In this article, we shed light on the 12 deep value stocks to invest in.
Market concerns on valuation, particularly in the tech space, and a potential for correction seem to be taking center stage in investor discussions. A case in point is Palantir, which fell nearly 8% on November 4. This decline came despite the company’s strong earnings and upbeat guidance, triggering a broader sell-off that dragged the S&P 500 lower by 1.17% and the Nasdaq by more than 2%. Following Jim Cramer’s examination of the market reaction to Palantir’s steep decline, Wall Street’s obsession with high-growth technology and AI stocks was thrown into the spotlight.
CNBC’s Cramer said the drop shows “how money managers, when asked if the market’s too expensive, immediately think of the high-flying speculative stocks or those in the high-growth artificial intelligence column.” He added that such a mindset “warns you away from the entire asset class.” With such a reaction, he believes investors are overlooking “the other 334 stocks in the S&P 500 that sell for less than 23 times earnings — those aren’t outrageous.”
He does not see Palantir’s stumble as a sign of weakness, but instead sees it as a moment of cooling for overheated valuations. Amid the ongoing AI boom, Cramer hinted that opportunities may lie elsewhere.
Meanwhile, the day also saw other tech names posting declines. Oracle and Advanced Micro Devices both experienced a downtick of roughly 4%, having recorded massive gains this year. Responding to the loss of confidence among investors, Goldman Sachs’s David Solomon said, “likely there’ll be a 10 to 20% drawdown in equity markets sometime in the next 12 to 24 months.”
In this regard, we would also highlight Ameriprise’s Anthony Saglimbene’s recent comments on a CNBC interview, “Breadth in the market has been pretty narrow for the last several months. If there is a slowing momentum or a near-term downturn in AI or tech, there really aren’t other areas that have performed as well, and if we don’t have a lot of clear data on the economy, and profitability across the rest of the S&P 500 isn’t as strong, where do you go?”
Against this backdrop, although headlines are dominated by high-growth tech and AI stocks, there may be other areas where we can search for attractive stock picks, not necessarily from AI-fueled sectors. Instead, deep value stocks could hold significant potential for investors. These stocks are those trading at reasonably low valuations, with steady earnings and strong fundamentals.
We present below our list of the 12 deep value stocks to invest in.
Our Methodology
To curate our list of the 12 deep value stocks to invest in, we started by screening U.S.-listed companies with a market capitalization of over $2 billion, a forward price-to-earnings (P/E) ratio of 8 or lower, a return on equity of at least 10%, and a dividend yield of at least 1%. We then shortlisted the top 12 stocks that have the highest number of hedge funds holding stakes in them, based on Insider Monkey’s hedge fund database, as of Q2 2025. Finally, our list of 12 deep value stocks is presented below in ascending order by the number of hedge funds that hold stakes in each respective stock.
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. Bread Financial Holdings, Inc. (NYSE:BFH)
Forward P/E: 6.54
Return on Equity: 14.78%
Dividend Yield: 1.45%
Number of Hedge Fund Holders: 30
Bread Financial Holdings, Inc. (NYSE:BFH) is included in our list of the 12 deep value stocks to invest in.
On October 24, 2025, RBC Capital raised its price target on Bread Financial Holdings, Inc. (NYSE:BFH) from $64 to $70, maintaining a “Sector Perform” rating. The investment firm’s revised target reflected improving credit trends, another modest reserve release, and a stable outlook. The revision was also attributed to the consistency shown in the company’s quarterly results.
On the previous day, Bread Financial Holdings, Inc. (NYSE:BFH) reported its Q3 2025 results. The company surpassed analyst expectations with EPS of $4.02, compared to a forecast of $2.19. The increase in net income to $188 million was supported by a 5% YoY growth in credit sales, thanks to resilient consumer spending across categories like apparel and beauty. The company also noted strengthening credit quality during the quarter, with net loss rates improving sequentially.
Bread Financial Holdings, Inc. (NYSE:BFH) also declared a 10% dividend increase, alongside an expanded $200 million share repurchase authorization, thanks to its expense discipline, steady credit performance, and growing digital capabilities.
Bread Financial Holdings, Inc. (NYSE: BFH), a tech-enabled financial services company, offers personalized payment, lending, and savings solutions to consumers.
11. Vale S.A. (NYSE:VALE)
Forward P/E: 6.64
Return on Equity: 13.27%
Dividend Yield: 6.6%
Number of Hedge Fund Holders: 32
Vale S.A. (NYSE:VALE) is one of the 12 deep value stocks to invest in.
On November 3, 2025, Jefferies raised its price target on Vale S.A. (NYSE:VALE) from $14 to $15, while maintaining a “Buy” rating. The investment firm’s bullish sentiment stems from the company’s strong Q3 results, which surpassed analyst expectations. The firm’s confidence was bolstered by the company’s operational discipline, as it highlighted Vale’s $14 billion LTM EBITDA, strong free cash flow yield, and reduction in net debt. Within the iron ore market, the investment firm sees the company as its top pick, as it expects Vale to potentially generate increased capital returns through improved financial strength and lower unit costs in copper and nickel.
Meanwhile, on October 30, 2025, Vale S.A. (NYSE:VALE) released its Q3 results. The quarter saw a 17% YoY EBITDA growth to $4.4 billion, supported well by strong iron ore and base metals output and cost efficiencies. While iron ore production hit 94 million tons, the highest Q3 output since 2018, copper and nickel costs reached multi-year lows.
Vale S.A. (NYSE:VALE), a global mining company, is focused on the production of iron ore, nickel, copper, and related by-products.
10. Lincoln National Corporation (NYSE:LNC)
Forward P/E: 5.23
Return on Equity: 23.08%
Dividend Yield: 4.17%
Number of Hedge Fund Holders: 32
Lincoln National Corporation (NYSE:LNC) is included in our list of the 12 deep value stocks to invest in.
On November 3, 2025, Keefe, Bruyette & Woods increased its price target on Lincoln National Corporation (NYSE:LNC) from $43 to $44, reiterating a “Market Perform” rating.
Meanwhile, on October 30, 2025, Lincoln National Corporation (NYSE:LNC) released its Q3 results, marked by steady progress in strengthening its balance sheet, diversifying its product mix, and enhancing profitability.
For the quarter, Lincoln National Corporation (NYSE:LNC) reported EPS of $2.04, beating analysts’ expectations of $1.84. It was the company’s fifth straight quarter of year-over-year adjusted operating income growth, with $4.5 billion in sales. The company has recorded consecutive sales growth over the past four quarters.
In the earnings call, Lincoln’s CEO attributed the strong quarterly performance to “broad-based momentum and disciplined execution” across all four business segments. Particularly, life insurance earnings noted a significant YoY improvement, reaching $54 million. Looking ahead, Lincoln National Corporation (NYSE:LNC) aims to leverage its strong capital buffer to further optimize its operating model for efficiency and scalability.
With its annuities, life insurance, group protection, and retirement plan services, Lincoln National Corporation (NYSE:LNC) helps individuals secure a financially successful future.
9. APA Corporation (NASDAQ:APA)
Forward P/E: 7.19
Return on Equity: 19.09%
Dividend Yield: 4.53%
Number of Hedge Fund Holders: 33
APA Corporation (NASDAQ:APA) is one of the 12 deep value stocks to invest in.
On November 6, 2025, Bank of America Securities’ analyst Kalei Akamine maintained his “Sell” rating on APA Corporation (NASDAQ:APA) with a $20 price target. His bearish outlook stems from concerns over the company’s higher operating costs in the Permian Basin, North Sea decommissioning liabilities, and uncertainty regarding 2026 oil prices. These factors, combined, could put pressure on margins, he noted. Despite the company’s efforts to reduce costs, debt, and improve operational gains in Egypt and the Permian, Akamine believes the company’s valuation is above the firm’s price target.
While Akamine maintains his bearish sentiment on the stock, APA Corporation (NASDAQ:APA) reported strong Q3 2025 results on November 5, 2025. The company reported adjusted earnings of $332 million ($0.93 per share) with $1.5 billion in operating cash flow. The quarter marked production that was above guidance across all regions, a reduction in net debt of $430 million, and a cost savings target revised to $350 million by the end of 2025, two years earlier than planned.
APA Corporation (NASDAQ:APA) is focused on exploration and production of oil and natural gas across the U.S., Egypt, the U.K., and offshore Suriname.
8. Bank OZK (NASDAQ:OZK)
Forward P/E: 7.64
Return on Equity: 12.35%
Dividend Yield: 3.80%
Number of Hedge Fund Holders: 34
Bank OZK (NASDAQ:OZK) is included in our list of the 12 deep value stocks to invest in.
On October 28, 2025, UBS reduced its price target on Bank OZK (NASDAQ:OZK) from $57 to $50, while reiterating its “Neutral” rating. While the company boasts steady fundamentals, the investment firm believes mixed credit results weigh on the stock. Looking ahead, the firm believes the next 15 months will be a critical period for the company, during which its diversification efforts are expected to significantly impact its long-term growth.
Bank OZK (NASDAQ:OZK) reported Q3 2025 results just weeks earlier on October 16. It reported a 1.9% YoY growth in net income, bringing it to $180.5 million. Meanwhile, EPS increased by 2.6%, reaching $1.59, driven by strong net interest income and solid asset quality. The company’s cash balances grew to $3.12 billion from $2.78 billion in the same period a year earlier. Total interest income for the quarter was recorded at $695 million, an increase compared to $682 million in Q3 2024. Citing disciplined execution and capital strength shown in the quarter, the company’s CEO feels confident that Bank OZK will achieve record full-year performance.
Bank OZK (NASDAQ: OZK), a regional bank, delivers innovative financial solutions across nine U.S. states, with assets totaling $41.6 billion as of September 2025.
7. The Western Union Company (NYSE:WU)
Forward P/E: 4.55
Return on Equity: NA
Dividend Yield: 10.41%
Number of Hedge Fund Holders: 36
The Western Union Company (NYSE:WU) is one of the 12 deep value stocks to invest in.
Western Union introduced its “Beyond” strategy at Investor Day in New York on November 6, 2025. Outlining a digital-first expansion plan, the company set a target of 20% revenue growth to $5 billion, alongside 30% adjusted EPS growth over a three-year period. The company highlighted Consumer Services and its Digital Asset Network, including the USDPT stablecoin, as key drivers of growth.
Previously, on October 28, 2025, The Western Union Company (NYSE:WU) launched its U.S. Dollar Payment Token (USDPT). Additionally, a new Digital Asset Network, designed to close the gap between traditional finance and blockchain technology, was launched. To expand global money movement options for consumers, agents, and partners, USDPT holds promise to enhance the company’s treasury operations. It is built on the Solana platform and issued by Anchorage Digital Bank.
The Western Union Company’s (NYSE:WU) USDPT, scheduled for release in the first half of 2026, will allow users to send, receive, spend, and hold digital dollars seamlessly through partner exchanges and wallets. The company’s CEO believes this launch bolsters its mission to improve access to financial services globally. With this launch, Western Union looks to offer faster, more secure, and cheaper cross-border transactions, leveraging blockchain scalability and trusted regulatory oversight.
The Western Union Company (NYSE:WU) connects billions of bank accounts and digital wallets by providing global money transfer, payments, and digital financial services in over 200 countries and more than 130 currencies.
6. SM Energy Company (NYSE:SM)
Forward P/E: 4.41
Return on Equity: 16.58%
Dividend Yield: 4.48%
Number of Hedge Fund Holders: 36
SM Energy Company (NYSE:SM) is included in our list of the 12 deep value stocks to invest in.
On November 4, 2025, Roth Capital reduced its price target on SM Energy Company (NYSE:SM) from $33 to $28, while reiterating its “Buy” rating. The reduction in its price target incorporates the company’s $8 billion all-stock merger with Civitas Resources, which also includes debt. The firm revised its 2026 cash flow forecast downward by 4% following the company’s earnings release. However, it also revised the forecast upward by 2% post-merger as it sees the deal as strategically positive for future growth and scale.
On the previous day, SM Energy Company (NYSE:SM) reported Q3 2025 results. It reported a 26% YoY surge in production, taking it to 19.7 MMBoe, thanks to strong Uinta Basin output. Despite oil prices remaining low during the quarter, the company’s margins demonstrated resilience, enabling it to record $234.3 million in adjusted free cash flow, an 80% increase from 2024. The company recorded $811 million in revenue, representing an increase from $642 million in the same period a year earlier. Meanwhile, adjusted net income stood at $153.7 million, or $1.33 per diluted common share.
SM Energy Company (NYSE:SM), an independent oil and gas producer, explores for and develops crude oil, natural gas, and NGL assets in Texas and Utah.
5. Civitas Resources, Inc. (NYSE:CIVI)
Forward P/E: 6.86
Return on Equity: 11.31%
Dividend Yield: 7.41%
Number of Hedge Fund Holders: 39
Civitas Resources, Inc. (NYSE:CIVI) is one of the 12 deep value stocks to invest in.
On November 4, 2025, Wolfe Research downgraded Civitas Resources, Inc. (NYSE:CIVI) from “Outperform” to “Peer Perform.” The investment firm’s revised rating reflects limited short-term upside, given that the company’s valuation is now tied to its all-stock merger with SM Energy. The firm believes the company’s standalone investment appeal is not much anymore following the merger announcement.
On the previous day, Civitas Resources, Inc. (NYSE:CIVI) announced its $12.8 billion merger with SM Energy, which will result in the creation of one of the top 10 U.S. independent oil producers. SM Energy is an energy company focused on crude oil, natural gas, and NGLs operations.
The deal will see each of the company’s shares converted into 1.45 SM Energy shares, representing roughly 823,000 net acres combined across the top U.S. shale basins. Through the merger, the companies expect up to $300 million in annual synergies, alongside stronger free cash flow generation of over $1.4 billion in 2025 and sustained dividends.
Civitas Resources, Inc. (NYSE:CIVI), an independent oil and gas company, focuses on the acquisition, development, and production of crude oil and liquids-rich natural gas from assets in the Permian and DJ Basins.
4. Rithm Capital Corp. (NYSE:RITM)
Forward P/E: 5.08
Return on Equity: 11.51%
Dividend Yield: 9.10%
Number of Hedge Fund Holders: 39
Rithm Capital Corp. (NYSE:RITM) is included in our list of the 12 deep value stocks to invest in.
On October 30, 2025, Rithm Capital Corp. (NYSE:RITM) reported its Q3 results. The quarter, meeting analyst expectations, saw the company post EPS of $0.54 and earnings available for distribution of $296.9 million. The company held a strong liquidity position of $2.2 billion by the quarter’s end. CEO Michael Nierenberg highlighted consistent performance across mortgage lending, real estate, and asset management segments, which reflects the strength of its diversified platform.
The company’s Newrez segment posted pre-tax income of $295.1 million for the quarter, generating a 20% pre-tax return on equity. Meanwhile, its residential lending platform, Genesis Capital, noted a 60% YoY growth in origination volume, bringing it to $1.2 billion. At the same time, Sculptor Capital, the company’s alternative asset manager, recorded gross fundraising inflows of $1.4 billion during the quarter, bringing its total assets under management (AUM) to $37 billion.
The quarter also marked the acquisitions of Crestline Investors and Paramount Group, the latter of which is still pending. Together, these acquisitions add roughly $25 billion in assets to Rithm Capital Corp.’s (NYSE:RITM) portfolio, and help the company expand into insurance and office real estate. Through Genesis Capital, the company’s wholly-owned subsidiary, $1.2 billion in construction loans were originated. Furthermore, Rithm continued to scale its mortgage operations through Newrez.
Through its subsidiaries, including Newrez, Genesis Capital, and Sculptor Capital Management, Rithm Capital Corp. (NYSE:RITM), a global asset manager, offers credit, real estate, and lending services.
3. Voya Financial, Inc. (NYSE:VOYA)
Forward P/E: 7.55
Return on Equity: 11.78%
Dividend Yield: 2.55%
Number of Hedge Fund Holders: 41
Voya Financial, Inc. (NYSE:VOYA) is one of the 12 deep value stocks to invest in.
On November 5, 2025, Morgan Stanley’s Bob Huang reiterated his “Buy” rating on Voya Financial, Inc. (NYSE:VOYA) with a $91 price target.
This update followed Voya Financial, Inc.’s (NYSE:VOYA) Q3 2025 results announcement on November 4, 2025. The company reported $176 million in net income and $239 million in after-tax adjusted operating earnings ($2.45 per diluted share), a roughly 30% YoY increase. The quarter also marked the generation of over $200 million in excess capital and roughly $600 million year-to-date.
Voya Financial, Inc. (NYSE:VOYA) recorded an increase in total revenue from $506 million in Q3 2024 to $583 million in Q3 2025, thanks to net revenue growth of 14.9% and 7.6% in the Retirement and Investment Management segments, respectively. Retirement revenue was driven by the OneAmerica acquisition, while Investment Management revenue reflected increased fee-based revenue due to continued strong commercial momentum and favorable capital markets.
Furthermore, Voya Financial, Inc.’s (NYSE:VOYA) board approved a 4% increase in the quarterly dividend, bringing the quarterly payment to $0.47 per share, effective Q4 2025.
Voya Financial, Inc. (NYSE:VOYA) delivers retirement, employee benefits, and investment management solutions, empowering individuals and institutions to achieve financial confidence and soundness.
2. Bristol-Myers Squibb Company (NYSE:BMY)
Forward P/E: 7.58
Return on Equity: 33.78%
Dividend Yield: 5.44%
Number of Hedge Fund Holders: 67
Bristol-Myers Squibb Company (NYSE:BMY) is included in our list of the 12 deep value stocks to invest in.
On November 3, 2025, BofA raised its price target on Bristol-Myers Squibb Company (NYSE:BMY) from $50 to $52, reiterating its “Neutral” rating. The investment firm revised its 2026 revenue forecast upward 1.5% and EPS forecast upward 1% following the company’s Q3 results. Despite the company’s strong quarterly performance, BofA expects only low single-digit growth in the long term.
Meanwhile, on October 31, BMO Capital’s Evan Seigerman also maintained his “Hold” rating on Bristol-Myers Squibb Company (NYSE:BMY) with a $47 price target. The analyst cited the company’s mixed short-term outlook, marked by strong demand for Camzyos and Breyanzi offset by the slower rollout of Cobenfy. He also highlighted concerns about patent expirations and the competitive pressures they create.
The company’s October 30 earnings report preceded both of these updates, in which Bristol-Myers Squibb Company (NYSE:BMY) reported $12.2 billion in quarterly revenue, up 3%, thanks to 18% growth from its expanding Growth portfolio. The quarter also marked an increase in the company’s full-year guidance and the acquisition of Orbital Therapeutics. The acquisition reflects the company’s focus on next-generation RNA and cell therapies. The company reported GAAP EPS of $1.08.
Bristol-Myers Squibb Company (NYSE:BMY), a global biopharmaceutical company, discovers, develops, and delivers innovative medicines that protect patients against serious diseases.
1. Comcast Corporation (NASDAQ:CMCSA)
Forward P/E: 6.93
Return on Equity: 24.19%
Dividend Yield: 4.74%
Number of Hedge Fund Holders: 82
Comcast Corporation (NASDAQ:CMCSA) is included in our list of the 12 deep value stocks to invest in.
On November 3, 2025, Oppenheimer’s Timothy Horan downgraded Comcast Corporation (NASDAQ:CMCSA) from “Outperform” to “Perform,” removing his $38 price target. The analyst sees a challenging five-year outlook marked by limited EBITDA growth potential, free cash flow dilution from the Versant spinout, and intensified broadband competition. Furthermore, he believes the company’s new media contract will put short-term pressure on the company’s profitability. Annual costs related to the contract amount to $2.5 billion.
Meanwhile, Comcast Corporation (NASDAQ:CMCSA) reported Q3 2025 results on October 30, posting adjusted EPS of $1.12 and free cash flow of $4.9 billion, thanks to record wireless line additions and solid Business Services growth. Management highlighted continued momentum in Peacock, alongside the successful launch of Epic Universe, its new theme park located in Orlando, Florida. Despite a 2.7% decline, quarterly revenue of $31.20 billion beat estimates of $30.72 billion, driven by Epic’s launch and Studio revenue.
Through its Xfinity, NBC, Universal, Peacock, and Sky brands, Comcast Corporation (NASDAQ:CMCSA), a global media and technology company, offers broadband, wireless, video, and entertainment services.
While we acknowledge the potential of CMCSA 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 CMCSA and that has 100x upside potential, check out our report about this cheapest AI stock.
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