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.
A person with stock market data on a laptop. Photo by Anna Nekrashevich on Pexels
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.
11. Mohawk Industries, Inc. (NYSE:MHK)
Upside Potential as of December 26, 2025: 25.65%
Forward P/E: 11.0
Market Capitalization as of December 26, 2025: $6.81 billion
As of December 26, Mohawk Industries, Inc. (NYSE:MHK) has drawn a mixed response from analysts, with 47% recommending buying the stock and the remaining 53% maintaining a neutral stance. With a median price target of $138.50, the stock exhibits an upside potential of 25.65%.
On December 15, Jefferies reduced the price target on Mohawk Industries, Inc. (NYSE:MHK) to $128 from $134, keeping a ‘Hold’ rating on the stock. As told by the analyst in a 2026 building products outlook note, the firm is leaning toward consumer-facing companies with strong pricing power, since residential construction is projected to stay soft entering 2026.
On the same day, Wells Fargo trimmed the price target on Mohawk Industries, Inc. (NYSE:MHK) to $110 from $125 and reaffirmed an ‘Equal Weight’ rating, according to TheFly. The firm notes that skepticism heading into late 2025 complicates the housing playbook for next year. That said, it prefers attractively valued quality, adding that higher-risk opportunities are likely to materialize, but not just yet.
Barclays also lowered the price target on Mohawk Industries, Inc. (NYSE:MHK) to $121 from $122, while reiterating an ‘Equal Weight’ rating on December 8, reported TheFly. The firm sees another year of declining single-family housing starts, highlighting that the housing market “remains far from balanced.” Thus, leaving the homebuilder stocks “volatile, with no cycle call to be made.”
Mohawk Industries, Inc. (NYSE:MHK) is a Georgia-based company that offers flooring products for remodeling and new-construction channels. Founded in 1988, the company operates through three segments: Global Ceramic, Flooring North America, and Flooring Rest of the World.
10. Sanofi (NASDAQ:SNY)
Upside Potential as of December 26, 2025: 25.85%
Forward P/E: 9.8
Market Capitalization as of December 26, 2025: $98.85 billion
On December 28, Jefferies reiterated its ‘Buy’ rating on Sanofi (NASDAQ:SNY) with an unchanged price target of €100. This reaffirmation comes despite worries about the FDA’s Complete Response Letter (CRL) for tolebrutinib, which the firm believes raises “tough questions about management communication.” The firm believes these concerns will continue to negatively impact market sentiment toward the company.
Earlier, on December 23, Sanofi (NASDAQ:SNY) announced the approval of its Wayrilz (rilzabrutinib) treatment from the European Commission. This approval of a novel Bruton’s tyrosine kinase (BTK) inhibitor to address immune thrombocytopenia (ITP) is based on the pivotal LUNA 3 phase 3 study, in which Wayrilz achieved both the primary and secondary endpoints. This outlined a favorable impact on sustained platelet counts, along with other ITP symptoms.
The study demonstrated that Wayrilz patients experienced a faster time to first platelet response, at 36 days, in contrast to the placebo arm, where this endpoint was not met. Not only that, but the patients also maintained a platelet response for a longer duration relative to the placebo, with a difference of 6.3 weeks.
As stated by Brian Foard, Executive Vice President, Head of Specialty Care at Sanofi (NASDAQ:SNY),
“Wayrilz has a differentiated mechanism of action, enabling multi-immune modulation to address the underlying pathology of ITP, allowing patients to benefit from an advanced treatment to help manage their disease.”
Sanofi (NASDAQ:SNY), founded in 1994, is a French pharmaceutical company. The company delivers medicines and vaccines for immunology and inflammation, oncology, and other indications.
9. Corebridge Financial, Inc. (NYSE:CRBG)
Upside Potential as of December 26, 2025: 27.49%
Forward P/E: 6.0
Market Capitalization as of December 26, 2025: $15.92 billion
As of December 26, Corebridge Financial, Inc. (NYSE:CRBG) has a ‘Buy’ rating from nearly 70% of the analysts covering the stock. With a median price target of $39, the stock has an upside potential of 27.49%. Among the analysts positive on the company’s growth story is John Barnidge, an analyst at Piper Sandler, who reaffirmed a ‘Buy’ rating and price target of $40 on December 23. This reflects a potential upside of nearly 31%.
Another analyst, Yaron Kinar from Mizuho, started coverage on Corebridge Financial, Inc. (NYSE:CRBG) with an ‘Outperform’ rating and a price target of $38 on December 16. TheFly reported that after initiating coverage of 23 companies, the firm favoured life insurance, saying that although there are credit worries, the group still remains undervalued.
Mizuho takes a less constructive approach on property and casualty insurers and brokers, citing reasons like market easing, plateauing investment yields, and reserve concerns. While projecting moderate organic growth for insurance brokers, the research firm is wary of the aggressive acquisitions this may fuel. That said, the firm anticipates Corebridge Financial, Inc. (NYSE:CRBG) to return an accelerating normalized EPS growth of 16% in 2026 and 19% in 2027, up from 6% in the current year, surpassing current forecasts.
Corebridge Financial, Inc. (NYSE:CRBG) is a Texas-based provider of retirement solutions and insurance products. Founded in 1998, the company operates through four segments: Individual Retirement, Group Retirement, Life Insurance, and Institutional Markets.
8. Coterra Energy Inc. (NYSE:CTRA)
Upside Potential as of December 26, 2025: 27.96%
Forward P/E: 9.7
Market Capitalization as of December 26, 2025: $19.64 billion
As of December 26, Coterra Energy Inc. (NYSE:CTRA) has a rating of ‘Buy’ or equivalent from 79% of the analysts covering the stock. With a median price target of $33, the stock has an upside potential of 27.96%. On December 19, Mark Lear, an analyst at Piper Sandler, reaffirmed a ‘Buy’ rating on the company, with a $37 price target. Slightly above the median price target, the analyst’s price target reflects an upside potential of 43%.
According to TheFly, Mizuho lifted the price target on Coterra Energy Inc. (NYSE:CTRA) to $36, up from $33, and maintained an ‘Outperform’ rating on December 12. This adjustment is part of the firm’s revised ratings and targets in the exploration and production group, designed to better reflect the 2026 outlook.
The analyst notes that although overall market sentiment for U.S. oil and gas names is weak due to oil oversupply and high gas storage, there is still “underappreciated value” in the group, particularly in exploration and production, driven by longer-term fundamentals that could start contributing meaningfully in 2026. Mizuho recommends reallocating risk toward oil E&Ps, with a selective bias in gas names, while maintaining neutrality in refining.
On the same day, Josh Silverstein, an analyst at UBS, raised the price target on Coterra Energy Inc. (NYSE:CTRA) to $33 from $32, reiterating a ‘Buy’ rating on the stock. The firm believes the energy sector is well-positioned for a resilient 2026.
Coterra Energy Inc. (NYSE:CTRA) is a Texas-based independent oil and gas company specializing in oil, natural gas, and natural gas liquids. Founded in 1989, the company is committed to “delivering reliable energy solutions to all.”
7. KBR, Inc. (NYSE:KBR)
Upside Potential as of December 26, 2025: 33.02%
Forward P/E: 9.9
Market Capitalization as of December 26, 2025: $5.11 billion
As of December 26, KBR, Inc. (NYSE:KBR) has a ‘Buy’ or equivalent rating from 64% of analysts covering the stock, with the remaining analysts neutral. While the price target ranges from $45 to $65, the median price target of $53.50 translates to an upside potential of 33.02%. On December 2, Ian Zaffino of Oppenheimer initiated coverage of the company with an ‘Outperform’ rating and a $60 price target, according to TheFly.
Zaffino highlighted that KBR, Inc. (NYSE:KBR) offers an “interesting, value-based investment opportunity,” particularly given the stock’s 30% YTD decline. As noted by the analyst in a research note, the dip occurs before the government services business spinout, scheduled for mid-to-late 2026. The firm believes that entering 2026, the stock setup is quite attractive. Despite troubles, primarily in the Mission Technology Solutions business, the company continues to navigate these challenges as it returns capital to investors, the analyst asserted.
Later, on December 19, Truist reduced its price target on KBR, Inc. (NYSE:KBR) to $50 from $62 and maintained a ‘Buy’ rating on the stock. This downward revision is part of the firm’s model readjustment following the pause in the Lake Charles LNG project and the scaleback of Plaquemines.
KBR, Inc. (NYSE:KBR) is a Texas-based provider of scientific, technology, and engineering solutions to both government institutions and commercial clients. Founded in 1901, the company operates through two segments: Government Solutions and Sustainable Technology Solutions.
6. PG&E Corporation (NYSE:PCG)
Upside Potential as of December 26, 2025: 33.16%
Forward P/E: 9.9
Market Capitalization as of December 26, 2025: $34.66 billion
As of December 26, PG&E Corporation (NYSE:PCG) has a ‘Buy’ or equivalent rating from 78% of the analysts covering the stock. With a median price target of $21, the stock has an upside potential of 33.16%. Among the analysts bullish on the stock is Carly Davenport, an analyst at Goldman Sachs, who reaffirmed a ‘Buy’ rating on PCG on December 3, with a price target slightly above the consensus estimate, set at $22.
Morgan Stanley trimmed the price target on PG&E Corporation (NYSE:PCG) to $20 from $21, while keeping an ‘Equal Weight’ rating on the stock, on December 16. According to a year-ahead note, utility performance will be largely fueled by data centers and growth upside in 2026. Earlier, on December 12, JPMorgan reduced the price target on PG&E Corporation (NYSE:PCG) to $21 from $22, and maintained an ‘Overweight’ rating. TheFly reports that this revision is a part of the firm’s update to the models in the North American utilities group.
Separately, on December 17, PG&E Corporation (NYSE:PCG) announced an organizational restructuring to enhance service for customers in Northern and Central California. Effective January 1, 2026, these changes include several leadership appointments, with Patti Poppe remaining as CEO. As stated by her,
“We want to be our customers’ hometown gas and electric utility, in touch with their unique needs and enabling their growth and prosperity.”
PG&E Corporation (NYSE:PCG) is a California-based provider of electricity and natural gas through its Pacific Gas and Electric Company subsidiary. Founded in 1905, the company serves clients across commercial, industrial, and agricultural sectors.
5. Smurfit Westrock Plc (NYSE:SW)
Upside Potential as of December 26, 2025: 34.23%
Forward P/E: 12.9
Market Capitalization as of December 26, 2025: $20.17 billion
As of December 26, Smurfit Westrock Plc (NYSE:SW) has a ‘Buy’ or equivalent rating from the majority of the analysts covering the stock. With a target price range of $44.50 to $63, the median price target of $52 translates to an upside potential of 34.23% from the current price. On December 22, Michael Roxland, an analyst at Truist Financial, maintained a ‘Buy’ rating on the stock, while setting a price target of $50. This reflects an upside potential of about 29%.
According to TheFly, Reinhardt van der Walt from BofA trimmed the price target on the company to $55 from $57 and kept a ‘Buy’ rating on December 19, 2025. The firm advises taking “a selective approach” to paper and packaging equities entering 2026. That said, it favors downstream names with credible, overlooked self-help opportunities, such as Smurfit Westrock Plc (NYSE:SW). Thus, the revised price target reflects mark-to-market on Q4 prices and an adjusted outlook for 2026.
Earlier on December 18, RBC Capital also reduced the price target on Smurfit Westrock Plc (NYSE:SW) to $51 from $54 and reiterated an ‘Outperform’ rating. This update was part of a broader research note previewing 2026 for Paper & Forest Products, reported TheFly.
Smurfit Westrock Plc (NYSE: SW) is an Ireland-based company that provides containerboard, corrugated containers, and other paper-based packaging products. Founded in 1934, the company mainly serves the food and beverage and consumer goods markets.
4. Antero Resources Corporation (NYSE:AR)
Upside Potential as of December 26, 2025: 35.06%
Forward P/E: 11.1
Market Capitalization as of December 26, 2025: $10.51 billion
On December 26, Arun Jayaram, an analyst at J.P. Morgan, downgraded Antero Resources Corporation (NYSE:AR) to a ‘Hold’ rating. The price target of $39, slightly above the lowest price target of $36, reflects a potential upside of around 15%.
Earlier on December 12, UBS lifted the price target on Antero Resources Corporation (NYSE:AR) to $46 from $40, maintaining a ‘Buy’ rating, according to TheFly. The analyst tells investors that following three years of muted gains, the energy sector is poised for a rebound in 2026. This is fueled by positive oil and natural gas outlooks, M&A-driven value creation, improved costs and capex, new OFS opportunities, and appealing valuations. That said, UBS favors Natural gas E&Ps, despite strong momentum forecasted broadly across Oil E&Ps and OFS.
On the same day, Wells Fargo also increased the price target of Antero Resources Corporation (NYSE:AR) to $49 from $39 and reiterated an ‘Overweight’ rating, as reported by TheFly. This price target exceeds the consensus 1-year median price target of $46, indicating an upside potential of 35.06%.
The firm highlighted the all-cash Hope Gas and the Utica sale, which it believes will deliver financial and strategic benefits, particularly through operating synergies across contiguous West Virginia acreage.
Antero Resources Corporation (NYSE:AR) is a Colorado-based independent oil and natural gas company providing natural gas, natural gas liquids (NGLs), and oil properties. Incorporated in 2002, the company operates through three segments: Exploration and Production, Marketing, and Equity Method Investment in Antero Midstream.
3. The Mosaic Company (NYSE:MOS)
Upside Potential as of December 26, 2025: 35.75%
Forward P/E: 8.0
Market Capitalization as of December 26, 2025: $7.72 billion
As of December 26, The Mosaic Company (NYSE:MOS) has mixed analyst sentiment, with 57% of the analysts covering the stock assigning a Buy rating and the remaining 43% recommending holding the stock. On December 23, Ben Isaacson, an analyst at Scotiabank, reaffirmed a ‘Hold’ rating on The Mosaic Company (NYSE:MOS), while setting a price target of $36. This reflects a potential upside of around 48%.
Earlier on December 18, The Fly reported that Edlain Rodriguez from Mizuho trimmed the price target on The Mosaic Company (NYSE:MOS) to $28 from $31 and kept a ‘Neutral’ rating. Slightly above the lowest price target, the revised estimate, which suggests a potential upside of 15%, is part of the firm’s 2026 outlook for the chemicals, agriculture, and packaging sectors.
Mizuho pointed out that China’s enhanced exports are influencing the basic chemical markets, adding that the March quarter is likely to start as weakly as the December quarter ended for most companies. Since the start of this month, The Mosaic Company (NYSE:MOS) has dipped by nearly 2.60%, but the dividend game is what’s interesting.
On December 19, The Mosaic Company (NYSE:MOS) announced a quarterly dividend of $0.22 per share on its common stock. According to Yahoo Finance estimates, this represents a forward annual yield of 3.62%.
The Mosaic Company (NYSE:MOS) is a Florida-based company specializing in concentrated phosphate and potash crop nutrients. Founded in 1987, the company operates through three segments: Phosphates, Potash, and Mosaic Fertilizantes.
2. HF Sinclair Corporation (NYSE:DINO)
Upside Potential as of December 26, 2025: 36.22%
Forward P/E: 8.8
Market Capitalization as of December 26, 2025: $8.44 billion
As of December 26, HF Sinclair Corporation (NYSE:DINO) has mixed analyst sentiment: 44% of analysts covering the stock assign a Buy rating, 50% hold a cautious view, and 6% recommend a Sell. While the target price ranges from $53 to $70, the median price target of $62.50 reflects an upside potential of 36.22%.
On December 12, Nitin Kumar from Mizuho slightly lifted the price target on HF Sinclair Corporation (NYSE:DINO) to $63 from $62 and maintained an ‘Outperform’ rating. As part of the firm’s 2026 outlook, it revised ratings and targets across the exploration and production market.
Two days earlier, TD Cowen reduced the price target on HF Sinclair Corporation (NYSE:DINO) to $53.00 from $55.00, keeping a ‘Hold’ rating. According to the firm’s analysis, the company is working towards expanding the business through small bolt-on acquisitions in the lubes and marketing segments. Additionally, the company is pursuing organic growth through its marketing, refining, and midstream operations.
By the middle of 2026, HF Sinclair Corporation (NYSE:DINO) is expected to reach a final investment decision on a previously disclosed pipeline project to facilitate westward transportation, TD Cowen highlighted, adding that the company is well-positioned to return significant cash to shareholders, given its current cash balances.
HF Sinclair Corporation (NYSE:DINO), founded in 1947, is a Texas-based independent energy company that operates through five segments: Refining, Renewables, Marketing, Lubricants and Specialties, and Midstream.
1. BioMarin Pharmaceutical Inc. (NASDAQ:BMRN)
Upside Potential as of December 26, 2025: 57.63%
Forward P/E: 11.4
Market Capitalization as of December 26, 2025: $11.52 billion
As of December 26, BioMarin Pharmaceutical Inc. (NASDAQ:BMRN) has a ‘Buy’ rating from 74% of the analysts covering the stock. The gap between the high and consensus low price targets is also wide: the consensus 1-year median price target implies 57.63% upside, while the high price target implies over 100% upside, and the lowest price target implies a mere 0.08% upside.
On December 23, Joon Lee from Truist lifted the price target on BioMarin Pharmaceutical Inc. (NASDAQ:BMRN) to $100 from $80, while keeping a ‘Buy’ rating on the stock, according to TheFly. This represented an upside potential of 67% from the current price.
This upward revision in price target follows BioMarin Pharmaceutical Inc. (NASDAQ:BMRN)’s proposed acquisition of Amicus Therapeutics, which Truist believes will align with the company’s focus on rare diseases. Amicus’s lead candidates, Galafold and PomOp, complement the company’s current offerings.
Truist noted that the acquisition will likely be accretive within approximately 12 months following the deal close in the latter half of next year, and will be largely accretive from 2027 onward. The analyst also highlighted that Amicus is already a profitable biotech name. Since there are potential synergies between the two companies, each of the acquired drugs is expected to achieve approximately $1 billion in peak sales, with additional pipeline options offering further expansion opportunities, the analyst concluded.
BioMarin Pharmaceutical Inc. (NASDAQ:BMRN) is a California-based biotechnology company specializing in therapies for serious rare diseases and medical conditions. Founded in 1996, the company offers VIMIZIM, VOXZOGO, NAGLAZYME, and PALYNZIQ.
While we acknowledge the potential of BMRN to grow, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than BMRN and that has 100x upside potential, check out our report about this cheapest AI stock.
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