In this article, we are going to look at the 5 Most Profitable Cheap Stocks to Buy Right Now. For a longer list and more details on how we picked these stocks, you can go to 12 Most Profitable Cheap Stocks to Buy Right Now.
5. Citigroup Inc. (NYSE:C)
Forward P/E: 13.14
Profit Margin: 20.36%
Net Income Available to Common (TTM): $14.7 Billion
Number of Hedge Fund Holders: 106
Citigroup Inc. (NYSE:C) is one of the most profitable cheap stocks to buy right now. On June 26, Truist increased its price target for Citigroup Inc. (NYSE:C) from $147 to $158 while keeping its Buy rating on the stock.
This update comes as part of a broader research note on universal and regional banks. Truist expects the company’s revenue to come in slightly above its guidance. The research firm also noted that if Citigroup Inc. (NYSE:C) can front-load its remaining severance budget for this year, expenses and efficiency could rise higher this quarter. However, this could help improve the company’s expense trend in the second half of the year.
Photo by osamu nakazawa on Unsplash
Earlier, on June 18, Wells Fargo lifted its price target on Citigroup Inc. (NYSE:C) from $162 to $165 and maintained an Overweight rating on the stock.
The research firm expects the company to outperform its 2026 return on tangible common equity (ROTCE) target. According to Wells Fargo, this outlook is supported by strong capital markets, payments, and net interest income, which continues to benefit from higher interest rates. The firm also believes Citigroup Inc. (NYSE:C) is likely to deliver better-than-expected second-quarter results.
Citigroup Inc. (NYSE:C) is a global financial services company that operates in over 180 countries and jurisdictions, providing corporations, governments, investors, institutions, and individuals with a wide range of financial products and services.
4. Bank of America Corporation (NYSE:BAC)
Forward P/E: 12.82
Profit Margin: 28.96%
Net Income Available to Common (TTM): $30.26 Billion
Number of Hedge Fund Holders: 106
Bank of America Corporation (NYSE:BAC) is one of the most profitable cheap stocks to buy right now. On June 30, Oppenheimer downgraded its rating on Bank of America Corporation (NYSE:BAC) from Outperform to Perform.
The research firm downgraded its rating on many US bank stocks, noting that rich valuations have left little room for further upside and that share prices already reflect much of the positive outlook for earnings and the overall business environment.
According to Oppenheimer, the banking sector has moved from years of structural undervaluation to valuations that now suggest optimism over sustained earnings growth. The firm pointed out that commercial banks are now trading near the high end of their historical valuation ranges, while investment banks are trading well above their long-term averages as investors expect strong investment banking activity and trading revenue.
Oppenheimer also raised its earnings estimates for the second quarter of 2026, pointing to better-than-expected trading performance. In addition, the firm increased its 2027 forecasts after raising its expectations for global investment banking activity. The brokerage now expects the investment banking “wallet” to reach about 46 basis points of US nominal GDP, which is estimated to be around 20% to 25% higher than a normal level.
Bank of America Corporation (NYSE:BAC) is a global banking and financial services corporation that offers banking, investing, asset management, and other financial and risk management products and services to individual consumers, small and middle-market businesses, and large corporations.
3. SanDisk Corporation (NASDAQ:SNDK)
Forward P/E: 11.93
Profit Margin: 34.19%
Net Income Available to Common (TTM): $4.51 Billion
Number of Hedge Fund Holders: 114
SanDisk Corporation (NASDAQ:SNDK) is one of the most profitable cheap stocks to buy right now. On July 1, BofA lifted its price target on Sandisk Corporation (NASDAQ:SNDK) from $2,100 to $2,500 and maintained its Buy rating on the stock.
The research firm expects the supply and demand imbalance in the NAND market to continue through 2027. As a result, pricing will stay “strong for longer” through mid-2027, although the pace of price increases is expected to slow over time on a quarter-over-quarter percentage rate basis.
A day earlier, on June 30, Bernstein analyst Mark Newman also increased the firm’s price target on Sandisk Corporation (NASDAQ:SNDK) to $3,000 from $1,700 and maintained an Outperform rating on the stock.
According to Bernstein, the new memory long-term agreements (LTAs) are more favorable for suppliers than older contracts. The new agreements include fixed or range-bound prices, longer terms, and upfront financial commitments to lock-in customers and protect against downside risk.
Sandisk Corporation (NASDAQ:SNDK) is an American computer technology company that designs and manufactures flash solutions and advanced memory technologies, including SSDs, memory cards, and USB Flash Drives.
2. JPMorgan Chase & Co. (NYSE:JPM)
Forward P/E: 14.88
Profit Margin: 33.94%
Net Income Available to Common (TTM): $57.51 Billion
Number of Hedge Fund Holders: 131
JPMorgan Chase & Co. (NYSE:JPM) is one of the most profitable cheap stocks to buy right now. On June 29, Morgan Stanley increased its price target on JPMorgan Chase & Co. (NYSE:JPM) from $336 to $362 and maintained its Equal Weight rating on the stock.
The research firm said it remains positive on the banks into the earnings season, even after the US banks have rallied quarter-to-date. According to Morgan Stanley, revenue momentum continues to build across the industry.
Earlier, on June 26, Truist analyst John McDonald lifted the firm’s price target on JPMorgan Chase & Co. (NYSE:JPM) from $332 to $344 and maintained a Hold rating on the stock.
McDonald noted that late-May guidance for total markets revenue growth of 11% or more year-over-year and investment banking fee growth of at least 10% or more year-over-year was not updated in early June. However, the analyst noted that activity levels since then suggest results could come in stronger than previously expected.
JPMorgan Chase & Co. (NYSE:JPM) is an American multinational financial services firm with leading positions in investment banking, financial services for consumers and small businesses, commercial banking, financial transaction processing, and asset management.
1. Micron Technology, Inc. (NASDAQ:MU)
Forward P/E: 7.52
Profit Margin: 55.91%
Net Income Available to Common (TTM): $50.47 Billion
Number of Hedge Fund Holders: 154
Micron Technology, Inc. (NASDAQ:MU) is one of the most profitable cheap stocks to buy right now. On June 29, Cantor Fitzgerald raised its price target on Micron Technology, Inc. (NASDAQ:MU) from $1,500 to $2,000 and maintained its Overweight rating on the stock.
This update came after the company’s disclosure of strategic customer agreements, which points to a more durable and extended memory cycle. Cantor Fitzgerald noted that as much as half of the company’s revenue could be secured through multi-year contracts with strong gross margins. This could improve pricing dynamics, lower quarter-end volatility in negotiations, and support more consistent long-term margins compared with previous industry cycles.
On the same day, Phillip Securities also increased its price target on Micron Technology, Inc. (NASDAQ:MU) from $530 to $1,870 and maintained its Buy rating on the stock.
The research firm expects the current memory shortage to continue beyond 2027. According to Phillip Securities, Micron Technology, Inc. (NASDAQ:MU) can enter into more agreements with new and existing customers in the coming quarters.
Micron Technology, Inc. (NASDAQ:MU) is a leading semiconductor technology company that is known for its innovative memory and storage solutions. The company offers a portfolio of high-performance DRAM, NAND, and NOR memory and storage products.
While we acknowledge the potential of MU 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 MU and that has 100x upside potential, check out our report about the cheapest AI stock.
READ NEXT: Top 10 Hot Stocks with the Highest Upside Potential and 10 Best Technology Penny Stocks with Huge Upside Potential.
Disclosure: None.
