Billionaire and legendary investor Warren Buffett once said, “the first rule of an investment is don’t lose.” Buying solid undervalued stocks is one way to follow Buffett’s advice. The difference between the price you pay and the stock’s intrinsic value—known as the margin of safety—acts as a cushion against further stock price declines.
The best undervalued stocks deliver long-term capital gains, but they have another advantage. Some of these downtrodden equities are solid defensive positions.
Given the uncertainty surrounding the global oil supply and the short-term outlook for the U.S. economy, now may be the right time to lean into stocks that offer resilience alongside long-term growth potential.
5 Top Undervalued Stocks to Buy Now for April 2026
To find the top undervalued stocks, you can screen for low price multiples and low beta values. A quality metric is also useful, to help rule out “value traps,” or stocks that are priced low for a reason.
To identify the top five undervalued stocks for April, these were the screening metrics:
- Maximum PE ratio of 20
- Maximum PB ratio of 1.5
- Five-year beta below 1
- Five-year ROE greater than 10%
- Debt-to-equity ratio below 1
- Buy ratings from analysts
The table below shows the largest five stocks that met these criteria.
A closer look at each company follows. Bulleted metrics are sourced from StockAnalysis.com. For more investing ideas, see best dividend stocks and best index funds for 2026.
1. TotalEnergies SE (TTE)
- Stock price: $82.86
- PE ratio: 13.54
- PB ratio: 0.02
- Five-year beta: 0.28
- Five-year ROE: 15.2%
- Debt-to-equity: 0.52
TotalEnergies SE Business Overview
TotalEnergies, based in France, is an integrated energy company with global operations. The company produces, transports, stores and sells oils, biofuels, natural gas, renewables and electricity. TotalEnergies has a defined energy transition strategy that involves reinvesting profits into renewable assets and the reduction of greenhouse gas emissions.
Why TTE Stock Is A Top Choice
With a market capitalization exceeding $170 billion, TTE is by far the largest company to meet the screening criteria outlined above. TotalEnergies is among the top 10 oil and gas companies in the world, and is also targeting dominance in renewables by 2030. The strategy provides investors direct exposure to the energy transition: oil and gas to generate profits in the medium term, and a growing renewable portfolio to remain relevant long term.
TTE’s competitive advantage in oil and gas is its portfolio of low-cost projects. With an efficient cost structure, the company—and its dividend—remain resilient when oil prices decline.
Highlights from TTE’s 2025 results included production growth of nearly 4% and a leading return on average capital employed of 12.6%. Net income declined 15% due to lower oil prices, while cash flow fell only 7%.
2. Elevance Health (ELV)
- Stock price: $292.07
- PE ratio: 11.57
- PB ratio: 0.01
- Five-year beta: 0.47
- Five-year ROE: 15.6%
- Debt-to-equity: 0.74
Elevance Health Business Overview
Elevance Health offers health insurance and health care services through two reporting segments. Anthem and Wellpoint are the company’s health benefit operators, which cater to individuals and employers. Carelon provides health care services to providers, payers, researchers, employees and individuals.
Why ELV Stock Is A Top Choice
Elevance Health is an efficient cash producer with a good track record for growing sales and earnings per share, while returning cash to shareholders. According to an analysis by Finbox.com, ELV’s 2025 free cash flow yield outperformed other health care operators UnitedHealth, CVS, Universal Health and Humana.
That efficiency helps fund dividends and share repurchases. At year-end, Elevance had about $2.6 billion of cash on its balance sheet at year-end, after repurchasing 1.45 million shares and paying a quarterly dividend of $1.71 per share in the fourth quarter.
In 2025, Elevance grew revenue in both reporting segments. The smaller Carelon business increased sales 33% to $71.7 billion. The health benefits operation grew revenues 11% to $167.1 billion, despite attrition in its Medicaid membership. This side of the business does face some complexity going forward. Factors to watch include the competitive environment, regulatory landscape and the company’s ability to control costs.
Note that Elevance recently made headlines for failing to comply with reporting requirements set by federal health care program operator CMS. Sanctions may result, but the long-term impact is minimal if ELV can adjust and resolve the issue quickly.
3. Arch Capital Group (ACGL)
- Stock price: $93.70
- PE ratio: 8.08
- PB ratio: 0.01
- Five-year beta: 0.36
- Five-year ROE: 19.5%
- Debt-to-equity: 0.19
Arch Capital Business Overview
Arch Capital provides insurance, reinsurance and mortgage insurance around the world. The company is committed to maintaining deep financial strength through disciplined capital management and underwriting practices. A solid balance sheet gives Arch Capital the flexibility to pursue growth opportunities as they arise. Continued expansion into higher-return specialty markets is a key growth strategy.
Why ACGL Stock Is A Top Choice
Arch Capital has realized double-digit revenue gains in five of the last seven years. The company follows a long-term, cycle-management strategy, writing more business when industry conditions are strong and less when dynamics weaken. The result is lower volatility and higher returns relative to many competitors.
Despite ACGL being down 2.6% this year, analysts are increasingly optimistic about the stock’s potential. More than a dozen analysts have raised their ACGL price targets since Jan. 1. The average target of $108.79 is about 15% higher than ACGL’s trading price.
In 2025, Arch increased revenue by 14.3% and diluted EPS by 3.67%. Free cash flow growth declined to $6.1 billion from $6.6 billion in the prior year.
4. Expand Energy (EXE)
Expand Energy Corporation by the numbers:
- Stock price: $107.71
- PE ratio: 14.23
- PB ratio: 0.01
- Five-year beta: 0.47
- Five-year ROE: 786.3%
- Debt-to-equity: 0.27
Expand Energy Business Overview
Expand Energy acquires, explores and develops properties in Louisiana, Pennsylvania, West Virginia and Ohio to produce oil, natural gas, and natural gas liquids. Based in Oklahoma, Expand is North America’s largest natural gas producer.
Why EXE Stock Is A Top Choice
Expand Energy formed with the 2024 merger of Chesapeake Energy and Southwestern Energy. It is now North America’s largest natural gas producer. Since the merger, the combined company has beat its synergy targets, improved costs at its Haynesville operations, and grown production by more than 10%. The oil and gas producer benefits from scale, financial strength, and capital efficiency, as well as strong demand for power and LNG exports.
Expand Energy generated $4.6 billion in 2025 net operating cash, up from $1.6 billion in 2024. Adjusted, diluted EPS was $6.10 compared to $1.41 in the prior year. The company also paid down gross debt by $660 million last year and spent $865 million on share repurchases and dividends. Debt reduction, share repurchases, and dividend payments remain priorities in 2026.
5. Ovintiv (OVV)
- Stock price: $54.84
- PE ratio: 11.47
- PB ratio: 0.01
- Five-year beta: 0.70
- Five-year ROE: 26.9%
- Debt-to-equity: 0.57
Ovintiv Business Overview
Ovintiv, a competitor to Expand Energy, explores and produces oil and natural gas in the U.S. The company owns large acreage positions in Texas’ Permian Basin and the Montney in Canada.
Why OVV Stock Is A Top Choice
Ovintiv recently announced two big moves to optimize its operations. The company agreed to acquire NuVista Energy, which includes 140,000 net acres and 930 well locations in the Montney. OVV announced the sale of its assets in Oklahoma’s Anadarko Basin for $3 billion. The two transactions streamline the company’s portfolio and generate the cash needed to reduce net debt to $3.6 billion.
The restructure also supports an upgrade to Ovintiv’s shareholder value program. In 2026, the company will return 75% of its free cash flow to shareholders through dividends and buybacks. Longer-term, Ovintiv has pledged 50% to 100% of free cash flow to support these activities.
In 2025, Ovintiv produced non-GAAP free cash flow of $1.6 billion and spent about $612 million on share repurchases and dividends.
Bottom Line
Undervalued stocks can produce long-term gains, if you give them time to reprice to their fair value. Make the right choices and your portfolio can benefit from added resilience while you wait. That applies under any stock market outlook.