We recently published a list of 10 Best Very Cheap Stocks To Buy Right Now. In this article, we are going to take a look at where Shell plc (NYSE:SHEL) stands against other 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.
READ ALSO: 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.
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).
A gas refinery lit up against the night sky, showing the scale of the company’s petrochemical operations.
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.
Overall, SHEL ranks 8th on our list of best very cheap stocks to buy right now. While we acknowledge the potential of SHEL 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 SHEL 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
Disclosure: None. This article is originally published at Insider Monkey.
