Have $500? 3 Absurdly Cheap Stocks Long-Term Investors Should Buy Right

Investors cannot deny that many high-profile stocks, and the market in general, are again on the rise. Amid stock gains, several companies have made plans to launch IPOs, and indexes such as the S&P 500 (^GSPC -0.33%) and Nasdaq Composite (^IXIC -0.22%) have recently closed at record highs.

Fortunately for investors, this does not mean that bargains are unavailable. Some stocks have fallen to absurdly cheap prices, and even with a $500 investing budget, the following three stocks offer such opportunities.

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1. Alphabet

Despite leading the way with artificial intelligence (AI) in previous years, it may initially surprise investors that Alphabet (GOOGL 1.46%) (GOOG 1.47%) has become unexpectedly affordable.

OpenAI’s ChatGPT appeared to catch the company off guard, as the AI chatbot became the first serious competitive threat in decades to Google Search. Moreover, AI-driven searches direct users to websites less frequently, potentially compromising the ad-driven business model that has made Google a tech powerhouse.

However, Alphabet has long planned for the day when ads are a less critical revenue source, and the percentage of company revenue coming from advertising fell to 74% in the first quarter of 2025.

The Google parent owns numerous tech-related businesses outside the ad realm. One of them, Google Cloud, now makes up 14% of the company’s revenue. Additionally, Waymo, valued at $45 billion by a recent fundraising round, could become a more significant revenue source once autonomous driving becomes more prevalent.

Furthermore, Alphabet holds a staggering $95 billion in liquidity and generated an additional $75 billion in free cash flow over the trailing 12 months, giving the company a unique ability to create or acquire the innovations it needs to prosper. When also factoring in its 20 P/E ratio, the worries about ad revenue give investors an opportunity to buy this tech juggernaut at an unusually reasonable price.

2. Constellation Brands

Alcohol giant Constellation Brands (STZ 0.09%) has dealt with significant headwinds, particularly in 2025. Its partnership with Grupo Modelo enables it to distribute America’s No. 1 beer, Modelo, in the U.S.

Unfortunately, since 84% of the company’s revenue came from beer in fiscal 2025, rising tariffs could make beers like Modelo and Corona less competitive. Moreover, Gen Z drinks considerably less beer than older generations, indicating that competition from products like cannabis could lower demand for its beverages.

However, the company has drawn recent interest from Warren Buffett’s Berkshire Hathaway, whose largest stock purchase in the first quarter of 2025 was shares of Constellation. Additionally, Constellation’s annual dividend of $4.08 per share has risen for 10 straight years. It also offers a dividend yield of 2.5%, which is approximately double the S&P 500 average.

Furthermore, although revenue is expected to fall 7% in fiscal 2026…