Do you have $500? 2 Absurdly Cheap Stocks Long-Term Investors Should Buy Right Now

Just because the stock market is near all-time highs doesn’t mean all stocks are expensive. Sure, you might think of the stock market as one thing, but it’s really a collection of thousands of companies—each with its own story. You could say that Wall Street is not a stock market, but a the stock market.

In other words, there is always a deal somewhere. You just have to know where to look.

Here are two growth stocks that are trading at compelling prices. One is trading near all-time highs and the other is down 65% from its peak. You can own shares of both companies for less than $500 today.

Here’s the story behind each one.

1. An e-commerce giant trading near all-time highs

The e-commerce and cloud computing giant Amazon (AMZN 0.91%) it is already a historically profitable investment. Today, however, the stock has more to offer, despite Amazon’s nearly $2 trillion market cap. Amazon is the largest online retailer in the US with a 38% market share and the largest global cloud platform with 31%. The great thing is that both businesses still have more growth ahead of them. E-commerce still only accounts for 16% of total US retail, and Amazon still has a long way to go in underpenetrated niches like grocery and pharmacy. Meanwhile, the global cloud market is poised to grow thanks to artificial intelligence (AI) and digitization as companies move from on-premise IT systems to the cloud.

Analysts believe Amazon can grow revenue by an average of 27% annually over the next three to five years. Today, the stock trades at 39 times Amazon’s estimated 2024 earnings. That forward price-to-earnings ratio is an attractive price for a company that’s growing its profits so quickly. Additionally, let’s say you value the stock based on operating cash flow, which gives investors a look at Amazon’s profits before reinvesting in the business. In this case, the rating is near a decade low.

Amazon shares are trading away from all-time highs. But in principle, long-term investors still have the opportunity to acquire a wonderful business at an attractive price even today.

2. This energy drink brand has fallen from its lofty perch

Energy drink brand Monster is a famously successful stock, but Celsius (CELCH -2.64%)a new energy drink brand, emerged to challenge Monster’s market share and stock returns. Celsius has exploded in popularity over the past five years, leading to a return on investment of over 6,000% at the stock’s peak. However, shares have fallen 65% since those highs, and now investors must decide whether the company’s fundamentals can bring Celsius stock back to its former glory.

Finally, Celsius enjoyed a meteoric rise during the peak of the pandemic. Then PepsiCo invested in the company and helped Celsius expand its distribution, further turbo-charging growth. That growth spurt has ended, however, and revenue growth has slowed sharply this year, explaining the stock’s struggles.

It’s fair that the stock would gain a lower valuation as growth slows, but Celsius may now be nearing a point that interests investors again. The company continues to take market share – Celsius grew sales 23% year-over-year in the second quarter in an industry growing at a low single-digit rate. Celsius is very profitable, and analysts believe it will grow earnings by an average of 16% annually over the next three to five years.

The company’s stock is trading at a forward P/E of 40 today. The valuation and growth rate yield roughly the same price-to-earnings-growth (PEG) ratio that Monster trades for today. However, Celsius is the company that has market share in the US and has tremendous opportunity in international markets.

The stock’s decline has made Celsius an attractive long-term idea worth considering today. It’s impossible to bottom out for a falling stock, though, so investors who believe in Celsius’ long-term potential should buy shares slowly to avoid jumping too aggressively.