10 Cheap S&P 500 Stocks to Invest in Now

Market Insights - Nancy Prial, Co-CEO & Senior Portfolio Manager at Essex Investment Management, suggests that there is significant upside potential in 2026 beyond mega-cap tech stocks, emphasizing the importance of a well-diversified portfolio to navigate market volatility [1] - Prial advises maintaining a balance between popular market areas and less favored companies, viewing temporary headline risks as opportunities to invest in attractive valuations [1] - Jay Woods, Chief Market Strategist at Freedom Capital Markets, notes that stock market participation is broadening beyond technology, with the materials and defense sectors showing strong growth potential [2] Delta Air Lines Inc. (NYSE:DAL) - Delta Air Lines is identified as a cheap S&P 500 stock with a forward P/E ratio of 9.64 and 70 hedge fund holders as of January 12 [7] - Barclays raised Delta's price target to $85 from $65, citing positive catalysts for 2026 and favorable year-over-year comparisons for the airline industry [8] - Susquehanna analyst Christopher Stathoulopoulos also raised Delta's price target to $85 from $70, highlighting a favorable fundamental environment for the airline industry [9] - TD Cowen increased its price target for Delta to $82 from $77, maintaining a Buy rating, as the airline sector managed operational challenges better than expected [10] Bristol-Myers Squibb Company (NYSE:BMY) - Bristol-Myers Squibb is listed as a cheap S&P 500 stock with a forward P/E ratio of 9.23 and 76 hedge fund holders as of January 12 [12] - The company announced positive results from its Phase 3 SCOUT-HCM clinical trial for Camzyos, a treatment for adolescent patients with obstructive hypertrophic cardiomyopathy, indicating significant efficacy [13] - The trial demonstrated a statistically significant reduction in the left ventricular outflow tract gradient, suggesting Camzyos could be the first cardiac myosin inhibitor approved for adolescents [13][14] - Camzyos targets the underlying pathophysiology of hypertrophic cardiomyopathy, improving patients' daily activity levels, although it carries a Boxed Warning regarding heart failure risks [14][15]