cheap Value Stocks to Buy Now According to Seth Klarman.
Seth Klarman, one of the most esteemed figures in value investing, has achieved success through his steadfast commitment to holding investments for the long term, allowing intrinsic value to be fully realized. This principle defines his core philosophy behind his success in deep value investing.
Seth Klarman, as CEO and Portfolio Manager of The Baupost Group, has managed the company’s investments since its founding in May 1982. As of March 2023, Baupost has $27.4 billion under management, securing it the 11th spot on the list of the largest hedge funds in the world. The Boston-based firm offers its services to both individual and institutional clients globally.
Furthermore, his rare, out-of-print book “Margin of Safety,” which is popular among value investors, extends his influence beyond the trading floor. It can fetch as much as $1,700 on Amazon. Interestingly, Klarman’s name is included in Baupost’s name, which is derived from the initials of its original founders. This dates back to when a Harvard professor called the freshly graduated Klarman to help manage the start-up fund, marking the start of a remarkable investing legacy.
With this backdrop, let’s move to our list of the 12 Cheap Value Stocks to Buy Now According to Seth Klarman.
Seth Klarman of Baupost Group
Our Methodology
To curate our list of the 12 Cheap Value Stocks to Buy Now According to Seth Klarman, we scanned Baupost Group’s investment portfolio to extract stocks trading under a forward price-to-earnings multiple of 21x, as of the time of writing. We ranked the shortlisted stocks in ascending order based on Baupost Group’s stake in them. We also considered hedge fund sentiment surrounding these stocks as of Q1 2025, using Insider Monkey’s hedge fund database that tracks over 1,000 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 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here).
12. Clarivate Plc (NYSE:CLVT)
Baupost Group Stake Value: $42,357,000
Forward Price-to-Earnings: 5.85
Number of Hedge Fund Holders: 25
With a low price-to-earnings multiple and a significant presence in Seth Klarman’s investment portfolio, Clarivate Plc (NYSE:CLVT) earns a spot on our list of the 12 Cheap Value Stocks to Buy Now According to Seth Klarman.
On July 30, 2025, Clarivate Plc (NYSE:CLVT) appointed Maroun S. Mourad to the role of President of its Intellectual Property segment, effective September 8, 2025. The newly appointed President will succeed Gordon Samson, who will be retiring at year-end after decades in the IP industry.
Mourad brings over 25 years of experience in data analytics, software, and technology-enabled services. He most recently led the Claims Solutions division at Verisk Analytics, handling product portfolios, services, and acquisitions globally. Clarivate Plc (NYSE:CLVT)’s CEO sees the appointment as a strategic move to drive long-term, predictable growth in the IP segment.
Clarivate Plc (NYSE:CLVT)’s IP segment offers trusted data, software, and expertise across the full lifecycle of intellectual property assets.
With its data, insights, workflow solutions, and expert services across various sectors, Clarivate Plc (NYSE:CLVT) operates as a leading global provider of transformative intelligence. It is included in our list of cheap value stocks to buy.
11. Herbalife Ltd. (NYSE:HLF)
Baupost Group Stake Value: $65,593,000
Forward Price-to-Earnings: 4.24
Number of Hedge Fund Holders: 31
Herbalife Ltd. (NYSE:HLF) is included in our list of the 12 Cheap Value Stocks to Buy Now According to Seth Klarman.
On August 6, 2025, Herbalife Ltd. (NYSE:HLF) reported its results for Q2 2025. The company recorded net sales of $1.3 billion, which were down 1.7% year-over-year and flat on a constant currency basis. Meanwhile, its adjusted EBITDA of $173.6 million surpassed guidance. As such, HLF increased its full-year 2025 net sales and adjusted EBITDA outlook and lowered Capex forecasts.
Herbalife Ltd. (NYSE:HLF)’s management expressed increasing confidence following the July launches of MultiBurn, a multifunctional weight-loss supplement, and the beta release of the AI-assisted Pro2col digital platform. Over 7,000 distributors are already engaged ahead of a Q4 U.S. and Puerto Rico rollout. During the quarter, the company’s distributor growth remained strong, with Latin America leading the segment with a 16% YoY growth.
Ahead of the earnings release, Mizuho lifted its price target on Herbalife Ltd. (NYSE:HLF) from $8 to $9, maintaining a ‘Neutral’ rating. The company also maintained its financial health steady at the quarter-end, redeeming $50 million of its 7.875% Senior Notes due 2025, maintaining leverage at 3.0x.
Offering science-backed nutrition products and a global distributor-driven business model, Herbalife Ltd. (NYSE:HLF) operates as a leading health and wellness company. It is included in our list of cheap value stocks to buy.
10. ICON Public Limited Company (NASDAQ:ICLR)
Baupost Group Stake Value: $70,871,000
Forward Price-to-Earnings: 11.89
Number of Hedge Fund Holders: 44
With a low price-to-earnings multiple and a significant presence in Seth Klarman’s investment portfolio, ICON Public Limited Company (NASDAQ:ICLR) earns a spot on our list of the 12 Cheap Value Stocks to Buy Now According to Seth Klarman.
On July 25, 2025, Mizuho raised its price target on ICON Public Limited Company (NASDAQ:ICLR) from $173 to $225, maintaining an ‘Outperform’ rating. The price revision is attributed to the company’s stronger-than-expected operational metrics. Eliminating earlier fears of a slowdown, its quarterly booking trends remained stable. Furthermore, improved cancellation rates and easing trial delays boosted confidence in the company’s execution.
Moreover, the analyst feels enhanced earnings visibility for 2026 for ICON Public Limited Company (NASDAQ:ICLR), indicating a stronger growth trajectory, in spite of macro uncertainties in the clinical research market. Thus, the analyst’s price revision reflects both the short-term momentum and long-term strategic positioning, increasing the possibility of the company capturing a larger share of clinical trial demand in the coming years.
ICON Public Limited Company (NASDAQ:ICLR) executes clinical research globally, offering outsourced development and commercialization services. It is included in our list of cheap value stocks to buy.
9. Solventum Corporation (NYSE:SOLV)
Baupost Group Stake Value: $80,088,000
Forward Price-to-Earnings: 13.23
Number of Hedge Fund Holders: 38
Solventum Corporation (NYSE:SOLV) is included in our list of the 12 Cheap Value Stocks to Buy Now According to Seth Klarman.
On August 7, 2025, Solventum Corporation (NYSE:SOLV) announced its results for Q2 2025. The quarter marked the fifth consecutive quarter of positive volume growth, with the company recording sales of $2.2 billion, up 3.9% YoY (2.8% organic). This helped Solventum deliver an adjusted EPS of $1.69, beating expectations, along with an operating cash flow of $169 million.
Looking ahead, Solventum Corporation (NYSE:SOLV) raised its 2025 guidance, expecting organic sales growth of 2.0%-3.0% and adjusted EPS of $5.80-$5.95, thanks to strong performance across all segments during the quarter. Following the strong quarterly performance and raised full-year guidance, on August 8, 2025, Piper Sandler raised its price target on the company from $87 to $94, maintaining an ‘Overweight’ rating. The analyst cited Solventum’s consistent execution. Meanwhile, on the same day, Wells Fargo maintained its ‘Hold’ rating with a $79 target.
Ahead of the planned sale of its Purification & Filtration segment and retention of the Drinking Water Filtration segment, Solventum Corporation (NYSE:SOLV) confirmed its free cash flow guidance of $450-$550 million for 2025.
Solventum Corporation is a global leader in innovative medical technology and solutions. It is included in our list of cheap value stocks to buy.
8. Elevance Health, Inc. (NYSE:ELV)
Baupost Group Stake Value: $107,000,000
Forward Price-to-Earnings: 9.92
Number of Hedge Fund Holders: 75
With a low price-to-earnings multiple and a significant presence in Seth Klarman’s investment portfolio, Elevance Health, Inc. (NYSE:ELV) earns a spot on our list of the 12 Cheap Value Stocks to Buy Now According to Seth Klarman.
On July 17, 2025, Elevance Health, Inc. (NYSE:ELV) released its Q2 2025 results. The company posted adjusted EPS of $8.84, slightly missing expectations of $8.91. Increased medical cost trends in ACA, along with slower Medicaid rate recovery softening margins. Yet, the higher premium yields and acquisitions resulted in a $49.4 billion revenue, an increase of 14% YoY. Meanwhile, the company’s operating cash flow reached $2.1 billion.
Declines in Medicaid and ACA enrollment resulted in a decrease in the Membership segment, taking it to 45.6 million. Looking ahead, Elevance Health, Inc. (NYSE:ELV) reduced its full-year EPS guidance to $30, driven by cost pressures. However, it reaffirmed its strategies to stabilize margins with disciplined pricing, AI-enabled care management, and Carelon’s expanding value-based and pharmacy services.
Despite the reduction in 2025 guidance, Mizuho maintained its ‘Buy’ rating on Elevance Health, Inc. (NYSE:ELV) with a $342 price target. The analyst’s optimism is driven by the company’s growth potential in Carelon and strong execution in Medicare Advantage.
Elevance Health, Inc. (NYSE:ELV) is a health insurance provider, offering integrated medical, pharmacy, and care delivery solutions. It is included in our list of cheap value stocks to buy.
7. Eagle Materials Inc. (NYSE:EXP)
Baupost Group Stake Value: $201,875,000
Forward Price-to-Earnings: 13.91
Number of Hedge Fund Holders: 30
Eagle Materials Inc. (NYSE:EXP) is included in our list of the 12 Cheap Value Stocks to Buy Now According to Seth Klarman.
Following strong recent operational performance, Loop Capital increased its price target on Eagle Materials Inc. (NYSE:EXP) from $230 to $245 on July 30, 2025, maintaining a ‘Hold’ rating. The increased target reflects the company’s stable wallboard pricing, above-industry segment volumes, and improved investor sentiment surrounding a potential building products trough. However, the analyst believes that a stronger catalyst beyond a cyclical recovery is required to upgrade its rating on the company.
Meanwhile, on August 6, 2025, Eagle Materials Inc. (NYSE:EXP)’s Board declared a quarterly cash dividend of $0.25 per share, which is payable on October 16 to shareholders of record as of September 15.
Eagle Materials Inc. (NYSE:EXP), based in the U.S., provides building materials, such as cement, concrete, and gypsum wallboard products. It is included in our list of cheap value stocks to buy.
6. CRH plc (NYSE:CRH)
Baupost Group Stake Value: $237,026,000
Forward Price-to-Earnings: 19.42
Number of Hedge Fund Holders: 91
With a low price-to-earnings multiple and a significant presence in Seth Klarman’s investment portfolio, CRH plc (NYSE:CRH) earns a spot on our list of the 12 Cheap Value Stocks to Buy Now According to Seth Klarman.
On August 6, 2025, CRH plc (NYSE:CRH) reported its results for Q2 2025. Thanks to strategic acquisitions and pricing discipline, the company posted 6% revenue growth to $10.2 billion and a 9% increase in adjusted EBITDA to $2.5 billion. Meanwhile, net income remained stable at $1.3 billion, while EPS improved to $1.94. Performance was solid across all segments, with the International Solutions segment recording a 13% revenue growth.
On a year-to-date basis, CRH plc (NYSE:CRH) finalized 13 acquisitions, including a $2.1 billion acquisition of Eco Material Technologies on July 29, strengthening its position in low-carbon cement. Furthermore, the company returned $0.8 billion to shareholders in the form of repurchases YTD, with a new $0.3 billion tranche authorized on August 5, alongside a quarterly dividend of $0.37 declared. CRH also raised its full-year guidance, thanks to solid demand in infrastructure and resilient non-residential markets.
Citing the company’s differentiated model and M&A-driven growth, RBC Capital raised its price target on CRH plc (NYSE:CRH) from $108 to $112 on August 8, maintaining an ‘Outperform’ rating.
Serving the construction industry, CRH plc (NYSE:CRH) operates as a leader in building materials, supplying cement, concrete, aggregates, and related products. It is included in our list of cheap value stocks to buy.
5. Restaurant Brands International Inc. (NYSE:QSR)
Baupost Group Stake Value: $259,000,000
Forward Price-to-Earnings: 12.67
Number of Hedge Fund Holders: 32
Restaurant Brands International Inc. (NYSE:QSR) is included in our list of the 12 Cheap Value Stocks to Buy Now According to Seth Klarman.
Following the company’s mixed Q2 performance, Scotiabank reduced its price target on Restaurant Brands International Inc. (NYSE:QSR) from $75 to $71 on August 8, 2025, maintaining a ‘Sector Perform’ rating. The analyst attributed the price revision to risks from soft U.S. consumer trends, potential weakness in net restaurant growth, Burger King’s EBITDA challenges, and Popeyes’ market share pressure.
On the same day, RBC Capital also decreased its price target on Restaurant Brands International Inc. (NYSE:QSR) from $80 to $77, maintaining an ‘Outperform’ rating. Despite the target cut, the analyst expressed confidence in Tim Hortons, which surpassed same-store sales expectations, as well as growing momentum at Burger King China and outperformance in the International segment. The company’s revenue experienced a 22.4% growth over the past twelve months, while maintaining its dividend growth policy – 10 consecutive annual increases, yielding 3.8%. At the same time, the analyst expressed concern over Burger King’s U.S. operations, which could experience pressure in its same-store sales due to a slowing consumer backdrop.
Known for brands like Tim Hortons, Burger King, Popeyes, and Firehouse Subs, Restaurant Brands International Inc. (NYSE:QSR) operates quick-service restaurants globally. It is included in our list of cheap value stocks to buy.
4. Fidelity National Information Services, Inc. (NYSE:FIS)
Baupost Group Stake Value: $260,853,000
Forward Price-to-Earnings: 12.36
Number of Hedge Fund Holders: 56
With a low price-to-earnings multiple and a significant presence in Seth Klarman’s investment portfolio, Fidelity National Information Services, Inc. (NYSE:FIS) earns a spot on our list of the 12 Cheap Value Stocks to Buy Now According to Seth Klarman.
On August 7, 2025, Mizuho decreased its price target on Fidelity National Information Services, Inc. (NYSE:FIS) from $85 to $83, maintaining an ‘Outperform’ rating. The price target revision reflects the analyst’s updated financial model, projecting slightly lower medium-term EPS forecasts. However, Mizuho dismissed the broader speculation about a stealth downgrade to the company’s organic revenue growth for the fiscal year.
The analyst raised its guidance for the company’s Banking segment from 3.7%-4.4% to 4.0%-4.5%, thanks to 20 basis points of M&A contributions. Meanwhile, the Capital Markets segment guidance is maintained at 6.5%-7.0%. Mizuho remains confident in Fidelity National Information Services, Inc. (NYSE:FIS)’s long-term growth, thanks to strong momentum in its Banking division.
Fidelity National Information Services, Inc. (NYSE:FIS) serves financial institutions globally, providing banking and payment technology solutions. It is included in our list of cheap value stocks to buy.
3. WESCO International, Inc. (NYSE:WCC)
Baupost Group Stake Value: $311,470,000
Forward Price-to-Earnings: 15.08
Number of Hedge Fund Holders: 51
WESCO International, Inc. (WCC) is included in our list of the 12 Cheap Value Stocks to Buy Now According to Seth Klarman.
On August 5, 2025, Loop Capital raised its price target on WESCO International, Inc. (WCC) from $220 to $235, maintaining a ‘Buy’ rating. This price revision follows the company’s strong Q3 results and narrows its full-year guidance. The analyst believes management’s guidance is conservative, not reflecting the expected benefits of upcoming pricing initiatives. Moreover, a recovery in end-market demand holds potential to drive earnings above the midpoint of the company’s 2025 EPS guidance.
Meanwhile, on the previous day, JPMorgan maintained its price target on WESCO International, Inc. (WCC) at $205 price target. Looking ahead, the company looks well-positioned to translate strategic initiatives into sustained growth through 2025.
WESCO International, Inc. (WCC) offers electrical, industrial, and communication products and services across the globe. It is included in our list of cheap value stocks to buy.
2. Alphabet Inc. (NASDAQ:GOOGL)
Baupost Group Stake Value: $324,644,000
Forward Price-to-Earnings: 20.92
Number of Hedge Fund Holders: 227
With a low price-to-earnings multiple and a significant presence in Seth Klarman’s investment portfolio, Alphabet Inc. (NASDAQ:GOOGL) earns a spot on our list of the 12 Cheap Value Stocks to Buy Now According to Seth Klarman.
On August 5, 2025, Loop Capital lifted its price target on Alphabet Inc. (NASDAQ:GOOGL) from $165 to $190, maintaining a ‘Hold’ rating. The analyst increased the company’s earnings multiple from 12.5x to 15x, pointing toward a more favorable earnings outlook. Furthermore, the target increase reflects the company’s growing strength in its core advertising segments and effective expense management, which have improved the company’s recent performance. However, the analyst highlighted long-term concerns surrounding evolving digital advertising dynamics and competitive pressures.
Alphabet Inc. (NASDAQ:GOOGL), globally known for Google’s search, advertising, cloud, and other digital services, operates as a global technology conglomerate. It is included in our list of cheap value stocks to buy.
1. Willis Towers Watson Public Limited Company (NASDAQ:WTW)
Baupost Group Stake Value: $515,599,000
Forward Price-to-Earnings: 18.73
Number of Hedge Fund Holders: 57
Willis Towers Watson Public Limited Company (NASDAQ:WTW) is included in our list of the 12 Cheap Value Stocks to Buy Now According to Seth Klarman.
On July 31, 2025, Evercore ISI raised its price target on Willis Towers Watson Public Limited Company (NASDAQ:WTW) from $364 to $373, maintaining an ‘Outperform’ rating. The increased target reflects the company’s improved performance in the recent quarter, along with a boost in its earnings outlook. Thanks to slightly stronger margins, strong Health segment growth, and a smaller-than-expected slowdown in the Reinsurance business buildout in the second half of 2025, the company increased its EPS estimates, boosting analyst sentiment.
Furthermore, the analyst’s confidence was bolstered because of continued stability in the company’s Health, Wealth, and Career divisions, which account for roughly 60% of its revenue. Meanwhile, Willis Towers Watson Public Limited Company (NASDAQ:WTW)’s healthy pipelines, reduced uncertainty, and steady organic growth outlook position it well for a stronger finish to 2025.
Operating across risk, benefits, and human capital markets, Willis Towers Watson Public Limited Company (NASDAQ:WTW) is a global advisory, insurance brokerage, and solutions company. It is included in our list of cheap value stocks to buy.
While we acknowledge the potential of WTW 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 WTW and that has 100x upside potential, check out our report about this cheapest AI stock.
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