Have $500? 3 Absurdly Cheap Stocks Long-Term Investors Should Buy Right Now

If you're a long-term investor with $500 to spare, you might be wondering where to allocate your capital. With the stock market at all-time highs, finding undervalued stocks can be challenging. However, Morningstar has identified three absurdly cheap stocks that long-term investors should consider buying right now. These stocks are trading at significant discounts to their fair value estimates, making them attractive long-term investment opportunities.

1. Celsius Holdings (CELH):
Celsius is an energy drink company that has thrived in recent years due to its zero-sugar approach and scientific research on energy drinks. Its distribution deal with PepsiCo has also made its beverages easily available to the mass market. However, a sales slowdown prompted a major distributor to scale back orders, leading to a significant drop in the stock price. Despite this temporary setback, Celsius' international sales have been growing, and its P/E ratio has fallen to its lowest level since 2020. With a P/E ratio of about 30, Celsius stock is relatively undervalued, presenting an opportunity for long-term growth.

2. Sea Limited (SE):
Sea Limited is a tech and consumer conglomerate that operates market-leading e-commerce and fintech businesses in southeast Asia. Its gaming business claims one of the world's most popular mobile games, Free Fire. Despite missteps with e-commerce outside southeast Asia and the ban of Free Fire in India, Sea Limited's e-commerce company, Shopee, has scaled back outside southeast Asia and is investing heavily in logistics in its home markets, expanding its competitive advantage. With a forward P/E of around 34, just below Amazon's 37 times forward earnings, Sea Limited stock is undervalued and poised for long-term growth.

3. Target (TGT):
Target is a retail giant that has struggled in recent years due to a sluggish economy and rising inflation. However, the company has some bright spots, such as its partnership with Ulta Beauty, Starbucks, and Apple, which serve as a draw to bring people into its stores. Target's omni-channel shopping experience and Target Circle 360 loyalty program offer free deliveries for orders over $35, enhancing the customer experience. With a P/E ratio of about 14, Target is far below Amazon, Walmart, or Costco Wholesale, indicating that the stock is undervalued and has potential for multiple expansion, which could drive significant returns in the long term.



In conclusion, if you're a long-term investor with $500 to spare, consider allocating your capital to these three absurdly cheap stocks: Celsius Holdings, Sea Limited, and Target. These stocks are trading at significant discounts to their fair value estimates, making them attractive long-term investment opportunities. By investing in these companies, you can take advantage of their strong fundamentals and growth prospects while minimizing your risk.