In this article, we will take a look at the 10 Best Very Cheap Stocks To Buy Right Now.
The stock market had a mixed start to 2025 as the Chinese Deepseek AI model has put the U.S. AI giants on the back foot. However, the tech-heavy NASDAQ 100 index made a recovery after taking a hit and has surged over 5% year-to-date. In addition, the S&P 500 index has gained just over 4% so far in 2025.
Also Read: 10 Best Cheap Technology Stocks To Buy According to Analysts
Goldman Sachs Research’s chief US equity strategist, David Kostin, expects the US tariffs to negatively impact the S&P 500 EPS in 2025. Kostin cited that every five-percentage-point increase in the US tariff rate will reduce S&P 500 EPS by roughly 1-2%.
If the U.S. administration continues with the proposed tariff rates, a 25% tariff on imported goods from Mexico and Canada and an additional 10% tariff on imports from China would reduce S&P 500 EPS forecasts by approximately 2-3%, as per Goldman’s Research.
With the potential market risks and tariff threat from the Trump administration, cheap stocks with strong fundamentals can be a good option for investment.
At first glance, the market may seem overvalued, with the S&P 500 trading close to all-time highs, driven by tech giants and leading consumer stocks. However, some stocks have missed the broader market rally amid temporary challenges. These stocks have attractive forward P/E ratios and proven growth records.
With that let’s take a look at the 10 Best Very Cheap Stocks To Buy Right Now.
10 stocks receiving a massive vote of approval from Wall Street analysts
Our Methodology
We used the Finviz screener to compile a list of 30 cheap stocks with a forward P/E ratio of under 15. We shortlisted the 10 best very cheap stocks to buy now based on the highest potential upside according to average analyst estimate, as of February 17. The very cheap stocks are ranked in ascending order of the average analyst upside.
Why do we care about what hedge funds do? 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. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 275% since May 2014, beating its benchmark by 150 percentage points (see more details here).
10 Best Very Cheap Stocks To Buy Right Now
10. Chubb Limited (NYSE:CB)
P/E Ratio: 12.29
Average Analysts Upside: 15.68%
Chubb Limited (NYSE:CB), formerly known as ACE Limited, offers insurance and reinsurance products worldwide. The company’s products serve consumers with life insurance, accident and health, property and casualty (P&C), and reinsurance. Being one of the largest publicly traded P&C insurance companies, Chubb Limited operates in over 54 countries.
Chubb Limited (NYSE:CB) shares have dropped over 4% year-to-date as the company is facing a setback due to recent wildfire losses. The wildfires are estimated to reduce Chubb Limited’s FCF by $1.5 billion. Despite the challenges, the company has a history of successfully managing substantial losses, including from Hurricane Ian and Hurricane Milton.
In addition to the company’s solid cash position, generating around $4.57 billion in operating cash flow, Chubb Limited (NYSE:CB) reported net premiums of over $12 billion in Q4 2024. The net premiums increased 4% from a year ago, mainly driven by the P&C segment, which experienced a 7.7% rise year-over-year. The company posted a record net income of $9.27 billion for the full year 2024, with a P&C combined ratio of 86.6%. This consistent growth shows the company’s strong position in its core business. The company returned nearly $1.1 billion of capital to shareholders in Q4 2024, including $725 million in share repurchases.
9. Exxon Mobil Corporation (NYSE:XOM)
P/E Ratio: 13.74
Average Analysts Upside: 17.91%
Exxon Mobil Corporation (NYSE:XOM) is one of the world’s leading oil and gas companies. It is engaged in the exploration, production, refining, and distribution of petroleum products.
On February 10, Bernstein analyst Bob Brackett kept a Buy rating on XOM shares with a price target of $144. The analyst sees Exxon Mobil Corporation’s core business evolving with a focus on low-carbon solutions, which shows the company’s foresight and adaptability in a changing energy landscape. As part of Exxon’s 2030 strategy, it plans to allocate up to $30 billion toward low-emission projects between 2025 and 2030. The company is working in collaboration with the Texas General Land Office to secure the largest offshore carbon dioxide storage site in the U.S. The company is also making developments in establishing the largest low-carbon hydrogen production facility, which is anticipated to generate over 1 billion cubic feet of hydrogen per day.
Since 2019, Exxon Mobil Corporation (NYSE:XOM) has gathered around $12.1 billion in Structural Cost Savings, exceeding its peers and overcoming inflation. With a remarkable record of paying dividends for 54 consecutive years and a current dividend yield of 4.27%, Exxon Mobil Corporation reflects strong financial stability.
8. Shell plc (NYSE:SHEL)
P/E Ratio: 8.67
Average Analysts Upside: 17.98%
Shell plc (NYSE:SHEL) is an integrated energy company with operations in more than 70 countries. It has over 50 years of history as a natural gas producer and is one of the leading producers in Europe. Shell’s diversified portfolio, including upstream, downstream, and integrated energy solutions, allows it to adjust to shifts in overall energy demand. The company has a sizable portfolio of LNG businesses, with a diverse network of customers around the world.
The company has been investing in smart grids and energy storage solutions, considering the growth in these technologies and the digitalization of energy management systems. These investments in smart grids and energy storage solutions will solidify Shell’s position in the evolving energy sector.
On January 31, Wells Fargo analyst Roger Read downgraded the price target on SHEL shares from $86 to $82, maintaining an Overweight rating on the stock. The analyst remains bullish on SHEL but has revised the price target on SHEL following an earnings miss in Q4 2024. The company posted a 16% drop in its profits from a year ago in Q4 2024, mainly due to declining oil and gas prices and falling oil demand.
However, Shell plc (NYSE:SHEL) shares surged by 3.30% in the first month of 2025 as the company raised its dividend by 4%. The company launched another share buyback program of $3.5 billion, marking its 13th consecutive quarter of at least $3 billion of share repurchases. Despite the reduced earnings in Q4, Shell kept a strong balance sheet and posted an FCF of $40 billion in 2024.
7. Pfizer Inc. (NYSE:PFE)
P/E Ratio: 8.68
Average Analysts Upside: 19.47%
Pfizer Inc. (NYSE:PFE) is a leading American pharmaceutical company that is engaged in the discovery, manufacturing, marketing, and sale and distribution of related products worldwide. The biopharmaceutical isn’t generating the massive growth it was during the COVID-19 and post-COVID period as the company’s COVID-related revenue has been declining. But Pfizer’s overall business is growing and the fundamentals reflect an optimistic future about the company moving forward.
The COVID-19 vaccine sales dropped by 52% year-over-year to $5.4 billion for the full year 2024. However, the company’s top-line sales soared over 7% year-over-year. Pfizer’s specialty care segment posted 11% growth, and its oncology business expanded at a rate of 25%, driven by the acquisition of Seagen, which generated around $3.4 billion in revenue. Despite the decline in COVID-related sales, the company’s primary care business, which includes Comirnaty, only dropped by 2% from a year ago.
On February 11, Jefferies analyst Akash Tewari raised the price target on PFE shares from $33 to $34, keeping a Buy rating. The upgrade follows Pfizer’s releasing abstract on mevrometostat from the American Society of Clinical Oncology Genitourinary symposium. Tewari estimates mevrometostat’s risk-adjusted peak sales of approximately $1.2 billion. The analyst also remains optimistic about Pfizer Inc.’s (NYSE:PFE) oncology segment.
6. PDD Holdings Inc. (NASDAQ:PDD)
P/E Ratio: 9.39
Average Analysts Upside: 19.68%
PDD Holdings Inc. (NASDAQ:PDD) is a Chinese multinational online commerce group and retailer that owns and operates a range of diverse businesses. The company operates famous e-commerce platforms including Pinduoduo and its fast-growing online marketplace Temu. Temu has expanded its operations in more than 50 countries worldwide and is expected to be a key driver for the company’s growth moving forward.
PDD Holdings Inc.’s (NASDAQ:PDD) strategic move to expand Temu globally has been a winner so far. Temu connects Chinese sellers and overseas buyers, allowing PDD to diversify its revenue base. The online marketplace has a competitive advantage due to its group-buying model from SMBs, offering cheaper listings than its peers.
PDD Holdings Inc. (NASDAQ:PDD) shares soared over 23% in January 2025 as the sentiment is better, especially after Trump revised his tariff plan to close the de minimis exemption on items below $800. This means that people will continue to be able to buy very cheap items from Temu.
5. Toyota Motor Corporation (NYSE:TM)
P/E Ratio: 9.25
Average Analysts Upside: 20.79%
Toyota Motor Corporation (NYSE:TM) is the world’s largest auto manufacturer in terms of sales volume, design, production, assembly, and distribution of cars, minivans, commercial vehicles, and associated parts and accessories worldwide. The company is also investing in autonomous driving, AI, and mobility services.
Despite reporting a 4% decline in global vehicle unit sales for the first nine months of FY 2025, the company improved its net profit to 2.19 trillion yen in Q3 FY2025, up by 62% year-over-year. The net profit for Q3 exceeded market expectations of 1.19 trillion yen. As the company’s profit improved significantly in Q3, Toyota has revised its full-year revenue guidance, up from 46 trillion yen to 47 trillion yen. The company now expects an improved operating profit of 4.7 trillion yen, upgraded from a previous forecast of 4.3 trillion yen. In addition to that, the automaker has successfully implemented its cost-saving initiatives and improvement in product competitiveness which are supporting earnings.
On February 6, Macquarie analyst James Hong upgraded the rating on TM shares from Neutral to Outperform. The analyst expects Toyota to stabilize and improve its production, driven by favourable foreign exchange trends and strong hybrid electric vehicle (HEV) sales. “Less exciting earnings, but better quarters ahead,” added Hong.
4. Comcast Corporation (NASDAQ:CMCSA)
P/E Ratio: 8.35
Average Analysts Upside: 21.50%
Comcast Corporation (NASDAQ:CMCSA) is an American multinational mass media and technology corporation that specializes in telecommunications, entertainment, sports, and news. The company is exploring the separation of the cable networks business, addressing the broader challenges from cable TV cord-cutting and boosting profitability for the Peacock streaming service.
Comcast Corporation (NASDAQ:CMCSA) is investing in its new ventures with the recently launched Sports & News TV, a new video package for Xfinity Internet customers. Sports & News TV broadcasts live news, renowned sporting events from the NFL, NBA, NHL, MLB, and NCAA, hit movies and shows, and primetime TV all in one place.
In the fourth quarter of 2024, the company posted revenues of $31.9 billion, a rise of 2% from a year ago. Comcast Corporation’s adjusted earnings surged by 11% year-over-year to $0.96 per share, surpassing estimates by 11.38%. The company’s studio division revenue was around $3.27 billion, contributing to a 7% revenue increase. To overcome the broadband subscriber challenges, the company is working on its mobile business, focusing on bundling mobile and broadband services to attract and retain customers.
3. Micron Technology, Inc. (NASDAQ:MU)
P/E Ratio: 13.55
Average Analysts Upside: 26.11%
Micron Technology, Inc. (NASDAQ:MU) designs, manufactures, and sells memory and storage products worldwide. The company offers DRAM, NAND flash memory, and other storage solutions under the Micron and Crucial brands, serving markets for data centers, PCs, graphics, networking, automotive, industrial, and mobile devices. Micron’s memory chips are its strong suit and an essential component of the AI boom. The company’s high-bandwidth memory (HBM) chips are especially suited to AI uses.
In February 2024, Micron Technology, Inc. (NASDAQ:MU) partnered with NVIDIA to provide its HBM3e chips to use in its AI-capable semiconductors. Lately, Micron’s HBM4 was allocated for use in NVIDIA’s upcoming Rubin platform. MU states that its HBM chips can match or exceed the performance of its peers while consuming 30% less power. This adds to the company’s competitive edge in the growing AI chip manufacturing market.
On February 12, Citi analysts reiterated MU stock with a Buy rating and kept the target price at $150. The firm remains positive on Micron Technology, Inc.’s (NASDAQ:MU) prospects. The company’s capabilities in AI High-Bandwidth Memory (HBM) and the potential in this segment provide a growth opportunity for MU. The analyst also cited the DRAM market’s recovery as a key factor in the company’s optimism.
2. ConocoPhillips (NYSE:COP)
P/E Ratio: 10.85
Average Analysts Upside: 32.97%
ConocoPhillips (NYSE:COP) is one of the largest independent E&P companies based on oil and natural gas production and proved reserves. The company is engaged in the exploration, production, transportation, and marketing of crude oil, natural gas, natural gas liquids, and LNG worldwide.
ConocoPhillips (NYSE:COP) had a solid 2024 as its total production increased by 4% compared to 2023. The acquisition of Marathon in late November 2024 added high-quality, low-cost supply inventory to the company’s portfolio. The company maintained a strong cash position, collecting over $20 billion in operating cash flow for FY2024, while total cash from operations also surpassed $20 billion.
The company is committed to reducing its carbon footprint after achieving the Oil and Gas Methane Partnership 2.0 Gold Standard designation in 2024. It aims to reduce its greenhouse gas emissions intensity by 50 to 60% by 2030 and obtain a near-zero methane emissions intensity by the end of the decade. This goal will allow the company to explore new opportunities in the rising carbon-free energy sector.
Given the current commodity prices, ConocoPhillips returned more than $9 billion of capital to its shareholders in FY2024 and expects to return over $10 billion in 2025.
1. Merck & Co., Inc. (NYSE:MRK)
P/E Ratio: 9.35
Average Analysts Upside: 38.54%
Merck & Co., Inc. (NYSE:MRK) is a global healthcare company with two segments: pharmaceutical and Animal Health. Over the last six months, MRK shares have plunged by just under 27% due to the company’s weaker-than-expected 2025 revenue guidance. Projected revenue of $64.1 billion to $65.6 billion fell short of analyst estimates of $67.31 billion.
The company has been struggling with its HPV vaccine, Gardasil. Merck has temporarily halted shipments of Gardasil to China until mid-2025, negatively impacting its revenue outlook. The Chinese market remains a key growth driver for many pharmaceutical companies, but Merck’s challenges in the region continue to negatively impact its stock.
Despite these short-term challenges, Merck & Co., Inc. (NYSE:MRK) remains resilient and delivered a robust performance in 2024. In FY2024, Merck posted a revenue of $15.62 billion, beating estimates of $15.49 billion. The company’s innovative portfolio remains a key driver for MRK, with Keytruda performing exceptionally well. Moreover, the launch of Winrevair further bolstered revenue growth in 2024. The company’s Animal Health division also posted impressive results, achieving 13% sales growth in 2024.
GreensKeeper Asset Management, an investment management company, released its Q3 investor letter. Here is what the fund said about MRK in the investor letter:
“Merck & Co., Inc. (NYSE:MRK) was our second-largest detractor this quarter, declining -8.3%. MRK’s leading HPV vaccine, GARDASIL 9, faced challenges internationally due to inventory buildup within its Chinese distributor, which is expected to reduce shipments for the remainder of 2024. Despite this short-term impact, the long-term outlook for GARDASIL 9 remains promising. Meanwhile, the company’s $27 billion Keytruda cancer juggernaut continues to grow at a healthy clip, powering earnings growth.”
While we acknowledge the potential of MRK to grow, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than MRK but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
READ NEXT: 20 Best AI Stocks To Buy Now and Complete List of 59 AI Companies Under $2 Billion in Market Cap.
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