In this article, we will take a look at the ridiculously cheap stocks to buy now.

Markets are hardly rational, and that’s what makes things so interesting. A “cheap stock” is not necessarily a broken case; rather, some stocks have the potential for outsized returns once sentiment begins to normalize. For investors willing to look beyond short-term noise, these stocks are difficult to ignore.

On December 29, The Detroit News published an article titled “Every Wall Street analyst now predicts a stock rally in 2026,” which highlighted that the U.S. stock market is set for a fourth consecutive year of gains in 2026. This would mark the longest “winning streak” in almost two decades.

The article states that the AI boom could burst, with the economy and interest-rate decisions likely to surprise the market, and another year of the Trump Administration could bring more shocks. But following three years in which the stock market ignored every bearish prediction, sell-side strategists are becoming more optimistic. The article mentions Ed Yardeni, veteran market strategist and longtime bull, who cites “Pessimism is on the out right now.” He says,

“That’s where my counter instincts come out: Things have been going my way for so long that it is kind of worrying that everyone else seems to have become optimistic.”

The publication further notes that Mislav Matejka, JPMorgan’s head of global and European equity strategy, believes optimism is fueled by strong growth, slowing inflation, and the overall perception that the AI stock surge implies an economic transformation, and not a bubble that will burst.

Keeping this outlook for 2026 in mind, we have compiled a list of ridiculously cheap stocks to buy now.

Our Methodology

For this article, we considered stocks with market capitalizations over $3 billion. Next, we filtered for stocks with a Forward P/E between 6 and 14, a forecast 5-year EPS growth rate over 10%, and upside potential of at least 20%. We then shortlisted the thirteen companies with the highest upside potential and ranked them in ascending order.

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).

13. PayPal Holdings, Inc. (NASDAQ:PYPL)

Upside Potential as of December 26, 2025: 25.06%

Forward P/E: 10.2

Market Capitalization as of December 26, 2025: $56.11 billion

As of December 26, PayPal Holdings, Inc. (NASDAQ:PYPL) has mixed analyst ratings, with 37% recommending buying the stock, 52% keeping a neutral stance, and the remaining 11% bearish on the stock. While the median price target of $75 reflects an upside potential of 25.06%, the highest and lowest price targets translate to an upside potential of 75.09% and a downside potential of 14.96%.

On December 22, Mizuho trimmed the price target on the company to $75 from $84 and maintained an ‘Outperform’ rating. The revised price target, in line with the consensus estimate, is driven by the firm’s model and a readjustment of targets for the payments, processors, and IT services group to better reflect earlier macroeconomic data points and management commentary at investor conferences.

Earlier, during a fireside chat on December 3, PayPal Holdings, Inc. (NASDAQ:PYPL)’s CFO had highlighted that Q4 branded checkout growth would be “at least a couple of points slower,” in contrast to that of Q3. Mizuho has now factored these remarks into its estimates, lowering its fourth-quarter branded growth forecast to around 1% from approximately 4%. The firm also reduced its guidance for Pay with Venmo growth to 40% YoY from 45%. That said, Mizuho projects transaction margin dollar growth of 2%, down from earlier 5% guidance, yet remains within the company’s 2%-5% growth guidance range.

PayPal Holdings, Inc. (NASDAQ:PYPL) is a California-based company that operates a technology platform that facilitates digital payments for consumers and merchants. Founded in 1998, the company is committed to democratizing financial services.

12. Marathon Petroleum Corporation (NYSE:MPC)

Upside Potential as of December 26, 2025: 25.24%

Forward P/E: 10.2

Market Capitalization as of December 26, 2025: $49.20 billion

As of December 26, Marathon Petroleum Corporation (NYSE:MPC) has mixed market sentiment, with 50% of analysts covering it recommending a Buy and the remaining 50% maintaining a neutral stance. While the price target range is $180 to $231, the median target of $205 implies 25.24% upside.

Among those with a balanced view on the stock is Mizuho, which raised its price target on Marathon Petroleum Corporation (NYSE:MPC) to $196 from $188 and maintained a ‘Neutral’ rating on December 12. This revision is part of the firm’s ratings and targets adjustment in the exploration and production group to better reflect its outlook for the upcoming year. Although the overall sentiment toward U.S. oil and gas companies is negative due to oil market oversupply and high gas storage levels, the firm believes there is “underappreciated value” in the group.

On the other hand, BMO Capital is one of the firms positive on Marathon Petroleum Corporation (NYSE:MPC). On December 9, the firm reaffirmed an ‘Outperform’ rating and a $210 price target on the stock following a sell-side breakfast hosted by the company, where management highlighted its strategic focus. The firm believes refining its footprint, cost structure, and strategic relationship with MPLX will drive the future of the company.

Marathon Petroleum Corporation (NYSE:MPC) is an Ohio-based integrated downstream energy company. Incepted in 1887, the company operates through three segments: Refining & Marketing, Midstream, and Renewable Diesel.