With the market rising after the presidential election and the S&P500 trading near all-time highs, finding bargains in the market isn’t the easiest task. However, that doesn’t mean they aren’t there.
Let’s take a look at three great stocks that investors can buy right now.
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Sirius XM Holdings (NASDAQ: SIRI) owns the eponymous satellite radio service, the Pandora streaming music app and a podcast network. Recently it became a fully independent company after a transaction with Freedom Media.
The company has a number of opportunities ahead of it. This includes allowing users to build a plan starting at $9.99 per month and only add extras like exercise or talk if they want. It said this will help it do away with discount pricing and attract more users.
The company also wants to enter into new car partnerships to acquire customers. It has just been added Toyota engine added to the roster and now has nine Original Equipment Manufacturers (OEMs).
The company also expects to see a big decline in satellite-related capital expenditure (capex) after this year, falling to near zero by 2028. Together with a $200 million reduction in annual costs, this should help strengthen free cash flow and help the company reduce leverage.
Trading at a price-to-earnings (P/E) ratio of around 8.6 based on 2025 analyst estimates and an enterprise value (EV)/EBITDA ratio of around 7.2 at the time of writing, Sirius shares XM attractively valued.
While the company is seeing some weakness in the advertising market impacting its Pandora and podcast businesses, it is a fairly stable business that generates solid cash flow. Now that the Liberty Media transition is behind us, the company should become more focused so that it can deliver solid value to its shareholders going forward.
A cheap valuation combined with deleveraging opportunities makes the stock a buy.
One of the biggest winners of the recent elections, Geo group (NYSE: GEO) is still very attractively valued given the opportunity, trading at a forward price-to-earnings ratio of less than 16, based on 2025 estimates, and a forward EV/EBITDA of 11.
Geo Group is known as a private prison company and one of its biggest opportunities is in the Intensive Supervision Appearance Program (ISAP), where it provides electronic monitoring of immigrants within the program.
ISAP has been a headwind for the company; participation in the program has declined due to the lack of a government budget. However, there have been bills in the past to significantly expand the program. Under the Trump administration and with Republicans seeking control of the House of Representatives and the Senate at the time of this writing, more money is expected to go to immigration.
The House of Representatives’ previous appropriations bills called for a 20% increase in the number of beds in detention centers, from 41,500 to 50,000. More importantly for Geo Group, however, was a provision to use electronic GPS monitoring for all individuals in the non-detainee role. That is estimated at 7 million people, which would be a huge gain for Geo Group, which currently monitors only a small percentage of these individuals.
Despite Geo Group’s price increase, it appears that the stock has a lot of upside potential.
Elven beauty (NYSE: ELF) has been one of the best growth stories in the consumer products industry, with the cosmetics company capturing a huge market share in mass color cosmetics in recent years. In fact, the past quarter was the 23rd quarter in a row in which it has gained market share.
The company has inspired the fashion industry and retailers like Zara to adopt a fast-follower strategy where it quickly replicates popular prestige products. This, combined with an innovative marketing strategy using influencers, has led to it becoming one of the top brands among teens and young adults.
Despite strong growth, the stock only trades at a price-to-earnings ratio of 31 and a price-to-earnings-growth ratio (PEG ratio) of just 0.6. PEGs below 1 are generally considered cheap, especially for growth stocks.
With strong international expansion still in its infancy and expansion into skin care, elf still has a lot of growth ahead. As such, this is a great, cheap growth stock to buy.
Before you buy shares in Sirius XM, consider the following:
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Geoffrey Seiler has positions in Geo Group and elf Beauty. The Motley Fool holds and recommends positions in Eleven Beauty. The Motley Fool has a disclosure policy.
Do you have $500? 3 Absurdly Cheap Stocks Long-Term Investors Should Buy Now was originally published by The Motley Fool
