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.
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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.
8. Zebra Technologies Corporation (NASDAQ:ZBRA)
Number of Hedge Fund Holders: 36
With a forward P/E of 12.45x and upside potential of 44.30%, Zebra Technologies Corporation (NASDAQ:ZBRA) ranks among the top 10 lowest P/E ratio stocks of the S&P 500.
A beat-and-raise quarter, fresh software launches, and back-to-back analyst target hikes have kept Zebra Technologies Corporation (NASDAQ:ZBRA) in the spotlight heading into the second half of 2026.
On June 2, 2026, Zebra Technologies Corporation (NASDAQ:ZBRA) launched two new software solutions at its annual ZONE 2026 customer conference in Nashville. Zebra Nucleus is a unified platform that consolidates device setup, security, management, and optimization into a single interface across Zebra’s full portfolio. Alongside it, Zebra Workcloud Business Intelligence delivers AI-powered, role-based mobile dashboards for real-time frontline visibility, while Workcloud Integration and Orchestration connects Workcloud solutions to core business systems, such as point of sale, to coordinate workflows across the enterprise.
The product launch followed a strong first-quarter report on May 12, 2026.
Zebra Technologies Corporation (NASDAQ:ZBRA) posted net sales of $1.50 billion for the quarter ended April 4, ahead of the $1.48 billion analyst estimate. Adjusted profit came in at $4.75 per share, above the $4.25 per share consensus. The company raised its full-year 2026 sales growth forecast to 10% to 14% from a prior range of 9% to 13%. For the second quarter, Zebra guided sales growth of 14% to 17% and adjusted EPS of $4.20 to $4.50, both above analyst estimates at the time.
Two analyst updates followed on May 13, 2026.
Citi raised its price target to $284 from $274, keeping a “Neutral” rating, citing an improving demand outlook and better execution. Baird analyst Quinn Fredrickson raised the firm’s target to $310 from $300 and kept an “Outperform” rating, saying memory is tracking better than feared following first-quarter results.
Zebra Technologies Corporation (NASDAQ:ZBRA) designs and builds hardware, software, and automation solutions that track, manage, and digitize physical assets. Their technology is used by frontline workers in retail, healthcare, manufacturing, and logistics to streamline workflows and improve operational efficiency.
7. Universal Health Services, Inc. (NYSE:UHS)
Number of Hedge Fund Holders: 43
Universal Health Services, Inc. (NYSE:UHS), with a forward P/E of 6.17x and upside potential of 48.10%, is among the top 10 lowest forward P/E stocks in the S&P 500.
Universal Health Services, Inc. (NYSE:UHS) has been under sustained pressure, but analysts see the selloff as increasingly disconnected from the company’s underlying setup.
Universal Health Services, Inc. (NYSE:UHS) shares hit a 52-week low of $140.76 on June 3, 2026, extending a nearly 25% decline over the past year as of June 8, 2026. On June 1, 2026, Wells Fargo resumed coverage with an “Equal Weight” rating and a $165 price target. The firm left its 2026 EBITDA estimate unchanged but cut its 2027 EBITDA estimate by 3.6% on lower core growth expectations. Wells Fargo said the below-average valuation is justified by Medicaid DPP exposure and the core growth acceleration required to meet estimates.
UBS took a more constructive view on May 29, 2026, reiterating a “Buy” rating and a $310 price target.
The firm said first-quarter results came in largely in line with expectations, with volume softness attributed primarily to weather. Universal Health Services, Inc. (NYSE:UHS) still targets 2% to 3% volume growth in both its acute care and behavioral segments, though management said results could trend toward the lower end given the first-quarter miss.
On the positive side, Florida DPP approval added an incremental $100 million versus the original guidance. Two items partially offset that gain. A slower profitability ramp at the new Cedar Hill facility in Washington, D.C., presents one headwind. Separately, a San Antonio behavioral facility that produced $23 million in operating profit in 2025 will be unable to bill Medicare and Medicaid for eight months this year, swinging to an operating loss.
Universal Health Services, Inc. (NYSE:UHS) provides hospital and healthcare services through more than 400 acute care hospitals, behavioral health facilities, outpatient centers, and ambulatory care access points across the US, Puerto Rico, and the UK.
6. Vistra Corp. (NYSE:VST)
Number of Hedge Fund Holders: 106
With a forward P/E of 16.84x and upside potential of 50.20%, Vistra Corp. (NYSE:VST) ranks among the top 10 lowest P/E ratio stocks of the S&P 500.
Surging power demand, a swing to profitability, and bullish analyst coverage have brought the independent power producer into focus for value-oriented investors. Nearly all covering analysts hold bullish views on Vistra Corp. (NYSE:VST), with a median price target of $223.50.
On May 21, 2026, Morgan Stanley raised its price target on Vistra Corp. (NYSE:VST) to $212 from $208, keeping an “Overweight” rating. The firm updated price targets across its Regulated and Diversified Utilities and IPP coverage in North America for April, noting that utilities underperformed the S&P 500 during the month. The stock, in particular, is down almost 10% YTD.
That update followed a strong first-quarter earnings report on May 7, 2026.
Vistra Corp. (NYSE:VST) recorded a turnaround to a net income of $980 million for the three months ended March 31, compared with a loss of $317 million a year earlier. Its Texas unit posted adjusted core profit of $586 million, up more than 19% year-over-year, while the East segment, covering PJM and New England, rose 55.8%. Interest expenses fell by over 17% to $263 million in the quarter.
Vistra Corp. (NYSE:VST) reaffirmed its 2026 adjusted core profit outlook from continuing operations in the range of $6.8 billion to $7.6 billion. The company expects annual load growth of 5% to 6% in the ERCOT grid in Texas and 2% to 3% in the PJM region.
On the growth front, Vistra Corp. (NYSE:VST) agreed in early January to acquire Cogentrix Energy from Quantum Capital Group for approximately $4.7 billion, following its 2025 Lotus acquisition, as the company moves to meet rising power demand driven by AI data center buildouts, cryptocurrency growth, and the electrification of heating and transportation.
Vistra Corp. (NYSE:VST) is one of the largest competitive power generators in the United States. The company operates a power generation fleet of natural gas, nuclear, coal, solar, and battery energy storage facilities in the country.
While we acknowledge the potential of VST 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 VST and that has 100x upside potential, check out our report about the cheapest AI stock.
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