It’s Almost Time to go Bargain Hunting!
I know Black Friday is over for the year but on Wall Street, there are plenty of bargains to be had. It’s been an awful year for investors, trust me, my own portfolio is down just as bad as yours. But remember: millionaires are made in bear markets. For years we prayed for low prices in our favourite stocks, and now that they are here, nobody wants to buy them! Well, I’m here to say that the time for bargain bin shopping is here!
These aren’t just speculative stocks to add because they have sold off for most of the year. These are high-quality companies that have proven track records of success and profitability. While things might seem a little dicey now, these stocks should rebound when the next bull market returns. Here are two of the best companies in the world that haven’t traded this cheaply in years.
Tesla (NASDAQ: TSLA)
Hey, remember when Tesla was a trillion-dollar company? Well, its market cap has been cut in half and as of the time of this writing, the company is worth about $550 billion. What happened? The usual fears that have plagued Tesla over the years: more competition from rivals, a less fragmented EV industry, and technology that is catching up. Does all of that justify a company’s value being cut in half? I believe a lot of this has to do with CEO Elon Musk’s obsession with his shiny new toy, Twitter. The buzz around Tesla has been so loud that some believe Musk is preparing to step down from the company. Personally, I am looking at a stock that is now trading at a forward-looking PE ratio of just 31 and a price-to-sales ratio of just 7.99. Remember those inflated price multiples that Tesla bears used to yell about? Those numbers are coming down to Earth in a major way. Once Musk begins to focus on Tesla again, you’ll wish you had bought some shares at these multi-year lows.
Meta Platforms (NASDAQ: META)
Yeah, I know, everyone hates Facebook. You can hate a company and also realize that the stock is a good investment. Both things are possible and as an investor, you should be taking an objective look at a company. The thing is, Meta is a cash-generating machine. Things are bad now because companies are openly not spending on advertising which is Meta’s largest revenue stream. At the same time, the company continues to pour billions of dollars into the Metaverse. Now Mark Zuckerberg could be dead wrong about the Metaverse being a trillion-dollar industry one day. But he could also be partly right and if he is even half right about the potential of the Metaverse, shareholders will be a very happy group of people. Remember, Zuckerberg doesn’t have to get everything right about the Metaverse, he only has to not be completely wrong. Trading at a forward PE Ratio of just 14 and a price-to-sales ratio of just 2.6, Meta’s stock will skyrocket when ad revenues return to normal levels.
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