Markets are sinking to start 2024, dragging down a lot of good stocks in the process. While stressful, it’s important to remember that selloffs create buying opportunities. That is especially true for investors who have long time horizons and are patient. Deals abound in the current market as many well-known, well-managed companies are seeing their share prices sink and their valuations erode. Investors who have capital to spend can buy great stocks on the cheap and ride them to big gains when they eventually recover. While the market looks difficult right now, analysts believe the second half of this year will be a strong one for equities once the U.S. Federal Reserve begins to lower interest rates. It would be smart to act now before the market rally seen throughout 2023 returns. Here are the three most undervalued long-term stocks to buy in January.

Charles Schwab (SCHW)

Charles Schwab (NYSE:SCHW) just reported better-than-expected fourth-quarter financial results. Unfortunately, the print sent the investment firm’s stock down another 2%, continuing a selloff that has the shares looking undervalued at this point. SCHW stock has decreased 22% over the last 12 months, including a nearly 10% drop so far in January of this year. Trading at 18 times future earnings estimates and offering a quarterly dividend that yields 1.58%, the stock looks intriguing at current levels.

For Q4, Charles Schwab reported earnings per share (EPS) of 68 cents, ahead of consensus estimates that called for 64 cents. Revenue totaled $4.45 billion, which matched forecasts. However, Charles Schwab’s Q4 revenue was down 19% from the same period in 2022, and its profit declined 36% from a year earlier. The company blamed the year-over-year (YoY) declines on rising interest and noninterest expenses. Charles Schwab has also struggled to integrate TD Ameritrade, which it bought for $26 billion.

While the current situation may not be ideal, there are signs of improvement at Charles Schwab, and SCHW stock could prove to be a good long-term buy.

Walt Disney (DIS)

Walt Disney (NYSE:DIS) is another troubled company whose stock continues to languish. Shares in the House of Mouse are down 18% over the last five years and trading at the same level as a decade ago. The share price has been stuck at $90 for nearly a year now. While disappointing, there’s no question the stock is cheap and getting cheaper. For investors with time and patience on their side, DIS stock could be a good long-term bet.

Like Charles Schwab, there are signs that Disney is turning a corner. Most recently, the company announced a slate of new candidates that could potentially join its board of directors. These include General Motors (NYSE:GM) CEO Mary Barra and James Gorman, the former CEO of investment bank Morgan Stanley (NYSE:MS). The company also continues to aggressively control costs and raise prices everywhere from its theme parks to its streaming service. DIS stock is worth some consideration.

Tesla (TSLA)

It might seem odd that electric vehicle (EV) maker Tesla’s (NASDAQ:TSLA) stock is undervalued. But with the share price down 14% in the first two weeks of January and 26% over the past six months, it is starting to look a lot cheaper than in the past. The big question now is how low TSLA stock will go before it bottoms and recovers. Investors waiting for the bottom may need to be patient. Tesla’s share price is falling as the company continues to lower prices on its electric vehicles.

Tesla just announced substantial price cuts on its Model Y EV across Europe a week after announcing similar price cuts in China. The company is discounting prices on its cars sold in Germany, France, Norway, and the Netherlands by as much as 8%. The European price cuts come shortly after Tesla announced price cuts for its Model 3 and Model Y cars in China, where sales are slumping due to an economic slowdown. The price cuts have analysts fretting about margins, and that’s pressuring the stock.

Despite the current decline, though, TSLA stock is still up nearly 1,000% in the last five years, crushing the gains seen in most other stocks over the same period.

On the date of publication, Joel Baglole did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.