In this article, we will look at Top 10 Cheap Stocks to Buy with Biggest Upside Potential.
On May 4, Tom Lee, Fundstrat CIO and head of research, appeared on CNBC’s ‘Squawk Box’ to talk about the latest market trends, the impact of the Iran war, and more.
He was of the view that the risk/reward for stocks is still pretty good. While he agrees that the war and its circumstances remain uncertain, he also believes that the war has exposed the strength of the US relative global position, and earnings estimates have actually gone up as earnings seasons progress. The US is a leader in AI, and that productivity lift is meaningful, as Lee considers it one of the drivers of not only GDP but also one of the reasons US companies have been resilient.
READ ALSO: 10 Best Performing Small Cap Stocks So Far in 2026 AND 10 Best Medical Device Stocks to Invest In Right Now.
He acknowledged that there are a lot of investors still on the sidelines, and thinks that the war not only appears uncertain but also looks like it is going to be a much longer event than expected. Despite that, he believes that stocks still have tailwinds as we get through May and into July.
With these broader market trends in view, let’s look at the top cheap stocks to buy with the biggest upside potential.
Our Methodology
We used the Finviz stock screener to make a list of the best stocks with a forward P/E below 15 and high upside potential. We then picked the top 10 with the highest number of hedge fund holders, as of Q4 2025. We sourced the hedge fund sentiment data from Insider Monkey’s database.
Note: All data was recorded on May 4.
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).
Top 10 Cheap Stocks to Buy with Biggest Upside Potential
10. Eldorado Gold Corporation (NYSE:EGO)
Eldorado Gold Corporation (NYSE:EGO) is one of the top cheap stocks to buy with the biggest upside potential. Eldorado Gold Corporation (NYSE:EGO) was downgraded to Sector Perform from Outperform by ATB Capital on May 4, with the firm bringing the price target on the stock down to C$55 from C$84. It cited the ramp-up risk at both Skouries and McIlvenna Bay this year, telling investors that with the closing of the Foran Mining acquisition in mid-April, the firm is now incorporating the value for McIlvenna Bay and the shares issued into its net asset value.
The rating update came after Eldorado Gold Corporation (NYSE:EGO) announced its fiscal Q1 2026 earnings on April 30. It reported gold production of 100,358 ounces, with gold sales of 100,619 ounces at an average realized gold price per ounce sold of $4,891. The company further stated that production costs came up to $188.2 million, while total cash costs were $1,470 per ounce sold, and all-in sustaining costs were $1,942 per ounce sold.
Eldorado Gold Corporation (NYSE:EGO) is involved in the mining, development, and exploration of gold, with its operations divided into the following segments: Turkey, Canada, and Greece.
9. Pegasystems Inc. (NASDAQ:PEGA)
Pegasystems Inc. (NASDAQ:PEGA) is one of the top cheap stocks to buy with the biggest upside potential. Pegasystems Inc. (NASDAQ:PEGA) received several rating updates following its fiscal Q1 2026 earnings released on April 21. RBC Capital cut the price target on the stock to $60 from $65 on April 23, maintaining an Outperform rating on the shares and telling investors in a research note that the company delivered mixed fiscal Q1 results. It cited Annual Contract Value and Remaining Performance Obligations metrics, stating that they exhibited signs of deceleration amid tougher comps.
RBC further stated that it believes the quarter was good, but not great, adding that it remains confident in the outlook for continued growth in 2026 and beyond.
Pegasystems Inc. (NASDAQ:PEGA) also received a rating update from Rosenblatt the same day. The firm cut the price target on the stock to $58 from $62 and reiterated a Buy rating on the shares. Rosenblatt told investors that the company delivered a “mixed” fiscal Q1 performance, adding that it is marginally trimming its estimates for FY26-27.
Pegasystems Inc. (NASDAQ:PEGA) develops, markets, licenses, and supports software that enables organizations to deploy, build, and change enterprise applications.
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