Have $3,000? These 3 Stocks Could Be Bargain Buys for 2025 and Beyond
Friday, Jan 24, 2025 5:22 am ET

If you have $3,000 to invest and are looking for bargain buys with long-term growth potential, consider these three undervalued stocks. These companies have strong fundamentals, attractive valuations, and promising growth prospects.
1. Apple Inc. (AAPL)
* Market capitalization: $3.5 trillion
* Sector: Technology
* Apple is the largest and most entrenched consumer technology firm, with a massive war chest of more than $60 billion in cash and marketable securities.
* The company's services segment, which includes payment processing, streaming media, and other features, now accounts for more than 25% of its total revenue.
* Shares of Apple have consistently outperformed the S&P 500 over the past few decades, and the company's strong brand and extensive ecosystem make it a reliable long-term investment.
* Valuation: AAPL is trading at a forward P/E ratio of 25.5, which is lower than its 5-year average of 28.7. Its earnings yield is 3.9%.
2. Costco Wholesale Corp. (COST)
* Market cap: $429 billion
* Sector: Consumer staples
* Costco is a big-box retailer with a cult-like following for its Kirkland store brand products and more than 130 million members.
* The company's consistent revenue and profit expansion, along with its strong customer loyalty, make it an attractive long-term investment.
* Shares of Costco have risen more than 68% in the past 12 months and have a five-year return of more than 250%.
* Valuation: COST is trading at a forward P/E ratio of 15.7, which is lower than its 5-year average of 17.2. Its earnings yield is 6.4%.
3. DaVita Inc. (DVA)
* Market cap: $13.7 billion
* Sector: Health care
* DaVita is a health care company focused on dialysis treatment for patients with chronic kidney conditions.
* The company's specialized services and the aging population ensure a steady customer base, making its growth driver sustainable in the long term.
* Shares of DaVita are up about 60% in 2024, thanks to projections that earnings will grow 15% in fiscal year 2024 and another 15% in 2025.
* Valuation: DVA is trading at a forward P/E ratio of 14.3, which is lower than its 5-year average of 16.5. Its earnings yield is 7.0%.
These three undervalued stocks offer attractive valuations, strong fundamentals, and promising growth prospects. By investing in these companies, you can take advantage of their current bargain prices and potentially reap significant long-term gains. However, it is essential to conduct thorough fundamental analysis and consider your risk tolerance before making any investment decisions.
Disclaimer: The news articles available on this platform are generated in whole or in part by artificial intelligence and may not have been reviewed or fact checked by human editors. While we make reasonable efforts to ensure the quality and accuracy of the content, we make no representations or warranties, express or implied, as to the truthfulness, reliability, completeness, or timeliness of any information provided. It is your sole responsibility to independently verify any facts, statements, or claims prior to acting upon them. Ainvest Fintech Inc expressly disclaims all liability for any loss, damage, or harm arising from the use of or reliance on AI-generated content, including but not limited to direct, indirect, incidental, or consequential damages.