13 Cheapest Strong Buy Stocks to Buy Right Now

In this article, we will discuss 13 Cheapest Strong Buy Stocks to Buy Right Now.

Buying stocks with a low forward Price-to-Earnings (P/E) ratio is a classic value-investing approach centered on identifying companies that may be undervalued relative to their expected future earnings. Because the forward P/E reflects projected profits rather than historical results, it serves as a more forward-looking metric, helping investors pinpoint opportunities where the market may be underestimating growth or pricing in overly pessimistic expectations. In essence, a low forward P/E allows investors to pay less today for tomorrow’s earnings—a dynamic that can create favorable risk-reward setups.

The appeal becomes even stronger when these “cheap” stocks also carry “Strong Buy” ratings from analysts. A strong buy rating typically reflects high conviction among analysts that a stock is likely to outperform, based on factors such as earnings visibility, improving fundamentals, or favorable industry trends. When a stock combines a low forward P/E with a strong buy consensus, it suggests a powerful alignment: the company is both undervalued and positively viewed by informed market participants. This can indicate that the market has not yet fully priced in expected improvements, creating potential for both earnings-driven gains and valuation re-rating.

Low forward P/E stocks also offer several structural advantages. They can signal undervaluation relative to peers, highlight anticipated earnings growth (particularly when forward multiples are below trailing ones), and provide a margin of safety against downside risk. Unlike high-multiple growth stocks, which can experience sharp corrections if expectations are missed, lower-valued companies often have more modest expectations baked into their prices. Many are also mature, cash-generative businesses capable of returning capital through dividends while still offering incremental growth.

This philosophy aligns closely with the thinking of some of the world’s most successful investors. Warren Buffett famously said, “Price is what you pay; value is what you get,” emphasizing the importance of buying quality businesses at reasonable valuations. Similarly, Benjamin Graham, often regarded as the father of value investing, advocated for purchasing stocks with a margin of safety—buying below intrinsic value to protect against uncertainty. More recently, Howard Marks has stressed that superior investing is about buying assets “for less than they’re worth,” particularly when market sentiment is overly negative.

When strong analyst conviction meets discounted valuation, investors gain a compelling combination: credible upside potential supported by both fundamentals and expert endorsement. Over time, as earnings materialize and sentiment improves, these stocks can deliver meaningful outperformance, making them particularly attractive for disciplined, long-term investors.

With this context in mind, here is a list of 13 cheapest strong buy stocks to buy right now.

Our Methodology

For this list, we screened for stocks with positive analyst sentiment and identified stocks with consensus Strong Buy ratings that are trading below a forward P/E of 15. We limited our final selection to companies that have recently reported noteworthy developments that are likely to impact investor sentiment. These stocks are also popular among analysts and elite 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 498.7% since May 2014, beating its benchmark by 303 percentage points (see more details here).

13 Cheapest Strong Buy Stocks to Buy Right Now

13. Bank of America Corporation (NYSE:BAC)

On April 1, HSBC analyst Saul Martinez upgraded Bank of America Corporation (NYSE:BAC) to Buy from Hold with a price target of $55, reduced from $57, citing a shift in market dynamics that has repriced downside macroeconomic risks and renewed credit concerns across U.S. bank stocks. The analyst noted that the multi-year return on equity expansion narrative for universal banks is now less fully reflected in current valuations, creating a more attractive entry point for investors. As a result, HSBC sees Bank of America as well-positioned to benefit from a re-rating as market sentiment stabilizes.

A day earlier, Morgan Stanley lowered its price target on Bank of America Corporation (NYSE:BAC) to $61 from $67 while maintaining an Overweight rating, reflecting broader sector pressure rather than company-specific weakness. The firm highlighted that bank stocks have declined approximately 5% over the past month amid concerns surrounding geopolitical tensions in the Middle East, inflation risks, and uncertainty in private credit markets. Despite these headwinds and a reduction in valuation multiples across the group, the continued Overweight rating signals confidence in Bank of America’s underlying fundamentals and earnings resilience.

Bank of America Corporation (NYSE:BAC) is a leading global financial institution offering a comprehensive suite of banking, investment, and risk management services. Headquartered in Charlotte, North Carolina, the company benefits from a diversified business model and significant scale across consumer and institutional segments. With valuation multiples compressed due to macro uncertainty and continued support from analysts, Bank of America presents an attractive opportunity for investors seeking exposure to a high-quality financial franchise with meaningful upside potential as economic conditions stabilize.

12. The Walt Disney Company (NYSE:DIS)

On April 1, Raymond James upgraded The Walt Disney Company (NYSE:DIS) to Outperform from Market Perform with a $115 price target, citing an increasingly compelling valuation backdrop. The firm noted that macroeconomic pressures and international visitation headwinds have weighed on sentiment, creating an opportunity to invest at historically attractive levels. Despite stress-testing more conservative scenarios, the analyst emphasized that Disney’s shares remain undervalued, with its streaming segment expected to drive the majority of future operating income growth, supporting a favorable risk-reward profile.

On March 30, The Walt Disney Company (NYSE:DIS) announced a partnership with Comixit!, a platform founded by Envision Entertainment CEO Michael Nakan, aimed at expanding webtoon distribution across the EMEA region. This initiative reflects Disney’s ongoing efforts to diversify its content ecosystem and tap into rapidly growing digital storytelling formats, particularly among younger, global audiences, thereby strengthening its long-term content monetization strategy.

The Walt Disney Company (NYSE:DIS) is a global entertainment leader headquartered in Burbank, California, with operations spanning film and television production, streaming platforms, theme parks and resorts, and consumer products. With a robust portfolio of iconic brands including Disney, Pixar, Marvel, and Lucasfilm, the company is well-positioned to capitalize on evolving media consumption trends. Supported by improving streaming economics and strategic content expansion, Disney offers a compelling investment opportunity with significant upside as valuation multiples normalize and growth initiatives gain traction.

11. Booking Holdings Inc. (NASDAQ:BKNG)

On April 1, Wells Fargo analyst Ken Gawrelski lowered the price target on Booking Holdings Inc. (NASDAQ:BKNG) to $5,377 from $5,456 while maintaining an Equal Weight rating, reflecting expectations of a more cautious near-term outlook. The firm anticipates that geopolitical tensions in the Middle East may disrupt travel demand not only within the region but also across Europe, leading to more conservative guidance for the second quarter and potential downward revisions to full-year revenue expectations. This tempered outlook underscores the sensitivity of global travel demand to macroeconomic and geopolitical developments.

Earlier, on March 11, Bernstein reduced its price target on Booking Holdings Inc. (NASDAQ:BKNG) to $4,698 from $5,407 while maintaining a Market Perform rating. While the company delivered a strong fourth-quarter performance to close out 2025—exceeding expectations on both revenue and earnings, with all major online travel platforms gaining market share profitably—investor focus has shifted toward longer-term risks. In particular, concerns surrounding potential disruption from artificial intelligence technologies on the online travel agency model have weighed on sentiment, despite the company’s demonstrated operational strength.

Booking Holdings Inc. (NASDAQ:BKNG) is the world’s largest provider of online travel and related services, operating a global portfolio of brands including Booking.com, Priceline, Agoda, KAYAK, Rentalcars.com, and OpenTable. Headquartered in Norwalk, Connecticut, the company benefits from significant scale, brand recognition, and network effects. While near-term uncertainties persist, Booking’s strong market position and history of profitable growth position it well to navigate industry changes, offering a solid long-term investment opportunity with upside potential as macro conditions stabilize and innovation concerns are addressed.

10. Sumitomo Mitsui Financial Group, Inc. (NYSE:SMFG)

On March 24, Sumitomo Mitsui Financial Group, Inc. (NYSE:SMFG) was reported to be evaluating contingency plans for a potential acquisition of Jefferies Financial Group, as market pressures weigh on the latter’s valuation. While discussions remain preliminary and no transaction is imminent, the exploration highlights SMFG’s strategic intent to expand its global investment banking footprint. Any potential deal would face regulatory complexities and execution risks; however, it underscores management’s willingness to pursue opportunistic growth initiatives during periods of market dislocation.

A day earlier, BMO Capital lowered its price target on Jefferies Financial Group to $42 from $68 while maintaining a Market Perform rating, citing expectations for a volatile earnings release. The firm pointed to ongoing concerns, including fraud allegations related to Market Financial Solutions and uncertainty surrounding the First Brands situation, which could disrupt business pipelines and client relationships. These developments have contributed to negative sentiment around Jefferies, potentially creating a more attractive valuation environment for strategic buyers such as Sumitomo Mitsui Financial Group, Inc. (NYSE:SMFG).

Sumitomo Mitsui Financial Group, Inc. (NYSE:SMFG) is a leading Japanese financial institution headquartered in Tokyo, offering a wide range of banking, leasing, securities, and consumer finance services through its subsidiaries, including Sumitomo Mitsui Banking Corporation. With a strong capital base and global ambitions, SMFG is well-positioned to capitalize on strategic opportunities that enhance its international presence. Its proactive approach to expansion, combined with stable core operations, supports a favorable long-term growth outlook and a compelling investment case with meaningful upside potential.

9. Canadian Imperial Bank of Commerce (NYSE:CM)

On April 1, Canadian Imperial Bank of Commerce (NYSE:CM) announced that its Innovation Banking division has provided growth financing to REG Technologies, a provider of compliance and regulatory risk software serving the insurance and financial services sectors. The funding, which follows a recent majority investment in REG Technologies by Accel-KKR, is expected to support product innovation, commercial expansion, and international growth, highlighting CIBC’s role in enabling high-growth technology companies and diversifying its lending portfolio.

Earlier, on March 5, Canadian Imperial Bank of Commerce (NYSE:CM) announced plans to redeem its $1.0 billion 1.96% NVCC subordinated debentures due April 2031, with the redemption scheduled for April 21, 2026. The move, to be funded through internal resources, reflects disciplined capital management and is expected to modestly optimize the bank’s funding structure without requiring external financing. Additionally, on March 2, Barclays raised its price target on CIBC to C$141 from C$137 while maintaining an Overweight rating, following first-quarter results that exceeded consensus expectations.

Canadian Imperial Bank of Commerce (NYSE:CM) is a major North American financial institution headquartered in Toronto, serving approximately 13 million clients across personal, commercial, and wealth management segments. With a strong capital position, consistent earnings performance, and strategic investments in growth-oriented sectors, CIBC is well-positioned to deliver sustainable returns. Its disciplined capital allocation and improving operational momentum support an attractive investment thesis with meaningful upside potential.

8. KKR & Co. Inc. (NYSE:KKR)

On April 5, BofA analyst Craig Siegenthaler lowered the firm’s price target on KKR & Co. Inc. (NYSE:KKR) to $149 from $158 while maintaining a Buy rating, as part of a broader first-quarter preview for the asset management sector. The firm cited macroeconomic indicators pointing to a challenging near-term environment, with limited expectations for strong Q1 results across the group. Despite these headwinds, the maintained Buy rating reflects confidence in KKR’s ability to navigate cyclical pressures and sustain long-term value creation through its diversified investment platform.

On April 2, KKR & Co. Inc. (NYSE:KKR) announced the final closing of KKR North America Fund XIV, a $23 billion vehicle focused on opportunistic private equity investments across the region. As the largest North America-focused private equity fund raised to date, this milestone underscores KKR’s continued ability to attract significant institutional capital and deploy it through a disciplined and consistent investment strategy. The scale of the fund enhances the firm’s capacity to capitalize on dislocations and generate attractive returns across market cycles.

KKR & Co. Inc. (NYSE:KKR) is a leading global investment firm managing a broad range of alternative asset classes, including private equity, credit, infrastructure, real estate, and insurance. Founded in 1976, the firm has built a strong track record of value creation through active ownership and strategic capital allocation. With robust fundraising momentum and a diversified earnings base, KKR remains well-positioned to deliver long-term growth, supporting a compelling investment case with significant upside potential.

7. Nu Holdings Ltd. (NYSE:NU)

On March 22, Morgan Stanley highlighted that Nu Holdings Ltd. (NYSE:NU) is “uniquely positioned” to build one of the largest and most valuable banking franchises in Latin America, citing its advanced technology platform, strong customer satisfaction, competitive pricing, and attractive unit economics. The firm believes the market is significantly underestimating Nu’s ability to scale profitably, projecting that the company could reach a $100 billion valuation by the end of 2026, up from approximately $70 billion currently.

On March 19, UBS upgraded Nu Holdings Ltd. (NYSE:NU) to Buy from Neutral with a price target of $17.60, noting that the stock’s current valuation remains compelling relative to its growth trajectory. The firm emphasized that shares are trading at levels comparable to 2023 despite the company having doubled its earnings since then, highlighting a disconnect between fundamentals and valuation. UBS expects continued growth driven by the expansion of Nu’s loan portfolio and increasing monetization of its large customer base.

Nu Holdings Ltd. (NYSE:NU) is a global digital financial services platform and a fintech provider in Latin America. Founded in 2013, the company operates a fully digital banking model offering a broad suite of financial products, including credit cards, savings accounts, lending, investments, and insurance.

6. Diamondback Energy, Inc. (NASDAQ:FANG)

On April 2, KeyBanc raised its price target on Diamondback Energy, Inc. (NASDAQ:FANG) to $225 from $196 while maintaining an Overweight rating, reflecting a more constructive outlook on oil markets. The firm noted that recent dislocations in global crude and refined product markets are likely to persist into the summer months and views the recent selloff in oil and equities as a temporary dislocation, presenting a potential buying opportunity for investors.

On March 30, Citi increased its price target on Diamondback Energy, Inc. (NASDAQ:FANG) to $230 from $178 while maintaining a Buy rating, incorporating higher oil price assumptions into its models. Similarly, on March 27, Morgan Stanley raised its price target to $220 from $171 with an Overweight rating, citing significantly improved fundamentals across oil, LNG, and refining markets. The firm highlighted that pricing dynamics have reached their strongest levels since 2022 and revised its 2026 commodity price assumptions materially higher, leading to substantial increases in EBITDA forecasts across its energy coverage.

Diamondback Energy, Inc. (NASDAQ:FANG) is an independent oil and gas exploration and production company focused on the Permian Basin, one of the most prolific hydrocarbon regions in the United States. With a strong asset base, efficient cost structure, and significant leverage to rising commodity prices, the company is well-positioned to benefit from favorable energy market dynamics. Supported by upward revisions to price targets and improving industry fundamentals, Diamondback offers a compelling investment case with meaningful upside potential.

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