Like bargains? Most people do, even when the bargain in question is a stock. And these three stocks are so cheap right now that they could soon skyrocket. Their values are arguably just too low for most investors to pass up. All they need is the right nudge.

1. Citigroup

It's a tough time to be in the banking business. Although higher interest rates make lending a higher-margin business, the economic weakness that often accompanies periods of rising interest rates also raises the odds of delinquencies and defaults. Never even mind the fact that higher interest rates crimp demand for loans.

Citigroup (C 3.56%) isn't immune to either of these headwinds. In fact, it's showing subtle signs that such headwinds are already putting some pressure on it. Its total loans as of the end of the second quarter were right around where they were a year earlier, and its allowance for credit losses is creeping higher. Deposits are down, and the amount of credit card loans between 30 days and 90 days past due is markedly higher now than it was as of the end of last year. The banking business seems to be taking a turn for the worse, and investors are acting accordingly.

The thing is, the punishment doesn't fit the crime.

Citi share prices are now down by nearly 50% from their mid-2021 peak. And, thanks to their 13% pullback over the course of just the past four weeks they're now knocking on the door of a new 52-week low. That has dragged the stock's forward-looking price-to-earnings ratio down to less than 7 (based on next year's projected earnings of $5.98 per share) and pushed its dividend yield up to around 5%. That's about as cheap as the stock's been in several years, and the dividend yield is as high as it has been in over a decade.

That's a dividend, by the way, that isn't in any immediate jeopardy of being halted, or even reduced. Following the Fed's recently administered stress tests, the bank raised its quarterly dividend payment for the first time since 2019, from $0.51 per share to $0.53 per share.

2. Expedia

Demand for travel accommodations soared while the COVID-19 pandemic was winding down. Now, however, consumers are seemingly starting to balk at such spending. American Airlines' management has pointed out that airfares are declining, which they fear indicates waning demand. In Europe, Ryanair execs recently voiced similar concerns. The U.S. Travel Association reports total travel spending in June was only up marginally year over year.

In this vein, although online travel agent Expedia Group (EXPE -0.24%) reported a 6% increase in revenue for the second quarter along with a 5% year-over-year improvement in total bookings, both figures fell short of analysts' consensus estimates. Expedia shares fell 16% the day after it released its Q2 numbers, as the shortfalls were broadly seen as evidence of weakening demand for travel services.

Don't be too quick to come to sweeping conclusions based on recent travel-related headlines, though. While the industry is a bit rattled right now, the travel business is still likely in better shape than a cursory glance would suggest.

Consider, for example, the latest guidance from Expedia rival Booking Holdings. It's forecasting gross bookings growth of 20% during the quarter now underway, paired with year-over-year EBITDA growth at the same pace. Meanwhile, when it recently reported its Q2 numbers, Delta Air Lines upped its full-year earnings-per-share guidance from a range of $5 to $6 to a range of $6 to $7. The airline also reiterated its previous 2024 profit forecast of more than $7 per share.

It's not clear why so many investors are pricing in only the red flags when it comes to Expedia stock and ignoring the bullish clues. With the stock trading at less than 10 times next year's projected earnings versus sales growth of 10%, however, you may not want to waste any time trying to figure it out.

3. D.R. Horton

Last but not least, add homebuilder D.R. Horton (DHI -0.31%) to your list of dirt-cheap stocks to buy. It's priced at less than 9 times this year's earnings of $13.24 per share, and next year's expected earnings of $13.73 per share. Although it's still well up from its mid-2022 low, it has the potential to skyrocket if it bounces back from the sizable sell-off it has experienced since late July.

Yes, higher interest rates are a problem for would-be homebuyers. The average interest rate on a 30-year mortgage, in fact, is still near the 23-year high of almost 7.5% it hit earlier this month, according to Mortgage News Daily. And the Mortgage Bankers Association reported that demand for mortgage loans reached a 28-year low just last week, down by 30% from year-ago levels.

Take a closer look at other key real estate data, though. Demand for homes remains robust, as the housing shortage persists. The bottleneck is a lack of existing homes available for sale -- that category usually makes up the large majority of home purchases and is therefore a key driver of mortgage loan volumes. The National Association of Realtors reports that the number of existing homes for sale was back to a multi-year low near 1.1 million as of July, extending a decline that got started all the way back in 2008 in the wake of the subprime mortgage meltdown. Online realtor Redfin reports a near-record-breaking 31.4% of homes now for sale in the United States are newly built homes, yet that's still not enough inventory to sate demand. The National Association of Realtors estimates sales of new homes will grow to the tune of 12.3% this year before accelerating to a growth pace of 13.9% next year.

That, of course, is good news for D.R. Horton, which can help meet this demand.

It's no mere flash-in-the-pan opportunity either. The National Association of Realtors reckons it could take a decade or more of steady effort to build the 5.5 million additional homes the nation needs.

Given this dynamic, it's not clear why this stock is still trading at such a discount. As the old saying goes though, never look a gift horse in the mouth.