5 Cheap Stocks to Research in 2026

Cheap stocks can look appealing because you pay less for each dollar of recent earnings. That does not mean the business is healthy or the share price will rise. This list gives you five research candidates that passed one clear valuation screen, then checks each result against the company's latest report. They are value stocks to investigate, not automatic buys.

The five names span telecom, package delivery, banking, energy, and air travel. That variety makes comparison useful, but it does not create a diversified portfolio by itself. If you are still choosing where to trade, compare U.S. brokerage accounts and review our guide to investing in stocks first.

This was a point-in-time screen run on August 7, 2026. A company had to be a U.S.-listed operating business, have positive trailing earnings, and show a trailing price-to-earnings ratio of 20 or less in the supplied market snapshot. We then required current primary-source evidence from the company's latest quarterly release. This process identifies possible undervalued stocks, but it cannot establish intrinsic value.

A low P/E ratio is only a starting point. Prices and trailing earnings change, so every ratio below can become stale after the screen date. A low multiple may reflect a temporary selloff, slow expected growth, heavy debt, cyclical earnings, or a business problem. That is the value-trap risk: a stock looks inexpensive because earnings or the company itself may weaken. Check the current quote and filings before acting. Our stock price tool can help with the first step.

Business exposure: Verizon sells wireless, fiber, and fixed wireless connectivity to consumers and businesses. Its recurring service revenue and large network footprint can make it feel steadier than a young growth company.

Current evidence: Verizon reported second-quarter mobility and broadband service revenue of $23.4 billion, up 2.8%. Adjusted EBITDA, a non-GAAP measure, rose 7.2% to $13.7 billion. First-half free cash flow, also non-GAAP, increased 16% to $10.2 billion, and management lifted adjusted EPS guidance to $4.99 to $5.04. GAAP total revenue fell 0.7%, and GAAP net income fell 22.9%, so the adjustments matter.

Why it looks cheap: The August 7 snapshot showed a trailing P/E of 12.2, below the screen's 20 ceiling. That may appeal to investors who want mature cash generation or also research dividend stocks.

Stock-specific risk: Verizon carried $136.5 billion of unsecured debt at quarter-end. Competition, network spending, weak equipment sales, and the gap between adjusted and GAAP results can pressure the case.

U.S. access: VZ is listed on Nasdaq and the NYSE and can be bought through a U.S. brokerage. Fractional-share access depends on the broker.

Business exposure: UPS moves packages through its U.S. and international delivery networks and also provides forwarding, logistics, and healthcare supply-chain services. Results are tied to trade, consumer spending, business shipping, fuel, and network efficiency.

Current evidence: UPS reported second-quarter revenue of $22.8 billion, adjusted operating profit of $2.1 billion, and adjusted EPS of $1.76. Management raised full-year revenue guidance to about $91.2 billion and adjusted EPS guidance to about $7.22. Those adjusted figures are non-GAAP. GAAP consolidated operating margin was only 4.1%, and U.S. Domestic GAAP margin was 0.1%. The quarter included $891 million in after-tax transformation charges.

Why it looks cheap: Its trailing P/E was 19.4 in the August 7 snapshot, just inside the cutoff. The price may be discounting execution risk even after management raised guidance.

Stock-specific risk: Network restructuring, customer concentration, labor expense, tariffs, fuel costs, and weaker package demand could reduce earnings. A near-cutoff P/E leaves less valuation cushion than the other names here.

U.S. access: UPS trades on the NYSE. Most U.S. brokers offer ordinary shares, but fractional shares and recurring buys vary by platform.

Business exposure: Citigroup combines institutional banking, markets, wealth management, and U.S. personal banking, with a large cross-border network. That makes the stock sensitive to credit quality, trading activity, interest rates, regulation, and the execution of Citi's multiyear restructuring.

Current evidence: Citi reported second-quarter revenue of $24.8 billion, up 14%, and net income of $5.8 billion, up 45%. Diluted EPS was $3.15, and the CET1 capital ratio was 12.8%. Book value per share reached $114.74. Tangible book value per share was $100.89, a non-GAAP measure. The provision for credit losses was $2.5 billion, and net credit losses rose 8% to $2.4 billion.

Why it looks cheap: The August 7 trailing P/E was 14.5. Investors may also compare the market price with book value, but neither ratio proves the assets will earn attractive returns.

Stock-specific risk: Credit losses can rise fast in a downturn. Regulatory costs, trading swings, international exposure, and failure to deliver the restructuring plan could keep the valuation low.

U.S. access: C trades on the NYSE and is widely available through U.S. brokerages. Fractional-share availability is broker-specific.

Business exposure: Occidental produces oil and natural gas, with major operations in the United States, the Middle East, and North Africa. It also operates chemicals and midstream businesses and invests in carbon-management projects. Earnings remain highly exposed to commodity prices.

Current evidence: Occidental reported second-quarter GAAP net income attributable to common stockholders of $2.8 billion, or $2.75 per diluted share. Operating cash flow from continuing operations was $5.1 billion. Free cash flow before working capital, a non-GAAP measure, was $3.0 billion. Production of 1,433 thousand barrels of oil equivalent per day came in above guidance.

Why it looks cheap: OXY had the lowest trailing P/E in the August 7 screen at 8.7. The multiple can look especially low when oil prices and production support trailing earnings.

Stock-specific risk: That same cyclicality can reverse the signal. Lower oil and gas prices may reduce earnings and make the trailing ratio misleading. Debt, reserve replacement, project execution, regulation, and environmental liabilities add risk.

U.S. access: OXY trades on the NYSE. You can buy ordinary shares through a U.S. broker, subject to the broker's fractional-share policy.

Business exposure: Delta earns money from passenger travel, premium cabins, loyalty partnerships, cargo, maintenance services, and its refinery. Demand, fares, capacity, labor, aircraft availability, and fuel prices all affect results.

Current evidence: Delta reported June-quarter GAAP revenue of $19.8 billion, operating income of $1.9 billion, EPS of $2.44, and operating cash flow of $1.6 billion. Adjusted revenue, a non-GAAP measure, was $17.7 billion and grew 14%. Management affirmed full-year adjusted EPS guidance of $6.50 to $7.50 and free cash flow guidance of $3 billion to $4 billion. The company also absorbed its highest quarterly fuel expense on record.

Why it looks cheap: The August 7 snapshot put DAL at 15.2 times trailing earnings. The discount may compensate investors for an airline's economic and fuel sensitivity.

Stock-specific risk: A recession, demand slowdown, capacity pressure, labor costs, operational disruptions, or another fuel spike can cut airline profits. Debt and capital spending also deserve attention.

U.S. access: DAL trades on the NYSE and is available through U.S. brokers. Check whether your broker supports fractional shares before placing a small order.

The P/E ratios below come from the same August 7, 2026 snapshot. Treat them as screening data, not live quotes or company-issued figures.

Start with the business, not the multiple. Read the latest earnings release and SEC filing. Compare revenue, GAAP net income, cash from operations, debt, share count, and management guidance across several periods. When a release highlights adjusted profit or free cash flow, find the reconciliation to the nearest GAAP measure and learn what was removed.

Next, ask why the market may expect weaker future earnings. For a bank, examine capital and credit losses. For an airline or oil producer, stress-test earnings against fuel or commodity changes. For UPS and Verizon, pay attention to margins, debt, and capital needs. Compare each candidate with peers and with the other ideas on our best stocks to buy page.

Finally, decide whether one company belongs in your overall plan. A broad index fund can spread company-specific risk, and our guide explains how to invest in index funds. Neither route prevents losses, but diversification reduces reliance on one management team or industry.

Open a brokerage account that offers the exchange-listed shares you want, clear fee disclosures, and the order types you understand. Review the broker on FINRA's BrokerCheck. A market order prioritizes execution, not price. A limit order sets the highest price you will pay, but it may not fill. Check the live quote, bid-ask spread, trading hours, and any fractional-share rules before submitting.

Account type matters. A taxable brokerage account can create taxable dividends and capital gains. Selling after one year generally qualifies a gain or loss as long-term for federal tax purposes; one year or less is generally short-term. State rules vary. Traditional and Roth IRAs have different contribution, withdrawal, and tax rules, so check current IRS guidance or consult a qualified tax professional.

Keep cash needs separate from volatile investments. Build the position size around how much loss you could absorb, not around a low share price or P/E. A market decline can pull down sound companies too, as our market crash guide explains. This article is educational and is not personalized investment or tax advice.