It is hard enough to find a stock that is certain to make substantial financial gains in the near future. Add the price factor, and finding affordable, successful stocks becomes even more difficult. However, through the ups and downs of the market and economic factors causing price fluctuations come rare opportunities to buy well-performing stocks at a bargain.
These three stocks are just that opportunity. All are trading at exceedingly low forward P/E ratios or have temporarily dipped. Thus, their future growth and profit are almost guaranteed. Investors can add these stocks to their buy lists and grab several shares without breaking the bank to see excellent gains come 2025 and the years to come.
Let’s learn more about these stocks’ low prices, recent performance and future plans that make them the best bargain buys on the market.
Chewy (CHWY)
Chewy (NYSE:CHWY) has established itself firmly within the pet market. It’s the online marketplace for all things pets, including food, prescriptions, toys, insurance and supplies. Pet ownership is at 66% of all households in the U.S. and has risen over 50% over the last 36 years. The pet market will likely stick around for a while, and Chewy will position itself at the top.
Chewy’s most recent earnings report for the full year 2023 included a 10.2% increase in net sales year-over-year (YOY), with a 40 basis points gross margin increase. Also, the company is continually spreading brand awareness and building lasting customer relationships through advertisements and subscription campaigns.
A large part of Chewy’s success comes from the convenience it offers. Chewy capitalizes not only on the growing popularity of online shopping but also on delivery. The Autoship program allows users to have prescriptions and other recurring purchases automatically ordered and shipped. Autoship saw a 14.7% increase in sales from 2022, accounting for 76% of net sales.
In late 2023, Chewy announced its exciting expansion plans to offer its services to the lucrative Canadian pet market. Despite the company’s excellent revenue streams and expansion initiatives that ensure future growth, the stock trades are relatively low and dipping.
Seize the moment to take advantage of Chewy’s growing hold on the pet market.
Ford (F)
One of the oldest and most proven automotive stocks in the game, Ford (NYSE:F) is a giant in the industry. Also, it’s a top stock to buy at its current price. While inflation has been hitting automakers hard, Ford has repeatedly displayed its resilience. For investors who believe in this company’s growth, its low price is too good to pass up.
Ford’s first quarter for this year did not encourage many. The automotive veteran reported a 3% YOY increase in income and a 24% drop in net income with a sharp rise in operating expenses. However, Ford beat estimates for adjusted EPS at $0.49. And it still offers investors an excellent dividend yield of 5%.
Truly, Ford isn’t at its peak and valued affordably. Yet it is not down for the count and offers investors one of the most valuable long-term stocks. Why? Because Ford provides arguably the best alternative to many other pricey EV stocks on the market. Ford saw a 96.6% increase, year-to-date (YTD), in EV sales from 2023 to 2024 and a 129.2% increase in April’s sales YOY.
Ford is second behind Tesla in EV sales this quarter with popular models like the Mustang Mach-E and F-150 Lightning. Yet, currently it’s priced at a fraction of the cost. Undoubtedly, Ford will continue solid growth and excellent dividends for years. Thus, investors should load up their portfolios while the stock is valued at a low level.
Carnival (CCL)
Carnival (NYSE:CCL) is the cruise line with the largest market share in the industry and has exciting prospects coming into 2024. While all sectors of the travel industry suffered from the pandemic, the rebound in 2023 and this year has propelled tourist numbers to all-time highs. One of the sectors benefitting the most is cruises, particularly Carnival’s cruises.
Further, the cruise industry saw 107% of 2019 levels in 2023 and is projected to reach even higher this year. Carnival looks to be at the forefront of the surging demand. Carnival’s Q1 saw a record $5.4 billion in revenue and for bookings.
Moreover, the company expects continued momentum for the remainder of this year. It is cutting costs on its end by delivering two liquified natural gas-powered ships that will cut fuel expenses by a fraction.
Therefore, take advantage of Carnival’s smart, cost-efficient investments for huge gains this year.
On the date of publication, Joel Lim did not have (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.
