3 Ridiculously Cheap Stocks That Just Got Even Cheaper

In the ever-evolving world of stock investing, finding undervalued gems can be a game-changer. As of April 10, 2025, the market is a mix of highs and lows, with some sectors performing exceptionally well while others face challenges. This creates opportunities for investors to find undervalued stocks that have the potential for long-term growth. Let's dive into three ridiculously cheap stocks that just got even cheaper and why they might be worth a closer look.

1. Alibaba (BABA)

Alibaba, the Chinese e-commerce giant, has been a rollercoaster ride for investors. Despite the market sell-off, Alibaba's advances in artificial intelligence (AI) models and its strong balance sheet make it an attractive investment. The company's cloud intelligence group grew its revenue by 13% to $4.3 billion, and its AI-related revenue surged by a triple-digit percentage for the sixth straight quarter. This indicates that Alibaba has the potential for significant growth in the future.

Alibaba is trading at a forward price-to-earnings (P/E) ratio of less than 15 times 2025 analyst estimates, which is relatively low compared to its peers. This suggests that Alibaba's stock may be undervalued given its strong financial performance and growth prospects. The company's investments in AI and its cloud intelligence group's performance are clear indicators of its potential for future growth.

2. e.l.f. Beauty (ELF)

The past year has been a difficult one for e.l.f. Beauty, with its shares tumbling by close to two-thirds. However, this has left the stock in bargain territory, trading at a forward P/E of 23 times and a price/earnings-to-growth (PEG) ratio of 0.5. Typically, stocks with positive PEG ratios under 1 are viewed as undervalued.

e.l.f. Beauty has seen its shares tumble after it lowered its quarterly revenue growth forecast to only 1% to 2%, citing poor industry trends and the potentially disruptive impacts of a TikTok ban. However, this is still a company that in the past few years has grown swiftly in the mass-merchant cosmetics space and taken a ton of market share away from competitors. At the same time, it has large opportunities in front of it. e.l.f. has moved into the skincare market, which is growing nicely, but it can still expand into adjacent categories such as fragrance. It has also been making nice strides internationally.

3. Crocs (CROX)

Crocs, the footwear company, has seen its stock price drop by about 20% over the past year. Despite this, the company's namesake brand has performed well, thanks in part to international growth. However, it has run into trouble with the HeyDudes brand that it acquired in early 2022. Turning around HeyDudes could be a big opportunity for the company, and it saw some progress on that front in the fourth quarter, when it reported flat sales for the brand year over year.

The company is leaning into marketing and celebrity endorsers to push the brand. It is also targeting the young female demographic, a strategy that led to 160% growth in new female customers ages 18 to 24 during the quarter. While new HeyDudes products are selling well, the company still needs to continue to clear out older HeyDude inventory in its wholesale channel and return to full-price selling, but it finally made some good progress in that last quarter after some pretty big sales declines in prior periods. The Crocs brand, meanwhile, is expected to continue to be driven by international expansion, innovation, and its sandal business.

Conclusion

In summary, the current market conditions and economic indicators create opportunities for investors to find undervalued stocks with the potential for long-term growth. By carefully analyzing the financial performance, acquisition strategies, and economic indicators, investors can identify cheap stocks that are poised for significant growth in the future. Alibaba, e.l.f. Beauty, and Crocs all exhibit key financial metrics that indicate they may be undervalued, making them attractive investment opportunities.