In this piece, we discuss the Top 10 Lowest P/E Ratio Stocks of the S&P 500.
Valuations in the S&P 500 have rarely offered this much debate. Even as the index has hit a series of record highs in 2026, a pocket of large-cap stocks continues to trade at historically low forward earnings multiples, drawing attention from investors searching for value in an otherwise stretched market.
At the same time, the broader backdrop has been shaped by a strong earnings cycle.
Expectations for 2026 year-over-year S&P 500 earnings growth jumped from 16% in early January to nearly 25% as of late May, according to LSEG data. First-quarter earnings climbed almost 29% year-over-year, driven heavily by AI-related stocks. Goldman Sachs raised its 2026 year-end S&P 500 target to 8,000 from 7,600 on May 26, 2026, lifting its EPS forecast to $340 for 2026, implying 24% year-over-year growth.
Goldman Sachs commented:
“Earnings growth has powered the entire S&P 500 return so far this year, and we expect this dynamic to continue in the coming months.”
UBS Global Wealth Management followed on May 22, 2026, raising its target to 7,900 from 7,500 and its 2026 EPS estimate to $335 from $310, citing resilient consumer spending and strong data center demand.
UBS strategists stated:
“We continue to believe the bull market drivers remain intact: resilient economic and profit growth, a supportive Federal Reserve, and the AI rollout.”
Yet risks remain. War-driven inflation from the Middle East conflict has pushed bond yields higher, and futures markets have begun pricing in the potential for a Federal Reserve rate hike later in 2026.
Against that backdrop, stocks trading at the lowest forward P/E ratios in the index present a different kind of opportunity—one where compressed multiples may already reflect much of the uncertainty ahead. Thus, let’s jump to our list of the top 10 lowest P/E ratio stocks of the S&P 500.
Our Methodology
To identify stocks for this article, we screened S&P 500 constituent companies for those with the lowest forward price-to-earnings (P/E) multiples. We ensured that these stocks trade at forward P/E multiples at least 25% below the S&P 500’s P/E multiple of 25.73x as of June 5, 2026.
Next, we assessed analyst sentiment surrounding these stocks, narrowing the list to those with significant upside potential. We also incorporated hedge fund sentiment using Insider Monkey’s hedge fund database, which tracks over 1,000 elite hedge funds as of Q1 2026.
The final list is presented in ascending order based on upside potential.
Note: All data sourced on June 8, 2026.
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).
10. Global Payments Inc. (NYSE:GPN)
Number of Hedge Fund Holders: 61
Global Payments Inc. (NYSE:GPN), with a forward P/E of 4.81x and upside potential of 28.90%, is among the top 10 lowest forward P/E stocks in the S&P 500.
The stock has faced sharp selling pressure in recent sessions, but multiple Wall Street analysts are pushing back on the move, arguing the market has overreacted to estimate noise rather than any fundamental shift.
On June 4, 2026, Wells Fargo analyst Jason Kupferberg said Global Payments Inc. (NYSE:GPN) shares were lagging peers and that the firm views the 10%-plus pullback as overdone. The stock fell over 13% on June 3, 2026.
As far as Wells Fargo knows, there has been no change in management’s messaging on the second quarter or full year 2026, with the firm characterizing the sell-off as an overreaction to a couple of overdue sell-side estimate cuts. Wells Fargo maintained an “Overweight” rating and a $105 price target.
That followed two analyst updates on June 3, 2026.
Susquehanna cut its price target on Global Payments Inc. (NYSE:GPN) to $111 from $119, keeping a “Positive” rating, after updating its model based on a closer review of public transcripts and travel assumptions. The firm trimmed its second-quarter growth assumption to 3.2%, second-half growth to 5%, and full-year 2026 growth to 4%.
Mizuho, meanwhile, reiterated an “Outperform” rating and an $110 price target, calling concerns about downward revisions overblown.
Mizuho noted that Global Payments Inc. (NYSE:GPN)’s CFO reaffirmed guidance at a conference on May 20, 2026, including roughly 100 basis points of headwind from Middle East operations and tax impacts. The firm estimated approximately 3.5% top-line growth in the second quarter and margins of around 42%, figures it said are roughly in line with guidance.
Global Payments Inc. (NYSE:GPN) provides payment technology and software solutions for card, check, and digital-based payments across the Americas, Europe, and the Asia-Pacific.
9. HCA Healthcare, Inc. (NYSE:HCA)
Number of Hedge Fund Holders: 70
HCA Healthcare, Inc. (NYSE:HCA), with a forward P/E of 12.27 and upside potential of 38.4%, is among the top 10 lowest forward P/E stocks in the S&P 500.
HCA Healthcare, Inc. (NYSE:HCA) is navigating a cautious macro backdrop for healthcare while continuing to invest in long-term workforce development.
On June 4, 2026, Bernstein lowered its price target on HCA Healthcare, Inc. (NYSE:HCA) to $413 from $503, keeping a “Market Perform” rating. The firm said it views HCA as much more attractive at current valuation levels but does not expect a near-term catalyst to improve the outlook. Bernstein projects EBITDA growth of 2.8% in 2026 and 4.6% in 2027, citing lower insurance coverage from policy changes and a lack of growth in state-directed payments as the primary headwinds.
Meanwhile, on May 27, 2026, HCA Healthcare, Inc. (NYSE:HCA) announced an agreement to acquire The College of Health Care Professions (CHCP), one of the largest allied healthcare training providers in Texas. CHCP educates more than 8,000 students annually across 10 campuses in Texas and online, offering over 20 accredited programs, including Medical Assisting, Sonography, Surgical Technology, and Radiologic Technology. Financial terms were not disclosed.
The deal builds on HCA’s existing education portfolio.
HCA Healthcare, Inc. (NYSE:HCA) acquired majority ownership of Galen College of Nursing in 2020 and has since expanded it to 25 campuses nationwide. HCA also operates the Research College of Nursing in Kansas City and the HCA Florida Mercy College of Nursing in Miami. Eric Bing will continue to lead CHCP as Chancellor and CEO following the close, subject to regulatory approval.
HCA Healthcare, Inc. (NYSE:HCA) is a health services company that operates hospitals, urgent care facilities, freestanding surgery centers, emergency care facilities, walk-in clinics, diagnostic and imaging centers, comprehensive rehabilitation and physical therapy centers, radiation and oncology therapy centers, and several other facilities. The company operates general and acute care hospitals that offer medical and surgical services.
