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:

kurt-geiger listed on couponmatrix.ukparisian-fashion listed on couponmatrix.uksweatband listed on couponmatrix.ukthe-view-from-the-shard listed on couponmatrix.uktiffany-rose listed on couponmatrix.uktoucanbox listed on couponmatrix.uk
kurt-geiger listed on couponmatrix.ukAttracting curious eyes from America through to Asia, Kurt Geiger’s fashion styles reach an audience as diverse as the shoes they design. Hosting beautiful seasonal footwear and accessories to embolden folks from all walks of life, be sure to use a Kurt Geiger discount code to strut your stuff for a fraction of the price. With an eye to promote kindness and charitable causes across the globe, Kurt Geiger is the benevolent brand that deserves to showcase on every shoe rack.
parisian-fashion listed on couponmatrix.ukParisian Fashion is one of the most popular women fashion brands. They are known for their high quality clothes and accessories. From stylish summer dresses to beautiful co-ord sets, you’re guaranteed to find something for everyone! If you're looking to save on your next purchase, be sure to use a Parisian Fashion discount code. With these codes, you can get a great deal on your favourite items. So don't wait any longer, start shopping today and save! At Groupon, we work hard to find the best Parisian Fashion discount codes. Staying on top of latest fashion trends can be expensive, that’s why we scour the internet for codes that will help you save money on your purchase. So you can be sure that you're getting the best deal possible. And we'll update this page regularly so you can always find the latest codes. So check back often and save! One of our top-performing Parisian Fashion products is the co-ord sets. These sets are stylish and chic, and they come in a variety of colours and styles. They are perfect for any occasion, so make sure you check them out! And with a Parisian Fashion discount, you can get them for a great price! So don't wait any longer, head over to our website and check out the co-ord sets and more today.
sweatband listed on couponmatrix.ukWelcome to Sweatband, the fitness and sports superstore to drive your goals. Here, you’ll find everything from gym equipment to sportswear and clothing. Providing the highest quality cutting edge equipment, clothing and training aids and all for an affordable price, Sweatband can take your ambitions to the next level. With the Sweatband voucher code you can enjoy the highest quality sportswear for less. Whether you’re a keen tennis, rugby, or football player, love going running, hitting the gym or driving your fitness goals in a thousand ways, Sweatband is the superstore for you.
the-view-from-the-shard listed on couponmatrix.ukRenzo Piano’s Shard skyscraper is the EU’s tallest building, and affords the ultimate panoramic views over the UK capital. Views of up to forty miles in every direction, multiple indoor and outdoor observation decks, interactive telescopes and optional champagne upgrades make The Shard vouchers unbeatable value for money, giving you a thrilling ascent that serves as the perfect accompaniment to the wealth of cultural treasures on offer in nearby central London.
tiffany-rose listed on couponmatrix.ukTiffany Rose helps bring out the beautiful in every curved belly through an array of elegant maternity dresses for both everyday wear and special occasions. Whether you want something comfy and convenient for nursing or are seeking a jaw-dropping maternity wedding gown to wear down the aisle, a Tiffany Rose discount code can ensure you compliment your curve at a fraction of the cost. You’ve got plenty on your plate growing another human being, so let Tiffany Rose look after your looks in the meantime. Should you have friends or family going through their own pregnancy journey, you can help them look as good as they deserve by buying them a Tiffany Rose gift voucher. Delivered instantly via email and capable of being topped up with any custom value you can afford, a gift voucher is an ideal way to help widen a pregnant woman’s wardrobe on a budget. What’s more, you don’t need to use up the full balance when redeeming the voucher, meaning it can be applied to consecutive shops. There’s little more important than feeling beautiful on your own wedding day, especially when there’s a third family member heading down the aisle with you. Accentuating your baby bump in the best way possible, you can use Tiffany Rose vouchers to bag a wonderful Tiffany Rose wedding dress of your own at a bargain price. With both full and knee-length designs to pick between, you’re free to opt for whichever wedding dress styles vibes best with you and your plus one.
toucanbox listed on couponmatrix.ukWelcome to Toucanbox, a monthly subscription service for kids ages 3-8 that delivers boxes of fun, creative projects right to your door. Bring along a Toucanbox discount code and you get off to a great start by saving on your first delivery! Each box includes all the materials and instructions needed to complete two or three unique projects, perfect for rainy days or after-school activities. There’s even a magazine in every box packed with stories, puzzles and activities to add an extra element of fun!