15 Best Cheap Stocks to Buy for 2026

5. CVS Health Corporation (NYSE:CVS)

Number of Hedge Fund Holders: 78

Forward P/E: 10.05

Stock Upside Potential: 28.33%

CVS Health Corporation (NYSE:CVS) is one of the best cheap stocks to buy for 2026. On January 27, BofA Securities cut its price target on CVS Health Corporation (NYSE:CVS) stock to $95 from $100 while keeping a Buy rating. This cut, stated BofA, was prompted by a recent proposal from the Centers for Medicare & Medicaid Services (CMS) that fell short of market hopes.

The CMS proposed new policies for the calendar year 2027 in an advance notice that outlined a net all-in rate of 2.54%. This figure is below what the market had in mind, at 4-6%. The notice also contains a new CMS-HCC model for calculating risk scores, which is expected to reduce payments by about 1.53% in 2027. These changes aim to stop certain billing practices by excluding diagnosis information from unlinked Chart Review Records, or CRRs, in risk score calculations starting in the calendar year 2027.

Other analysts weighed in with mixed but mostly optimistic views. For instance, Bernstein lifted its price target to $87 while holding a Market Perform rating. The firm cited growth opportunities via Aetna but noting ongoing issues in the pharmacy benefit manager space.

Separately, on January 6, the CVS Board of Directors approved a quarterly dividend of $0.665 per share on the company’s common stock. The payment will be honored on February 2 this year to shareholders who are on the company’s books as of January 22.

CVS Health Corporation (NYSE:CVS) operates as a diversified healthcare company through its retail pharmacies, pharmacy benefit management services, and health insurance offerings under Aetna. Its operations include prescription drug distribution, walk-in medical clinics, and insurance plans.