These stocks are outperforming this year and are cheap heading into 2026

Top-Performing, Low-Cost Stocks Offer Attractive Value Opportunities for Investors Heading Into 2026

Picking stocks is a lot like shopping at a busy farmers market—sometimes, the best deals are hiding in plain sight, even when everyone’s crowding around the most popular stands. Let’s talk about some strong companies that, despite big gains this year, might still be bargains for investors.

Why This Matters for Investors

Many U.S. stocks have shot up this year, especially companies tied to artificial intelligence (AI) and technology. But even when the market looks expensive, there are still a few stocks that experts think could grow more—and may even be underpriced. Knowing where to look can help you build a stronger, more balanced portfolio.

The Bull Case: Why These Stocks Look Strong

  • Value After Big Gains: Even after rising more than 20% this year, some stocks still have low price-to-earnings (P/E) ratios. That means they aren’t as expensive as you might think.
  • Analyst Support: These companies have “buy” ratings from most Wall Street analysts, showing confidence in their future growth.
  • Sector Strength: Health care and technology sectors are leading the pack, with companies like CVS Health and Micron Technology showing strong results.
  • Historical Outperformance: The Nasdaq Composite, which includes lots of tech stocks, is up over 20% year-to-date, beating other major indexes like the S&P 500 and Dow Jones.

For example, CVS Health is up over 78% this year but still has a P/E ratio of just 11, well below the S&P 500’s average of about 20. Analysts think it could grow another 16% from its current price. Source

Micron Technology, a chipmaker, has soared 174% this year but still looks cheap with a P/E of 12. Experts believe a shortage of certain computer memory chips could keep boosting profits.

Other names on the list include AbbVie and Medtronic (both health care), Newmont (gold mining), and Vistra (power generation).

The Bear Case: What Could Go Wrong?

  • Slowing Growth: Some companies, like CVS, have warned that future growth might slow down in certain business areas.
  • Market Risks: Stocks that have already jumped a lot can be risky—if expectations aren’t met, prices can drop quickly.
  • Sector Volatility: Tech and health care stocks can be more unpredictable, especially if there are changes in regulations or technology trends.
  • Historical Caution: According to Morningstar, value stocks sometimes lag growth stocks for years, and not every “cheap” stock is a winner.
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Extra Data Point: How Cheap is Cheap?

Historically, the S&P 500’s average P/E ratio is about 16, but it’s been closer to 20 in recent years. When you find strong companies with a P/E below the market average, it can signal a buying opportunity—if their future growth holds up. According to Multpl.com, the S&P 500’s P/E ratio in 2024 is around 27, so stocks below 20 are definitely on the cheaper side right now.

Investor Takeaway

  • Look beyond the headlines—some of the year’s biggest winners, like CVS and Micron, still have room to grow and are trading at lower prices compared to the rest of the market.
  • Don’t just chase the hottest names; check if a stock’s P/E ratio and analyst ratings make it a true bargain.
  • Diversify your portfolio with a mix of health care, tech, and even gold or power stocks to spread out risk.
  • Keep an eye on company news, especially around earnings and future growth warnings.
  • Remember, even “cheap” stocks can fall—invest for the long term and avoid betting too much on any single winner.

For the full original report, see CNBC

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