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.
10. Lincoln National Corporation (NYSE:LNC)
According to a report released on March 5, J.P. Morgan analyst Jimmy Bhullar reiterated a Sell rating on Lincoln National Corporation (NYSE:LNC) along with a price target of $42.
In contrast to J.P. Morgan, Wells Fargo upgraded Lincoln National Corporation (NYSE:LNC) from Equal Weight to Overweight on February 25. The analyst also raised the firm’s price target from $41 to $48. The firm’s updated price target reflects an additional 45% upside from the current levels. According to the analyst, the company’s business momentum is strengthening, supported by higher free cash flows, increased capital returns to shareholders, and continued deleveraging.
The firm said these improvements suggest the company’s financial position and outlook are moving in a more favorable direction. Wells Fargo also highlighted that it now expects LNC to restart share repurchases in 2026, with the pace of buybacks likely to accelerate further in 2027 and 2028.
Lincoln National Corporation (NYSE:LNC), through its subsidiaries, provides insurance and retirement policies. The company is based in Radnor, Pennsylvania, and was founded in 1968.
9. Corebridge Financial Inc. (NYSE:CRBG)
Corebridge Financial Inc. (NYSE:CRBG) has received back-to-back downward target price revisions. On March 11, Alex Scott of Barclays lowered his price target from $34 to $33, while a day earlier, TD Cowen’s Daniel Bergman reduced the price target from $38 to $35.
Bob Huang at Morgan Stanley also lowered the firm’s price target on Corebridge Financial Inc. (NYSE:CRBG) from $35 to $32 on March 3. However, the analyst maintained an Equal Weight rating on the shares. The analyst highlighted that the sector’s revised outlook reflects both recent trends and updated assumptions affecting these companies. The firm sees life insurers’ exposure to private credit as manageable; it pointed out that valuation pressures may persist across the broader industry. This suggests that investors may still face challenges despite the limited credit-related risks.
Earlier, on February 25, Wells Fargo also lowered its price target on Corebridge Financial Inc. (NYSE:CRBG) from $37 to $36 while reiterating an Overweight rating. The adjustment follows a revision of fourth-quarter guidance from companies across the sector. Many of these outlooks were in line with or slightly below consensus expectations. As a result, the firm reduced its EPS estimates for several companies under its coverage.
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.
8. Lithia Motors, Inc. (NYSE:LAD)
On March 5, Michael Ward from Citi reduced the firm’s price target on Lithia Motors, Inc. (NYSE:LAD) from $399 to $366 while reaffirming a Buy rating. The firm revised its estimates following the company’s fourth quarter results and adjusted its outlook to reflect expected industry weakness in the first half of 2026. The update also accounts for higher operating costs.
Separately, Bank of America also provided its view on Lithia Motors, Inc. (NYSE:LAD) on March 4. BofA analyst Alexander Perry initiated coverage of the stock with a Buy rating and set a price target of $335. The firm said it is relaunching coverage of the North American automotive and auto-tech industry, as it believes the sector could perform better than expected this year. According to the firm, automakers are adapting to a new regulatory environment. This environment increasingly favors higher-margin internal combustion engine vehicles, which are more profitable for manufacturers.
Lithia Motors, Inc. (NYSE:LAD) is an automotive retailer operating across the United States and Canada. It operates in the Financing Operations and Vehicle Operations segments. The company provides a range of products and services such as financing and insurance products, new and used vehicles, and after-sales automotive repair & maintenance services.
7. Equitable Holdings Inc. (NYSE:EQH)
On March 5, J.P. Morgan analyst Jimmy Bhullar maintained his Buy rating on Equitable Holdings Inc. (NYSE:EQH) stock and assigned a target price of $58. Two days prior to this, Morgan Stanley analyst Bob Huang had lowered the firm’s price target on Equitable Holdings Inc. (NYSE:EQH) from $59 to $54 while maintaining an Overweight rating on the stock.
The firm said that the price target update is part of a broader update to its price targets for North American life and annuity insurance companies under its coverage. Despite adjusting the price target downward, Morgan Stanley said that it is not worried about life insurers’ exposure to private credit, but added that valuations across the broader industry could still come under pressure.
In addition to Morgan Stanley, Wells Fargo also cut its price target on Equitable Holdings Inc. (NYSE:EQH) on February 25. Wells Fargo analyst Elyse Greenspan lowered the firm’s price target on the stock from $60 to $57 while keeping an Overweight rating.
Equitable Holdings Inc. (NYSE:EQH) is a financial services holding company, operating in the following segments: Individual retirement, group retirement, investment management and research, protection solutions, and wealth management. The company is based in New York, New York, and was founded in 1859 by Henry B. Hyde.
6. The AES Corporation (NYSE:AES)
The AES Corporation (NYSE:AES) reported its fourth-quarter fiscal 2025 results on March 6, posting earnings and revenue that beat market expectations. The company reported non-GAAP earnings per share of $0.81, exceeding analyst estimates by $0.20. Revenue for the quarter came in at $3.1 billion, representing a 4.7% year-over-year increase and surpassing the consensus forecast by $30 million. The results reflected solid performance during the quarter as the company delivered better-than-expected revenue growth and profitability.
On March 5, prior to the earnings, Nicholas Amicucci from Evercore ISI reaffirmed a Hold rating on The AES Corporation (NYSE:AES) while maintaining a price target of $15.
Earlier on March 3, Mizuho Securities analyst Anthony Crowdell downgraded The AES Corporation (NYSE:AES) from Outperform to Neutral, setting a price target of $15. The rating was based on the company’s agreement to be acquired by Global Infrastructure Partners and the EQT Infrastructure VI fund. Under the terms of the agreement, the company will be purchased for $15 per share in cash, implying a total equity value of approximately $10.7 billion.
The AES Corporation (NYSE:AES) is a power generation and utility company. The company operates in the Energy Infrastructure, Renewables, New Energy Technologies, and Utilities segments. It operates and owns power plants that generate and sell power to customers, as well as utilities that generate, transmit, distribute, and sell electricity to end-user customers.
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