10 Best and Cheap Stocks to Buy Heading into 2027

7. Western Digital (NASDAQ:WDC)

Market Cap: $130.70 billion

Forward P/E: 8.64

Forward Revenue Growth: 46.52%

Number of Hedge Fund Holders: 98

Western Digital reported that fiscal first-quarter revenue rose 55% from a year earlier, above the range management had guided, and then pointed to something faster. It expects revenue growth of 66% to 72% in the current quarter, driven by cloud customers that now account for most of its sales and by steady demand for high-capacity drives.

The profit side is improving even more quickly. Adjusted gross margin widened to 58.1%, because customers pay more per terabyte for denser drives and Western Digital is adding capacity by packing more data onto each drive instead of building more factories. Chief executive Irving Tan pointed to multi-year visibility from its largest customers. The company also expects to start volume shipments of its first heat-assisted recording drives in the first half of next year.

That discipline keeps the supply picture for hard drives tight, which supports pricing. The board responded by raising the quarterly dividend 17%, and the company also returned cash through buybacks. Whether today’s share price already captures all of this is the question behind our piece on Western Digital at today’s price.

6. Oracle (NYSE:ORCL)

Market Cap: $370.41 billion

Forward P/E: 11.05

Forward Revenue Growth: 31.91%

Number of Hedge Fund Holders: 119

Oracle’s investor day gave the market something it had been missing: dates. Chief financial officer Hilary Maxson said free cash flow is expected to turn positive in the second half of fiscal 2028 and reach at least $30 billion in fiscal 2029, far above what Wall Street had been expecting, according to data compiled by Bloomberg and FactSet. Capital spending is expected to peak in fiscal 2027 and 2028 before easing, and Oracle said growth is expected to become self-funded once it does.

Management also capped new fundraising through fiscal 2030 at $20 billion, split evenly between stock and debt, which answered the worry that the AI buildout would keep demanding outside money. Oracle reaffirmed its goal of at least $225 billion in fiscal 2030 revenue and pointed to $664 billion of contracted future revenue behind it.

Executives said vendor financing, customer-supplied hardware and customer prepayments will cut Oracle’s upfront cash needs, so customers carry part of the construction bill, and management promised to keep leverage in check as the buildout continues. Our analysis of whether Oracle’s economic moat is widening or narrowing takes up what protects that backlog once it has been delivered.

5. Sandisk (NASDAQ:SNDK)

Market Cap: $162.04 billion

Forward P/E: 3.85

Forward Revenue Growth: 102.14%

Number of Hedge Fund Holders: 128

Sandisk’s revenue rose 378% from a year earlier in its fiscal first quarter, and the company still raised its outlook for the next one. Adjusted gross margin reached 85.1%, far above what flash-memory makers earned a year ago. Chief executive David Goeckeler said customers have underestimated how much NAND they need, and that at least one of its biggest buyers has already come back for a second round of long-term contracts.

Those contracts matter because they cover about half of this fiscal year’s storage bits, with customers prepaying part of the cost. Demand from data center customers drove the quarter, and management expects data centers to remain the industry’s main growth engine through next year. Sandisk also put its cash to work, spending $5.0 billion on buybacks in the quarter, which its free cash flow covered, while carrying no debt. A stock split takes effect later this month, though it changes the share price and not the value of the company.

Whether a peak is already priced in is the question behind our look at Sandisk’s valuation on forward earnings.

4. Seagate Technology (NASDAQ:STX)

Market Cap: $139.43 billion

Forward P/E: 9.23

Forward Revenue Growth: 46.16%

Number of Hedge Fund Holders: 131

Seagate told investors that its debt-cutting phase is finished and that cash will now go back to shareholders. Chief executive Dave Mosley said the company has strengthened its balance sheet and regained investment-grade status, so share repurchases will become its main way of returning cash, with buybacks set to rise significantly starting in 2027. The company also raised its quarterly dividend and retired more debt after the quarter ended.

The cash comes from hard drives bought for AI data centers. Fiscal first-quarter revenue grew 61% from a year earlier, and adjusted operating margin hit a record 50.7% as pricing improved and customers moved to its higher-capacity Mozaic drives. Data center customers took 90% of the capacity Seagate shipped, and free cash flow reached nearly $1.5 billion.

Management guided to a further sequential increase for the December quarter and said it expects annual revenue growth to meaningfully exceed last year’s, citing the Mozaic ramp and the multiyear demand its customer agreements provide. That turnaround for a business many had written off is the subject of our article on how Seagate revived a technology everyone had buried.