In this article, we will explore 13 Extreme Value Stocks to Buy Now.
The stock market gains over the last few years have been dominated by major tech companies as well as artificial intelligence stocks. As oil prices rise and inflation fears resurface, investors need to start preparing for an era of relatively elevated interest rates. Peter Boockvar, who is the Chief Investment Officer of OnePoint BFG Wealth Partners, commented on the interest rates on CNBC on March 4:
Last Friday, we were pricing in a 100% chance of two cuts and a 40% chance of a third. Now we’re down to just one cut with a 65% chance of a second. So the bond market is quickly adjusting and saying with this jump in oil prices, whether it’s sustainable or not, there’s no way the Fed could be cutting interest rates going into this.
The above comments were made when WTI Crude Oil Futures were trading around $75. They’re now trading near $100, so the probability of rate cuts is likely even lower now.
This raises the importance of stocks that are available at decent valuations, rely less on debt, and generate stable cash with high visibility into future earnings. To shortlist these stocks, we decided to come up with a list of 13 extreme value stocks to buy now.
Our Methodology
To generate our list of 13 extreme value stocks to buy now, we used screeners to identify stocks trading between a forward P/E of 4 and 8, and limited our final selection to companies that have recently reported noteworthy developments likely to affect investor sentiment. These stocks are also popular among analysts and elite hedge funds. We ranked these stocks in ascending order of the number of hedge funds holding them.
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).
Note: All share price data in the article is as per market close on March 12.
13. ADT Inc. (NYSE:ADT)
On March 6, Barclays analyst Manav Patnaik downgraded ADT Inc. (NYSE:ADT) from Equal Weight to Underweight. He also lowered the firm’s price target on the stock from $9 to $7. The price target adjustment came after the company announced its fourth-quarter fiscal 2025 results.
ADT Inc. (NYSE:ADT) reported its fourth-quarter results on March 2 and provided an update on its full-year performance and capital returns. For the full year, the company reported revenue of $5.1 billion, adjusted earnings per share of $0.89, and adjusted EBITDA of $2.68 billion. During the year, ADT returned approximately $800 million to shareholders, including about $187 million in dividends and $600 million in share repurchases. The company also reported that adjusted free cash flow grew by 16% in 2025. It added that leverage declined to 2.7 times adjusted EBITDA, reflecting progress in strengthening its balance sheet.
Management expects EPS and revenue in 2026 to remain roughly in line with 2025 levels. The outlook shows the company’s focus on generating cash, along with plans to invest about $50 million in technology and go-to-market initiatives.
CFO Jeffrey Likosar outlined:
We are consequently sharing today a multiyear financial framework that targets compounded annual growth rates of 5% for revenue, 10% for EPS and adjusted free cash flow in excess of 10%.
ADT Inc. (NYSE:ADT) operates as a provider of interactive, security, and smart home solutions across the United States. It offers burglar & life safety alarms, smart home automation systems, smart security cameras, video surveillance systems, and others. The company was incorporated in 1874 and is based in Boca Raton, Florida.
12. Prudential Financial, Inc. (NYSE:PRU)
On March 5, TD Cowen analyst Andrew Kligerman reiterated a Hold rating on Prudential Financial, Inc. (NYSE:PRU) while revising the firm’s price target. The analyst reduced the price target from $113 to $105. According to Kligerman, the firm updated its financial model following the company’s fourth-quarter results, prompting an adjustment to its valuation outlook.
Before TD Cowen’s update, Morgan Stanley had also lowered its price target on Prudential Financial, Inc. (NYSE:PRU) from $120 to $111 while maintaining an Equal Weight rating. The downward-adjusted price target implies a further 17% upside from current levels, which is close to the median Wall Street analyst upside estimate among 19 analysts covering the stock.
The firm said that this price target revision was part of a broader update to its price targets for North America life and annuity insurers under its coverage. Morgan Stanley pointed out that it does not view private credit exposure as a significant risk for life insurers. However, the firm cautioned that the wider industry could still face valuation pressure.
Prudential Financial, Inc. (NYSE:PRU) operates as a financial products and services provider. The company operates in the Individual Life, Retirement Strategies, PGIM, Group Insurance, and International Businesses segments. It operates across the United States, Japan, and globally.
11. SM Energy Company (NYSE:SM)
On March 6, Gabriele Sorbara of Siebert Williams Shank & Co maintained his Hold rating on SM Energy Company (NYSE:SM) and set a price target of $28. Prior to that, on March 4, Scott Hanold from RBC Capital also reaffirmed his Hold rating on the stock with a price target of $29.
On the same day as the analyst rating update, SM Energy Company (NYSE:SM) also announced a financing move. The company priced an upsized private offering of $1.0 billion senior notes due 2034. The notes carry a 6.625% coupon and were issued at par. The deal is expected to close on March 9, 2026, subject to standard closing conditions. The offering is being made only to qualified institutional buyers under Rule 144A and to certain non-U.S. investors under Regulation S.
SM said it intends to use most of the proceeds to fund a previously announced cash tender offer for up to $750 million of its 8.375% senior notes due 2028, which have a higher interest rate. Any remaining funds will be used for general corporate purposes, including the further repayment of the 2028 notes. The deal aims to replace short-term, high-cost debt with longer-term notes, helping lower interest costs and extend the company’s debt maturity.
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.
