On February 23, Pierre Ouimet, head investment strategist at UBS Canada, joined BNN Bloomberg to discuss the markets and provide a spotlight on undervalued sectors. Ouimet discussed market resilience amidst political friction between the US Supreme Court and President Donald Trump. He stated that while a Supreme Court decision had been reached, the administration’s push for a 10% global tariff suggested that trade uncertainties remain.
Despite this, he maintained a positive outlook and noted that political pressures may prevent an overly aggressive tariff stance and that broader economic fundamentals remain strong. He expressed surprise at the lack of market reaction to these events, particularly in the bond market, where he expected more volatility given a potential $200 billion Treasury reimbursement. However, he noted that Treasury Secretary Bessent remains unconcerned as revenues continue to accrue.
Under the slogan ‘Make Portfolios Diversified Again,’ Ouimet explained his strategy of reducing exposure to US dollar-denominated assets in favor of repatriating capital to Canada or investing in jurisdictions like Europe. He emphasized the importance of wide diversification rather than focusing on a single trend or sector.
While he remains selective within the tech sector, he continues to see buoyancy in the AI theme. He observed that AI is currently in a third wave of development, evidenced by recent weakness in software stocks as the tech continues to evolve rapidly. Regarding undervalued sectors, Ouimet highlighted energy as an area offering attractive free cash flow yields despite a lack of investor love. He also pointed to the mining sector, specifically gold, as a strong play.
That being said, we’re here with a list of the 12 dirt cheap stocks to buy now.
Our Methodology
We used screeners to identify stocks that are trading below a forward P/E of 10 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.
Note: All data was sourced on March 2.
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 Dirt Cheap Stocks to Buy Now
12. Fidelity National Financial Inc. (NYSE:FNF)
Fidelity National Financial Inc. (NYSE:FNF) is one of the dirt cheap stocks to buy now. On February 20, Fidelity National Financial reported strong financial results for Q4 and the full year of 2025, highlighted by total annual revenue of $14.5 billion, a 7% increase over the previous year. The title segment performed robustly, achieving adjusted pre-tax earnings of $401 million in Q4 with an industry-leading margin of 17.5%.
For the full year, adjusted net earnings reached $1.4 billion, or $4.97 per diluted share, despite a reported net loss of $117 million in the final quarter. The company’s growth was supported by a 27% year-over-year increase in direct commercial revenue, which reached $479 million in Q4. Additionally, the FNG segment saw assets under management rise 12% to $73.1 billion, with gross sales hitting $14.6 billion for the year.
Technological integration played a key role in these operational successes, as Fidelity National Financial Inc.’s (NYSE:FNF) digital transaction platform engaged 80% of residential sale transactions in 2025. This digital reach extended to 2.8 million unique users, proving that the company’s technology investments have scaled effectively.
Fidelity National Financial Inc. (NYSE:FNF), together with its subsidiaries, provides various insurance products in the United States. The company has Title, F&G, and Corporate & Other segments.
11. Viatris Inc. (NASDAQ:VTRS)
Viatris Inc. (NASDAQ:VTRS) is one of the dirt cheap stocks to buy now. On February 26, Viatris reported a steady financial performance for the full-year 2025, generating $14.3 billion in total revenue, a 2% increase over the previous year when excluding Indore-related impacts. The company achieved an adjusted EBITDA of $4.2 billion and an adjusted EPS of $2.35, supported by $2.2 billion in free cash flow.
The company’s initiatives were marked by significant regulatory progress, including five positive Phase III readouts and the completion of 60 regional transactions, such as the acquisition of Aculys Pharma in Japan. For 2026, Viatris anticipates total revenue and adjusted EBITDA growth of approximately 2%, with new product revenue expected to contribute between $450 million and $550 million.
To support long-term competitiveness, a strategic review identified $650 million in gross cost savings to be realized through 2029, with a portion earmarked for reinvestment. Despite these gains, Viatris Inc. (NASDAQ:VTRS) faces headwinds, including uncertain FDA reinspection timing for its Indore facility and anticipated gross margin declines due to losses of exclusivity and product mix shifts.
Viatris Inc. (NASDAQ:VTRS), together with its subsidiaries, operates as a healthcare company internationally. It has four segments: Developed Markets, Greater China, JANZ, and Emerging Markets.
10. The Carlyle Group Inc. (NASDAQ:CG)
The Carlyle Group Inc. (NASDAQ:CG) is one of the dirt cheap stocks to buy now. On February 26, Reuters reported that Carlyle Group announced an ambitious goal to raise $200 billion in new capital by the end of 2028, signaling a strategic turnaround under CEO Harvey Schwartz. This target exceeds the $158 billion raised over the previous three years and aims to boost the firm’s total assets under management, which currently stand at ~$477 billion.
To support this growth and reward investors, the firm also approved a $2 billion share buyback program, reflecting confidence in its reshaped operational structure following a period of trailing behind major rivals like Blackstone and KKR. The firm’s fundraising strategy is diversified across several key sectors, with $90 billion expected from credit strategies, $60 billion from its AlpInvest secondaries unit, and $50 billion from private equity.
The Carlyle Group Inc. (NASDAQ:CG) anticipates these inflows will drive fee-related earnings to $1.9 billion by 2028, up from $1.2 billion in 2025. This growth trajectory is projected to increase distributed earnings per common share to over $6.00, a significant rise from the $4.02 reported in 2025, as the firm recovers from an industry-wide downturn and internal succession challenges.
The Carlyle Group Inc. (NASDAQ:CG) is an investment firm specializing in direct and fund-of-fund investments.
9. Stellantis (NYSE:STLA)
Stellantis (NYSE:STLA) is one of the dirt cheap stocks to buy now. On February 26, Stellantis characterized 2025 as a reset year, reporting net revenues of €153 billion and 5.5 million consolidated shipments. During H2, revenues grew by approximately 10%, supported by a 39% surge in North American shipments, and industrial free cash flow showed a 50% sequential improvement compared to the first half of the year.
Strategic shifts during this period focused on aligning production with customer demand and navigating regulatory changes in the US. Key operational updates included the launch of 10 new products, such as the Jeep Cherokee and Ram Dakota, and a major reinvestment in quality through the hiring of 2,000 engineers. Additionally, the company is doubling down on high-demand segments by increasing HEMI V8 engine production by 100,000 units for 2026 and relaunching the SRT division to restore profitable growth in the North American market.
Stellantis (NYSE:STLA) designated 2026 as a year of execution, with a focus on progressive performance improvements and achieving positive adjusted operating income in core regions. To increase transparency, the company will transition to quarterly full-year reporting and integrate its Maserati business into regional segments.
Stellantis (NYSE:STLA) designs, engineers, manufactures, distributes, and sells automobiles and light commercial vehicles, engines, transmission systems, metallurgical products, mobility services, and production systems worldwide.
8. Fidelity National Information Services Inc. (NYSE:FIS)
Fidelity National Information Services Inc. (NYSE:FIS) is one of the dirt cheap stocks to buy now. Fidelity National Information Services reported a strong financial performance for 2025, marked by adjusted revenue growth of 5.8% and a 10% increase in adjusted EPS to $5.75. The company’s Q4 was particularly robust, featuring 7.4% revenue growth driven by its banking & capital markets segments.
The company simplified its portfolio by divesting its merchant-focused business and acquiring a market leader in credit issuing. Management views this shift toward higher-quality recurring revenue as a long-term benefit, despite short-term margin pressures from acquisitions and declining transition service agreement income. Fidelity National Information Services Inc. (NYSE:FIS) is now positioning itself to capitalize on AI advancements, using its proprietary data sets and deeply embedded relationships with financial institutions to enhance fraud prevention and operational efficiency.
For 2026, Fidelity National Information Services Inc. (NYSE:FIS) issued an ambitious outlook, projecting adjusted revenue growth between 30% and 31% and an adjusted EPS range of $6.22 to $6.32. The company expects to expand its EBITDA margin by 155 to 175 basis points and grow free cash flow by up to 33%, exceeding $2 billion.
Fidelity National Information Services Inc. (NYSE:FIS) provides solutions to financial institutions, businesses, and developers worldwide. The company operates through Banking Solutions, Capital Market Solutions, and Corporate and Other segments.
7. Royalty Pharma (NASDAQ:RPRX)
Royalty Pharma (NASDAQ:RPRX) is one of the dirt cheap stocks to buy now. On February 11, Royalty Pharma reported a year of robust financial performance in 2025, marked by a 16% increase in total portfolio receipts and an 18% jump in Q4 alone. The company achieved a notable 15.8% return on invested capital and successfully met its five-year $10 billion to $12 billion capital deployment target a full year ahead of schedule.
Strategically, the company completed $4.7 billion in transactions focused on attractive therapies and received a boost from several positive clinical and regulatory milestones, including the FDA approval of Myqorzo. Management highlighted the growing importance of synthetic royalties, which the company views as an increasingly popular alternative to traditional debt or equity financing for biotech firms.
Despite this momentum, the company is preparing for some headwinds in 2026, including the loss of exclusivity for Promacta and the introduction of a biosimilar for Tysabri in the US market. In 2026, Royalty Pharma expects portfolio receipts to range between $3.275 and $3.425 billion, representing a modest growth forecast of 3% to 8%.
Royalty Pharma (NASDAQ:RPRX) operates as a buyer of biopharmaceutical royalties and a funder of innovation in the biopharmaceutical industry in the US.
6. Arch Capital Group Ltd. (NASDAQ:ACGL)
Arch Capital Group Ltd. (NASDAQ:ACGL) is one of the dirt cheap stocks to buy now. On February 10, Arch Capital Group announced a strong financial performance for 2025, capped by a Q4 where after-tax operating income rose 26% year-over-year to $1.1 billion. For the full year, the company generated $3.7 billion in operating income, resulting in an impressive 17.1% annualized operating return on average common equity.
The Reinsurance and Mortgage segments were major contributors to the year’s success, with reinsurance delivering a record $1.6 billion in underwriting income and the mortgage segment providing a steady $1 billion. Despite these gains, the company faced some headwinds, including a competitive reinsurance market where property catastrophe rates declined by 10% to 20% during renewals.
Additionally, net premiums written in the insurance segment saw a year-over-year decline due to shifts in business mix and the timing of premium accruals. Arch Capital Group Ltd. (NASDAQ:ACGL) remains focused on disciplined capital allocation, having repurchased $1.9 billion of common stock in 2025, which represents 5.6% of its outstanding shares. For 2026, the company indicated that if growth opportunities remain flat, it may distribute nearly 100% of its generated capital to shareholders.
Arch Capital Group Ltd. (NASDAQ:ACGL), together with its subsidiaries, provides insurance, reinsurance, and mortgage insurance products in the US, Canada, Bermuda, the UK, Europe, and Australia. The company operates through three segments: Insurance, Reinsurance, and Mortgage.
5. AllianceBernstein Holding (NYSE:AB)
AllianceBernstein Holding (NYSE:AB) is one of the dirt cheap stocks to buy now. On February 5, AllianceBernstein Holding reported that it achieved $867 billion in assets under management/AUM by the end of 2025, supported by market appreciation and strong performance in specialized segments. The Bernstein Private Wealth business was a major driver, reaching $156 billion in AUM and contributing 37% of firmwide revenues. Additionally, the private markets platform grew 18% to $82 billion, while the active ETF suite saw 65% organic growth, ending the year with $14 billion in assets.
Despite record AUM, the firm navigated a mixed financial landscape marked by $9.4 billion in total active net outflows for the year. Persistent redemptions in active equities, totaling $22.5 billion, and a decline in taxable fixed-income demand due to geopolitical uncertainty and a weaker dollar, weighed on results. Consequently, Q4 adjusted earnings fell 9% year-over-year to $0.96 per unit, and full-year performance fees dropped 24% to $172 million.
For 2026, AllianceBernstein Holding (NYSE:AB) remains focused on scaling its high-growth platforms and maintaining an adjusted operating margin, which expanded to 33.7% in 2025. While retail flows softened recently, management expressed ambition to exceed its 2027 private market AUM targets of $90 to $100 billion through continued expansion in private credit and international ETF franchises.
AllianceBernstein Holding (NYSE:AB) is a publicly owned investment manager. The firm provides its services to investment companies, pension & profit-sharing plans, banks & thrift institutions, trusts, estates, government agencies, charitable organizations, individuals, corporations, and other entities.
4. KB Financial Group Inc. (NYSE:KB)
KB Financial Group Inc. (NYSE:KB) is one of the dirt cheap stocks to buy now. On February 5, KB Financial Group reported the financial performance in 2025, reporting a 15.1% increase in net profit to KRW5.8 trillion. This was primarily fueled by a sharp 16% rise in non-interest income from capital gains and brokerage commissions, alongside the recovery from one-off customer compensation costs in the previous year.
KB Financial Group Inc. (NYSE:KB) ramped up its capital return strategy, declaring KRW1.580 trillion in total cash dividends for 2025, a 32% increase over 2024. For H1 2026, KB plans to return KRW2.82 trillion to shareholders through a combination of cash dividends and KRW1.2 trillion in share buybacks and cancellations. Management noted that the first round of buybacks, totaling KRW600 billion, would commence immediately to further enhance shareholder value.
Despite the overall profit growth, the group faced headwinds like a slight decline in net interest margin to 1.97% and a 15.6% increase in credit loss provisions due to economic volatility. Q4 earnings were also pressured by seasonal insurance performance and one-time ERP costs. Moving forward, the group aims to adapt to government stimulus policies by reallocating resources toward high-growth sectors like AI semiconductors and innovative small-to-medium enterprises to secure future earnings.
KB Financial Group Inc. (NYSE:KB) provides various banking and related financial services to consumers and corporations internationally. It operates through Retail Banking, Corporate Banking, Other Banking Services, Credit Card, Securities, Life Insurance, and Non-Life Insurance segments.
3. American International Group Inc. (NYSE:AIG)
American International Group Inc. (NYSE:AIG) is one of the dirt cheap stocks to buy now. On February 11, American International Group reported the financial performance for 2025, highlighted by a 51% year-over-year surge in Q4 adjusted after-tax income to $1.96 per diluted share. For the full year, the company generated $4 billion in adjusted after-tax income and $2.3 billion in underwriting income, representing a 22% increase over 2024.
The company’s capital management strategy remained aggressive, with $6.8 billion returned to shareholders in 2025 through $5.8 billion in share repurchases and $1 billion in dividends. While American International Group saw strong growth in international commercial new business, it navigated a more complex landscape in North America, where retail property and personal net premiums contracted due to a reduced market appetite and higher reinsurance costs.
For 2026, American International Group Inc. (NYSE:AIG) forecasts net premiums written growth in the low to mid-teens, supported by various organic initiatives and strategic transactions. Management is prioritizing operational efficiency with a target to bring the expense ratio below 30% by 2027 and is actively implementing AI agents to reduce cycle times for underwriters. Additionally, the company plans to continue its robust share repurchase program, with at least $1 billion slated for 2026.
American International Group Inc. (NYSE:AIG) provides insurance products for commercial, institutional, and individual customers in North America and internationally. It operates through three segments: North America Commercial, International Commercial, and Global Personal.
2. Manulife Financial Corporation (NYSE:MFC)
Manulife Financial Corporation (NYSE:MFC) is one of the dirt cheap stocks to buy now. On February 12, Manulife Financial reported a year of solid operational growth in 2025, highlighted by an 8% increase in core EPS. The company saw momentum in its insurance business, with new business Contractual Service Margin growth exceeding 20% across all segments. This performance was supported by a 24% year-over-year earnings surge in Asia and strong cash generation, with the firm producing $6.4 billion in remittances and returning $5.5 billion to shareholders.
Despite the top-line success, the company navigated several headwinds in Q4, including $9.5 billion in net outflows from its Global Wealth and Asset Management segment. These outflows were attributed to large retirement plan redemptions in North America. Additionally, the US segment saw a 22% decline in core earnings due to unfavorable life insurance claims experience, and the company recorded a $232 million charge in its Alternative Long-Duration Asset portfolio caused by lower-than-expected returns in real estate and private equity.
Looking ahead, Manulife Financial Corporation (NYSE:MFC) remains committed to its target of achieving an 18%-plus core ROE by 2027. A pillar of this strategy is the firm’s leadership in AI maturity; it has already reached 30% of its $1 billion enterprise value generation target from AI initiatives.
Manulife Financial Corporation (NYSE:MFC), together with its subsidiaries, provides financial products and services in the US, Canada, Asia, and internationally. It operates through the Wealth & Asset Management Businesses, Insurance & Annuity Products, and Corporate & Other segments.
1. ArcelorMittal (NYSE:MT)
ArcelorMittal (NYSE:MT) is one of the dirt cheap stocks to buy now. On February 10, ArcelorMittal officially confirmed a €1.3 billion investment to construct a new electric arc furnace/EAF at its steelmaking facility in Dunkirk, France. This move marks a milestone in the company’s decarbonization efforts, as the new EAF is expected to produce steel with 3x less CO2 than traditional blast furnaces.
Scheduled to start up in 2029 with a 2-million-tonne capacity, the project will receive 50% of its funding through Energy Efficiency Certificates, a regulatory mechanism supported by the French government to promote energy savings. The decision to proceed was driven by a strengthening of European trade policies and the securing of a long-term contract with EDF for competitive, low-carbon electricity.
ArcelorMittal executives highlighted recent European Commission proposals, such as the Tariff Rate Quota and the Carbon Border Adjustment Mechanism, as critical factors in restoring fair competition against unfair imports. These regulatory developments provided the necessary confidence to commit to the large-scale production of low-carbon steel. Additionally, ArcelorMittal (NYSE:MT) is launching a new €500 million electrical steel production unit in nearby Mardyck this quarter.
ArcelorMittal (NYSE:MT), together with its subsidiaries, operates as an integrated steel and mining company in the Americas, Europe, Asia, and Africa.
While we acknowledge the potential of MT 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 MT and that has 100x upside potential, check out our report about this cheapest AI stock.
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