Using the TipRanks Stock Screener Tool, we identified three large-cap companies that have low Price-to-Earnings (P/E) ratios and hold a Strong Buy consensus rating. Each stock also presents over 20% upside potential within the next year, making them compelling investment choices.
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Investing in low P/E stocks can be advantageous because these stocks are priced lower relative to their earnings, allowing you to pay less for each unit of profit. This creates a margin of safety, helping to minimize potential losses if the market declines. While some investors favor stocks with higher P/E ratios for their growth potential, history shows that low P/E stocks tend to deliver better returns with lower risk. These stocks often offer higher dividends, operate mature and stable businesses, experience steady but gradual growth, and exhibit lower price volatility.
Here Are This Week’s Low P/E Stocks
Strategy (MSTR) – Strategy stock has a P/E ratio of 8.5x, about 78% lower than the sector median. On TipRanks, the average Strategy price target of $481.08 implies an impressive 154% upside potential from current levels.
Strategy is an enterprise analytics and business intelligence software company that also functions as a large corporate holder of Bitcoin. Recently, Strategy announced the purchase of 10,624 Bitcoin tokens from December 1 to 7 at a total cost of $962.7 million, or about $90,615 per token. This addition elevates the company’s overall Bitcoin holdings to over $60.6 billion.
Cigna (CI) – CI stock trades at a P/E ratio of 11.7x, which is around 56% lower compared to its broader healthcare sector average, and below peers UnitedHealth’s (UNH) 17.7x and Humana’s (HUM) 24.2x multiples. On TipRanks, the average Cigna price target of $336.38 implies 28% upside potential.
Cigna is one of the largest global healthcare companies, providing health insurance, wellness programs, and related benefits to individuals, employers, and governments. Recently, Cantor Fitzgerald analyst Sarah James kept her Buy rating and $325 price target, despite the company guiding that its Pharmacy Benefit Services will grow slower than the usual 2% to 4% because big clients renewed at lower profit margins and the new rebate‑free model is adding extra implementation costs.
United Airlines (UAL) – UAL has a P/E ratio of 10.5x, around 56% below the median. On TipRanks, the average United Airlines price target of $128.60 implies 22% upside potential from current levels.
BMO Capital analyst Michael Goldie initiated coverage of UAL with a Buy rating and $125 price target, implying 18.3% upside. He noted that conditions are improving after a difficult 2024–2025, as supply and demand normalize and corporate travel recovers. He believes there is a long-term opportunity for carriers that can consistently expand their margins.
To find more stocks like these, explore TipRanks’ Stock Screener Tool, which provides an updated list of stocks that can be filtered and scanned using various parameters.