In this article, we will look at the Top 12 Extreme Value Stocks to Invest In Right Now.
Are Value Stocks About to Overtake Growth Stocks?
On March 11, Chris Grisanti, MAI Capital Management chief market strategist, joined CNBC for an interview to talk about the recent developments in the market. He noted that the growth stocks tend to go up and down really quickly, what a lot of investors miss while investing is that along with choosing a good company you also have to choose a good entry price. This has been the case for the last 7 years as the valuations have gotten out of control as the growth stocks have largely outperformed value stocks. Grisanti believes that now the market is going back to the point where the value stocks will take over the growth sector.
Grisanti thinks something different is happening in terms of the current market slowdown. He does not think that this downturn is due to over exuberance. Grisanti explained that over the past years the norm has been that the tech stocks get ahead and later pull the market down a bit towards a natural and healthier price correction. This is different as per the chief market strategist, currently there are economically sensitive stocks leading the way down. We have banks, airlines, financials, and the industrials tanking. He pointed out that this is the first time in 3 years that the market is telling the fears of an economic slowdown. Moreover, Grisanti further explained that usually the market can fall on irrational fears however become self fulfilling automatically. However, the current slowdown seems different from the usual scenarios.
Through the first two months of 2025, the market has been mediocre and the Mag Seven were down slightly. However, the banks were up high single digits and the airlines were also up. Now, it has all turned around, tech continues to go down and has been joined by the economically sensitive sectors as well, which is a “Yellow Signal” for the market. Grisanti likes stocks that are trading cheaper than the market and he thinks it is not a bad time to start selecting companies that are cheap and can meet the earnings expectations.
That being said, let’s take a look at the top 12 extreme value stocks to invest in right now.
An investor on a trading floor discussing the value of a stock exchange index.
Our Methodology
To curate the list of top 12 extreme value stocks to invest in right now, we used the Finviz stock screener, Seeking Alpha, and Yahoo Finance as our sources. Using the screener we aggregated a list of value stocks trading between a forward P/E of 5 t0 10, with earnings expected to grow in the current and next year. Next, after sorting the list by market capitalization we cross checked the forward P/E of each stock from Seeking Alpha and expected earnings growth from Yahoo Finance. Lastly, we ranked the list in ascending order of the number of hedge fund holders, as of Q4 2024. Please note that the data was recorded on March 12, 2025.
Why are we interested in the stocks that hedge funds pile into? 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 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here).
Top 12 Extreme Value Stocks to Invest In Right Now
12. The Bank of Nova Scotia (NYSE:BNS)
Forward P/E Ratio: 9.82
Earnings Growth This Year: 8.05%
Earnings Growth Next Year: 13.85%
Number of Hedge Fund Holders: 19
The Bank of Nova Scotia (NYSE:BNS) is a Canadian multinational banking and financial services company. The bank operates through various segments including Canadian banking, International banking, Global Wealth Management, Global Banking and Markets, and other segments. On March 5, Canaccord Genuity analyst Matthew Lee maintained a Buy rating on the stock, with a price target of C$79.
The Bank of Nova Scotia (NYSE:BNS) started 2025 with robust financial performance. The company reported adjusted earnings of $2.2 billion, or $1.76 per share, driven by revenue growth and the benefits of lower interest rates. During the quarter, the revenue increased by 11% year-over-year, reaching $9.37 billion. Moreover, noninterest revenue experienced a 15% year-over-year increase, with significant contributions from advisory services, Global Banking and Markets, wealth management, and domestic retail channels.
The Bank of Nova Scotia (NYSE:BNS) has been actively managing its capital, strengthening its balance sheet, and building allowances, which has enabled the company to navigate market volatility and pursue strategic growth objectives. It is one of the top extreme-value stocks to invest in right now.
11. Equinor ASA (NYSE:EQNR)
Forward P/E Ratio: 6.63
Earnings Growth This Year: 11.42%
Earnings Growth Next Year: 5.31%
Number of Hedge Fund Holders: 20
Equinor ASA (NYSE:EQNR) is an international energy company based in Norway. It turns natural resources into energy, with core business activities rooted in the exploration, development, and production of crude oil and natural gas. It sells crude oil and delivers natural gas to the European market.
On March 7, Lydia Rainforth from Barclays maintained a Buy rating on the stock with a price target of NOK400. During the fiscal third quarter of 2024, the company delivered strong production, especially from the NCS, contributing significantly to results. They expect to maintain production in Norway at a high level of 1.2 million barrels per day until 2035. The company is focused on delivering returns on capital employed above 15% through 2030. Equinor ASA (NYSE:EQNR) anticipates over 10% growth in oil and gas production from 2024 to 2027 and has increased its production outlook to around 2.2 million barrels per day in 2030, up from 2 million in last year’s outlook.
Management noted that the oil demand is expected to remain above 100 million barrels through this decade, and gas demand is expected to increase and stay above today’s level until 2050. As per the management, Equinor ASA (NYSE:EQNR) is positioned to meet this demand. It is one of the extreme-value stocks to invest in right now.
10. Canadian Imperial Bank of Commerce (NYSE:CM)
Forward P/E Ratio: 9.95
Earnings Growth This Year: 8.53%
Earnings Growth Next Year: 7.10%
Number of Hedge Fund Holders: 20
Canadian Imperial Bank of Commerce (NYSE:CM) is a North American financial institution that serves personal, business, public sector, and institutional clients in Canada, US, and internationally. The bank operates through four strategic business units including Canadian Personal and Business Banking, Canadian Commercial Banking and Wealth Management, US Commercial Banking and Wealth Management, and Capital Markets and Direct Financial Services.
On February 28, BMO Capital analyst Sohrab Movahedi maintained a Buy rating on the stock. Movahedi’s Buy rating is based on Canadian Imperial Bank of Commerce’s (NYSE:CM) strong financial performance and strategic positioning. He highlighted that the bank’s earnings per share exceeded expectations, driven by record trading revenues in its Capital Markets segment and strong performance in other divisions. The analyst likes the bank’s pre-tax pre-provision profit growth, supported by improved revenue and operating leverage. Moreover, its strong capital position supports continued share buybacks. The bank is focused on affluent customer acquisition and a Canadian-centric strategy, which are expected to sustain momentum and improve valuation metrics through 2025-26. It is one of the extreme-value stocks to invest in right now.
9. Barclays PLC (NYSE:BCS)
Forward P/E Ratio: 6.57
Earnings Growth This Year: 31.66%
Earnings Growth Next Year: 20.38%
Number of Hedge Fund Holders: 25
Barclays PLC (NYSE:BCS) is a British multinational universal bank that offers personal and business banking, wholesale and commercial banking, and private and investment banking solutions. On March 4, Exane BNP Paribas upgraded the stock from Neutral to Outperform with a price target of 370 GBP.
Ariel Global Fund in its Q4 2024 investor letter noted that they bought shares of Barclays PLC (NYSE:BCS) as they anticipate the shares will increase in value due to a recovery in global capital markets and growth in net interest income. This growth is expected to be driven by macroeconomic hedging and asset flows. Moreover, the fund noted that the bank plans to expand its investment banking advisory business. In addition, the bank’s US credit card business offers opportunities for a potential sale or a quicker earnings recovery. Ariel Global expects Barclays PLC (NYSE:BCS) to distribute £3 billion and £10 billion to shareholders through dividends and share repurchases between 2024 and 2026 and achieve a return on tangible common equity of about 12%. It is one of the top extreme-value stocks to invest in right now.
Ariel Global Fund stated the following regarding Barclays PLC (NYSE:BCS) in its Q4 2024 investor letter:
“We bought global bank and financial services provider, Barclays PLC (NYSE:BCS). We expect shares to benefit from a recovery in global capital markets and net interest income (NII) growth driven by macroeconomic hedging and asset flows. The bank is also planning to expand its investment banking advisory business. Moreover, its U.S. credit card business presents opportunities for either a potential sale or a quicker earnings recovery. Taken together, we see a reasonable path for Barclays to pursue its return targets, which include the distribution of £3 billion and £10 billion to shareholders through dividends and share repurchases between 2024 and 2026 and achieving a return on tangible common equity of about 12%.”
8. Manulife Financial Corporation (NYSE:MFC)
Forward P/E Ratio: 9.89
Earnings Growth This Year: 7.90%
Earnings Growth Next Year: 9.90%
Number of Hedge Fund Holders: 26
Manulife Financial Corporation (NYSE:MFC) is a Canada-based financial services provider that offers financial advice and insurance products. Its products include individual life insurance, long-term care insurance, and annuity products. Moreover, it also offers mutual funds, education savings plans, and retirement savings plans.
On February 24, DBS analyst Ken Shih maintained a Buy rating on the stock with a price target of HK$280. In 2024, Manulife Financial Corporation (NYSE:MFC) experienced significant growth and achieved record core earnings exceeding $7 billion, primarily driven by its Asia and Global Wealth and Asset Management businesses. These segments contributed to 70% of the company’s core earnings, marking a 10% increase from 2023. Moreover, the growth was supported by record Annualized Premium Equivalent sales, new business Contractual Service Margin, and new business value in Asia.
Manulife Financial Corporation (NYSE:MFC) has been investing in digital initiatives, including the launch of a generative AI sales tool in Asia and a new retail wealth platform in Canada. The company has generated over $600 million of benefits from digital initiatives globally in 2024. It is one of the top extreme-value stocks to invest in right now.
7. Prudential Financial, Inc. (NYSE:PRU)
Forward P/E Ratio: 7.39
Earnings Growth This Year: 13.15%
Earnings Growth Next Year: 5.36%
Number of Hedge Fund Holders: 39
Prudential Financial, Inc. (NYSE:PRU) is a global financial services leader offering an array of financial products and services, including life insurance, annuities, retirement-related products, mutual funds, and investment management. It operates in the United States, Asia, Europe, and Latin America, serving both individual and institutional customers.
During the fiscal fourth quarter of 2024, the company reported strong sales across its retirement and insurance businesses, along with solid investment performance and positive net flows. Its pretax adjusted operating income grew 6% year-over-year to reach $5.9 billion during the year. This growth was driven by higher fees and spread income from strong sales and flows, as well as benefits from higher interest rates and equity markets. Notably, Global Investment Management achieved strong investment performance with assets under management increasing by 6% to $1.4 trillion in 2024. Prudential Financial, Inc. (NYSE:PRU) has entered the year with confidence in its strategy and capabilities to deliver long-term sustainable value for stakeholders.
6. BP p.l.c. (NYSE:BP)
Forward P/E Ratio: 9.65
Earnings Growth This Year: 1.66%
Earnings Growth Next Year: 9.06%
Number of Hedge Fund Holders: 44
BP p.l.c. (NYSE:BP) is a multinational energy company headquartered in London. It operates as an integrated company in the oil and gas industry, with operations in 78 countries. The company operates through several business segments including Gas & Low Carbon Energy, Oil Production & Operations, Customers & Products, and Other Businesses & Corporate. On March 12, UBS analyst Joshua Stone maintained a Buy rating on the stock with a price target of £5.25.
During the fiscal year 2024, the company made strategic progress by reshaping its portfolio and establishing a foundation for growth. It executed 10 new Final Investment Decisions including Cascadia and Tangguh, gained new access to opportunities in Iraq and India, and divested tail assets in Trinidad. Moreover, the company is also focusing on its electric vehicle charging business and hydrogen pipeline and acquired full ownership of BP Bioenergy and Lightsource BP.
Moreover, the company reported a strong cash flow of $7.4 billion, which was supported by a $1.3 billion working capital release. BP p.l.c. (NYSE:BP) also decreased its debt to $23 billion due to $2.8 billion in divestment proceeds and strategic debt management. It is one of the top extreme-value stocks to invest in right now.
5. U.S. Bancorp (NYSE:USB)
Forward P/E Ratio: 9.49
Earnings Growth This Year: 10.00%
Earnings Growth Next Year: 10.92%
Number of Hedge Fund Holders: 48
U.S. Bancorp (NYSE:USB) is a diversified financial services company that provides a range of banking, investment, and payment services to individuals, businesses, governmental entities, and other financial institutions. On March 10, Bank of America Securities analyst Ebrahim Poonawala maintained a Buy rating on the stock with a price target of $44.72.
In the fiscal fourth quarter of 2024, the company showed positive financial results and strategic advancements. U.S. Bancorp (NYSE:USB) reported revenue of $7 billion for the quarter and $27.5 billion for the full year, driven by growth in both net interest income and non-interest income. Management attributed the growth to effective balance sheet management, asset repricing, and diversified fee business offerings.
Looking ahead, management expects the first quarter of 2025 net interest income to be relatively stable compared to the fourth quarter of 2024. Moreover, it expects revenue growth between the range of 3% to 5%, with positive operating leverage. U.S. Bancorp (NYSE:USB) is one of the top extreme-value stocks to invest in right now.
4. MetLife, Inc. (NYSE:MET)
Forward P/E Ratio: 8.31
Earnings Growth This Year: 15.81%
Earnings Growth Next Year: 11.82%
Number of Hedge Fund Holders: 54
MetLife, Inc. (NYSE:MET) is an international financial services company that provides insurance, annuities, employee benefits, and asset management services to individual and institutional clients. The company operates in over 60 countries through several business segments including Group Benefits, Retirement and Income Solutions, Asia, Latin America, Europe, the Middle East, and Africa, and MetLife Holdings segment.
On February 6, Analyst Suneet Kamath from Jefferies reiterated a Buy rating on the stock with a price target of $104. The analyst’s positive outlook for the company is supported by its recovery in Q4 2024 and its commitment to double-digit EPS growth and a 15% to 17% return on equity. Kamath anticipates positive contributions from the Group Benefits and Retirement & Income Solutions segments, noting stable financial metrics like capital position and free cash flow conversion.
During the fiscal fourth quarter of 2024, MetLife, Inc. (NYSE:MET) premiums, fees, and other revenues increased to $14.5 billion, reflecting a 6% increase year-over-year. Moreover, net investment income rose to $5.4 billion, up 1% from Q4 2023, driven by higher variable investment income. It is one of the top extreme-value stocks to invest in right now.
3. Truist Financial Corporation (NYSE:TFC)
Forward P/E Ratio: 9.83
Earnings Growth This Year: 10.05%
Earnings Growth Next Year: 14.46%
Number of Hedge Fund Holders: 57
Truist Financial Corporation (NYSE:TFC) is a financial services company that offers a variety of products and services. It operates through consumer and wholesale businesses, including small business and consumer banking, commercial banking, corporate and investment banking, wealth management, payments, and specialized lending businesses.
On March 10, Bank of America Securities analyst Ebrahim Poonawala maintained a Buy rating on the stock. Truist Financial Corporation (NYSE:TFC) demonstrated strong financial and operational performance in 2024, achieving several strategic milestones and positioning itself for growth in 2025. The company reported GAAP net income of $4.5 billion, driven by Investment banking and trading revenue which grew 46% year-over-year, fueled by talent acquisition and platform expansion.
The company has been focused on talent development, client relationship management, market share growth, and technological development. It plans to expand in faster-growing markets like New Jersey, Pennsylvania, and Texas while building out middle-market verticals. Truist Financial Corporation (NYSE:TFC) is one of the top extreme-value stocks to invest in right now.
2. Delta Air Lines, Inc. (NYSE:DAL)
Forward P/E Ratio: 6.28
Earnings Growth This Year: 19.91%
Earnings Growth Next Year: 13.48%
Number of Hedge Fund Holders: 84
Delta Air Lines, Inc. (NYSE:DAL) is a major airline based in Atlanta, Georgia, that provides scheduled air transportation for both passengers and cargo globally. It operates through two business segments including the Airline Segment and Refinery Segment, which supports the airline by producing and supplying jet fuel, as well as other non-jet fuel products.
On March 11, Raymond James analyst Savanthi Syth maintained their bullish stance on the stock. The analyst expressed optimism about Delta Air Lines, Inc. (NYSE:DAL) prospects despite a revenue shortfall in the first quarter of 2025. The shortfall was attributed to decreased consumer and corporate confidence and higher fuel prices. However, Scythe noted that the company has made strategic adjustments to its revenue management, which has led to improved booking trends for the second quarter. This improvement is particularly evident in the 14-30 day and 30-60 day booking windows. Moreover, favorable indicators for peak season demand suggest that the company’s performance will improve as the year progresses. Despite the first-quarter challenges, Delta Air Lines, Inc. (NYSE:DAL) has maintained its 2025 earnings guidance, reflecting confidence in its ability to overcome short-term obstacles. It is one of the top extreme-value stocks to invest in right now.
1. Citigroup Inc. (NYSE:C)
Forward P/E Ratio: 8.97
Earnings Growth This Year: 21.18%
Earnings Growth Next Year: 23.79%
Number of Hedge Fund Holders: 101
Citigroup Inc. (NYSE:C) is a global diversified financial services holding company headquartered in New York City. It operates through several key segments including the Services segment, Markets, Banking, Wealth, and US Personal Banking segments. The company provides a broad range of financial services to consumers, corporations, governments, and institutional clients globally, including retail banking, investment banking, securities brokerage, wealth management, and more.
On March 10, Morgan Stanley analyst Betsy Graseck maintained a Buy rating on the stock with a price target of $110. The company finished 2024 with a strong fourth quarter. For the fiscal year 2024, the company achieved a net income increase of nearly 40% to $12.7 billion. Moreover, the bank also exceeded its full-year revenue target, by growing the revenue by 5% year-over-year to reach $81.1 billion. The growth was driven by a record year in the Services segment which grew 9% driven by new mandates and fee growth.
Looking ahead, Citigroup Inc. (NYSE:C) anticipates expenses to be slightly below 2024 levels, with a focus on delivering positive operating leverage. Moreover, the 2026 return on tangible common equity is projected to be between 10% and 11%. It is the top extreme-value stock to invest in right now.
While we acknowledge the potential of Citigroup Inc. (NYSE:C) 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 C 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 30 Best Stocks to Buy Now According to Billionaires.
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