In 2025, the market is undergoing a dynamic transformation driven by technological innovation, evolving regulatory frameworks, and shifting global demographics. Economic recovery is steadily progressing, supported by robust fundamentals and a renewed emphasis on sustainable growth. Investors are focusing on long-term stability amid intermittent volatility, favoring quality assets with strong cash flows and resilient business models. As digital transformation accelerates, businesses across industries are reimagining their operations and engaging consumers in innovative ways.
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Market participants are adapting to an environment where cautious optimism meets strategic opportunities. Regulatory adjustments enhance transparency and sustainability, while economic policies and technological progress intersect to create new avenues for growth.
Investors now prioritize sectors emphasizing efficiency, environmental responsibility, and innovation, establishing robust foundations for enduring success. This climate of change calls for adaptive leadership and disciplined capital allocation to effectively navigate both challenges and emerging opportunities.
A Forward-Looking Investment Approach
Looking ahead, market sentiment remains cautiously positive as investors blend rigorous financial analysis with insights into evolving trends. The convergence of digital advancements and sustainability imperatives is crafting novel frameworks for assessing risk and reward. With an increased focus on environmental, social, and governance criteria, corporate strategies are shifting towards more responsible practices.
As geopolitical factors and policy reforms continue to influence global trade, a balanced, forward-thinking investment strategy is key to seizing opportunities and mitigating uncertainties in this transformative era.
Our Methodology
To identify the Top 10 Best Bargain Stocks of 2025, we applied a systematic screening approach using the Finviz stock screener with key fundamental metrics to filter undervalued yet financially strong companies. The primary valuation criterion was the Price-to-Earnings (P/E) ratio, set to under 15 to identify stocks trading below their intrinsic value.
To ensure financial strength, we included a Return on Equity (ROE) filter of over 15%, highlighting profitable businesses, and a Debt-to-Equity (D/E) ratio below 0.5 to focus on companies with low leverage and strong balance sheets. Additionally, we restricted the search to mid-cap ($2-10 billion) and large-cap (over $10 billion) stocks to minimize risk and ensure market stability.
After applying these filters, we sorted the results by the lowest P/E ratio to prioritize the most undervalued stocks and conducted a final qualitative review, considering sector trends, financial health, and market conditions to finalize the 10 best bargain stocks for 2025.
10. Cornerstone Building Brands Inc. (NYSE:CNR)
Price to earnings ratio: 7.63
Cornerstone Building Brands, Inc. (NYSE:CNR) is a leading manufacturer of exterior building products in North America, serving both residential and commercial construction markets. The company continues to strengthen its brand visibility and market reach through strategic partnerships, most notably its multi-year collaboration with HGTV’s Fixer to Fabulous hosts, Dave and Jenny Marrs. Season 6 of the show, premiering in 2025, prominently features Cornerstone’s product portfolio, including its Ply Gem®, Simonton®, Mastic®, and Fortify Building Solutions™ brands, reinforcing its reputation for high-quality, energy-efficient, and durable building materials.
With a robust distribution network, an extensive product lineup covering windows, siding, doors, and roofing solutions, and a commitment to sustainability and innovation, Cornerstone Building Brands remains well-positioned for long-term growth.
9. KB Home (NYSE:KBH)
Price to earnings ratio: 7.24
KB Home (NYSE:KBH), one of the largest and most trusted homebuilders in the U.S., continues to expand its footprint with the grand opening of Turkey Ridge, a new residential community in Northern Johnston County, North Carolina. Offering personalized one- and two-story homes on spacious homesites, Turkey Ridge caters to modern homebuyers with energy-efficient designs, contemporary open-concept layouts, and customizable features through the KB Home Design Studio. The company differentiates itself with its strong emphasis on customer satisfaction, earning the title of the #1 customer-ranked national homebuilder based on independent buyer surveys.
With a focus on sustainability, all KB homes are built to be ENERGY STAR® certified, delivering long-term cost savings and a reduced environmental footprint. Strategically located near major employers such as Amazon, Novo Nordisk, and UNC Health Johnston, as well as key shopping and outdoor recreation spots, Turkey Ridge further strengthens KB Home’s position in high-growth housing markets. With homes priced from the low $300,000s and a commitment to affordability, innovation, and quality, KB Home remains well-positioned to capitalize on the ongoing demand for new residential construction.
8. Taylor Morrison Home Corporation (NYSE:TMHC)
Price to earnings ratio: 7.20
Taylor Morrison Home Corporation (NYSE:TMHC) is a home construction and real estate development company specializing in building high-quality, customizable homes in key U.S. markets.
The company delivered $2.2 billion in home closings revenue for Q4, up 12% year-over-year, with 3,571 closings at an average price of $608,000. Full-year home closings revenue reached $7.8 billion, reflecting an 8% increase, while adjusted net income came in at $931 million ($8.72 per diluted share). Taylor Morrison’s net sales orders grew 11%, and the company ended the year with 86,153 owned and controlled lots, positioning it well for sustained expansion.
CEO Sheryl Palmer emphasized the company’s ability to outperform guidance, achieving 12% closings growth while maintaining robust gross margins (24.5% adjusted) and enhancing shareholder returns with $348 million in share repurchases. Looking ahead to 2025, Taylor Morrison projects 13,500 to 14,000 home deliveries, reinforcing its capital-efficient growth strategy and commitment to generating sustainable mid-to-high teen returns on equity.
7. Green Brick Partners Inc. (NYSE:GRBK)
Price to earnings ratio: 7.06
Green Brick Partners Inc. (NYSE:GRBK) is a diversified homebuilding and land development company with a strong presence in high-growth markets like Texas and Georgia.
The company continues to expand its footprint in North Texas with the strategic acquisition of Burks Ranch, a 570-acre master-planned community in Pilot Point, Texas. This acquisition strengthens Green Brick’s presence in the rapidly growing Dallas-Fort Worth market, bringing affordable, high-quality housing options to an area benefiting from the recent extension of the Dallas North Tollway. Burks Ranch will feature modern single-family homes, extensive green spaces, and resort-style amenities, reinforcing the company’s commitment to developing well-connected, lifestyle-driven communities.
The transaction, completed in partnership with Texas Republic Management, underscores Green Brick’s expertise in complex land acquisitions and long-term growth strategy. As the third-largest homebuilder in Dallas-Fort Worth, Green Brick continues to capitalize on strong regional demand, leveraging its seven subsidiary homebuilders across Texas, Georgia, and Florida.
6. Meritage Homes Corporation (NYSE:MTH)
Price to earnings ratio: 6.83
Meritage Homes Corporation (NYSE:MTH) is a leading U.S. homebuilder focused on energy-efficient, innovative designs with a strong emphasis on first-time and move-up buyers.
The company reported strong full-year 2024 results, driven by its focus on affordable, move-in-ready homes and strategic market expansion. The company closed 15,611 homes for the year, a 12% increase year-over-year, generating $6.3 billion in home closing revenue despite a 6% decline in average sales prices due to financing incentives.
Net earnings rose 6% to $786 million ($21.44 per diluted share), supported by 24.9% home closing gross margins and strong operational efficiencies. Meritage continues to expand its land portfolio, securing 85,600 lots as of year-end, including 5,500 lots from its acquisition of Elliott Homes, reinforcing its growth strategy in high-demand entry-level markets.
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5. Cal-Maine Foods Inc. (NASDAQ:CALM)
Price to earnings ratio: 6.61
Cal-Maine Foods Inc. (NASDAQ:CALM) is a producer and distributor of fresh shell eggs in the U.S., with a focus on specialty and cage-free egg production.
The company continues to strengthen its supply chain and cost efficiencies with the strategic acquisition of feed mill assets from Deal-Rite Feeds, Inc. in North Carolina. The acquisition includes two feed mills, storage facilities, grain inventories, vehicles, and related equipment, enhancing Cal-Maine’s ability to formulate and deliver feed at a lower cost while reducing transportation expenses for its North Carolina shell egg production operations.
As feed remains a primary cost driver in egg production, this move aligns with the company’s ongoing strategy to optimize operational efficiencies, ensure high-quality nutrition for its hens, and support sustainable growth in contract production.
4. Mercury General Corporation (NYSE:MCY)
Price to earnings ratio: 6.40
Mercury General Corporation (NYSE:MCY) is a long-standing provider of auto, home, and business insurance, primarily serving customers in California and other select states.
Mercury General Corporation (NYSE: MCY) delivered strong premium growth in Q4 and FY 2024, reflecting solid underwriting performance and disciplined pricing strategies. Net premiums earned rose 18.1% YoY to $1.35 billion in Q4 and $5.08 billion for the full year, fueled by a 16.1% increase in net premiums written for the quarter.
Despite elevated catastrophe losses, the company reported a significantly improved combined ratio of 91.4% in Q4, compared to 98.6% in the prior year period, driving a sharp 142% increase in operating income to $153.9 million. However, net realized investment losses of $52.8 million weighed on overall net income, which declined 47.2% to $101.1 million for the quarter.
3. M/I Homes Inc. (NYSE:MHO)
Price to earnings ratio: 5.95
M/I Homes Inc. (NYSE:MHO) is a homebuilder that constructs single-family homes across major U.S. metropolitan markets, emphasizing quality and customer satisfaction.
M/I Homes Inc. (NYSE: MHO) has strengthened its capital allocation strategy with the announcement of a new $250 million share repurchase authorization, replacing the prior program that had $107 million remaining as of January 31, 2025. This move underscores management’s confidence in the company’s long-term growth prospects and commitment to enhancing shareholder value.
The repurchases may be executed through open market transactions, privately negotiated deals, or other methods, depending on market conditions, stock price, business considerations, and economic factors. With no expiration date, the authorization provides maximum flexibility for capital deployment while maintaining a disciplined approach to liquidity management.
2. Graham Holdings Company (NYSE:GHC)
Price to earnings ratio: 5.49
Graham Holdings Company (NYSE:GHC) is a diversified conglomerate with investments in education, media, manufacturing, and healthcare, formerly known as The Washington Post Company.
Graham Holdings Company (NYSE: GHC) has announced the election of Jack A. Markell to its Board of Directors, marking his return after previously serving from May 2017 to December 2021. Markell brings a wealth of experience from his tenure as U.S. Ambassador to Italy and the OECD, as well as his two-term service as Governor of Delaware and 10-year role as Delaware State Treasurer.
Markell’s background includes extensive leadership in corporate development, investor relations, and strategic management, along with board positions at Upstream USA, FS Credit Real Estate Income Trust, Scientific Games Corporation, and Vemo Education, among others. His return underscores Graham Holdings’ commitment to strong governance and strategic vision, leveraging his economic and policy expertise to drive shareholder value.
1.Fluor Corporation (NYSE:FLR)
Price to earnings ratio: 2.93
Fluor Corporation (NYSE:FLR) is a global engineering and construction firm that provides services in infrastructure, energy, and government projects worldwide.
Fluor Corporation (NYSE: FLR) has announced the successful completion and startup of Tengizchevroil’s (TCO) Future Growth Project (FGP) at the Tengiz oil field in Kazakhstan, marking a significant milestone with first oil production now achieved. The Fluor-led joint venture, which includes Worley, Kazakh Institute of Oil and Gas, and KazGiproNefteTrans Engineering Company, has played a pivotal role in delivering engineering, procurement, construction, operations, and maintenance services for TCO since 2011.
The Third-Generation Plant (3GP), a key component of the project, is set to increase TCO’s total crude oil production capacity to approximately 40 million tons per annum once fully operational. Fluor’s long-standing presence in Kazakhstan, dating back to 1982, has contributed significantly to the country’s oil and gas industry, with the project emphasizing local workforce development, engineering capabilities, and economic sustainability.
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Conclusion
In conclusion, the Top 10 Best Bargain Stocks of 2025 present a compelling opportunity for investors seeking value in today’s dynamic market.
By identifying these undervalued assets, investors can strategically position themselves for potential growth and financial success.
As we navigate the complexities of the investment landscape, it is essential to conduct thorough research and consider market trends and economic indicators. With careful analysis and a long-term perspective, these bargain stocks may not only enhance your portfolio but also pave the way for substantial returns in the years to come. Investing wisely in these opportunities can lead to fruitful outcomes, making this an opportune moment to act.
