It's been a good year for most investors. Many of the market's most popular stocks have been bid up to lofty levels. It doesn't mean that there aren't a few bargains still hiding in plain sight.
Target (TGT 2.67%), Comcast (CMCSA 1.37%), and Norwegian Cruise Line (NCLH 4.64%) are cheap. Naysayers will argue that they are priced so attractively because their businesses have become highly unattractive. I don't agree. Any of these three stocks could be a smart landing place for your next $500 investment. Let's take a closer look at these absurdly affordable stocks that you should consider buying right now.
Image source: Getty Images.
1. Target
It's ironic that this shopping trip starts at Target, largely because the chain's red-and-white storefronts aren't as busy as they used to be. Net sales have fallen 1.7% through the first nine months of this fiscal year (ending in January).
It gets worse for the mass-market retailer if you focus on the store-level performance. Target's slide is being bailed out by a slight increase in digital sales. Comps at the physical store level have slipped 4.2% through the first three fiscal quarters. Target is losing market share.
One can argue that the "cheap chic" chain is no longer chic. The decline in store traffic, paired with a dip in transaction size per customer, bears that out. The retail stock is still undeniably cheap. Despite net sales sliding for the third consecutive year, Target is still finding ways to make a decent-size chunk of its top-line results trickle down to the bottom line.
NYSE: TGT
Key Data Points
Target's guidance calls for adjusted earnings of $7.00 to $8.00 per share for all of 2025. With the stock having plummeted 28% over the past year -- down 33% over the last three years -- you can buy Target for less than 13 times earnings.
The timing couldn't be better to target Target for your next portfolio purchase. Analysts anticipate a rebound in sales and earnings in 2026. Target is trading for just 12 times forward earnings. If the recovery takes time to materialize under the new CEO, who takes over in February, your patience will be rewarded.
Target offers a dividend yield of 4.8%. It's among the handful of stocks that income investors call a Dividend King, having raised its distributions annually for at least 50 years. It already hiked its payout this summer. It's a safe bet to continue that run next year, with Target expected to grow its business on both ends of the income statement in 2026.
NASDAQ: CMCSA
Key Data Points
2. Comcast
You would think this would be a banner year for Comcast investors. Two of its media stock peers have shot higher in separate bidding wars this year, lifting the perceived value of video content. It opened a new gated attraction in 2025, the country's first major theme park to open in two dozen years. Comcast also has its flagship cable TV and broadband connectivity services, arming itself with a pair of cash cows to fund growth across its other operating segments.
The market isn't on the same page. Comcast stock is down 24% over the past year. Comcast has its share of problems. Cord-cutters have dealt a steady decline to its cable TV business for years, but now even its broadband business is going through some growing pains.
The model still works. Comcast generated nearly $5 billion in free cash flow in its latest quarter, and it's using a lot of that to pay a generous 4.5% dividend yield as well as for stock buybacks. The latter matters, as it's been eating away at its share count to stabilize its bottom line on a per-share basis. Adjusted earnings declined 5% in the third quarter, but earnings per share of $1.12 were flat with the prior year because of the lower share count.
Comcast has its sights set on breaking up its business next year through a spinoff. It's a novel approach to trying to unlock shareholder value, but in today's content-hungry environment, don't be surprised if one of this year's losers becomes the belle of a bidding war itself next year.
NYSE: NCLH
Key Data Points
3. Norwegian Cruise Line
There isn't a lot to like when it comes to the distant bronze medalist among the country's cruise line stocks. Norwegian is a laggard to its rivals, and it's now the only one that isn't paying its shareholders a dividend. The stock's 12% slide over the past year is a stark contrast to the double-digit percentage gains by its larger rivals.
Norwegian may not seem pretty right now, but it's certainly cheap. It has historically traded at a discount to the country's two larger cruise lines, and that gap has widened, with the stock charts as passing ships over the past year.
Can a historical laggard become a leader? Analysts see double-digit growth in revenue and earnings next year. This contrasts with the expectations of its rivals for single-digit increases on the top line. It's trading for just 9 times forward earnings, a contrast to the low-double-digit multiples of its competitors. The risks are clear in betting on an underdog, but Norwegian is nearing the point where it's too cheap to ignore.
