We recently published our article 5 Cheap Stocks That Could Deliver 100%+ Gains Over the Next 10 Years. To read the full story, you can head on to 10 Cheap Stocks That Could Deliver 100%+ Gains Over the Next 10 Years. In this article, we discuss T-Mobile US Inc. (NASDAQ:TMUS) as one of the stocks gaining attention, and here’s a closer look at why it stands out in today’s market.
Cheap stocks always attract attention, but in a market increasingly ruled by artificial intelligence, earnings resilience, geopolitical headlines, and investor positioning, the word “cheap” needs to be handled carefully. A low share price alone does not automatically make a stock a bargain. Sometimes, a stock is cheap because Wall Street has temporarily ignored it. Other times, it is cheap because the business is weak, the balance sheet is stretched, or the growth story has already faded. That is why this list of 10 cheap stocks to buy for the next 10 years focuses not just on valuation, but also on forward earnings potential, investor sentiment, market positioning, and recent company developments that could change how the market views each stock.
The timing is especially interesting because the broader stock market is once again proving how strange, emotional, and forward-looking Wall Street can be. While headlines are still dominated by geopolitical instability, inflation concerns, energy prices, interest rates, and recession fears, the market has already started looking beyond some of those risks. That may sound confusing to casual investors, but it is actually one of the oldest habits of the stock market. Stocks often bottom before bad news officially ends. The market does not wait for perfect clarity. It usually moves when investors begin to believe the worst-case scenario is becoming less likely.
That point was recently highlighted by Tom Lee, Fundstrat’s Chief Investment Officer and Head of Research, during his appearance on CNBC’s Squawk Box on May 4. Lee discussed the resilience of the U.S. stock market despite ongoing geopolitical conflict and explained why the risk-reward setup for equities still looks favorable. His argument was not based on blind optimism. Instead, it centered on a familiar but powerful market idea: earnings, liquidity, and productivity matter more over time than fear-driven headlines.
Why the Stock Market Keeps Defying Bad News
One of the biggest pieces of market trivia that long-term investors should remember is this: the stock market is not the economy, and it is definitely not the evening news. The market is a discounting machine. It tries to price what may happen six, 12, or even 18 months ahead. That is why stocks can rally while the headlines still look ugly. It is also why some of the best long-term stock opportunities appear when investor sentiment is still weak.
Tom Lee’s view fits that historical pattern. He noted that the market has largely followed the old script of bottoming before geopolitical conflicts are fully resolved. In plain language, investors may still be nervous, but the market has already begun to move past the fear. That does not mean risks have disappeared. It only means that the market is starting to focus on what comes next.
This matters for investors searching for cheap stocks to buy now, undervalued stocks, long-term stocks, and best stocks to buy and hold because market recoveries often do not lift every stock at the same time. The first wave usually benefits the strongest and most obvious winners. In today’s market, that has meant the Magnificent Seven, semiconductor stocks, and companies tied directly to artificial intelligence. The second wave can be more selective, and that is where bargain hunters may find opportunities in cheaper stocks with improving fundamentals.
AI Is Still the Market’s Biggest Growth Engine
The artificial intelligence boom has become one of the most important investment themes of this decade. What started as excitement around chips, cloud infrastructure, and large language models has evolved into a broader productivity story. AI is no longer just about technology companies showing off futuristic tools. It is now about lowering costs, improving margins, speeding up workflows, and helping corporations do more with fewer resources.
That is why Lee emphasized AI-driven productivity as a major force behind U.S. GDP growth and corporate resilience. The trivia here is important: many of the biggest stock market winners in history were not just companies that sold exciting products. They were companies that improved productivity at scale. Railroads changed transportation. Electricity changed manufacturing. The internet changed communication and commerce. Smartphones changed consumer behavior. Now, AI is being treated by many investors as the next productivity platform.
For long-term investors, that backdrop is important when looking at cheap stocks with growth potential. A company does not need to be a pure AI stock to benefit from artificial intelligence. Some software companies may use AI to protect margins. Some consumer companies may use AI to improve supply chains. Some financial firms may use AI to reduce operating costs. Some industrial companies may use automation to improve productivity. The real question is not simply, “Is this an AI stock?” The better question is, “Can this company use AI to become more efficient, more profitable, or more competitive over the next 10 years?”
That is where some cheap stocks become more interesting. The market often overpays for the obvious AI winners, but it can underprice second-layer beneficiaries. Those are companies that may not dominate headlines today but could quietly benefit from AI adoption, cost discipline, improved earnings, and stronger long-term free cash flow.
The Magnificent Seven Are Winning, But the Rest of the Market Still Matters
One of the more unusual features of the current stock market is the high concentration of gains. The Magnificent Seven and semiconductor companies have carried a large portion of the rally, while other sectors have lagged. This is not random. It reflects where investors believe the strongest earnings visibility and productivity gains are happening.
Lee explained that the concentration makes sense because the global AI productivity story is largely centered in the United States and China. Europe, in his view, has not been as central to the AI growth narrative. That is an important observation because stock market leadership often follows innovation leadership. When capital believes a country or sector owns the next major productivity cycle, money tends to crowd into that area.
Still, concentration creates a different kind of opportunity. When too much attention goes to the same group of mega-cap stocks, other areas of the market may be neglected. The equal-weighted consumer discretionary sector, for example, has struggled and remains below its highs because of economic frictions. Higher borrowing costs, cautious consumers, inflation pressure, and uneven demand can weigh on these businesses. But over a 10-year horizon, some of today’s ignored companies could recover if earnings stabilize and sentiment improves.
This is why the search for cheap stocks for the next decade should not be limited to the hottest names. A disciplined investor looks for valuation, earnings power, balance sheet strength, industry position, and catalysts. The best cheap stocks are not always the most exciting ones today. Sometimes, they are the companies quietly building operating leverage while the market is distracted.
Why Investor Sentiment Could Still Support Stocks
Another important piece of market trivia is that rallies often climb what Wall Street calls a “wall of worry.” That phrase simply means stocks can keep rising even when many investors remain skeptical. In fact, cautious sentiment can sometimes support a rally because it means there is still cash on the sidelines that can later move back into equities.
Lee pointed out that 2026 has been unusual because retail investors behaved differently from past corrections. In previous market pullbacks, retail investors often bought dips aggressively. This time, many sold near the lows and were left wrong-footed when stocks returned to record levels. That matters because muted sentiment and cautious positioning may create potential buying power. If investors are still holding large cash reserves, the market may have more liquidity available if confidence improves.
For readers looking at cheap stocks to buy and hold, this is a useful backdrop. Stocks do not need universal optimism to move higher. In many cases, they move higher because expectations are low, positioning is defensive, and earnings are better than feared. When a cheap stock has improving fundamentals and investors are underpositioned, the upside can be meaningful.
This is also why headline-driven dips can become opportunities for patient investors. Lee suggested that investors may buy dips tied to geopolitical concerns because the structural story remains strong. In other words, the market may treat fear as temporary if earnings, AI demand, and corporate productivity remain intact.
Higher Oil Prices Could Make AI Even More Important
Geopolitical conflict often brings another market concern: rising oil prices. Higher energy prices can hurt consumers, pressure corporate margins, and complicate inflation trends. Normally, that would be a clear negative for stocks. Lee acknowledged this risk, but he also made an interesting point: if energy prices rise and companies feel margin pressure, demand for AI-driven efficiency may increase.
That is a smart angle because companies usually become more serious about productivity tools when costs rise. When labor, energy, financing, and logistics become more expensive, management teams look for ways to protect margins. AI software, automation, analytics, and digital infrastructure can become more attractive in that environment. This does not remove the risk of higher oil prices, but it helps explain why investors continue to focus on productivity as a long-term theme.
For cheap stock investors, this means the strongest opportunities may come from companies that can survive short-term pressure while adapting to long-term efficiency trends. A stock trading below a forward P/E of 15 may look cheap, but the real upside depends on whether earnings can hold up, expand, or recover. Over 10 years, valuation matters, but business quality matters more.
Why Software Stocks Are Back in the Conversation
Lee also highlighted U.S. software as one of his favored areas. That is notable because software stocks have had a complicated few years. Investors once treated many software companies as unstoppable growth machines, then became more skeptical as interest rates rose, revenue growth slowed, and AI created questions about the durability of traditional software business models.
But the software story is not dead. It is changing. Well-managed software companies that can integrate AI, defend customer relationships, and improve productivity may still offer strong long-term returns. Some may even become more valuable if AI makes their platforms more useful. Others may struggle if AI disrupts their pricing power or makes their products easier to replace.
That distinction is critical for investors searching for undervalued software stocks, cheap tech stocks, and best long-term growth stocks. The market may be too harsh on certain software companies that still have strong recurring revenue, high gross margins, sticky customers, and clear AI adaptation strategies. At the same time, not every beaten-down software name deserves a comeback story. Selectivity matters.
Cheap Does Not Mean Safe, But It Can Mean Opportunity
A common mistake among new investors is assuming that a cheap stock is automatically safer than an expensive stock. That is not always true. A $5 stock can still fall to $2. A stock trading at 10 times forward earnings can still be a poor investment if earnings collapse. A company can look statistically cheap and still destroy shareholder value if debt, competition, or weak management becomes a bigger problem.
But cheap stocks can be powerful when the market is underestimating their future. A company trading below a forward P/E of 15 may offer attractive upside if earnings estimates rise, margins improve, management executes, or investor sentiment turns. Over a 10-year period, even modest annual growth can compound into meaningful returns. That is the real appeal of long-term bargain investing.
This article looks at 10 cheap stocks to buy for the next 10 years by focusing on companies that trade at reasonable forward earnings multiples and have recent developments that could influence investor sentiment. The goal is not to chase low-priced stocks for excitement. The goal is to identify affordable stocks with potential catalysts, analyst interest, and enough business momentum to deserve a closer look.
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Our Methodology
In order to come up with our list of the 10 cheap stocks that could deliver 100%+ gains over the next 10 years, we used screeners and financial media reports to identify cheap stocks trading below a forward P/E ratio of 15, limited the list to companies with recent developments that could affect investor sentiment, earnings expectations, or long-term growth potential, and ranked them in ascending order based on the number of hedge funds holding stakes in them as of Q4 2025.
5 Cheap Stocks That Could Deliver 100%+ Gains Over the Next 10 Years
5. T-Mobile US Inc. (NASDAQ:TMUS)
T-Mobile US Inc. (NASDAQ: TMUS) takes the No. 5 spot among cheap stocks to buy for the next 10 years, and its latest move shows why the company remains a major name in the telecom sector even as investors continue searching for better long-term value stocks, cheap growth stocks, and durable companies with recurring revenue. Trading at $190.28, T-Mobile is not “cheap” in the usual low-share-price sense, but it belongs in the conversation because valuation is better judged against earnings quality, subscriber growth, cash flow potential, network strength, and the company’s ability to capture new customer segments. In the telecom business, the real story is not always dramatic. Sometimes it is about finding millions of small, repeatable ways to make wireless service easier, faster, and more useful for customers.
On May 7, T-Mobile Prepaid introduced the “US Pass eSIM,” a digital-first suite of short-term mobile plans designed for international travelers visiting the United States. The product is scheduled to launch on May 18 and is built around one very simple idea: visitors should be able to land in the U.S. and activate mobile service in minutes without paperwork, store visits, confusing roaming charges, or traditional SIM-card hassles. For a global travel market that increasingly relies on smartphones for maps, transportation, hotel bookings, event tickets, digital payments, and real-time communication, that kind of convenience matters. It also shows how T-Mobile is trying to monetize one of the most overlooked telecom opportunities: temporary users who still need high-quality, high-speed connectivity.
The new US Pass eSIM plans offer flexible durations ranging from seven to 30 days, with prices starting at $25. Each plan provides unlimited talk and text across the U.S., Mexico, and Canada, along with 50 GB of premium 5G data. Travelers also receive meaningful hotspot allocations, with the month-long plan offering up to 50 GB of high-speed mobile hotspot data, plus 5 GB of high-speed data for use while in Mexico or Canada. That setup gives T-Mobile a practical edge because international visitors do not just need basic calling anymore. They need data-heavy plans that can support video calls, ride-hailing apps, live navigation, social media uploads, remote work, and event-based travel.
This is where the long-term investment angle becomes more interesting. T-Mobile is not simply selling a prepaid plan. It is building a travel-focused connectivity product at a time when eSIM adoption is becoming more common and consumers are becoming more comfortable switching mobile plans digitally. The old telecom model depended heavily on physical distribution, retail activation, and long-term contracts. The new model increasingly rewards companies that can make activation instant, pricing transparent, and service flexible. If T-Mobile can convert even a small portion of international visitors into temporary high-value users, the revenue opportunity could become meaningful over time, especially during peak travel seasons and major global events.
The US Pass eSIM also includes access to T-Mobile Tuesdays, which offers weekly perks, dining rewards, and rental car discounts. That may sound like a small add-on, but in consumer telecom, perks help differentiate otherwise similar wireless plans. Many travelers compare plans based on price, data allowance, and activation speed, but extra benefits can improve the overall customer experience and make the brand more memorable. For T-Mobile, the goal appears clear: make the traveler’s first U.S. wireless experience smooth enough that the brand becomes the obvious choice for future visits, referrals, and possibly even broader prepaid adoption.
For investors looking for telecom stocks to buy, long-term stocks, cheap stocks with strong cash flow, and defensive growth stocks, T-Mobile remains a serious candidate. Its wireless business serves postpaid, prepaid, wholesale, voice, messaging, data, and device customers, giving it multiple revenue channels. The stock may not carry the same excitement as artificial intelligence stocks or semiconductor stocks, but telecom has its own appeal. Wireless connectivity is now essential infrastructure. People can cut back on many expenses, but mobile data has become difficult to live without. That gives T-Mobile a durable business foundation, and products like US Pass eSIM show that the company is still finding ways to expand beyond the traditional domestic subscriber base.
Over the next 10 years, T-Mobile’s long-term upside may depend on how well it continues to grow subscribers, defend margins, monetize 5G, expand prepaid products, and use digital activation to reach new customer categories. The US Pass eSIM is not a massive story by itself, but it is a smart example of how a telecom company can turn travel demand, eSIM technology, and cross-border connectivity into a more flexible business model. For patient investors, TMUS remains one of the more compelling cheap stocks to buy and hold because it combines scale, brand strength, recurring revenue, and practical innovation in a market that still needs reliable wireless service every single day.
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Disclosure: No material interests to disclose. This article was originally published on Global Market Bulletin.
