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.
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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 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 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. 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. develops, markets, licenses, and supports software that enables organizations to deploy, build, and change enterprise applications.
8. Harmony Gold Mining Company Limited (NYSE:HMY)
Harmony Gold Mining Company Limited (NYSE:HMY) is one of the top cheap stocks to buy with the biggest upside potential. Harmony Gold Mining Company Limited (NYSE:HMY) announced on April 29 that the MSCI upgraded the company’s environmental, social, and governance (ESG) rating from ‘BB’ to ‘A’ after its most recent assessment in March 2026. Management stated that the improvement points towards the company’s bolstered performance across key ESG pillars, and is supported by measurable progress in toxic emissions and waste reduction, water management, and enhanced governance practices.
Harmony Gold Mining Company Limited further reported that its environmental pillar score improved from 3.0 to 5.1, while its social score improved from 2.4 to 4.7, which shows concrete progress in community relations, operational efficiency, and employee engagement. In addition, governance remains a “core strength”, according to the company, with a consistently high score of 7.4.
In a separate development, Harmony Gold Mining Company Limited was upgraded to Overweight from Equal Weight by Morgan Stanley on April 16, with the firm lifting the price target on the stock to ZAR 34,000 from ZAR 30,000.
Harmony Gold Mining Company Limited is a gold mining and exploration company with a copper footprint that includes an open-pit mining operation, nine deep-level mines, and a number of surface retreatment facilities. Its operations are divided into the following segments: Tshepong North, Tshepong South, Moab Khotsong, Joel, Doornkop, Target 1, Kusasalethu, Masimong, Mponeng, Mine Waste Solutions, and Hidden Valley.
7. Kinross Gold Corporation (NYSE:KGC)
Kinross Gold Corporation (NYSE:KGC) is one of the top cheap stocks to buy with the biggest upside potential. Kinross Gold Corporation (NYSE:KGC) announced financial results for fiscal Q1 2026 on April 29, reporting that production in the quarter reached 492,563 gold equivalent ounces (Au eq. oz.). Production cost of sales was $1,397 per Au eq. oz. sold, with attributable production cost of sales of $1,380 per Au eq. oz. sold.
Management further reported that operating cash flow for the quarter was $1.139 billion, with record attributable free cash flow of $837.5 million. In addition, margins increased by 92% compared to fiscal Q1 2025 to a record $3,476 per Au eq. oz. sold, and rose 22% quarter-over-quarter, outpacing the rise in the average realized gold price in both comparable periods.
Kinross Gold Corporation also stated that it is on track to meet its annual guidance and expects to produce 2.0 million Au eq. oz. (+/- 5%) at a production cost of sales per Au eq. oz. sold of $1,360 (+/- 5%) and all-in sustaining cost of $1,730 (+/- 5%) per ounce sold for 2026. It also stated that the total attributable capital expenditures are forecast to be $1,500 million (+/- 5%).
Based in Canada, Kinross Gold Corporation is involved in the production, exploration, acquisition, and development of gold properties. Its operations are divided into the following business segments: Tasiast, Paracatu, La Coipa, Fort Knox, Round Mountain, Bald Mountain, and Corporate & Other.
6. Birkenstock Holding plc (NYSE:BIRK)
Birkenstock Holding plc (NYSE:BIRK) is one of the top cheap stocks to buy with the biggest upside potential. Deutsche Bank cut the price target on Birkenstock Holding plc (NYSE:BIRK) to $48 from $49 on April 30, reiterating a Buy rating on the shares. The rating update came as part of a fiscal Q2 preview, with the firm stating that its channel checks show accelerating Google trends data in the United States and Asia for the company. Deutsche Bank believes that the market is continuing to underappreciate Birkenstock Holding plc’s (NYSE:BIRK) sales growth algo, pricing power, and accelerating store growth.
Birkenstock Holding plc (NYSE:BIRK) also received a rating update from Piper Sandler on April 27. The firm cut the price target on the stock to $55 from $60, maintaining an Overweight rating on the shares. The firm stated that it is lowering its fiscal Q2 sales estimate to EUR 620M to take into account the Middle East conflict. However, its checks in the United States still suggest strong brand momentum at full price.
Birkenstock Holding plc (NYSE:BIRK) is involved in the manufacture and sale of footbed-based products, and operates through the following geographical segments: Americas, Europe, and APMA.
5. Strategy Inc (NASDAQ:MSTR)
Strategy Inc (NASDAQ:MSTR) is one of the top cheap stocks to buy with the biggest upside potential. Strategy Inc (NASDAQ:MSTR) announced on May 5 financial results for fiscal Q1 2026, reporting that it currently holds 818,334 bitcoin, reflecting a 22% growth year to date 2026. The company attained a 9.4% BTC Yield year to date, with $11.68 billion raised year to date.
Management also reported that the company has cash and cash equivalents of $2.21 billion as of March 31, 2026, compared to $2.30 billion as of December 31, 2025. Total revenue for fiscal Q1 2026 was $124.3 million, reflecting a 11.9% year-over-year increase compared to total revenues of $111.1 million for the prior year period.
Phong Le, President and Chief Executive Officer, stated that Bitcoin adoption is continuing to grow in 2026, and digital credit, highlighted by STRC, has also been a “big success”. Strategy Inc has raised $5.6 billion year-to-date of STRC gross proceeds and grown daily trading volume to $375 million, while simultaneously bringing volatility down to 3%, all during a bitcoin bear market.
Strategy Inc provides enterprise analytics and mobility software, and is involved in the design, development, marketing, and sale of software platforms through licensing arrangements, cloud-based subscriptions and related services.
4. EPAM Systems, Inc. (NYSE:EPAM)
EPAM Systems, Inc. (NYSE:EPAM) is one of the top cheap stocks to buy with the biggest upside potential. EPAM Systems, Inc. (NYSE:EPAM) received a rating update from Guggenheim on May 4, with the firm cutting the price target on the stock to $200 from $225 and reiterating a Buy rating on the shares. Guggenheim told investors in a preview that it expects underlying business momentum to remain stable in fiscal Q1 as channel checks continue to suggest clients view the company as “a quality vendor to help realize tangible AI goals”. However, the firm also stated that risks to the fiscal Q2 revenue outlook amid a softer demand environment led the firm to lower its target.
EPAM Systems, Inc. also received a rating update from Susquehanna the same day. The firm lowered the price target on the stock to $167 from $199, and maintained a Positive rating on the shares, updating its model after reports of choppy demand. Susquehanna lowered its estimates below consensus and expects the Street to cut towards them.
EPAM Systems, Inc. provides digital engineering, cloud, and artificial intelligence-enabled transformation services, combining software engineering with business consulting, customer experience design, strategy, and technology innovation services in areas such as AI, cybersecurity, and cloud platforms. The company’s operations are divided into the North America and Europe geographical segments.
3. Coeur Mining, Inc. (NYSE:CDE)
Coeur Mining, Inc. (NYSE:CDE) is one of the top cheap stocks to buy with the biggest upside potential. On April 29, Canaccord upgraded Coeur Mining, Inc. (NYSE:CDE) to Buy from Hold, keeping the price target the same at $26. The firm upgraded three other names after raising its gold forecast, including Franco-Nevada, Gold Royalty, and Hecla Mining. It upped its 2026 gold price estimate to $4,758 per ounce from $4,401, with the firm telling investors in a research note that the factors driving gold remain in place, including unresolved trade and geopolitical tensions, supportive central bank policies, and an unsustainable U.S. debt trajectory.
Canaccord further stated that it leans “more defensive”, citing no clear end in sight for the Iran conflict and the risk of central banks tightening monetary policy into a “supply shock”. It believes gold producers have been improving margins and profitability as capital spending remains low.
In another development, Coeur Mining, Inc. announced on April 8 that it will report its fiscal Q1 2026 operational and financial results after the New York Stock Exchange closes for trading on Wednesday, May 6, 2026. The company further reported that it will host a conference call at 11:00 a.m. Eastern Time on Thursday, May 7, 2026.
Coeur Mining, Inc. is a well-diversified, growing precious metals producer that operates through the Palmarejo, Rochester, Kensington, Wharf, and Silvertip.
2. Charter Communications, Inc. (NASDAQ:CHTR)
Charter Communications, Inc. (NASDAQ:CHTR) is one of the top cheap stocks to buy with the biggest upside potential. JPMorgan resumed coverage of Charter Communications, Inc. (NASDAQ:CHTR) with a Neutral rating on April 29, bringing the price target on the stock down to $215 from $400. The rating update came after a period of restriction, with the firm telling investors in a research note that the stock’s current valuation remains “undemanding”. However, it also added that Charter Communications, Inc.’s fiscal Q1 results highlight the competitive intensity and challenges facing cable operators as they defend broadband share.
In another development, BofA cut the price target on Charter Communications, Inc. to $250 from $310 on April 27, and maintained a Buy rating on the shares. The firm told investors in a post-earnings note that fiscal Q1 was “undeniably pressured” as revenue and EBITDA declined, broadband losses remain elevated, and free cash flow was weighed down by still significant capex. However, it added that the magnitude of the stock reaction post-earnings “feels disconnected from the overall company trajectory”.
Charter Communications, Inc. provides broadband communications services. The company’s offerings include Spectrum TV, Spectrum Internet, and Spectrum Voice. It also offers data networking, business-to-business Internet access, video and music entertainment services, business telephone, and wireless backhaul.
1. BioMarin Pharmaceutical Inc. (NASDAQ:BMRN)
BioMarin Pharmaceutical Inc. (NASDAQ:BMRN) is one of the top cheap stocks to buy with the biggest upside potential. BioMarin Pharmaceutical Inc. (NASDAQ:BMRN) announced on May 2 new research from studies of VOXZOGO® in children with achondroplasia exhibiting positive impacts on important health indicators, including arm span and bone density. The company will present the data, along with new data from studies of VOXZOGO in hypochondroplasia, at the Pediatric Endocrine Society’s 2026 Annual Meeting (PES) in San Francisco.
BioMarin Pharmaceutical Inc. further reported that data from the three ongoing long-term extension clinical trials showed the effects of long-term treatment with VOXZOGO on measures beyond height, including bone health and arm span. According to researchers, arm span Z-scores improved from baseline in all age groups, and the arm span-to-height ratio also remained stable over time, highlighting that treatment resulted in proportional skeletal growth.
In addition, management reported that children who initiated treatment with VOXZOGO after age 5 also attained a mean difference in standing height of 10.60 cm after six years of treatment and 13.59 cm after eight years of treatment, compared with untreated natural history cohorts.
BioMarin Pharmaceutical Inc. develops and commercializes therapies for serious and life-threatening medical conditions and rare diseases. The company’s product pipeline includes Valoctocogene roxaparvovec, Vosoritide, and BMN 307.
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