Finding the best value stocks to buy in this market is a delicate balancing act.
On the one hand, you typically need to think beyond the flashiest names in the stock market—wild growth stories are rarely underappreciated by Wall Street investors. But you also need to think past “cheap stocks,” too. For one, nominal price ($5 stocks, $1 stocks, penny stocks) isn’t an indication of value. But even “cheap” by actual valuation metrics isn’t helpful, either, if you’re just buying a discounted name with little else to love.
Value investing is a religion to many folks, the same way bargain hunting at flea markets or coupon clipping is to others. There’s a pride that value investors have about analyzing the true worth of a company, and they should. It’s a skill.
Today, we’ll talk a little about the basics of value stock investing. Then I’ll highlight some of the best value stocks for 2026, across several sectors, that exemplify this approach.
Editor’s Note: Tabular data presented in this article is up-to-date as of May 4, 2026.
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Disclaimer: This article does not constitute individualized investment advice. Individual securities, funds, and/or other investments appear for your consideration and not as personalized investment recommendations. Act at your own discretion.
Table of Contents
What Is a Value Stock?
A value stock is a company that is perceived to be trading below some sort of intrinsic value. This is markedly different from many growth stocks, which typically trade at inflated market values based on investor interest or future growth potential.
Value stocks are often boring or steady names with established businesses, whereas a growth stock is likelier to be some flashy name with big ideas but no profits or tangible assets to speak of. Sure, flashy names are definitely interesting to watch. But they are simply not opportunities that most value stock investors would even consider, given their reliance on the promise of future growth rather than tangible value today.
So what’s the easiest way to separate a true value stock from overhyped pretenders? There’s no hard and fast rule, but there are a few metrics to watch, including:
- Price-to-earnings ratio: Stock prices should be based on something. One popular way is by normalizing the price per share by earnings per share to see how “cheap” or “expensive” the stock is vs. its peers. Price-to-earning (P/E) ratio can be backward-looking (usually the past 12 months’ worth of financials), though more useful is forward P/E, which looks ahead toward estimates for the coming year. For context, the average forward P/E of the S&P 500 lately is a little under 22.
- Price-to-sales ratio: Since profitability sometimes isn’t the best indicator, another point of reference worth considering is the market value of a stock when compared to its revenue. Value stocks typically trade for only about 2X their sales, while high-growth stocks can sometimes trade at price-to-sales (P/S) ratios of 10 or even 20. That’s a big risk if those sales don’t come in as expected.
- Dividend yield (and payout ratio): Value stocks often have tangible and consistent profits, and they frequently share those profits with investors. Thus, many value stocks are also dividend-paying stocks. But don’t just go chasing a high yield; some dividend stocks offer unsustainable payouts that are at risk of being cut down the road. Compare the annual dividends paid to the earnings per share to make sure the company in question isn’t overstretched. Generally, paying out 70% of profits via dividends leaves enough wiggle room, but a healthy payout ratio might differ from one industry to the next.
- A company’s stock price trend: Value stocks as a group are, over the long term, less volatile than growth stocks. Just understand that the broader environment or unexpected headlines can upset even the most stolid blue chip.
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Does a Low Stock Price Mean a Good Stock Value?
Think about the difference between buying a hidden gem at a flea market vs. a piece of junk that’s better off in the trash. Both are “cheap,” but one is a value, while the other is more of a “value trap.”
You’ll find the same issue when hunting for values in the stock market.
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For instance, some stocks trade for very low price-to-earnings or price-to-sales ratio because Wall Street is expecting the actual numbers to come in much lower in the years ahead. If the experts are proven right, the stock isn’t a bargain at all. Rather, it has been discounted because it isn’t as valuable as it used to be.
Just as growth stocks can sometimes be valued based on their future operations instead of their current results, value stocks can also be valued based on their outlook—and if that outlook is grim, investors might not put much weight in current profits that are likely to vanish over the next year or two.
However, sometimes a bit of bad news results in a temporary short-term headwind, and value investors are often the first to swoop in for bargain purchases when that happens. Just be careful: It can be difficult to tell the difference between a stock that’s priced low for a reason, and a true bargain value investment.
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How Do Value Stocks Differ From Growth Stocks?
Small biotech companies researching a potential cancer cure or tech startups developing a potential artificial intelligence (AI) gamechanger could become billion-dollar giants … or they might disappear overnight if their plans don’t pan out.
These are fundamentally “growth stocks” that are dependent on revenue and earnings growth that will justify their share price. Just think about a company like Tesla (TSLA) that debuted on Wall Street in 2010 even though it was unprofitable and had only manufactured less than 2,000 cars before going public and had a mere 4,000 additional pre-orders on the books. It was a risky bet to be sure, but now Tesla is the envy of the entire EV industry and cranks out millions of cars—and has made early investors a bundle along the way.
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Value stocks can make a bundle for investors, too, but in a very different way. They’re more likely to be companies such as traditional automakers with deep pockets and tons of hard assets like production facilities. Sure, it might be impossible for an automaker like Toyota (TM) to double, considering it is already the world’s No. 1 automaker with about $300 billion in revenue and nearly 11 million vehicles sold annually. But growth isn’t the appeal here … rather, the underlying value and established operations of Volkswagen is the draw.
Lastly, value stocks and growth stocks don’t always have to be opposites. From time to time, Wall Street will underestimate a high-growth firm, and as a result, you’ll have a growth stock trading at value prices.
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The Top Value Picks to Buy Now
Today, I’ll look at some of the best value stocks for 2026 as rated by consensus analyst ratings from S&P Global Market Intelligence. The consensus rating is the average of all known analyst ratings of the stock, boiled down to a numerical system where …
1-1.5 = Strong Buy
1.5-2.5 = Buy
2.5-3.5 = Hold
3.5-4.5 = Sell
4.5-5 = Strong Sell
In short: The lower the number, the better the overall consensus view on the stock. All stocks here are rated at least 2.0 or below, meaning at worst they’re solidly in the Buy camp, though most of the picks are considered Strong Buys as we enter 2026. And the stocks are listed in reverse order of their consensus rating (from worst to best).
All stocks also have forward P/Es that are below both the S&P 500 and their sectors, as well as PEGs below 1.0.
As iconic investor Warren Buffett once wrote, “In the short run, the market is a voting machine, but in the long run, it is a weighing machine.” The following seven stocks are good examples of value stocks with real weight.
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7. MetLife
- Sector: Financials
- Market capitalization: $50.8 billion
- Dividend yield: 3.0%
- Forward P/E: 8.8
- Consensus analyst rating: 1.89 (Buy)
MetLife (MET) is a large financial services provider with a wide array of offerings: insurance (including life, dental, group disability, even pet), annuities, employee benefits, and asset management services.
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Insurance isn’t the most scintillating business on earth, and their stocks often move in fits and starts. But MetLife is one of the best and largest names in the space, offering a healthy, well-covered dividend, solid financials, and market-beating long-term performance.
“MET is our top pick in the larger cap life space,” writes Ryan Kreuger, an analyst at Keefe, Bruyette & Woods who rates the stock at Outperform (equivalent of Buy). “The company benefits from significant scale across its global franchise, and has an attractive and growing mix of protection businesses and retirement liabilities. MET’s ROE has expanded to 15-17% over time, free cash flow conversion has consistently met or exceeded its 65%-75% target, and earnings growth is benefiting from positive operating leverage.”
“We look for MetLife’s earnings to benefit from steady higher long-term interest rates and management’s focus on protection-oriented products,” adds Argus Research analyst Kevin Heal (Buy). “We also have a positive view of the company’s international expansion.”
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They’re two of a dozen analysts who currently rate the stock at Buy. That’s twice the number of Holds, and MET doesn’t have a single Sell call as I write this.
Part of the allure right now is a stellar value proposition. MET shares trade at a mere 8.5 times 2024 estimates for earnings, which analysts believe will grow at a decent 11% year-over-year rate. Also flashing “inexpensive” is a PEG ratio below 0.8.
Investors are also getting a well-above-average and growing dividend. In April, the company increased its quarterly distribution to 59.25¢ per share—a 4.4% bump that’s right in line with its five-year average dividend growth rate, and boosts its yield to 3% currently.
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6. Bank of America
- Sector: Financials
- Market capitalization: $372.6 billion
- Dividend yield: 2.1%
- Forward P/E: 11.7
- Consensus analyst rating: 1.48 (Strong Buy)
Bank of America (BAC) is one of the world’s largest banks, serving roughly 70 million Americans through 3,800 branches and 15,000 ATMs across 39 states. However, BofA is much, much more than its consumer business—it also provides financial products and services for small and midsized businesses, large corporations, institutional investors, and even governments. Its offerings range from checking and savings accounts to commercial loans, trade finance, treasury management, and securities clearing.
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BofA has been caught up in financials’ broad slump in 2026, which has put the stock further into value territory. BAC’s forward P/E of less than 12 is much cheaper than the broader market, and decently inexpensive compared to the financial sector (15). A PEG of 0.8 shows that it’s only slightly undervalued in relation to its projected growth, but it looks better relative to the S&P 500, which trades at a PEG of 1.1 right now.
Part of banks’ pain in 2026 has come from worries about artificial intelligence taking over their business models. But Wall Street remains plenty bullish on the space, and on BAC in particular.
“We do not see AI tools as an existential threat, rather we see them as a tool to enable improving profitability,” say Morgan Stanley analysts. “We expect operational efficiency to improve across our coverages as banks utilize AI tools to ramp throughput. Across our large cap banks, we expect AI tools will help drive a productivity gains of 20-50% across a wide range of functions including financial advisors, wholesale banking and markets teams and operational staff.”
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As for BofA specifically? Morgan Stanley’s Betsy L. Graseck rates BofA at Overweight (equivalent of Buy) and calls the stock her “top pick” in 2026, adding that “BAC’s investments in AI are already delivering efficiencies.” She’s one of 22 Buy-equivalent calls on the stock, which compares well to just three Holds and zero Sells.
“Investor Day goals outlined for the company at large over the medium term included deposit growth of 4%, loan growth of 5%, operating leverage of 200-300 basis points leading to an efficiency ratio of 55%-59%, EPS growth of at least 12%, and a return on tangible common equity of 15% in the near term and 16%-18% in the medium term,” adds Argus Research analyst Stephen Biggar, who also rates the stock at Buy and recently upgraded his price target (to $62) on the back of management’s raised guidance for net interest income growth. “We believe the targets are achievable given the company’s breadth of products and investment capabilities, and are competitive enough to push BAC into the upper range on these metrics in the peer group.”
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5. Citizens Financial Group
- Sector: Financials
- Market capitalization: $27.1 billion
- Dividend yield: 2.9%
- Forward P/E: 11.8
- Consensus analyst rating: 1.44 (Strong Buy)
Citizens Financial Group (CFG) is the holding company behind Citizens Bank, a large regional bank with roughly 1,000 branches serving 14 East Coast and Midwest states as well as Washington, D.C. It provides a wide variety of consumer and commercial banking services, including deposits, mortgages, credit cards, business loans, wealth management, foreign exchange, corporate finance, and more.
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One noteworthy area of growth for CFG is Citizens Private Bank, which offers personal banking, wealth management, and other services to people with at least $10 million in net worth and at least $5 million in liquid assets. Since launching near the end of 2023, Private Bank has accumulated $16.6 billion in deposits, $7.7 billion in loans, and $10.1 billion in client assets.
“Positive policies around deregulation, looser capital requirements, and more stress test transparency stand to benefit CFG,” says Argus’s Heal, who rates Citizens’ shares at Buy. “Management has remained confident that Private Bank will deliver 20% to 25% return on equity for FY26. Additionally, the bank continues to show strong performance in the New York metro region.”
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“Among large regional banks, our bias is to own stocks with 1) above-average EPS growth, 2) above-average NII growth, and 3) improving loan/deposit growth dynamics—all of which CFG possesses today,” add Keefe, Bruyette & Woods analysts, who rate the stock at Outperform. “We concede that CFG’s valuation discount has all but been eliminated, but we remain constructive on the 400 [basis points] of ‘high confidence ROTCE improvement’ that is set to unfold over the next two years.”
All told, CFG has a broad bull camp of 17 Buys versus one Hold and no Sells. Part of the appeal is a cheap forward P/E below 12 that compares well to the financial sector’s 15, as well as a very low PEG of just 0.5 currently.
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4. CVS Health
- Sector: Healthcare
- Market capitalization: $105.7 billion
- Dividend yield: 3.2%
- Forward P/E: 11.5
- Consensus analyst rating: 1.44 (Strong Buy)
CVS Health (CVS) is positioned in numerous businesses throughout the healthcare sector. It has an enormous retail pharmacy footprint of more than 9,000 retail pharmacy locations, which include both standalone buildings and its store-within-store presence across numerous Target (TGT) locations. But CVS also has more than 1,000 “Minute Clinics” (essentially doctor’s offices right within the store), the Caremark pharmacy benefits management (PBM) business, as well as its Aetna arm courtesy of a $69 billion deal to lock up the health insurer back in 2018.
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The company’s shares surged 80% in 2025. That sounds impressive, but it deserves some context. That rebound effectively put the stock back to where it was trading at the beginning of a disastrous 2024 for CVS. And that’s a microcosm of its volatile but ultimately unproductive movement of the past decade; indeed, anyone holding the stock over the past 10 years is still sitting on a mere single-digit percentage gain even with dividends included. The S&P 500 has returned 315%.
But Wall Street—which is looking forward, not backward—is overwhelmingly optimistic about the stock. Currently, 24 pros call it a Buy, while only three call it a Hold and no one believes it’s a Sell.
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Truist Managing Director David S. MacDonald calls the stock a Buy and his “preferred” pick in diversified managed care, citing the company’s “diversified, scaled and complementary growth platforms with broad and unique capabilities well positioned to create a more interconnected and cohesive patient experience which we expect to drive ongoing expansion of the company’s ability to capture additional healthcare spend.”
Despite last year’s roaring comeback for CVS shares, as well as additional positive ground in 2026, the stock still trades at less than 12 times earnings estimates for the next 12 months. Its PEG is also in deep bargain territory at a little more than 0.2.
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3. Cigna
- Sector: Healthcare
- Market capitalization: $73.7 billion
- Dividend yield: 2.2%
- Forward P/E: 9.2
- Consensus analyst rating: 1.42 (Strong Buy)
Another healthcare name, Cigna Group (CI) is perhaps best known for the Cigna brand, which is one of America’s largest health insurers, offering health, dental, and other plans. But Cigna actually makes up less than half of Cigna Group’s revenues—60% come from its Evernorth Health Services unit, which includes its Express Scripts pharmacy and pharmacy benefit management businesses, Accredo specialty pharmacy, MDLive telehealth, and more.
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“Cigna’s managed care portfolio targets strong growth business lines, and is highly diversified, with a relative concentration in the stable (administrative services only) business,” says Oppenheimer, which rates shares at Outperform. “We believe the market is undervaluing the opportunity from the highly accretive Express Scripts deal, which should pay strong long-term returns for shareholders given the diversification, opportunity to cross-sell its services, and a more equity-friendly capital structure. Furthermore, Cigna typically trades at a discount to its peers, leaving upside from multiple expansion.”
Oppenheimer also modestly raised its earnings estimates for the next three years following Cigna’s second-quarter earnings, which included an announcement that it would be exiting Affordable Care Act Marketplace plans at the end of this year.
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CI currently enjoys 22 Buy-equivalent calls, which compares nicely to just two Holds and no Sells. Also among the bulls is BofA Global Research analyst Kevin Fischbeck, who believes the company’s pharmacy benefit manager (PBM) business is misunderstood.
“The market appears to be concerned about a race to the bottom on PBM margins,” he says. “We haven’t seen any evidence of margin compression outside of the largest accounts and we believe that the move to the new model is misunderstood and CI screens cheap even assuming the implementation costs don’t go away over time despite what we see as an improved PBM business (extended contracts, derisked legislatively, PBM a smaller part of earnings).”
Cigna trades at a very reasonable single-digit forward P/E of just 9; when accounting for growth, its PEG of 0.8 also signals that investors don’t yet fully appreciate the stock.
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2. United Airlines
- Sector: Industrials
- Market capitalization: $29.3 billion
- Dividend yield: N/A
- Forward P/E: 10.2
- Consensus analyst rating: 1.35 (Strong Buy)
United Airlines (UAL) is the largest airline in the world by revenue passenger miles, flying 175 million people to more than 350 destinations on six continents.
Airlines in general are strongly tethered to consumer demand and economic strength, both of which are extremely difficult to handicap under the current policy environment. Heading into this year, the airline industry in general was expected to benefit from (among other things) low supply growth as well as easy comparisons to 2025, when extreme macroeconomic volatility rocked the industry. So if the economy did pick up, and especially if the current administration did go through with any of its proposed stimulus measures, those could be considered additional tailwinds for airlines.
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However, UAL has lost 20% year-to-date, joining the rest of the industry in plunging amid rocketing oil prices following the start of America’s war with Iran. Here’s what BofA Global Research analysts Andrew Didora and John Gellene have to say about the scenario:
“We are lowering our EPS estimates given jet fuel nearly doubled in March. This is no surprise given the current environment, and we see two scenarios emerging from the current situation: 1) fuel stays higher for longer which results in airlines with negative or low margins either shrinking meaningfully or considering alternatives or 2) a quicker than expected end to the conflict drives a robust earnings recovery. We assume the industry benefitting from the second scenario and airlines with good margins and strong balance sheets emerging stronger from the first scenario.”
They think United is one of those companies, and 23 other analysts join them in positive sentiment toward UAL, while only two call it a Hold and no one says it’s a Sell.
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Spirit Airlines (FLYYQ) hasn’t been so lucky; the company recently ceased operations after its financial collapse, and its future remains uncertain. But United management mentioned that even if the government somehow props up Spirit, the impact on its business will be minimal.
Also worth noting is that United CEO Scott Kirby recently affirmed that he had approached American Airlines (AAL) about potentially merging the carriers, though AAL wasn’t interested. Wedbush analyst Michael Piccolo writes that “Kirby’s decision to go public with a detailed pro merger manifesto reads as a deliberate move to plant a seed with regulators and policymakers for a future attempt, potentially under different AAL leadership or if AAL’s financial position deteriorates further. … If AAL’s stock continues to decline and operating headwinds intensify, the calculus around a ‘willing partner’ could shift.”
On the valuation front, UAL is plenty cheap. The company trades for just 10 times earnings estimates and boasts a PEG around 0.6.
merous drivers, including an “improving containerboard cycle, which we believe is entering a ‘golden age’ driven by balanced supply and demand.”
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1. Smurfit Westrock
- Sector: Consumer discretionary
- Market capitalization: $20.2 billion
- Dividend yield: 4.7%
- Forward P/E: 16.5
- Consensus analyst rating: 1.33 (Strong Buy)
One of the best value stocks to buy in 2026 also happens to be on our list of the best growth stocks right now.
Smurfit Westrock (SW)—the product of a 2024 merger of Ireland’s Smurfit Kappa and America’s Westrock—is a global manufacturer of consumer packaging, corrugated packaging, and a variety of paper products. And by virtue of that merger, the combined entity is now one of the largest packaging providers in the world, with operations in 40 countries.
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Consider Smurfit Westrock an interesting beneficiary of technological trends—specifically, the continued rise of e-commerce. As people increasingly move away from buying in brick-and-mortar stores and toward online shopping … well, those products have to get shipped in something, and that’s precisely where Smurfit comes in.
“The company manufactures and sells paper and packaging solutions for the consumer and corrugated markets and, in our view, is well positioned to benefit from long-term growth in e-commerce,” writes Argus Research analyst Alexandra Yates, who rates SW shares at Buy. “Earnings have been a bit murky, though we expect improved transparency in upcoming quarters, and cash flow generation is solid. The balance sheet is clean. Additionally, tariff pressures have been mitigated with successful reshoring efforts.”
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SW has picked up quite a few covering analysts of late, and they’re unanimously bullish, with all 15 calling the stock a Buy. Truist’s Michael Roxland is also among those Buys, citing numerous drivers, including an “improving containerboard cycle, which we believe is entering a ‘golden age’ driven by balanced supply and demand.” They also expect Smurfit to grow its earnings at a healthy clip of 33% annually on average.
But SW stock also has bargain-priced value metrics; its forward P/E of around 17 is well below the consumer discretionary sector’s forward P/E (28), and it’s still cheap compared to its high expected growth based on a PEG of just 0.26.
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Should I Buy Value Stocks or a Value Exchange-Traded Fund?
Exchange-traded funds, or ETFs, provide a diversified way to play the stock market in one single holding. And perhaps unsurprisingly, there are a host of ETFs that seek to provide groups of value stocks in one place.
Diversification is definitely something to consider, but also keep in mind that it’s difficult to apply the same screening methodology on an ETF that you do on individual stocks. So if you care about popping the hood and looking around for yourself, investing in individual stocks might be preferable—even if it’s a bit more work.
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What Kind of Brokers Handle Value Stocks?
The good news is, virtually any traditional broker is going to allow you to buy value stocks. As long as equities are on the table—and that’s the case with virtually all online brokers—you’ll be able to buy any style of stock: growth, value, dividend, you name it.
You can check out our favorite investment apps for a full list of options.
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Stock recommendation services are popular shortcuts that help millions of investors make educated decisions without having to spend hours of time doing research. But just like, say, a driving shortcut, the quality of stock recommendations can vary widely—and who you’re willing to listen to largely boils down to track record and trust.
The natural question, then, is “Which services are worth a shot?” We explore some of the best (and best-known) stock recommendation services.
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The vast majority of American dividend stocks pay regular, reliable payouts—and they do so at a more frequent clip (quarterly) than dividend stocks in most other countries (typically every six months or year).
Still, if you’ve ever thought to yourself, “it’d sure be nice to collect these dividends more often,” you don’t have to look far. While they’re not terribly common, American exchanges boast dozens of monthly dividend stocks.
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