In this article, we will look at the Top 10 Extreme Value Stocks To Buy Now.
Federal Reserve Chair Kevin Warsh recently made two separate comments that have made investors rethink their investment strategies. The first comment was related to the independence of the central bank, with Warsh reiterating that the organization will continue as a politically independent entity and will not be influenced by any sitting President. The second discussed rising inflation, and Warsh emphasized that the Fed will not comfort investors and they should expect higher borrowing costs to continue.
While the problem for households is that the cost of products they consume keeps rising, investors have a different kind of problem. In a blog published on the U.S. Bank’s website, this problem was explained perfectly:
Higher rates can pressure stocks by raising borrowing costs for companies and consumers. This effect can be especially important for companies whose profits depend more heavily on future growth than current earnings, because higher rates can reduce the value investors assign to profits expected many years from now.
In a high-interest rate environment, investors start looking at valuations differently. As risk-free alternatives become more attractive, investors heavily discount the present value of future earnings. To avoid getting trapped in stocks that are trading at a premium due to future growth, one must therefore look at stocks that are trading at an extremely low multiple of their future earnings.
These low forward P/E stocks can also offer an extra margin of safety, especially if they’re trading below their intrinsic value. We decided to look at these stocks in our article Top 10 Extreme Value Stocks to Buy Now, and also at how hedge funds operating in the market are including these in their portfolios.
Our Methodology
To come up with our list of top 10 extreme value stocks to buy now, we looked at companies with a market cap of at least $2 billion and a forward P/E multiple between 4x and 8x. These companies have reported recent investor-worthy news and are also popular among hedge funds. They are ranked in ascending order of the number of hedge funds holding them in their portfolios.
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. Insider Monkey’s 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).
Note: All share price data is as of market close on July 1, 2026.
10. Equinox Gold Corp. (NYSEAMERICAN:EQX)
Number of Hedge Fund Holders: 38
According to a report released on June 29, ATB Cormark Capital Markets analyst Richard Gray reiterated a Buy rating on Equinox Gold Corp. (NYSEAMERICAN:EQX) while increasing the price target. The analyst raised the firm’s price target on the stock from $20.4 to $21.11. The revised price target implies an impressive 108% upside from current levels. The firm’s adjusted price target is close to the median Wall Street analysts’ price target of $21.83.
Earlier, on June 25, Equinox Gold Corp. (NYSEAMERICAN:EQX) announced that it has secured 20-year land access agreements with the three communities surrounding its Los Filos Mine in Mexico. This allows the company to move forward with a gradual restart of heap leach operations. It will also continue technical studies to assess expansion opportunities, including a carbon-in-leach (“CIL”) processing facility.
Chief Executive Officer of Equinox Gold, Darren Hall, remarked:
We appreciate the constructive engagement with the communities of Carrizalillo, Mezcala, and Xochipala that host our multi-million-ounce Los Filos Mine. These new 20-year agreements reflect a shared commitment to responsible operations and sustainable benefits over time and provide an important foundation for strengthening our long-term relationship with the communities and fostering an environment that supports future investment and long-term value creation.
Equinox Gold Corp. (NYSEAMERICAN:EQX) is involved in the exploration, operation, acquisition, and development of mineral properties in the Americas. It mainly explores silver and gold deposits. The company was founded in 2007 and is based in Vancouver, Canada.
9. Equitable Holdings Inc. (NYSE:EQH)
Number of Hedge Fund Holders: 42
Alex Scott of Barclays reaffirmed a Buy rating on Equitable Holdings Inc. (NYSE:EQH) along with the price target of $51 on June 22. The firm’s price target implies a further 15% upside from current levels. This price target matches the lowest Wall Street price target among 15 analysts covering the stock.
On a bullish note, UBS analyst Michael Ward CFA raised the firm’s price target on Equitable Holdings Inc. (NYSE:EQH) from $58 to $63 while keeping a Buy rating on the shares. The analyst cited stronger-than-expected asset growth and improving investment performance, which he believes will support higher earnings. He also said that the company’s assets under management have recovered significantly despite the recent retail outflows. This has brought the combined business close to $1 trillion in assets.
Moreover, Michael Ward highlighted the expected benefits of the planned merger with CRBG. According to the analyst, the deal will increase Equitable Holdings’ scale, attract a broader investor base, and enhance its chances of joining major stock indexes. Despite concerns over execution, he expects the company to achieve its planned $500 million in cost savings.
Equitable Holdings Inc. (NYSE:EQH) is a financial services holding company, operating in the following segments: Individual retirement, group retirement, investment management and research, protection solutions, and wealth management. The company is based in New York, New York and was founded in 1859 by Henry B. Hyde.
8. Universal Health Services, Inc. (NYSE:UHS)
Number of Hedge Fund Holders: 43
On June 22, TD Cowen lowered the firm’s price target on Universal Health Services, Inc. (NYSE:UHS) from $230 to $197 and kept a Buy rating on the stock. The downward price target revision still reflects a 24% upside from current levels. After a May hospital survey showed that revenue remained largely flat compared to the previous year, the firm lowered its growth expectations for 2026 and 2027. According to the survey, weaker surgical procedure volumes were partly offset by growth in other medical services.
The healthcare industry is well positioned to benefit from the AI tailwind. By using artificial intelligence to improve efficiency, lower labor costs, and better manage complex reimbursement processes, hospitals may strengthen their competitive position and profitability over time, according to UBS. While health insurers are expected to benefit from these efficiency improvements, the firm believes hospitals could be the biggest beneficiaries.
Moreover, large hospital operators such as HCA Healthcare, Tenet Healthcare, and Universal Health Services, Inc. (NYSE:UHS) have already begun deploying AI in areas such as billing and reimbursement management, staffing, and clinical documentation. The firm believes these companies could maintain an advantage over many nonprofit hospitals for several years.
Universal Health Services, Inc. (NYSE:UHS) provides hospital and healthcare services through more its acute care hospitals, behavioral health facilities, outpatient centers, and ambulatory care access points across the US, Puerto Rico, and the UK.
7. Lincoln National Corporation (NYSE:LNC)
Number of Hedge Fund Holders: 44
On June 24, Lincoln National Corporation (NYSE:LNC) entered into an underwriting agreement with a syndicate led by Wells Fargo Securities, BofA Securities, Goldman Sachs, Morgan Stanley, and TD Cowen Securities to issue $500 million in subordinated notes. The notes carry a fixed-to-fixed reset interest rate of $6.800% and will mature on July 15, 2056. The offering was priced at face value and completed on June 29, 2026, with the bonds sold at a small discount of 1% to the underwriting group. The notes are unsecured and rank below the company’s senior debt. They carry a fixed 6.800% interest rate until July 15, 2036, after which the rate will reset every five years based on the 5-year US Treasury yield plus 2.400%. Interest payments will be made twice a year starting January 15, 2027.
Lincoln National Corporation (NYSE:LNC) plans to use the proceeds for general corporate purposes, which may include redeeming higher-cost preferred stock. This move is aimed at adjusting its capital structure and potentially reducing long-term financing costs over time. On a positive front, on June 15, a Jefferies analyst reiterated a Buy rating on Lincoln National Corporation (NYSE:LNC) along with the target price of $56. This price target matches the highest Wall Street price target among 16 analysts covering the stock.
Lincoln National Corporation (NYSE:LNC), through its subsidiaries, provides insurance and retirement policies. The company is based in Radnor, Pennsylvania and was founded in 1968.
6. PVH Corp (NYSE:PVH)
Number of Hedge Fund Holders: 47
On June 25, Bank of America Securities downgraded PVH Corp (NYSE:PVH) to Underperform from a previous Neutral rating. The firm also revised its price target downward from $90 to $70. The downward price target revision reflects PVH’s weaker demand in Europe alongside sales and margin headwinds in its Middle East and Turkey operations. Moreover, the firm noted that about 50% of the company’s exposure comes from the EMEA region, which limits upside potential due to the Middle East conflict. As a result, the firm expects 2026 EBIT margins to remain flat. High tariff-related costs, licensing changes, and higher marketing expenses are also expected to weigh on profitability and limit margin expansion.
Similarly, on June 8, Citi lowered its price target on PVH Corp (NYSE:PVH) to $78 from $80 and kept a Neutral rating on the stock. The apparel company is off to a weak start in Q2, mainly due to slower demand in Europe, the analyst tells investors in a research note. Moreover, Citi believes that a challenging global economic environment is creating a balanced risk-reward outlook for the company’s shares.
PVH Corp (NYSE:PVH), along with its subsidiaries, operates as an apparel company in the United States and internationally. It designs and markets men’s, women’s, and children’s branded apparel, footwear, and accessories.
While we acknowledge the potential of PVH 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 PVH and that has 100x upside potential, check out our report about the cheapest AI stock.
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