5 Bargain-Basement Stocks to Buy Right Now

No one likes it when markets are down. But the good news is these times represent great times to put your money to work. That’s because many solid companies with long-term track records trade at a discount.

They may have felt the pressures of higher inflation. Or investors might have just fled the particular stock or industry. But, down the road, these companies have what it takes to grow — from an earnings and share performance perspective.

And that means, if you buy them now, you’re likely to win big over the long haul. Let’s check out five bargain-basement buys to get in on today.

1. Amazon

Rising inflation has weighed heavily on Amazon (AMZN 1.75%).

That’s because the e-commerce giant gets hit in two ways. It faces higher costs — and its customers have less to spend. But these troubles are temporary, and Amazon has the strength to make it through and win over time.

Amazon is improving its cost structure, which includes cutting jobs and spending in certain areas. At the same time, Amazon last year increased its investment in the high-growth area of technology infrastructure. That supports its cloud computing services business, Amazon Web Services (AWS).

This is key because AWS has driven Amazon’s profit in recent years. Why can Amazon shine over time? The company is a leader in two markets growing in the double digits: e-commerce and cloud computing.

So, it should be among the first to benefit from this growth. Today, Amazon shares trade around their lowest in relation to sales since 2015. This is a steal considering Amazon’s long track record of revenue growth and its work today to prepare itself for the future.

2.

Tesla

Tesla (TSLA 0.72%) reported record results in the fourth quarter — from revenue to operating income to net income. The electric vehicle (EV) giant also said generally accepted accounting principles (GAAP) net income doubled to more than £12 billion for the full year. The company achieved this even while facing headwinds like supply chain issues and negative currency impact.

So, there’s reason to be confident about Tesla in an improving economy. The EV giant credits its cost control and cost innovation for its success during tough times. Though Tesla’s average selling price for its vehicles is on the decline, the company’s margins are strengthening.

This should be a winning combination over time. Lower prices will attract EV buyers. And higher margins mean Tesla’s earnings continue to benefit.

Tesla’s EV deliveries and production figures have climbed in the double digits. And, over time, Tesla aims for average annual delivery increases of 50%. Today, Tesla shares trade for 48 times forward earnings estimates — looking very cheap compared to last year’s level of more than 80.

3.

Disney

Disney (DIS 1.27%) disappointed investors last year as operating losses at its streaming services deepened. The company had grown membership, but at a cost. As a result, Disney shares slid 43%.

But the entertainment giant surely is heading for better times. It called back longtime chief executive officer Bob Iger to pave the path to growth. Iger returned from retirement in late November and has announced several moves so far.

These include spending cuts to reach cost savings of £5.5 billion. At the same time, Disney’s parks, experiences, and products business — traditionally the biggest revenue driver — continues to grow. The unit reported double-digit gains in revenue and operating income in the most recent quarter.

Iger’s plan includes moves that could boost this unit’s revenue, too. For example, Disney is launching efforts to improve the guest experience, like making more lower-priced tickets available. So Disney is on the way to getting its magic back.

And that’s why it looks like a buy today at 23 times forward earnings estimates — compared to more than 35 last year.

4. Intuitive Surgical

Intuitive Surgical (ISRG 0.21%) is the world’s biggest robotic surgery company — and by far. The company holds nearly 80% of the market.

And what’s great is Intuitive isn’t likely to give up much market share any time soon. Here’s why. Surgical robots are million-dollar investments, so hospitals don’t switch in and out of them regularly.

If a hospital is satisfied with a robot, it probably will stick with it. Also, most surgeons are trained on Intuitive’s flagship da Vinci platform, which is another reason hospitals may favor Intuitive products. All of this has helped Intuitive grow earnings over time.

Of course, there have been headwinds like coronavirus disruptions and higher raw materials prices. But these are temporary challenges. Meanwhile, Intuitive has shown confidence in its own business by buying back shares.

In fact, the company repurchased £1 billion of common stock in the most recent quarter. Today, Intuitive is trading for 47 times forward earnings estimates, down from more than 60 a year ago. Considering Intuitive’s moat and growth track record, we’re looking at a very reasonable entry point today.

5.

CRISPR Therapeutics

CRISPR Therapeutics (CRSP -2.26%) is heading for a big moment: the potential approval of its first product. CRISPR and partner Vertex Pharmaceuticals have submitted blood disorder candidate exa-cel to regulators in the U.S., Europe, and the U.K.  Exa-cel is designed as a one-time curative treatment — for disorders that today have limited treatment options.

So, if approved, it could be big. The companies developed exa-cel using CRISPR’s gene-editing technology. This technology — which helps fix faulty genes involved in disease — is set to bring CRISPR more and more revenue now and down the road.

Vertex just signed a licensing agreement for the use of it in Vertex’s type 1 diabetes program. Vertex will pay CRISPR £100 million up front. Then, CRISPR may earn as much as £230 million in milestone payments — and could also pocket potential product royalties.

CRISPR has other candidates in the pipeline, including an immuno-oncology one that could be next to the finish line. It’s in a phase 2 trial that may support a regulatory request. Today, CRISPR shares are trading at around their lowest in three years — a steal considering potential growth just ahead.

John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. Adria Cimino has positions in couponmatrix.uk, Tesla, and Vertex Pharmaceuticals. The Motley Fool has positions in and recommends couponmatrix.uk, CRISPR Therapeutics, Intuitive Surgical, Tesla, Vertex Pharmaceuticals, and Walt Disney. The Motley Fool recommends the following options: long January 2024 £145 calls on Walt Disney and short January 2024 £155 calls on Walt Disney.

The Motley Fool has a disclosure policy.

Tags:

hoover listed on couponmatrix.ukpetspyjamas-com listed on couponmatrix.ukponden-home-interiors listed on couponmatrix.ukthe-ticket-factory listed on couponmatrix.ukvictorian-plumbing listed on couponmatrix.ukwiggle listed on couponmatrix.uk
hoover listed on couponmatrix.ukPut your home in the trusted hands of the century-old innovators at Hoover. With an extensive collection of vacuum cleaners to suit home and areas of all sizes, pick your preferred cleaning appliance for less with our best Hoover deal at Groupon. Whether you want a cordless, upright, handheld or even a steam mop, find affordable cleaning tools for you and your humble abode with Hoover. You could even keep your air clean with an air purifier should you choose – Hoover host them too!
petspyjamas-com listed on couponmatrix.ukPetsPyjamas understand that your pet is so much more than an animal: they’re your best friend, a member of the family, someone who loves you unconditionally. Show them some of that love in return by using a PetsPyjamas discount code to treat your fur baby to all the best toys, meals, and even holidays that they deserve. Even in the PetsPyjamas HQ every day is Bring Your Pet to Work Day, so you can shop with confidence knowing your favourite PetsPyjamas products have been well tested by those who know best.
ponden-home-interiors listed on couponmatrix.ukPonden Home is a brand that offers quality home furnishings at an affordable price. They offer a wide range of products from bedding and bath items to kitchen and dining essentials. One way to save even more on their already low prices is by using a Ponden Home discount code. When shopping at Ponden Home, be sure to check for a discount code to save even more on your purchase! At Groupon, we understand that everyone likes to save money. That's why we work hard to find the best Ponden Home discounts and deals on your order. We search high and low for discount codes that can be used on their website. Whether it's a percentage off your total purchase or free shipping, we'll make sure you know about it! Plus, we'll even test the code to make sure it works before sharing it with you. So go ahead and browse our selection of Ponden Home deals - we know you'll find one that you love! If you're looking for quality home furnishings at an affordable price, then Ponden Home is the perfect place for you. One of their top-selling products is their selection of bedding. Whether you're looking for a new comforter or sheets, they have a wide range to choose from. Plus, you can often find a Ponden Home discount that will save you even more on your purchase! So don't wait any longer, head over to Ponden Home and start shopping for all your home essentials!
the-ticket-factory listed on couponmatrix.ukThe Ticket Factory have been scouting out the very best events in the UK for the past 10 years, so that you get the very best choices and prices for events around the country and beyond. With customer experience at the very core of their ideology, The Ticket Factory prioritised dedicated contact centres and finding access to the absolute top events in the UK. With a background in venue management, The Ticket Factory know both sides of the coin when it comes to ticket management, and that’s why they’re so good at helping you pinch the pennies. With specially designed technology to cover the demands of event releases, and a promise to strive to continually lower their prices below those of their competitors, The Ticket Factory have proven experienced, flexible and personable for a decade of top customer service.
victorian-plumbing listed on couponmatrix.ukWash big-spending down the drain with the beautiful range of bathrooms and accessories from Victorian Plumbing UK. From fixtures and fittings that will add sparkle to a small space to luxury bathrooms with all the bells and whistles, a Victorian Plumbing discount code from us could make all your home improvement dreams come true. With Victorian Plumbing, you can give one of the most-used rooms in your house the special attention it deserves while keeping your budget intact.
wiggle listed on couponmatrix.ukIf you like to get out amongst the world and move, Wiggle is the place for you. Providing gear for active outdoors enthusiasts, a Wiggle discount code will help you save on your cycling, running, swimming, gym or general outdoor equipment and apparel. There’s even a range of nutrition and wellness products to supplement your active way of life, so take a trip around the Wiggle range before you set off for your next adventure.