3 Best Low P/E Stocks Poised for 30%+ Gains in 2026

Using the TipRanks Stock Screener Tool, we identified three companies that have low Price-to-Earnings (P/E) ratios and hold a “Strong Buy” consensus rating. Each stock also presents an impressive >60% upside potential within the next year, making them compelling investment choices.

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Why Low P/E Stocks?

Low P/E stocks trade at a discount to their earnings, letting you buy more profit per dollar invested. This inherent margin of safety buffers against market dips and losses. While some chase high P/E names for rapid growth, history shows low P/E picks often yield better long-term returns with lower risk. They also tend to offer generous dividends, hail from established companies with steady growth, and exhibit less volatility.

Block (XYZ)

• P/E Ratio: 10.4x (77% below sector median of 32x)
• Average Block Price Target: $86.74 (36.4% upside)

Block, formerly known as Square, is a fintech firm that offers payments, lending, and related services to businesses, merchants, and individuals through its Square and Cash Apps. Block’s fourth-quarter adjusted earnings per share came in at $0.65, while gross profit rose to $2.87 billion. This was due to the strong growth of the Cash App ecosystem, which increased by 33% year-over-year. Block also announced plans to cut roughly 40% of its workforce to improve efficiency.

JD.com (JD)

• P/E Ratio: 9.3x (77% below sector median of 32x)
• Average JD.com Price Target: $37.97 (43% upside)

JD.com is a leading Chinese e-commerce and logistics company, offering online retail, marketplace services, and fast delivery across China. JD also pays handsome dividends of $0.98 per share annually, reflecting an attractive yield of 3.37%. JD presents a compelling investment case due to its undervalued stock, robust logistics moat, and shareholder returns amid steady growth.

Rithm Capital (RITM)

• P/E Ratio: 9.8x (77% below sector median of 32x)
• Average Rithm Capital Price Target: $14.50 (43.7% upside)

Rithm Capital offers a diversified business model with a focus on REITs and as a global asset manager in areas such as credit and financial services. The company also offers an above-industry-average dividend yield of 8.95%, making it an attractive dividend stock. RITM’s Q4 2025 results beat estimates with EPS of $0.74 (vs. $0.55 expected) and revenue of $1.29 billion (vs. $1.24 billion), delivering 15.55% net margins and 19.74% return on equity.

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