With the market soaring to new highs, it may seem like there are no cheap stocks to buy. At least that would be the case if you only looked at the highfliers getting all the attention on financial-focused TV networks. Artificial intelligence (AI) stocks are all the rage there, and their valuations now reflect that.
Investors looking to find cheap stocks for their portfolios in 2026 will need to look elsewhere, focusing instead on under-the-radar stocks. To help with that search, consider Sprouts Farmers Market (SFM +1.26%) and Remitly Global (RELY 0.77%).
Here's why these are my two best consumer stocks to buy right now, in part because they circumvent the AI market mania.
Image source: Getty Images.
Sprouts Farmers Market: An organic grocery niche
A brand growing in popularity as it spreads around the United States, Sprouts Farmers Market has found a nice spot between the big-box retailers and regular grocery store chains. Sprouts operates grocery stores focused on organic produce, vitamins, dietary restrictions, and whole foods. It is targeting the percentage of the United States population that are health enthusiasts, have higher income, and are tired of the bland brands at big-box retailers.
This has been a nice niche for Sprouts to play in as it opens stores around the country. Last quarter, revenue was up 13% year over year to $2.2 billion, with a strong $157 million in income from operations. With fewer than 500 locations in 24 states, Sprouts has plenty of room to expand its presence around the United States, giving it a long reinvestment runway.
NASDAQ: SFM
Key Data Points
As it opens new stores, revenue and earnings will grow. Along with same-store sales growth guided to be in the low single digits over the long term, this should lead to consistent double-digit revenue growth for Sprouts over the next decade. At the same time, it is returning cash to shareholders through share repurchases, bringing outstanding shares down 17% cumulatively over the last five years.
The stock has been in a significant drawdown over the past several months due to a slowdown in same-store sales growth, which has gone from 12% last year down to a guidance for 0%-2% in the fourth quarter. The higher the same-store sales growth, the better, but Sprouts Farmers Market is simply lapping its overly strong traffic period from 2024 and should still be able to maintain its long-term guidance of an average of low single-digit comparable store sales growth over the coming years.
Sprouts is now trading at a price-to-earnings (P/E) ratio of 13.8. This is not only cheap compared to its growth potential, but will allow the company to repurchase more stock at a dirt cheap price, making Sprouts Farmers Market an even better buy the lower the stock goes.
Remitly Global: Fighting a narrative in cross-border payments
The second stock that looks mighty cheap right now is Remitly Global, a leading disruptor in cross-border payments that was founded specifically to aid immigrants in the United States sending money back to friends and family in other countries. With news of stablecoins being used more by current and potential customers, combined with increased crackdowns on immigrants in the United States, some investors are spooked, and Remitly's shares are trading down nearly 39% over the past year.
While investors should keep a close eye on these potential headwinds, they are not showing up in Remitly's financial performance at the moment. Last quarter, revenue grew 25% year over year, driven by a 35% increase in send volume to $19.5 billion. With over $1 trillion in cross-border payments from individuals each year (and growing), Remitly is only a small sliver of the sector at the moment. Plus, this doesn't include its new foray into small business customers, which is an even larger market opportunity.
NASDAQ: RELY
Key Data Points
Today, Remitly is barely profitable, posting net income of $8.8 million last quarter. However, the business has great unit economics and gross margins while trading at a price-to-sales (P/S) ratio under 2. For a company expecting to grow revenue in the high teens with a lot of market share left to capture, this is a cheap stock valuation.
Or, put another way, the stock has a market cap of under $3 billion, with guidance for $600 million in adjusted earnings power by 2028. That is only a 5x earnings multiple three years into the future, again showing how cheap Remitly shares are right now for investors planning to buy and hold for the long haul.
