10 Best and Cheap Stocks to Buy Heading into 2027

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3. Capital One Financial (NYSE:COF)

Market Cap: $127.52 billion

Forward P/E: 8.88

Forward Revenue Growth: 19.96%

Number of Hedge Fund Holders: 133

Capital One’s chairman and chief executive, Richard Fairbank, told analysts the Discover deal is paying off ahead of schedule. About $1.8 billion of annualized synergies have already appeared this year, mainly from moving Capital One’s debit cards onto Discover’s payment network and from cost savings. The company earned adjusted profit of $6.69 per share in the third quarter, and Fairbank said the earnings power envisioned when the deal was announced is now visible in the results.

The network is carrying more business as a result. Transaction volume on its Global Payment Network rose 25% after the debit conversion, and management plans to move credit card volume onto it more gradually. Credit looks healthier too, with the domestic card charge-off rate falling to 3.98%, lower than a year earlier, as delinquencies eased and recoveries on past losses came in strong.

The integration is also moving onto Capital One’s own technology. Every new Discover card is now issued on its platform, and management expects the older accounts to finish converting by the first quarter of 2027, which is the step that lets the combined company start trimming duplicate costs.

2. Micron Technology (NASDAQ:MU)

Market Cap: $968.10 billion

Forward P/E: 4.05

Forward Revenue Growth: 104.48%

Number of Hedge Fund Holders: 184

Memory makers rarely persuade customers to pay in advance, and Micron has done exactly that. It has signed 26 multi-year strategic customer agreements with take-or-pay volume commitments, and customers have put up $32 billion in financial commitments, mostly as cash deposits. Chief executive Sanjay Mehrotra said most of next year’s output is already committed, which is unusual for a business that used to sell its chips at whatever the market would pay on the day.

Those contracts sit on top of a record year. Fiscal fourth-quarter revenue reached $54.23 billion, with a gross margin of 87%, and both DRAM and NAND selling prices rose in the quarter as supply stayed tight. Micron has also agreed most of its 2027 high-bandwidth memory supply at significantly higher prices than this year, and management guided to another sequential increase in revenue for the current quarter.

The company also reported design wins with every top-tier computer maker for its AI workstation memory. The gap between those margins and the share price is what our article on what Wall Street is missing at Micron examines.

1. Nvidia (NASDAQ:NVDA)

Market Cap: $4.98 trillion

Forward P/E: 13.07

Forward Revenue Growth: 74.40%

Number of Hedge Fund Holders: 285

Nvidia’s chief financial officer, Colette Kress, told investors the company expects revenue to grow about 70% in fiscal 2028 and called that outlook supply-constrained, meaning customers want more chips than Nvidia can build. That guidance came after a second quarter in which revenue grew 106% from a year earlier.

The current quarter points the same way. Nvidia guided to $108 billion of revenue, and its Vera Rubin platform is shipping in production and is expected to make up about 20% of data center revenue. Management has said supply, not demand, is what limits how fast it can grow, and it flagged higher memory prices as a pressure on margins. The board also authorized an additional record share repurchase, which the company expects to use through fiscal 2028, and chief executive Jensen Huang said it reflects confidence in a lasting shift toward AI and accelerated computing.

Nvidia reports its next quarter later this month, with results on hyperscaler spending and its newest platform both in focus. Its push beyond data centers and into cars is covered in our piece on how Nvidia is expanding its autonomous driving opportunity.

READ NEXT: Is Nvidia (NVDA) Stock Priced Right? and Micron (MU) Looks Cheap at 5 Times Forward Earnings. Can Its Profit Boom Last?

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