If you're an investor on a budget who's looking for deals, there are some great options out there right now. You don't need to break the bank to own shares of promising companies. While many top stocks are trading at sky-high valuations, there are multiple stocks that you can buy at dirt-cheap valuations today.
Three stocks that have underperformed the S&P 500 and its 7% gains this year but could be formidable long-term investments are Alibaba Group Holdings (BABA +3.31%), Comcast (CMCSA +0.31%), and Ford Motor (F +0.86%). Here's a closer look at why you'll want to consider buying these stocks right now.
NYSE: BABA
Key Data Points
Alibaba Group Holdings
Chinese stocks come with inherent risks, which is why many investors are hesitant to buy them. In the past, there have been concerns about whether Chinese stocks may get delisted from U.S. exchanges, and whether the Chinese government may impose regulations that affect their growth prospects.
So far, those risks appear to be a bit overblown. And if you're willing to take on a bit of uncertainty, you can get a promising growth stock in Alibaba Group Holdings. The Chinese tech company has a diversified business that includes e-commerce, cloud, media, entertainment, and other segments.
In the last three months of 2023, the company reported revenue of $36.7 billion, which grew at a rate of 5% year over year. It generated growth in all its key segments. And the Chinese economy looks to be in solid shape, with gross domestic product for the first three months of 2024 growing at a rate of 5.3% -- higher than analyst expectations of 4.6%.
Alibaba offers investors a great way to invest in the Chinese economy. With a low forward price-to-earnings (P/E) multiple of less than 9, which is based on analyst expectations of future earnings, Alibaba makes for an enticing buy right now. You can buy the stock for around $75 per share.
NASDAQ: CMCSA
Key Data Points
Comcast
Another solid growth stock you can buy for less than $100 is Comcast. It's currently trading at less than $40, so you can buy two shares of the media company with $100 and still have cash left over. And like Alibaba, it's trading at a forward P/E of around 9.
The company recently reported earnings for the first three months of the year. They weren't all that exciting, but they were solid nonetheless. Sales of $30.1 billion rose by just over 1% year over year, and earnings per share came in at $0.97 -- up around 7% from the same period last year. Comcast's streaming service, Peacock, has also been doing well with paid subscribers rising by 55% versus a year ago, reaching 34 million.
In the longer run, there could be more room for growth as Comcast leverages its strong brands. Universal, a subsidiary of Comcast, is planning to launch the Universal Epic Universe theme park next year, which will feature the Harry Potter, Super Mario, and How to Train Your Dragon franchises.
With a low valuation, some enticing growth potential, and a dividend yielding 3.2%, Comcast makes for an underrated investment to add to your portfolio right now.
NYSE: F
Key Data Points
Ford Motor
Rising inflation hasn't been making automotive stocks hot buys of late. Ford's stock is up just a modest 5% this year, and at a price tag of around $13, you can easily add multiple shares of the company to your portfolio for less than $100. Its forward P/E of 6 makes it the cheapest stock on this list.
The company offers investors a cheaper way to invest in electric vehicles than rival Tesla, which, despite its fall this year, still trades at a staggering forward P/E of more than 60. Ford has been losing money on EVs, but its more diversified business gives investors a more balanced auto stock to buy and hold.
Ford's revenue for the first three months of 2024 totaled $42.8 billion, rising by a modest rate of 3% year over year. Net income of $1.3 billion declined by 24% as the company has battled rising expenses. But its adjusted per-share profit of $0.49 beat analyst expectations of $0.42.
Ford remains a top automotive stock, and it can make for an excellent long-term investment. It also pays investors an attractive dividend that yields 4.7%.
