If you're looking for undervalued stocks in the midst of this crazy market, don't worry -- they're still out there. In fact, several of them could soon snap back from their recent weakness. Investors just have to recognize that these companies are set to fare better than most people seem to expect right now.

With that as the backdrop, here's a rundown of three different dirt-cheap stocks that could outright soar in the foreseeable future.

Tyson Foods

If it seems like packaged-meat outfit Tyson Foods (TSN 0.32%) is perpetually plagued by troubles, you're not imagining it. In addition to the CFO's recent arrest for public intoxication and one of its facilities' managers wagering how many of its workers would contract COVID-19, the company is regularly dogged by price-fixing accusations and supply/demand imbalances.

The thing is, Tyson eventually works past all of these setbacks to emerge as a bigger, more profitable company. That's why the stock doesn't stay down for very long when it does peel back. The slide since last May's high isn't likely to be an exception to this pattern.

Indeed, a rebound may be taking shape even sooner than most people expect. While last quarter's industry-wide meat supply glut was challenging for the company, the underpinnings of that oversupply are abating. The U.S. Department of Agriculture (USDA) forecasts that U.S. beef production will contract by 6% this year, falling on an annual basis for the first time in more than a decade.

Chicken and pork production are only expected to grow 1% and 2%, respectively, in 2023. The end result should be better pricing power. At the same time, Tyson's other rising operating costs like labor and delivery should start to at least stabilize if not outright cool.

None of these factors is seemingly being priced into the shares, however, which are now trading at less than nine times their trailing-12-month earnings and less than 11 times next year's projected profits.


It's not exactly a secret why shares of travel website Expedia Group (EXPE 1.78%) struggled in the first half of 2020: The COVID-19 pandemic was preventing almost all travel. Conversely, the stock's rally from late 2020 through early 2022 makes sense as well. While still complicated and crimped, it was clear that travel would eventually work its way back to pre-pandemic levels.

Expedia stock's sell-off from early last year followed by months of weakness, though, is a bit of a mystery. The International Civil Aviation Organization believes air passenger travel will reach pre-COVID levels during the latter half of this year, jibing with a similar outlook from aircraft-leasing outfit Avalon.

The American Hotel & Lodging Association reports demand for hotel stays is set to approach 2019's levels this year as well, while revenue will grow by 16% thanks to price increases consumers are willing to support. Last year's car-rental revenue within the U.S. was also record-breaking, according to Auto Rental News using data supplied by Bobit, underscoring the idea that demand for travel accommodations is brisk and growing.

Given all of this, Expedia shares' recent weakness doesn't make a great deal of sense. It's even more vexing given this year's expected 11% improvement in sales paired with a 37% improvement on last year's per-share earnings.

Don't overthink the stock's surprisingly poor performance though. Sometimes the market is simply looking right past the obvious. Just consider capitalizing on investors' pricing mistakes. The stock's current price of less than 10 times this year's expected profits and less than eight times next year's projected earnings is a bargain price that won't be around forever.

Leidos Holdings

Last but not least, add Leidos Holdings (LDOS 0.38%) to your list of dirt-cheap stocks to consider buying on the chance it could snap back from its 17% slide from December's high. That's certainly been the pattern since 2020 anyway.

If you've never heard of Leidos, you're not alone. Its $13 billion market capitalization doesn't turn many heads, and the company doesn't serve consumers. Rather, Leidos provides technological solutions to clients usually operating out of obvious view, like federal government agencies, and a few healthcare institutions and civil organizations as well. The Department of Defense, NASA, airports, and utility companies are representative of its paying customers.

It's not exactly riveting stuff. But Leidos offers the sort of complicated product/service that many major institutions either want a third party to handle or need a third party to handle. Once the relationship is established, it's difficult to sever.

That's how Leidos has managed to log year-over-year revenue growth in every quarter since 2018, sailing through the coronavirus pandemic as if it wasn't even happening. Operating income growth has been similarly reliable, except for the past few quarters when inflation pushed its operating costs a bit beyond what it could pass along to its customers.

This earnings lull is the key reason shares have underperformed since late last year and have been relatively stagnant since early 2020. Don't be fooled by this stagnation, however. This year's expected sales growth of 4% and next year's likely top-line growth of 5% are plausible and merely in line with the company's long-term growth trajectory.

More than that, the recent margin-crimping inflation headwind is set to abate in earnest next year. This year's projected per-share profits of $6.69 are forecast to reach $7.42 per share in 2024, translating into a forward-looking price-to-earnings ratio of only 12.3. It would not be surprising to see this stock inching higher again once more investors realize the profit rebound that's in the cards.