In this article, we will discuss: 6 Cheap Stocks to Buy According to Bill Ackman. For more stocks, you can head to 5 Cheap Stocks to Buy According to Bill Ackman.
Bill Ackman is one of the most well-known investors on Wall Street, courtesy of his unique brand of activist investing. His firm, Pershing Square Capital Management, had $13.7 billion in 13-F holdings as of Q1 2026, according to Insider Monkey’s data. This marked a notable growth over the year-ago figure of $11.9 billion. His exploits on Wall Street have also made Ackman a billionaire. According to Forbes Magazine, the hedge fund boss has a net worth of $8.8 billion as of June 2026.
However, Pershing Square got off to a rocky start in 2026. Year-to-date through February 2026, the fund’s Pershing Square Holdings fund, which accounts for a large portion of its holdings, was down 11%, according to Barron’s. The dip has slightly narrowed since then, as data on the fund’s website shows that as of June 9th, it is down by 10%. However, quarter-to-date, the fund is up by 7.4%.
Like other hedge fund bosses, Ackman also regularly shares his market and investment insights with the public. Recently, he appeared on the All-In Podcast and explained how his journey in the markets had changed his thought process:
“So I would say the biggest change over time is an appreciation for the importance of, business quality. Long term durable protected not disruptable growth. Would say, early days, you’re smaller, more liquid investor. You don’t have to think as long term. As you become a bigger concentrated investor, and over time you learn the importance of durable kind of growth. That’s the most important factor. I would say I’m as activist as I’ve ever been. But more of it’s on twitter than, I would say, in the corporate context. And the reason for that is, when I started in Pershing Square, no one sort of knew who we were. And so, one of our first investments was Wendy’s International. Wendy’s owned Tim Horton, the Canadian coffee and doughnut chain. And the value of Tim Horton’s was more than the entire value of Wendy’s. So we had this very simple idea, by Wendy’s, spin off Tim Horton’s, double our money.”
Ackman explained that the company’s CEO wouldn’t return his call, and he couldn’t get a return phone call no matter what he did. Finally, his firm had to mail its plans, and six weeks later, they had to spin off, following which the CEO called him back and thanked him, as he received a huge exit package. Over time, he built his reputation by joining boards and becoming known as an investor.
Our Methodology
For this article, we scanned Pershing Square’s Q1 portfolio and ranked the stocks through their forward P/E multiples. Then, stocks with a multiple lower than the S&P 500’s 21.1 were removed, following which they were ranked by the Forward P/E. The sector P/E data was sourced from FactSet, while the company data came courtesy of Yahoo Finance. Stocks with the P/S multiple were also considered. The six stocks with the lowest multiples were chosen. 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 599.2% since May 2014, beating its benchmark by 372 percentage points (see more details here).
6. Meta Platforms, Inc. (NASDAQ:META)
Pershing Square’s Stake: $1.5 billion
Forward P/E Ratio: 18.15
Social media giant Meta Platforms, Inc. (NASDAQ:META)’s shares are down by 18.8% over the past year and by 13% year-to-date. The firm started June out on a busy note as it introduced a new tier of its popular social media application, Instagram. Called Instagram Plus, the tier will allow users to post stories for 48 hours, curate their viewer list, and avail other features. On the 3rd, at its Conversations conference in London, Meta Platforms, Inc. (NASDAQ:META) introduced a new AI agent for businesses. The software will enable users to book appointments, close sales, and conduct other operations.
Multiple analysts have also discussed Meta Platforms, Inc. (NASDAQ:META)’s shares this month. For instance, Morgan Stanley reiterated a $775 share price target and its status as a top pick. The bank remarked that the technology firm could generate more than $10 billion in recurring revenue simply through its Meta AI platform and search monetization. On the 2nd, Arete upgraded the shares to Buy from Neutral and raised the share price target to $735 from $614. Some factors that the firm discussed in its coverage included Meta Platforms, Inc. (NASDAQ:META)’s subscription growth and cost base.
Impax US Sustainable Economy Fund discussed Meta Platforms, Inc. (NASDAQ:META) in its Q1 2026 investor letter:
“Meta Platforms, Inc. (NASDAQ:META) (Communication Services, Interactive Media & Services) is not held in the portfolio due to its unfavorable Corporate Resilience profile, including below-average scores on social risk management and governance. The stock declined materially during the quarter, reflecting broader de-rating of large-cap technology names and concerns around slowing digital advertising growth in a weaker consumer environment. The portfolio’s zero weight, given Meta’s meaningful benchmark position, made this the second-largest positive active contributor.”
While we acknowledge the potential of META 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 META and that has 100x upside potential, check out our report about the cheapest AI stock.
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