In this article, we will look at the 8 Affordable Stocks to Buy With Good Earnings Growth.
On March 25, Jim Paulsen, former chief investment strategist at Leuthold Group, appeared on CNBC’s ‘Squawk on the Street’ to talk about the impacts of the Iran war and the stock market. Talking about the current scenario, he was of the opinion that no one really knows how this is going to go, and everyone is just trying to discount the news flow as it comes in. This is a reminder that there is risk regarding this war continuing much longer than was expected and getting much worse, which would prove detrimental to stocks and bonds. However, there is also a risk of being out of this market if there is any kind of relatively quick resolution to it, as we could see on the day and a few days before. Therefore, Paulsen believes that there is risk on all sides of this trade.
READ ALSO: 15 Best Undervalued Stocks Under $50 to Invest In Now AND 12 Undervalued Defensive Stocks for 2026.
He further stated that there is also concern about other parts, beyond oil, starting to rise, which he thinks is true, as it bleeds out. He also said that he went back 40 years and looked at eight oil spike-induced inflation pickups in the CPI, and this is one of the smaller ones. This type of oil price gain so far has led to just modest increases in the CPI in the past.
With these broader market trends in view, let’s look at the best affordable stocks to buy with good earnings growth.
Our Methodology
We used the Finviz stock screener to find stocks with a forward P/E below 15 with high EPS growth next year (over 25%). We selected the top 8 stocks with the highest number of hedge fund holders as of Q4 2025, sourcing the hedge fund sentiment data from Insider Monkey’s database. The list is sorted in ascending order of hedge fund holders.
Note: All data was recorded on March 26.
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 498.7% since May 2014, beating its benchmark by 303 percentage points (see more details here).
8 Affordable Stocks to Buy With Good Earnings Growth
8. TPG Inc. (NASDAQ:TPG)
TPG Inc. (NASDAQ:TPG) is one of the best affordable stocks to buy with good earnings growth. On March 24, BMO Capital cut the price target on TPG Inc. (NASDAQ:TPG) to $48 from $60, reiterating an Outperform rating on the shares. The rating update came as part of a broader research note on Alternative Asset Manager names, with the firm telling investors that issues are piling up, with uncertainty around realizations increasing with credit issues at Asset-Based Finance markets, BDC redemptions, AI-driven disruption weighing on performance, and market volatility. The firm further stated in the research note that credit spreads are also widening, and fraud allegations raise questions around underwriting and downside protection.
In another development, TPG Inc. (NASDAQ:TPG) received a rating update from Barclays on March 2. The firm cut the price target on the stock to $56 from $69, reiterating an Overweight rating on the shares and telling investors in a research note that it revised estimates across the alternative asset manager group. The firm also stated that although it is too early to ascertain the real AI impact on portfolio companies, it lowered business development company-related earnings on lower flow assumptions and realization.
TPG Inc. (NASDAQ:TPG) operates as a global, diversified alternative asset management firm. The firm’s investments span across five multi-product platforms: Capital, Growth, Impact, Real Estate, and Market Solutions.
7. Stellantis N.V. (NYSE:STLA)
Stellantis N.V. (NYSE:STLA) is one of the best affordable stocks to buy with good earnings growth. On March 20, Citi cut the price target on Stellantis N.V. (NYSE:STLA) to EUR 7 from EUR 8, reiterating a Neutral rating on the shares. The stock also received a rating update from Citi on March 19. The firm cut the price target on Stellantis N.V. (NYSE:STLA) to EUR 7 from EUR 8, reaffirming a Neutral rating on the shares while also adding an “upside 90-day catalyst watch” on the stock. It told investors in a research note that the firm is continuing to adopt a cautious stance on the shares because of concerns surrounding U.S. and European profitability. However, Citi added that the stock can experience a change in investor sentiment after dropping 39% in 2026.
For perspective, in its full-year 2025 financial results, Stellantis N.V. (NYSE:STLA) reported net revenues of €153.5 billion, down 2% compared to 2024, attributed primarily to FX headwinds and also from H1 2025 net pricing declines. The company also reported a net loss of €22.3 billion due to €25.4 billion of full-year unusual charges.
Stellantis N.V. (NYSE:STLA) designs, manufactures, distributes, and sells vehicles. The company offers products under various brands, including Abarth, Alfa Romeo, Chrysler, Citroën, Dodge, DS, Fiat, Fiat Professional, Jeep, Lancia, Opel, Peugeot, Ram, and Vauxhall.
6. Smurfit Westrock Plc (NYSE:SW)
Smurfit Westrock Plc (NYSE:SW) is one of the best affordable stocks to buy with good earnings growth. Goldman Sachs initiated coverage of Smurfit Westrock Plc (NYSE:SW) with a Buy rating on March 24, setting a price target of $49. The firm stated that it started coverage of the European pulp, paper, and packaging sector, anticipating a continuation of “low-cycle conditions, most notably for the upstream names”. The firm recommends a defensive position with a preference for more downstream names.
In a separate development, Smurfit Westrock Plc (NYSE:SW) announced the completion of an asset purchase agreement of Cartomanabí, which is one of the main corrugated packaging companies in Ecuador. Management stated that the acquisition marks a strategic step forward in the company’s goal of expanding in the region, and bolsters its position as the number one corrugated supplier in Latin America. Smurfit Westrock Plc (NYSE:SW) further stated that with the paper supplied from its North American mill system, it increases its integration.
Smurfit Westrock Plc (NYSE:SW) develops and provides packaging solutions. The company’s products include corrugated sheet boards, corrugated packaging, solid boards, and hexacomb packaging.
While we acknowledge the potential of SW 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 SW and that has 100x upside potential, check out our report about the cheapest AI stock.
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