- Investing Wise Academy
- Posts
- Bargain Stocks: Profit in Market Chaos
Bargain Stocks: Profit in Market Chaos
Undervalued Stocks with Long-Term Growth Potential for Smart Investors in 2025
The 2025 market meltdown is rattling cages—trade wars flare, economies wobble, and headlines scream doom—but for the bold, it’s a jackpot waiting to be claimed. Tucked amid the wreckage are four screaming buys: $LVMH ( 0.0% ) (LVMUY), Alibaba $BABA ( ▲ 0.43% ), Airbnb $ABNB ( ▲ 1.78% ), and Carnival $CCL ( ▼ 0.8% ). These aren’t fleeting tech fads; they’re undervalued titans in luxury, e-commerce, and travel, primed to soar when the storm clears. LVMH’s elite edge, Alibaba’s staying power, Airbnb’s travel boom, and Carnival’s high-seas revival make them chaos-proof cash machines. Ready to turn panic into profit? Here’s why these tickers could redefine your wealth in a crumbling market.
Today’s episode - Opportunities💼
Please support our sponsor. They provide valuable information for you and me.
If you enjoy this newsletter, please consider sharing it with your friends and business contacts by clicking the button below. ⬇️
How would you rate today's newsletter?If you vote 1 or 3 stars, please comment with what you didn't like so we can improve it. |
🌟 Don't Miss Out on Future Gains! 🌟
🚀 Unlock the Secrets to Effortless Investing with Our Smart Portfolios 🚀
For a limited time, grab our "Fast Track to Build a Winning Portfolio Blueprint" at a 50% discount!
Here's what's waiting for you:
📈 Step-by-Step Guide: Start Investing in Minutes with Our Chosen Online Broker
🔍 Expert Insights: Uncover the Strategies Behind Our Recommended Smart Portfolios
💼 Easy Diversification: Gain Exposure to a Wide Range of Assets with Just a Few Clicks
💰 Long-Term Growth Potential: Build a Portfolio for Consistent Returns Over Time.
Start Building Your Winning Portfolio Today! 🌟
Today, you can get the list of stocks from Cyber Tech Portfolio for FREE! ⬇️
💸 Paying the bills
Our newsletter is powered by beehiiv, which partners with trustworthy and high-quality advertisers. When you click, not only do you have the opportunity to benefit from the ads, but you also help support our efforts to improve our newsletter for you as our readers or listeners.
Please support our partners.
Refind - Brain food is delivered daily. Every day we analyze thousands of articles and send you only the best, tailored to your interests. Loved by 510,562 curious minds. Subscribe. |  |
📈Bargain Stocks in the Midst of Market Chaos: Smart Picks for Long-Term Investors
As the stock market continues its bumpy ride, savvy investors know that amid the turbulence, there’s always a pocket of opportunity. Recent volatility has created the perfect environment to pick up underpriced stocks that hold long-term potential. While it’s easy to get swept up in the chaos of big tech or fintech stocks, today we’ll focus on some unexpected picks across different industries—companies that are undervalued, ripe for recovery, and primed for long-term growth.
If you’re looking for fresh investment options beyond the usual suspects, this could be your chance to gain an edge. These picks aren’t just about short-term profits—they’re about solid companies that are making strategic moves to thrive even in uncertain times. Let’s dive into four compelling stocks that are currently undervalued and offer strong growth prospects for those who are in it for the long haul.
1. LVMH: A Luxury Giant on Sale
LVMH Moët Hennessy Louis Vuitton is a brand synonymous with luxury, and it’s one of the biggest names in the European market, boasting a market cap of 264.6 billion euros. While its stock has experienced a significant dip of about 41% from its peak over the past three years and is down 17% year-to-date, this price drop presents a unique buying opportunity.
With a trailing P/E ratio of 21.1 and a forward P/E ratio of 19.4, LVMH is now trading at a more reasonable valuation compared to its previous highs. The company’s growth projections show a 5.5% revenue increase and a 10.6% earnings-per-share growth over the next two years. Although the company’s exposure to the Chinese market and the potential impact of tariffs remain risks, LVMH’s diversified portfolio of luxury goods—ranging from wines and cosmetics to watches and fashion—offers resilience in tough times. Despite a softening of growth in certain sectors, fashion and leather goods remain top performers.
LVMH’s global market presence provides a cushion, with Asia (ex-Japan) accounting for a significant chunk of revenue, and strong growth in markets like Japan further bolstering its position. The upcoming years should see a rebound in free cash flow, with expectations for an 8.1% growth in fiscal 2026 and an 11.2% increase by 2027. For those looking for a premium business at a discount, LVMH could be a smart long-term play.
2. Alibaba: A Resilient E-Commerce Powerhouse
Alibaba has long been considered a stock with massive growth potential, and even with its year-to-date 36% increase, it remains undervalued, trading with a forward P/E of just 11.8—well below its historical average of 20. Despite concerns over China’s economic slowdown and the looming threat of tariffs, Alibaba’s position in the e-commerce world makes it a compelling pick for investors.
China’s domestic market remains Alibaba’s biggest revenue driver, particularly through Taobao and Tmall. This massive base of over a billion consumers remains largely unaffected by U.S. tariffs, which are targeting international segments like AliExpress and Trendyol. While there’s some flattening of growth in the core Chinese business, Alibaba’s investments in cloud computing and AI technologies are poised to drive future revenue streams. The company’s free cash flow is expected to dip in fiscal 2025, but analysts project a robust 30% surge in 2027, as its diversification pays off.
With a gross profit margin down from 63% in 2017 to 37.7% now, the dip is partly due to heavy reinvestment into cloud services and AI. But with a market cap hovering around $264-265 billion, Alibaba still offers a unique chance for investors to buy into a growth stock at a fraction of its true value.
3. Airbnb: A Pandemic Recovery Play with Strong Growth Prospects
Airbnb’s debut on the stock market was met with plenty of hype, but the stock has since fallen 26% since its IPO and is 19% down year-to-date. Yet, this is an opportunity for investors who are looking beyond the short-term fluctuations. With a market cap of $66.2 billion, Airbnb is well-positioned to continue benefiting from the ongoing global travel recovery.
Although its growth has slowed since the post-pandemic boom, Airbnb remains a profitable business with a strong free cash flow margin of 40.7%. Revenue and EPS are expected to grow 10% over the next two years, and with the introduction of new ventures like AI concierge services and possible expansions in rewards and advertising, Airbnb is set to expand its revenue streams. North America, EMEA, and Asia-Pacific have shown continued growth in bookings, and even though some markets are seeing slower recovery, the Latin American region is seeing significant growth.
With a gross profit margin of 83.1%, this company has proven its ability to generate cash, and at $100 per share, it’s a steal compared to its earlier peak of $150. For investors willing to look past short-term fluctuations, Airbnb offers a chance to invest in a tech-driven business that’s well on its way to regaining momentum.
4. Carnival: The Cruise Line That’s Undervalued and Poised for Recovery
Carnival Corporation, a leader in the cruise industry, has been severely impacted by the pandemic, with its stock down 34% year-to-date. Despite these challenges, Carnival’s business is rebounding and could provide excellent long-term growth for patient investors. With a market cap of just $22 billion and a forward P/E ratio of 8.6, Carnival is currently one of the most undervalued companies in the travel sector.
Carnival’s bookings are at record highs, with occupancy surpassing 103% for two consecutive quarters. Its mix of revenue from ticket sales and onboard spending gives it a diversified business model, although it remains exposed to potential tightening of consumer wallets. However, the company’s free cash flow margin is expected to grow 78.6% in fiscal 2025, a massive rebound from its pandemic lows. Carnival is also set to expand its fleet, which should drive future revenues.
Though debt remains a concern, especially following the pandemic’s financial impact, Carnival’s debt load is manageable, and its recovery from the pandemic is already apparent. This could be a prime opportunity for investors to buy into a recovering company with solid long-term prospects.
Navigating the Stock Market Chaos
The current market turbulence has created significant volatility, but it also provides opportunities for investors who are willing to stay calm and focus on the long-term. The stocks mentioned here—LVMH, Alibaba, Airbnb, and Carnival—offer unique growth potential that goes beyond the usual high-flying tech names. While trade wars and economic uncertainty could impact these companies in the short term, they each have the resilience and strategic plans to come out ahead in the years to come.
For investors who are overwhelmed or unsure, the key is to avoid knee-jerk reactions. Market volatility will always be a part of the game, but with patience and careful selection, it’s possible to capitalize on opportunities that others might overlook. Stay focused on the long-term fundamentals and don’t get swayed by short-term panic.
As the stock market continues to evolve, the most successful investors will be those who can find the value amid the chaos. Whether you’re drawn to luxury goods, e-commerce, or travel, these picks offer a diversified approach that could help navigate the current uncertainty.
Final Thoughts: Why Patience Pays Off
The market may be on a rollercoaster ride, but that doesn’t mean you have to sit it out. In fact, now is the perfect time to look for stocks that have long-term potential. While short-term volatility is a reality, patient investors who focus on the fundamentals can often reap the rewards when the dust settles. So, for those looking to make smart moves in this uncertain environment, these under-the-radar stocks are well worth keeping an eye on.
Want More Investing Tips?
We’re here to guide you through every step of your investing journey!
We can also help you BUILD a WINNING PORTFOLIO in just 10 MINUTES! We will provide a step-by-step guide to effortless investing in the stock market on autopilot. Copy the portfolio and grow your wealth. Get our FREE Portfolio by joining our newsletter. You can also get regular updates, tips, and exclusive content on making the most of your investments and building lasting wealth!
Subscribe Now to Receive More Investing Tips!
Thank you for reading, and remember: Investing today is the key to your financial freedom today and tomorrow. Let’s build wealth one step at a time! 🚀
Are you new here?
Reply