On October 7, Ed Yardeni, Yardeni Research, joined ‘Closing Bell’ on CNBC to discuss what investors should focus on with stocks and suggested that valuations are high, but earnings have been remarkably strong. Yardeni stated that the market currently has a bubble in bubble fears, while acknowledging there are clearly elements of a real bubble. He cited two valuation metrics: the forward P/E of the S&P 500 is currently about 23, which is nearing the 25 peak seen during the late 1990s/early 2000s tech bubble; and the Buffett ratio is at a record high.
He concluded that valuation is definitely high, but is being justified by remarkably strong earnings, which he expects to continue to drive the market and sustain current valuations, as the market is discounting a very resilient economy. Talking about whether the potential for a bubble is irrelevant as long as earnings are good and investors will likely play the hand they’re dealt, Yardeni agreed and advised investors to focus on the fundamentals of companies. He noted that profit margins have been remarkably high in the face of tariffs, and corporate managements have done an astounding job of kind of dealing with Washington. He offered a contrasting perspective to those who worry about Washington’s impact on the economy.
That being said, we’re here with a list of the 13 cheap stocks to buy for the next 5 years.
Our Methodology
We sifted through the Finviz stock screener to compile a list of cheap stocks with a forward P/E ratio under 15. Then, for the 13 best stocks for the next 5 years, we included stocks with an average expected EPS growth of at least 25% over the next 3 to 5 years, according to Wall Street estimates. The stocks are ranked in ascending order of the number of hedge funds that have stakes in them, as of Q2 2025.
Note: All data was sourced on October 7.
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).
13 Cheap Stocks to Buy For the Next 5 Years
13. OPAL Fuels Inc. (NASDAQ:OPAL)
Forward P/E Ratio as of October 7: 3.84
EPS Forward Long Term Growth (3-5 Year CAGR): 116.00%
Number of Hedge Fund Holders: 11
OPAL Fuels Inc. (NASDAQ:OPAL) is one of the cheap stocks to buy for the next 5 years. On October 6, OPAL Fuels and the Atlantic County Utilities Authority/ACUA announced that a Renewable Natural Gas/RNG facility in Egg Harbor Township, New Jersey, had achieved commercial operation. This facility is located at the ACUA’s solid waste landfill and captures & processes landfill gas into RNG.
RNG serves as a lower-carbon fuel alternative to diesel and conventional natural gas for transportation. The facility has a nameplate capacity of 2,500 standard cubic feet per minute/SCFM of landfill gas and is expected to produce over 650,000 MMBtu, or more than 4.6 million GGE of RNG annually.
The project is the first to deliver RNG into the pipeline system of South Jersey Gas, which is a subsidiary of SJI. For the ACUA, it is the first time a public solid waste facility in New Jersey has hosted an RNG project. The facility reduces emissions, improves air quality, creates jobs, and strengthens American energy independence.
OPAL Fuels Inc. (NASDAQ:OPAL) produces and distributes renewable natural gas/RNG for use as a vehicle fuel for heavy and medium-duty trucking fleets throughout the US.
12. Allegiant Travel Company (NASDAQ:ALGT)
Forward P/E Ratio as of October 7: 7.96
EPS Forward Long Term Growth (3-5 Year CAGR): 46.36%
Number of Hedge Fund Holders: 23
Allegiant Travel Company (NASDAQ:ALGT) is one of the cheap stocks to buy for the next 5 years. On October 3, Susquehanna raised the firm’s price target on Allegiant Travel to $65 from $50, while keeping a Neutral rating on the shares as part of its Q3 2025 earnings preview for the airlines group.
Earlier for Q2 2025, Allegiant Travel reported that the company’s revenue reached $669 million, which was ~3% above the prior year’s figure. The company achieved an operating margin of 8.6%, successfully exceeding its initial guidance, contributing to a first-half operating margin close to 9%, an improvement over the previous year.
Fleet changes included the retirement of 2 A320 series aircraft and the delivery of 5 new 737 MAX aircraft. The company’s financial position included $853 million in cash and investments, and a total debt of just below $2 billion, resulting in a net leverage of 2.6 times. Allegiant was also named Skytrax’s best low-cost carrier in North America for the second consecutive year.
Allegiant Travel Company (NASDAQ:ALGT) is a leisure travel company that provides travel and leisure services and products to residents of underserved cities in the US.
11. B2Gold Corp. (NYSE:BTG)
Forward P/E Ratio as of October 7: 8.44
EPS Forward Long Term Growth (3-5 Year CAGR): 59.56%
Number of Hedge Fund Holders: 27
B2Gold Corp. (NYSE:BTG) is one of the cheap stocks to buy for the next 5 years. On October 6, B2Gold announced that its Goose Mine, which is located in the Back River Gold District in Nunavut, Canada, officially achieved commercial production earlier on October 2.
The company’s internal criteria for this milestone required 30 consecutive days with an average mill throughput of at least 65% of the design capacity, which is 4,000 tpd. The mill successfully met this requirement and recorded an average throughput of 2,652 tpd from September 3 through October 2, which is exactly 66% of design capacity. Mill feed during this initial period primarily came from the mined-out Echo open pit.
Following the integration of a supplemental mobile crusher, crushing rates significantly increased in the latter half of September. From September 19 to October 2, the mill’s average throughput rose to 3,249 tpd, which is 81.2% of design capacity. B2Gold anticipates the mill will operate near the 4,000 tpd design capacity throughout Q4 2025. For Q4, mill feed will shift to the Umwelt deposit, with expected grades averaging between 6.5 and 7 grams per tonne gold.
B2Gold Corp. (NYSE:BTG) is a gold producer in Canada. The company operates the Fekola Mine in Mali, the Masbate Mine in the Philippines, and the Otjikoto Mine in Namibia.
10. Fox Factory Holding Corp. (NASDAQ:FOXF)
Forward P/E Ratio as of October 7: 10.56
EPS Forward Long Term Growth (3-5 Year CAGR): 35.50%
Number of Hedge Fund Holders: 29
Fox Factory Holding Corp. (NASDAQ:FOXF) is one of the cheap stocks to buy for the next 5 years. On October 7, Stifel analyst Peter McGoldrick lowered the firm’s price target on Fox Factory to $33 from $36, while keeping a Buy rating on the shares. The firm is lowering its Street-high estimates ahead of the Q3 2025 report to reflect updates in end-markets.
In Q2 2025, Fox Factory Holding reported net sales of $375 million from growth across all three business segments. Continued investment in R&D and product innovation is strategically positioning FOXF for long-term market share gains. However, the net income for Q2 dropped to $2.7 million, which was a decrease from $5.4 million in the prior year’s period.
The most significant headwind is tariffs, which have increased costs. The CFO, Dennis Shem, noted that the pre-mitigation tariff impact increased from $38 to $50 million. The company is actively working on mitigation strategies, including supply chain optimization and relocating manufacturing processes to more favorable regions.
Fox Factory Holding Corp. (NASDAQ:FOXF) designs, engineers, manufactures, and markets performance-defining products and systems worldwide.
9. Coty Inc. (NYSE:COTY)
Forward P/E Ratio as of October 7: 8.95
EPS Forward Long Term Growth (3-5 Year CAGR): 33.44%
Number of Hedge Fund Holders: 33
Coty Inc. (NYSE:COTY) is one of the cheap stocks to buy for the next 5 years. On September 30, Coty announced a plan to strengthen its position in the fragrance market by closely integrating its Prestige Beauty and Mass Fragrance businesses and creating a “Fragrance and Scenting Powerhouse.” Fragrances and scenting brands already account for 69% of Coty’s sales.
The company now intends to fully use its scale across R&D, consumer insights, manufacturing, and distribution to capture growth across all price points, ranging from $5 to $500, while also capitalizing on the new $7 billion mist market. Simultaneously, Coty initiated a review of its Consumer Beauty business to fully unleash its potential.
The review will focus on the mass color cosmetics business, which generates $1.2 billion in revenue. It will assess a full range of alternatives, including partnerships, divestitures, spin-offs, and other potential strategic actions, to maximize long-term value and strengthen the balance sheet. Coty has retained Citi to advise on this review.
Coty Inc. (NYSE:COTY) manufactures, markets, distributes, and sells branded beauty products worldwide. It operates through two segments: the Prestige and Consumer Beauty.
8. CNX Resources Corporation (NYSE:CNX)
Forward P/E Ratio as of October 7: 14.73
EPS Forward Long Term Growth (3-5 Year CAGR): 53.04%
Number of Hedge Fund Holders: 33
CNX Resources Corporation (NYSE:CNX) is one of the cheap stocks to buy for the next 5 years. On October 7, Barclays lowered the firm’s price target on CNX Resources to $32 from $33, while keeping an Equal Weight rating on the shares. The firm previewed the Q3 2025 reports for the oil exploration & production space and cut its 2026 price target accordingly.
In Q2 2025, CNX Resources reported that the company is maintaining a one-rig drilling schedule and expects to sustain a strong capital efficiency ratio of ~$0.85 per Mcf going forward. However, sequential production declines are anticipated in Q3 and Q4 of 2025. This is due to a front-loaded turn-in-line (placing wells into production) schedule earlier in the year, which creates a temporary lull before the next batch of wells comes online in late Q4.
Consequently, capital expenditures will be lighter in Q3 and are projected to increase again in Q4 as drilling and completion activities resume. The Utica wells are also a positive, with management noting that Q2 results were slightly above expectations and all wells performed within internal targets, with costs currently below target. The Utica is now considered competitive on an internal rate of return basis with Marcellus opportunities.
CNX Resources Corporation (NYSE:CNX) is an independent natural gas and midstream company that acquires, explores, develops, and produces natural gas properties in the Appalachian Basin.
7. UBS Group AG (NYSE:UBS)
Forward P/E Ratio as of October 7: 14.37
EPS Forward Long Term Growth (3-5 Year CAGR): 26.07%
Number of Hedge Fund Holders: 36
UBS Group AG (NYSE:UBS) is one of the cheap stocks to buy for the next 5 years. On October 6, Morgan Stanley raised the firm’s price target on UBS to CHF 28 from CHF 27, while keeping an Underweight rating on the shares. This sentiment came ahead of the company’s Q3 2025 earnings report. For Q2, UBS Group reported a strong quarterly profit before tax of $2.7 billion, which was up 30% year-over-year.
The company is making progress on the integration of Credit Suisse, with the first wave of Swiss client account migrations completed and the overall process on track for completion by the end of 2026. Client activity also remains strong, with Global Wealth Management attracting $55 billion in net new assets year-to-date as of Q2 and all regions delivering double-digit profit growth.
Furthermore, the Investment Bank delivered a record second quarter in global markets, with equities revenues jumping 20% year-over-year. However, market uncertainties delayed client execution of plans in Global Banking, which caused a 22% decrease in Investment Banking revenues.
UBS Group AG (NYSE:UBS) provides financial advice and solutions to private, institutional, and corporate clients worldwide. It operates through five divisions: Global Wealth Management, Personal & Corporate Banking, Asset Management, Investment Bank, and Non-core & Legacy.
6. Fortrea Holdings Inc. (NASDAQ:FTRE)
Forward P/E Ratio as of October 7: 6.12
EPS Forward Long Term Growth (3-5 Year CAGR): 51.61%
Number of Hedge Fund Holders: 38
Fortrea Holdings Inc. (NASDAQ:FTRE) is one of the cheap stocks to buy for the next 5 years. On October 2, Barclays raised the firm’s price target on Fortrea to $8 from $6, while keeping an Underweight rating as part of a Q3 2025 preview for the life science tools and diagnostics group. Earlier in Q2, Fortrea Holdings made a quarterly revenue of $710.3 million, which was up 7.23% year-over-year.
The company also achieved an Adjusted EBITDA of $54.9 million and an adjusted net income per diluted share of $0.19, which led management to raise its full-year 2025 revenue guidance to a range of $2.6 to $2.7 billion, while affirming its Adjusted EBITDA guidance.
But despite this growth, Fortrea recorded a GAAP net loss of $374.9 million, or $4.14 per diluted share due to a substantial non-cash goodwill impairment charge of $309.1 million. Fortrea’s backlog stood at $7.547 billion. In Q2, the company affirmed that its cost-saving initiatives remain on track.
Fortrea Holdings Inc. (NASDAQ:FTRE) is a contract research organization that provides biopharmaceutical product & medical device development solutions to pharmaceutical, biotechnology, and medical device customers.
5. Southwest Airlines Co. (NYSE:LUV)
Forward P/E Ratio as of October 7: 13.46
EPS Forward Long Term Growth (3-5 Year CAGR): 54.98%
Number of Hedge Fund Holders: 38
Southwest Airlines Co. (NYSE:LUV) is one of the cheap stocks to buy for the next 5 years. On October 3, Susquehanna raised the firm’s price target on Southwest to $35 from $30, while maintaining a Neutral rating on the shares as part of a Q3 2025 earnings preview for the airlines group. Southwest Airlines has also been undergoing a transformational journey despite headwinds, as highlighted earlier in its Q2 earnings report as well.
However, the initial rollout of basic economy products presented challenges with lower conversion rates. For Q2, RASM (Revenue per Available Seat Mile) was down 3.1% year-over-year, while CASM-X (Cost per Available Seat Mile excluding fuel and oil expense) was up 4.7%. The company’s overall revenue was down 1.50% year-over-year to $7.24 billion.
For Q3, the company anticipates RASM Guidance to range from a decrease of 2% to an increase of 2% year-over-year. CASM-X Guidance is expected to be up 3.5% to 5.5%, with fuel costs estimated to be between $2.40 and $2.50 per gallon.
Southwest Airlines Co. (NYSE:LUV) is a passenger airline company that provides scheduled air transportation services in the US and near-international markets.
4. Petróleo Brasileiro S.A. – Petrobras (NYSE:PBR)
Forward P/E Ratio as of October 7: 4.78
EPS Forward Long Term Growth (3-5 Year CAGR): 36.29%
Number of Hedge Fund Holders: 39
Petróleo Brasileiro S.A. – Petrobras (NYSE:PBR) is one of the cheap stocks to buy for the next 5 years. On October 7, Petrobras and Pluspetrol announced the completion of the first-ever import of unconventional natural gas from Argentina’s Vaca Muerta shale play into Brazil.
This pilot shipment totaled 100,000 cubic meters and was completed on October 3, under an agreement between the two companies and their subsidiaries, Petrobras Operaciones/POSA and Gas Bridge Comercializadora. The gas was produced by POSA and Pluspetrol in Argentina’s Neuquén Basin. It was transported by pipeline that traveled through Bolivia before finally entering Brazil.
Petrobras’ upstream operations in Argentina are managed by POSA and include a 33.6% non-operated interest in the Río Neuquén field, where production comes from tight gas reservoirs in the Punta Rosada and Lajas formations.
Petróleo Brasileiro S.A. – Petrobras (NYSE:PBR) explores, produces, and sells oil & gas in Brazil and internationally. It has three segments: Exploration & Production; Refining, Transportation & Marketing; and Gas & Low Carbon Energies.
3. Smurfit Westrock (NYSE:SW)
Forward P/E Ratio as of October 7: 11.35
EPS Forward Long Term Growth (3-5 Year CAGR): 000%
Number of Hedge Fund Holders: 42
Smurfit Westrock (NYSE:SW) is one of the cheap stocks to buy for the next 5 years. On October 6, JPMorgan analyst Detlef Winckelmann raised the firm’s price target on Smurfit Westrock to $61 from $60, while keeping an Overweight rating on the shares. This sentiment comes ahead of the company’s Q3 2025 earnings report.
In Q2, Smurfit WestRock saw a year-over-year rise of 147.56% in its quarterly revenue, which totaled $7.94 billion. The company also achieved an Adjusted EBITDA of $1.213 billion on over $7.9 billion in net sales, resulting in a healthy Adjusted EBITDA Margin of 15.3%. Furthermore, the company generated $387 million in Adjusted Free Cash Flow.
North America in particular reported $4.8 billion in net sales and a solid 15.8% Adjusted EBITDA Margin. The Latin American business was a standout, delivering an exceptional Adjusted EBITDA Margin of over 23%, indicating high-growth opportunities in the region. Conversely, the EMEA and APAC regions reported a lower 13.4% Adjusted EBITDA Margin.
Smurfit Westrock (NYSE:SW) manufactures, distributes, and sells containerboard, corrugated containers, and other paper-based packaging products.
2. Bristol-Myers Squibb Company (NYSE:BMY)
Forward P/E Ratio as of October 7: 7.58
EPS Forward Long Term Growth (3-5 Year CAGR): 59.65%
Number of Hedge Fund Holders: 67
Bristol-Myers Squibb Company (NYSE:BMY) is one of the cheap stocks to buy for the next 5 years. On October 2, Bristol Myers Squibb announced a development in its Alzheimer’s program: its experimental drug, BMS-986446, received Fast Track designation from the US FDA.
The designation expedites the review process for the drug, which is currently in Phase 2 testing for patients in the early stages of Alzheimer’s disease. In preclinical studies, the drug demonstrated a sharp reduction in tau uptake and spread, and protected against behavioral decline. The Fast Track status gives Bristol Myers Squibb an advantage in the competitive field of Alzheimer’s treatments.
The therapy targets the tau protein, which spreads in the brains of Alzheimer’s patients. By neutralizing this spread and promoting the clearance of pathological tau, BMS-986446 modifies the underlying course of the disease with the goal of slowing or delaying disease progression.
Bristol-Myers Squibb Company (NYSE:BMY) discovers, develops, licenses, manufactures, markets, distributes, and sells biopharmaceutical products worldwide.
1. Antero Resources Corporation (NYSE:AR)
Forward P/E Ratio as of October 7: 11.14
EPS Forward Long Term Growth (3-5 Year CAGR): 142.67%
Number of Hedge Fund Holders: 72
Antero Resources Corporation (NYSE:AR) is one of the cheap stocks to buy for the next 5 years. On October 7, Barclays lowered the firm’s price target on Antero Resources to $42 from $43, while keeping an Equal Weight rating on the shares. The firm previewed the Q3 2025 reports for the oil exploration & production space, and cut its 2026 price target.
In Q2, Antero Resources increased its Maintenance Production Target by 5% to over 3.4 billion cubic feet equivalent per day since 2023, yet reduced its Maintenance Capital Requirements by 26% to just $663 million. This resulted in a peer-leading Maintenance Capital per Mcfe of just $0.53, below the peer average.
The quarter saw Antero generate $260 million in free cash flow. The company reduced its total debt by ~$200 million in Q2. Management believes that new Gulf Coast export capacity will be a net positive by leading to higher Mont Belvieu benchmark prices, even as export dock premiums become more modest. Antero expects further reductions in maintenance CapEx in 2026 due to efficiency gains.
Antero Resources Corporation (NYSE:AR) is an independent oil & natural gas company that develops, produces, explores, and acquires natural gas, natural gas liquids/NGLs, and oil properties in the US.
While we acknowledge the potential of AR 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 AR and that has 100x upside potential, check out our report about this cheapest AI stock.
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