In this article, we will look at the 15 Best Cheap Stocks to Buy for 2026.

Investors might feel like they have been overwhelmed by the news over the past year. But the stock market keeps reaching for new peaks every trading week. On January 28, the S&P 500 briefly crossed 7000 points for the first time, and the index has rebounded nearly 40% since its April 2025 lows. Just a day earlier, on January 27, the broad market index had notched its fifth record close, according to CNBC.

The tech-heavy Nasdaq Composite has also seen a similar run, although the gains for 2026 have been modest. The star of the show so far this year, however, is the Russell 2000, which has surged nearly 7% year-to-date, as of January 29. An analysis shows that the index has outperformed large-cap peers for 14 consecutive trading sessions, its longest streak since 1996.

But this unrelenting rally has amplified concerns about stretched valuations. Expert observers cite the Shiller S&P 500 price-to-earnings ratio, which currently reads 41, its highest level since the dot-com bubble. The conventional trailing P/E ratio sits at 31.52, well above the historical average of 16.2. According to Savita Subramanian, Bank of America’s head of US equity strategy, “the S&P 500 is expensive, meaning risks to the index abound in 2026.” And she expects that the index will hit 7,100 by year-end 2026, which ranks among the lowest on the Street.

This reality explains why Goldman Sachs analysts predict that value stocks will remain in favor in the months ahead if the US economic momentum strengthens. According to the analysts, the value stocks, which are low-valuation shares typically with a forward P/E less than 15, have continued to outperform their higher-valuation equivalents at the start of the year. They noted that this indicator posted a 15% return in the last six months of 2025.

With that in mind, let’s take a look at several best cheap stocks to buy for 2026.

Our Methodology

To create this list, we used several screeners, including TradingView and Finviz, to identify US-listed stocks trading at forward P/E ratios between 3 and 15. We filtered for names with a positive upside potential of at least 20%.The stocks are ranked in ascending order based on hedge fund holdings as of Q3 2025.

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).

Note: The forward P/E and upside potential data are as of January 31, 2026.

Best Cheap Stocks to Buy for 2026

15. HNI Corporation (NYSE:HNI)

Number of Hedge Fund Holders: 25

Forward P/E: 11.92

Stock Upside Potential: 58.46%

HNI Corporation (NYSE:HNI) is one of the best cheap stocks to buy for 2026. On January 16, Benchmark Co. lifted its price target for HNI Corporation (NYSE:HNI) to $75 per share from $60. The firm continued to assign the stock a Buy recommendation.

The revision came in the context of HNI Corp’s announcement in August 2025 regarding its planned purchase of Steelcase Inc., a transaction carrying an enterprise value of roughly $2.2 billion. The analyst’s assessment referenced management projections indicating the merger would yield annual cost synergies totaling approximately $120 million once integration is complete. Benchmark also incorporated guidance suggesting the transaction would add between $0.50 and $0.60 to HNI’s earnings per share by fiscal year 2027.

At the same time, Benchmark selected HNI as a top choice for 2026, pointing out that the stock is priced below its typical historical values. The firm stated that there are clearer prospects for profit growth in a market that seems to be bottoming out. Benchmark also observed that HNI’s shares have a price-to-earnings ratio of 13.35, and the company has consistently paid dividends over 55 years.

Independent of the analyst action, on January 8, HNI announced plans to shut down its manufacturing facility in Wayland, New York, by 2027. This move will affect about 135 jobs at the site. The facility has served as the production hub for Gunlocke, HNI’s wood furniture brand focused on workplace furnishings, since the company acquired the operation in 1989, though the plant itself dates back to 1902 when the W. H. Gunlocke Chair Company first opened its doors.

HNI stated that products currently made at the plant will continue to be produced elsewhere with no anticipated changes to the product lineup or quality standards. And the company estimated that annual cost savings from the consolidation will be about $7.5 million to $8 million once fully implemented.

HNI Corporation (NYSE:HNI) manufactures workplace furnishings and residential building products. Its workplace segment includes furniture systems, seating, storage, and architectural products sold to offices, institutions, and hospitality clients. The residential building segment produces gas, wood, and electric fireplaces, stoves, and outdoor fire pits distributed through dealers, retailers, and eCommerce platforms.

14. Sanofi SA (NASDAQ:SNY)

Number of Hedge Fund Holders: 32

Forward P/E: 9.02

Stock Upside Potential: 25.11%

Sanofi SA (NASDAQ:SNY) is one of the best cheap stocks to buy for 2026. On January 27, Citi Research initiated coverage of six large European pharmaceutical stocks, including Sanofi SA (NASDAQ:SNY), AstraZeneca, Roche, Novo Nordisk, GSK, and Novartis.

Citi assigned Sanofi a Neutral rating and an €85 price target, a move that positioned the company in the middle of the group. The bank’s analyst Graham Parry commented that pipeline setbacks have weakened the long-term growth outlook for Sanofi. In other words, Citi has concerns about Sanofi’s drug development progress. Parry also described 2026 as “catalyst-light” for Sanofi, and that he sees fewer near-term events or milestones that might drive the stock.

In discussing the company’s valuation, Citi stated that Sanofi has time to strengthen its pipeline organically and through acquisitions over the next five years. However, the analysts noted that the company’s current valuation, about 10 times expected 2026 earnings, largely reflects the setbacks. The firm added that they believe the market is unlikely to reward the stock with a much higher multiple without tangible evidence of pipeline improvement.

Meanwhile, on January 23, Sanofi reported that its experimental medicine amlitelimab showed positive results in Phase 3 clinical studies. The studies focused on moderate-to-severe atopic dermatitis (eczema) in people aged 12 years and older. The data come from two major global trials called SHORE and COAST 2, and follow earlier positive findings from the COAST 1 study. Across both studies, amlitelimab was generally well tolerated, and side effects were consistent with what Sanofi has seen before.

Sanofi SA (NASDAQ:SNY) is a global healthcare company engaged in the research, development, manufacturing, and marketing of pharmaceutical products. Its operations span specialty care, vaccines, and general medicines.