“This is the biggest surge of value stocks relative to growth stocks that we’ve had in four years… This one looks real,” according to Jeremy Siegel, professor emeritus of finance at the University of Pennsylvania’s Wharton School of Business, during an interview with CNBC on February 17. Jeremy attributed this rotation into value stocks to three speed bumps that are scaring investors away from higher-risk growth stocks.
First was Trump’s pick for the next US Fed chair, Kevin Warsh, whom Jeremy described as a “good choice.” The second speedbump was the government budget showdown, which Jeremy described as “half solved” but will likely resurface again in a month.
The third speedbump was Donald Trump’s sweeping tariffs, which were struck down by the US Supreme Court in a 6-3 decision authored by Chief Justice John Roberts on February 20. Despite this decision, markets are worried that the lack of clarity on some key questions creates a significant overhang for the markets.
One of these key questions is about the eligibility for tariff refunds. Another is whether Trump would simply impose new tariffs under a different legal authority than the one struck down. Finally, some market players are concerned about the decision’s effect on the government deficit.
With two out of the three speedbumps still on the road, it looks like value stocks will remain preferred by the market. With this in mind, let us take a look at 13 deep value stocks to buy right now.
Our Methodology
We screened US stocks with at least $2 billion in market capitalization, a median share price upside potential of more than 5%, and a forward price-to-earnings (P/E) ratio of 3x to 10x. From this pool, we further narrowed to stocks with a 5-year return on equity of at least 10% and a dividend yield of at least 1%. We then filtered the list to only contain stocks with at least 15 hedge fund holders, according to Insider Monkey’s proprietary hedge fund database, which tracks 978 hedge funds as of Q3 2025.
Finally, we selected the 14 stocks with the most hedge fund holders. When two or more stocks were tied among hedge fund holders, we used the median analyst-provided projected upside as the tiebreaker. We limited our final selection to companies that have recently reported noteworthy developments likely to impact investor sentiment.
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).
Note: All data presented are as of 24 February 2026, market close.
13. Sonic Automotive Inc. (NYSE:SAH)
Sonic Automotive Inc. (NYSE:SAH) is one of the 13 Deep Value Stocks to Buy Right Now.
Barclays, on February 23, slightly trimmed its target price on Sonic Automotive by 2.9% to $67 (from $69) and retained the firm’s Equal Weight call on the stock. This target price cut was triggered by management’s cautious outlook on 2026 vehicle demand, prompting Barclays to reduce its forecasts.
Sonic released its Q4 2025 earnings on February 18, which showed solid results for the quarter. The company posted adjusted EPS of $1.52, narrowly beating the street consensus of $1.50 despite slightly missing the revenue consensus.
While the company had a decent quarter (and a good year in general), management during the Q&A portion of the analyst briefing cautioned about rising vehicle prices, which could dampen consumer demand in 2026. Here’s what Frank Dyke, Sonic’s Vice President of Retail Strategy, had to say:
“But I think that everybody needs to keep a real close eye out on the inflationary effects and what’s going to happen with new car pricing as we move into the early parts of the summer, late spring here and these — our manufacturer partners start moving that cost on to the consumer in a more — in a way that we did not see in 2025 … I am cautioning and concerned about what is going to happen, how far, how much elasticity can we deal with or can the consumer deal with from a new car perspective. And something is going to have to give here. The prices are getting — are just getting too high.”
Sonic Automotive Inc. (NYSE:SAH) is an automotive retailer, selling both new and used cars and providing maintenance, warranty, paint, and repair services. The company is based in Charlotte, North Carolina, and was founded in January 1997 by Ollen Bruton Smith and Bryan Scott Smith.
12. Essent Group Ltd. (NYSE:ESNT)
Essent Group Ltd. (NYSE:ESNT) is one of the 13 Deep Value Stocks to Buy Right Now.
Bank of America, on February 17, slightly increased its target price on Essent Group by 3.0% to $68 (from $66) and reiterated its Buy recommendation on the stock. The target price update comes after the firm adjusted its FY26 and FY27 earnings per share forecasts, following the release of Essent’s Q4 results, which fell slightly below the firm’s own forecasts. The firm, however, emphasized that it did not view the miss as “thesis changing.”
Essent released its Q4 2025 earnings on February 13, which showed the company posting $1.60 in diluted earnings per share and $312.40 million in net revenue, both figures slightly missing BofA and street consensus estimates.
Despite this miss, the company’s overall strategy (which it calls the “Buy, Manage, & Distribute Operating Model”) looks to be intact. The company’s total insurance in force grew YoY. The gross premium rate it earns on insurance was stable. Essent was also able to manage its risk by transferring some of its credit risk to high-quality reinsurers (albeit at a slightly higher cost vs. last year).
The company, in Q4 2025, wrote $11.8 billion in new insurance policies at an average base premium earned of 41 basis points ($4.1 in annual premium for every $1,000 insured). Most importantly, operating cash flows remained healthy, allowing Essent to increase its quarterly dividend rate to $0.35 per common share.
Essent Group Ltd. (NYSE:ESNT) is a holding company that offers private mortgage insurance, reinsurance, and title insurance and settlement services through its subsidiaries: Essent Guaranty, Inc., Essent Reinsurance Ltd., and Essent Title Insurance, Inc. The company is based in Hamilton, Bermuda, and was founded in July 2008 by Mark Casale.
11. Radian Group Inc. (NYSE:RDN)
Radian Group Inc. (NYSE:RDN) is one of the 13 Deep Value Stocks to Buy Right Now.
Barclays, on February 23, increased its target price on Radian Group by 8.1% to $40 (from $37) and retained its Equal Weight call on the stock. This price update comes after the firm updated its financial model, following the release of Radian’s Q4 2025 results on February 19.
The earnings report showed that Radian had a good quarter, beating street consensus estimates for adjusted diluted earnings per share ($1.16 actual vs. $1.09 consensus), despite in-line revenue ($300.51 million actual vs. $300.57 million consensus). Rick Thornberry, Radian’s Chief Executive Officer, attributes the strong quarter (and 2025 as a whole) to the mortgage insurance business’s consistent performance combined with disciplined risk and capital management.
The company also expanded its reach as a global multi-line specialty insurer through its acquisition of Inigo. The deal, which closed on February 2 (announced in September 2025 and received regulatory approvals last December 2025), is an all-cash transaction valued at $1.67 billion. The company expects this acquisition to deliver a mid-teens percentage increase to EPS and a 200-basis point accretion to return on equity.
Radian Group Inc. (NYSE:RDN) provides mortgage insurance, risk management products, and real estate services to financial institutions. The company is based in Wayne, Pennsylvania, and was founded in 1977.
10. Sonoco Products Company (NYSE:SON)
Sonoco Products Company (NYSE:SON) is one of the 13 Deep Value Stocks to Buy Right Now.
Truist analyst Michael Roxland, on February 20, raised his target price on Sonoco Products by 27.8% to $69 (from $54) and reiterated his Buy recommendation on the stock. He said that the company’s near- and medium-term guidance, presented during an Investor Day it hosted on February 17, seemed achievable and implied “lots of upside.”
In that investor day, Howard Coker (President and Chief Executive Officer of Sonoco Products) and members of the senior leadership team presented their financial targets over the next three years. They are targeting a 200-basis-point expansion in adjusted EBITDA margins, which would yield $1.5 billion in adjusted EBITDA by the end of 2028. The EBITDA growth would then translate to $2.5 billion in cumulative cash flow from operations over the next three years. As for capital expenditures, they are aiming to maintain CapEx levels at 4% of sales, while targeting a long-term net leverage level of below 2.5x by 2028.
The CEO further added that Sonoco’s operations are much simpler now, running two market-leading businesses with more focused priorities. This market position and streamlined focus make the company well positioned for consistent earnings growth, margin improvement, and more efficient capital allocation – all translating into strong cash flow generation.
Sonoco Products Company (NYSE:SON) is a manufacturer of industrial and consumer packaging products. The company is based in Hartsville, South Carolina, and was founded in May 1899.
9. Pilgrim’s Pride Corporation (NASDAQ:PPC)
Pilgrim’s Pride Corporation (NASDAQ:PPC) is one of the 13 Deep Value Stocks to Buy Right Now.
On February 13, BMO Capital increased its target price on Pilgrim’s Pride by 5.0% to $42 (from $40), while keeping its Market Perform call on the stock. This price update came after the company released its Q4 2025 earnings on February 11, which showed adjusted EBITDA of $415 million, beating the street consensus estimate of $388 million.
The beat was driven primarily by US operations. The fresh portfolio segment benefited from continued demand from both consumers and key customers (quick-service restaurants and foodservice), resulting in solid volume growth. The prepared foods segment, meanwhile, benefited from increased market share penetration by Just Bare, which translated into rapid volume growth. Europe operations also contributed to the EBITDA beat, as volume growth in the Fridge Raiders and Rollover brands outpaced the category average.
Mexico had a tough quarter as more meat imports led to lower live commodity prices, affecting PPC’s live commodity segment. The other segments were more resilient and showed more promise. The fresh portfolio segment showed steady volume demand, while the branded and prepared foods segments showed good volume growth relative to last year.
Pilgrim’s Pride Corporation (NASDAQ:PPC) produces, processes, markets, and distributes fresh, frozen, and value-added chicken and pork products to retailers, distributors, and foodservice operators in the US, Europe, and Mexico. The company is based in Greeley, Colorado, and was founded in October 1946 by Lonnie and Aubrey Pilgrim.
8. Voya Financial Inc. (NYSE:VOYA)
Voya Financial Inc. (NYSE:VOYA) is one of the 13 Deep Value Stocks to Buy Right Now.
RBC Capital analyst Mark Dwelle, on February 9, slightly increased his target price on Voya Financial by 2.4% to $87 (from $85) and retained his Outperform call on the stock. He liked what he saw in Voya’s Q4 2025 results, which were released on February 4 and headlined by a 54% YoY increase in adjusted operating earnings and 39% YoY increase in adjusted operating EPS, prompting the change in target price. More specifically, Mark identified solid organic growth in investment management, momentum in the retirement segment, and excess capital generation as key takeaways from the earnings briefing.
Voya organically grew its investment assets under management by 5% YoY in 2025, as the company scaled its private asset strategies across distribution channels, maintained strong momentum in the insurance asset management channel, and expanded its US intermediary product offering. Defined contribution (retirement) assets under management, meanwhile, grew at an even faster pace of 32.6%, primarily due to the company’s acquisition of OneAmerica last January 2025. Combined, Voya’s total assets under management now exceed $1 trillion.
This volume-driven earnings growth has enabled Voya to generate significant excess cash, which ensures that the company has a healthy balance sheet to fund future growth.
Voya Financial Inc. (NYSE:VOYA) provides retirement, investment, and insurance services through its Wealth Solutions, Health Solutions, and Investment Management segments. The company is based in New York, New York, and was founded in April 1999.
7. MetLife Inc. (NYSE:MET)
MetLife Inc. (NYSE:MET) is one of the 13 Deep Value Stocks to Buy Right Now.
Evercore ISI analyst Thomas Gallagher, on February 11, slightly trimmed his target price on MetLife by 2.1% to $95 (from $97) but kept his In Line call on the stock. This target price update comes after the firm adjusted its forecasts following the release of the company’s 4th-quarter earnings on February 5. The Q4 results were headlined by an 18% YoY growth in adjusted earnings and 24% YoY growth in adjusted EPS.
Earnings growth was driven primarily by the retirement and income solutions segment, benefiting from higher investment margins (which the company attributed to higher private equity returns). The company’s smaller segments (specifically its Latin America and EMEA operations) also contributed to growth, driven by rapid volume growth and improved underwriting margins. Finally, the group benefits segment (the company’s largest) also contributed solid growth (albeit not as fast as the other segments).
MetLife’s Asia operations, meanwhile, lagged due to a contraction in underwriting margins. This contraction just about offset the gains coming from volume growth and expense margin improvements.
MetLife Inc. (NYSE:MET) provides insurance and financial services to individual and institutional clients in the United States, Latin America, EMEA, and Japan. The company is based in New York, New York, and was founded in March 1868.
6. Omnicom Group Inc. (NYSE:OMC)
Omnicom Group Inc. (NYSE:OMC) is one of the 13 Deep Value Stocks to Buy Right Now.
Citi analyst Jason Bazinet, on February 20, raised his target price on Omnicom by 11.7% to $115 (from $103) and retained his Buy recommendation on the stock. This target price update comes a couple of days after the company released its Q4 2025 results on February 18. The release was headlined by a 25% YoY growth in adjusted operating income.
Omnicom’s management also doubled their forecast for the annual cost synergies to be generated from the company’s acquisition of Interpublic (which closed last November 26) to $1.5 billion (vs. their initial estimate of $750 million). They expect to spend $400 million in fees and costs to realize these cost savings over the next three years.
Lastly, Omnicom’s board of directors, on the same day as the earnings release, approved a $5 billion share repurchase program, to be financed using cash on hand and existing credit facilities. They plan to execute $500 million to $1 billion of buybacks during 2026.
Omnicom Group Inc. (NYSE:OMC) provides advertising, marketing, and corporate communications services. The company is based in New York, New York and was founded in 1944 by Maxwell Dane.
5. Corebridge Financial Inc. (NYSE:CRBG)
Corebridge Financial Inc. (NYSE:CRBG) is one of the 13 Deep Value Stocks to Buy Right Now.
Evercore ISI, on February 10, slightly trimmed its target price on Corebridge Financial by 2.6% to $37 (from $38) but retained its Outperform call on the stock. The price target update comes a day after the company released its Q4 2025 earnings, which the firm described as a “solid quarter.” The release showed a deceleration in management’s guidance for EPS growth for 2026, which just about offset the positive impact coming from the improved quality and reduced rate cut sensitivity of the company’s portfolio.
For context, Corebridge’s management is projecting a 10% to 15% growth in earnings per share for 2026. They further added that growth will likely be closer to the lower end of the range, given the likelihood of the US Fed cutting rates in 2026. This growth range represents a 3-percentage point to 5-percentage point deceleration vs. the 18% EPS CAGR from 2022 to 2025.
Corebridge also showed that it has reduced its portfolio’s sensitivity to interest rate cuts by 75%. It achieved this result through better duration matching its assets and liabilities and heavier utilization of floaters (variable rate investments) in its asset allocation.
Corebridge Financial Inc. (NYSE:CRBG) provides retirement solutions and insurance products for individuals and corporations. The company is based in Houston, Texas, and was founded in 1957.
4. SM Energy Company (NYSE:SM)
SM Energy Company (NYSE:SM) is one of the 13 Deep Value Stocks to Buy Right Now.
On February 19, Stephens raised its target price on SM Energy by 2.1% to $49 (from $48) and retained its Overweight rating on the stock. This update came a day after SM Energy announced on February 18 that it sold some of its South Texas assets to Caturus Energy for $950 million.
The firm views the deal as “positive” for SM Energy, despite the unit price ($25,000 per Boepd) being slightly below average compared with similar completed Eagle Ford transactions over the past three years, thereby triggering the target price increase.
As for the full details of the deal, SM Energy is selling 61,000 net acres, containing 260 producing wells (including the related support facilities) in its southern Maveric Basin position, Webb County, Texas, for $950 million. These assets have 168 MMboe in net proven reserves, generate 37 to 39 Mboe/d, and yield $160 million in full-year asset-level cash flows (excluding G&A level overhead).
The proceeds of the sale, which is expected to close in the 2nd quarter, will be used to reduce the company’s debt, “reinforcing its commitment to balance sheet strength and financial flexibility”.
SM Energy Company (NYSE:SM) is an energy company engaged in the acquisition, exploration, development, and production of oil, gas, and natural gas liquids. The company is based in Denver, Colorado, and was founded in 1908.
3. Best Buy Co. Inc. (NYSE:BBY)
Best Buy Co. Inc. (NYSE:BBY) is one of the 13 Deep Value Stocks to Buy Right Now.
Wedbush, on February 24, reduced its target price on Best Buy by 12.5% to $70 (from $80), while retaining its Neutral call on the stock. The firm believes that investor expectations for Best Buy are low, due to weak holiday sales and lingering memory supply shortages, with no clear catalysts to the upside in sight.
This target price update comes ahead of the company’s Q4 FY 2026 results (scheduled for March 3), which the firm expects to disappoint due to weak holiday sales in the consumer electronics industry, despite elevated discounting. US retail sales data for December, which was released by the US Commerce Department on February 10, backs up this story. The data release showed retail sales unexpectedly flat in December, as households scaled back purchases of big-ticket items.
Wedbush was even more worried about management’s forward guidance for FY 2027, due to the uncertainty surrounding the lingering memory supply shortages, which would translate to lower PC and consumer electronics demand throughout at least the year. The firm is now expecting same-store sales to decline in the low single digits for FY 2027, vs. its previous expectation of modest growth.
Best Buy Co. Inc. (NYSE:BBY) provides consumer technology products and services in the US, Canada, Europe, China, Mexico, and Turkey. The company is based in Richfield, Minnesota, and was founded in 1966 by Richard M. Schulze.
2. The Allstate Corporation (NYSE:ALL)
The Allstate Corporation (NYSE:ALL) is one of the 13 Deep Value Stocks to Buy Right Now.
Keefe Bruyette analyst Meyer Shields increased his target price on Allstate by 2.4% to $260 (from $254) and retained his Outperform call on the stock. This target price update comes on the heels of the release of Allstate’s Q4 2025 earnings report on February 4.
The release was headlined by rapid earnings growth, with net income attributable to common shareholders jumping 100.3% YoY. The strong growth was driven primarily by a ~5 to 6 percentage-point improvement in the company’s underlying and catastrophe loss ratios for both its auto and homeowners’ insurance segments.
Volume also played a role (albeit a smaller one), as reduced prices for clients and expanded distribution channels led to modest growth in policies in force. As a result of the strong quarter, Allstate’s board approved a quarterly common dividend of $1.08 per share.
For 2026, Allstate’s management plans to improve customer value by further rationalizing prices and rolling out its Custom360 offering. They also intend to further expand their distribution by broadening their network of independent sales agents. Finally, they are looking to retire their legacy systems and deploy a new, AI-enabled technology system.
The Allstate Corporation (NYSE:ALL) is a property and casualty insurance provider for automobiles and houses. The company is based in Northbrook, Illinois, and was founded in April 1931.
1. The Cigna Group (NYSE:CI)
The Cigna Group (NYSE:CI) is one of the 13 Deep Value Stocks to Buy Right Now.
Deutsche Bank, on February 10, increased its target price on Cigna by 1.0% to $304 (from $301) and retained its Buy recommendation on the stock. The firm views the company’s guidance for FY 2026 and the company’s settlement with the US Federal Trade Commission (FTC) as “possibly clearing event[s].”
For reference, Cigna, on February 5, released its Q4 2025 earnings report. Included in this report was management’s outlook for 2026. They are targeting ~2% YoY growth in revenues, which they expect to translate to ~1.5% YoY growth in adjusted operating income per share.
As for the deal with the US FTC, Reuters reported on February 4 that Cigna Corp’s Express Scripts reached a settlement with the FTC regarding the company’s insulin pricing practices. As part of the settlement, the company is restricted for 10 years from engaging in certain practices, such as pocketing rebate payments from drugmakers based on the list price of the drugs. The FTC thinks that this agreement will save consumers $7 billion over the course of 10 years.
The Cigna Group (NYSE:CI) provides health services globally through Evernorth Health Services and Cigna Healthcare. The company is based in Bloomfield, Connecticut, and was founded in 1792.
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