My 3 Favorite Value Stocks to Buy Right Now

The state of today's stock market might make some investors nervous. As they ponder the implications of the indexes selling close to all-time highs, they might become anxious.

However, despite such conditions, many top names remain value stocks. Consequently, investors can still find bargains in this market, and knowing that, investors should consider investing in these three companies.

Image source: Getty Images.

1. Amazon

The inclusion of Amazon (NASDAQ: AMZN) on a list of value stocks might come as a surprise. Throughout its nearly 30-year trading history, the company delivered outsize gains by pioneering the e-commerce and cloud industries. These innovations often came with huge valuations.

Nonetheless, its successes have taken its P/E ratio to 22, a level below the S&P 500 average of 30. This has occurred as a rising stock price led to its market cap having crossed $3 trillion for the first time before pulling back. Despite that milestone, its rising stock price may not have kept up with its revenue and profit growth.

The company just released its results for the second quarter of 2026, and its net sales climbed 20% yearly to $201 billion. All three of its segments grew net sales in the double digits, with AWS, the cloud segment, increasing revenues by 37% over that period.

Moreover, the P/E ratio is so low because its Q2 net income grew by 244% yearly to $62.6 billion, increasing the earnings portion of the ratio.

Admittedly, this growth does not come without some concerns. The company just announced it was raising capital expenditures (capex) spending for the year from $200 billion to $220 billion. This is a staggering sum even for Amazon, and the company had to issue bonds to cover this spending despite holding about $123 billion in liquidity.

Nonetheless, Amazon's results indicate that the huge investment has paid off for the company. With the valuation falling as the stock price rises, it is hard to bet against this company.

2. Target

Target (NYSE: TGT) has spent most of the 2020s in the wilderness. Supply chain issues early in the decade caused a massive overhang. This occurred as the company alienated customers with political stances unrelated to its business and allowed its stores to become rundown and messy.

Fortunately, Target has shaken up its leadership team, eliminating some corporate jobs and hiring CEO Michael Fiddelke as its CEO. Fiddelke pledged to invest $5 billion in improving its stores and supply chain. He has also shifted to higher-margin product mixes and modified its advertising strategy.

Consequently, net sales of $25 billion rose by 7% in the first quarter of fiscal 2026 after years of declines. While net earnings fell 25% over the same period to $781 million, the decrease occurred as the company spent more on selling, general, and administrative expenses to improve its business.

Also, even with the recent rise in the stock price, Target's P/E ratio is around 20. This compares favorably to Walmart, which currently trades at about 40 times earnings.

Additionally, Target's $4.64 per share annual dividend, which has increased for 55 straight years, offers a yield of 3.1%, far above the 1% S&P 500 average. This, along with Target's improvement, likely makes it an excellent growth and income stock.

3. Nvidia

The only value play that may be more surprising than Amazon is Nvidia (NASDAQ: NVDA).

The chip giant has risen by more than 1,800% from its low in 2022 as it dominated the rapidly growing AI accelerator market. Although competitors like AMD have emerged, Nvidia holds a minimum of 75% of the market share, according to Silicon Analysts.

Nvidia reported almost $82 billion in revenue in the first quarter of fiscal 2027 (ended April 26, 2026), up 855 from year-ago levels. Consequently, its net income of $58 billion rose 211% over the same period.

Also, its P/E ratio is 34. While investors would not consider that value stock territory, it appears extremely low considering its growth rate.

Admittedly, that growth does not mitigate all of its concerns. As previously mentioned, competition is rising, and the sheer size of Nvidia's numbers will probably mean lower growth in percentage terms moving forward.

Another large number is its $5.4 trillion market cap, a notable achievement since no company has yet reached $6 trillion. That means Nvidia will probably struggle to achieve another 1,800% gain over a relatively short period. However, it still leaves plenty of room for investors to outperform the market without having to overpay for a high-quality stock.

Will Healy has positions in Advanced Micro Devices and Target. The Motley Fool has positions in and recommends Advanced Micro Devices, Amazon, Nvidia, Target, and Walmart. The Motley Fool has a disclosure policy.