Have $500? 2 Absurdly Cheap Stocks Long-Term Investors Should Buy Now

If you have $500 to invest and are looking for long-term growth opportunities, consider these two absurdly cheap stocks that operate in high-growth industries and have strong financial positions.

Rocket Lab USA Inc. (RKLB) is a space company focused on launch services and space system solutions. With a market capitalization of around $1.5 billion, RKLB is trading at a significant discount to its peers. The primary catalyst for RKLB's potential turnaround is its rapid growth in revenues, which surged from $62 million in 2021 to $245 million in 2023. Analysts project further growth to $423 million this year and $594 million in 2025. Although not yet profitable, RKLB's gross margin has improved significantly, from negative margins in 2021 to 25% over the past 12 months. With $492 million in cash and short-term investments, RKLB is well-positioned for future growth.

Planet Labs PBC (PL) is a pioneer in the Earth observability industry, providing on-demand satellite imagery to both government and commercial customers. PL is currently trading at a market capitalization of around $2 billion, making it another absurdly cheap stock. The primary catalyst for PL's potential turnaround is the early stages of commercialization in the Earth imagery industry. As the industry grows, there will be enormous scale benefits, and as the price of imagery falls, the total addressable market will expand dramatically. This should lead to consistent profitability for PL. With $299 million in cash and short-term investments, PL has a long runway to keep ramping up its business.




While neither company pays a dividend, their growth prospects and low valuations make them attractive for long-term investors. As these companies continue to grow and potentially become profitable, they may consider initiating or increasing dividend payouts, further enhancing their appeal to income-oriented investors.

In conclusion, long-term investors with $500 to spare should consider Rocket Lab USA Inc. (RKLB) and Planet Labs PBC (PL) as absurdly cheap stocks with significant potential for a turnaround and long-term growth. Both companies operate in high-growth industries and have strong financial positions, making them attractive investments for long-term-oriented investors.