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.
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 (NYSE:HMY) 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 (NYSE:HMY) 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 (NYSE:HMY) 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 (NYSE:KGC) 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 (NYSE:KGC) 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.
While we acknowledge the potential of BIRK 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 BIRK and that has 100x upside potential, check out our report about the cheapest AI stock.
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