Looking for value stocks with low P/E ratios that could offer strong upside potential? Value investing is all about finding fundamentally solid companies trading below their intrinsic worth. A low price-to-earnings (P/E) ratio can signal undervaluation, especially when backed by stable earnings, strong cash flow, and competitive advantages. Below, we’ll explore 10 value stocks with low P/E ratios that investors are watching closely this year. Each combines attractive valuations with long-term potential, making them compelling picks for value-focused portfolios.
1. Citigroup (NYSE: C)
Citigroup remains one of the most compelling value stocks with a low P/E ratio in the banking sector. Trading at a discount compared to its historical averages and peers, the company continues restructuring efforts to streamline operations and improve profitability. Its global presence across institutional banking, wealth management, and consumer finance provides diversified revenue streams. With rising interest margins and ongoing cost reductions, Citigroup may unlock shareholder value over the next few years. For investors seeking exposure to financial stocks at a reasonable valuation, Citi offers a blend of turnaround potential and dividend income, making it a classic value play.
2. Ford Motor Company (NYSE: F)
Ford Motor Company consistently appears on lists of low P/E value stocks thanks to cyclical pricing pressures and investor skepticism about auto demand. However, Ford’s aggressive push into electric vehicles and commercial fleet services positions it for long-term transformation. The company’s iconic F-Series trucks continue generating strong cash flow, supporting dividends and reinvestment in EV innovation. Despite short-term volatility, Ford trades at earnings multiples significantly below growth-focused peers. For patient investors, this combination of legacy brand strength, modernization strategy, and low valuation makes Ford a potentially rewarding value investment opportunity.
3. Pfizer (NYSE: PFE)
Pfizer’s post-pandemic revenue normalization has pressured its stock price, pushing its P/E ratio into attractive territory. While COVID-related sales have slowed, Pfizer maintains a robust drug pipeline and strategic acquisitions that strengthen its oncology and vaccine segments. The company generates strong free cash flow and offers a reliable dividend yield, appealing to income-focused investors. With healthcare demand remaining resilient worldwide, Pfizer’s diversified portfolio and research capabilities provide long-term growth potential. Investors seeking defensive exposure at a discounted valuation often consider Pfizer one of the more appealing pharmaceutical value stocks.
4. Alibaba Group (NYSE: BABA)
Alibaba Group trades at historically low valuation multiples amid regulatory uncertainty and slower Chinese economic growth. Yet the company remains a dominant force in e-commerce, cloud computing, and digital payments in China. Its restructuring initiatives aim to unlock shareholder value by splitting business units and enhancing operational transparency. With substantial cash reserves and a strong market share, Alibaba offers long-term potential if macroeconomic conditions stabilize. For investors comfortable with geopolitical risks, Alibaba represents a global technology leader available at a discounted P/E ratio, making it a compelling international value stock.
5. Verizon Communications (NYSE: VZ)
Verizon Communications stands out among value stocks with low P/E ratios in the telecom sector. High infrastructure spending on 5G networks has weighed on profitability, but the company maintains stable subscription revenue and strong cash flow. Its dividend yield remains attractive for income investors seeking steady returns. Verizon’s scale and brand loyalty provide defensive qualities, particularly during economic slowdowns. As capital expenditures normalize and wireless demand continues growing, Verizon could see margin improvement. Investors looking for dependable cash-generating businesses trading at modest earnings multiples may find Verizon appealing.
6. General Motors (NYSE: GM)
General Motors trades at a low earnings multiple despite its leadership in North American auto sales. Like Ford, GM faces cyclical demand fluctuations, yet it continues investing heavily in electric vehicles and autonomous driving technology. Its Ultium battery platform and cost efficiency programs support long-term competitiveness. GM’s strong balance sheet and disciplined capital allocation enhance its appeal to value investors. While the automotive sector remains sensitive to economic cycles, GM’s discounted valuation offers potential upside for investors willing to ride out short-term volatility.
7. Intel (NASDAQ: INTC)
Intel’s turnaround story has captured the attention of value-focused investors. Trading at a relatively low P/E compared to historical tech valuations, Intel is rebuilding manufacturing leadership through domestic chip fabrication investments. Government incentives and rising demand for AI and data center chips could boost long-term prospects. While competition remains intense, Intel’s scale, intellectual property portfolio, and strategic investments position it for recovery. For investors seeking exposure to semiconductors without paying premium growth multiples, Intel offers a compelling blend of risk and potential reward.
8. AT&T (NYSE: T)
AT&T remains one of the most talked-about low P/E value stocks in telecommunications. After restructuring and spinning off media assets, the company is refocusing on its core wireless and fiber businesses. Stable recurring revenue and cost discipline help support its dividend payout. Although debt levels are a concern, ongoing deleveraging efforts aim to strengthen the balance sheet. AT&T’s lower valuation reflects market skepticism, but for income-focused investors seeking established telecom exposure at discounted multiples, it may offer an attractive entry point.
9. ExxonMobil (NYSE: XOM)
ExxonMobil combines cyclical energy exposure with strong profitability and capital discipline. Oil price volatility often pushes energy stocks into low P/E territory, creating opportunities for value investors. ExxonMobil benefits from integrated operations spanning upstream production, refining, and chemicals. Its focus on cost efficiency and shareholder returns, including dividends and buybacks, strengthens its investment case. While energy markets remain unpredictable, ExxonMobil’s scale and resilience make it a noteworthy value stock during periods of economic uncertainty or rising commodity prices.
10. HP Inc. (NYSE: HPQ)
HP Inc. trades at a modest earnings multiple due to slower PC demand and cyclical industry pressures. However, the company continues generating consistent free cash flow and returning capital to shareholders through dividends and buybacks. Its diversified revenue from printing and personal systems offers some stability. HP’s operational efficiency and cost control initiatives support profitability even in challenging markets. For investors seeking established tech companies at value-friendly valuations, HP represents a relatively low-risk entry point compared to high-growth technology stocks trading at premium multiples.
Conclusion
Investing in value stocks with low P/E ratios can be a smart strategy, especially during market volatility or economic slowdowns. While low valuations alone don’t guarantee success, combining strong fundamentals, healthy balance sheets, and long-term growth strategies can uncover hidden gems. As always, diversify your portfolio and consider your risk tolerance before investing. Value investing rewards patience, and these stocks could offer compelling opportunities for disciplined, long-term investors.