Investing $500 at this moment, long-term investors may find these three remarkably affordable stocks appealing:
In the wake of the presidential election and the market's unprecedented surge, finding budget-friendly investments isn't a walk in the park. But, fret not, there are hidden gems waiting to be discovered.
Let's take a peek at three undervalued stocks that investors can grab their hands on right now.
Sirius XM
Subsidiary of Sirius XM Holdings (SIRI -1.32%), synonymous with satellite radio and Pandora streaming, as well as a bustling podcast network, has recently gained its independence post a transaction with Liberty Media.
The company stands to reap benefits from several fronts. Firstly, it allows users to customize plans starting at $9.99 a month, with add-ons like sports or talk available at an extra cost. This moveaway from discounted pricing is expected to attract more users.
Secondly, it is looking to tie up with automotive manufacturers, with Toyota Motor joining its roster. Currently, it has nine OEMs.
Lastly, a significant reduction in satellite-related capital expenditures is on the horizon, with the figure soon dipping to near zero in 2028. This, coupled with a reduction in annual costs by $200 million, should bolster the company's free cash flow and help it decrease its debts.
Trading at a modest forward price-to-earnings ratio of about 8.6 based on 2025 analyst estimates and an enterprise value-to-EBITDA ratio of approximately 7.2 as of now, Sirius XM's stock is a tempting buy.
Despite a slight dip in its advertising market, impacting its Pandora and podcast businesses, Sirius XM remains a stable business with a solid cash flow. With the Liberty Media phase behind it, the company is expected to deliver better value to its shareholders in the future.
A low valuation along with promising deleveraging opportunities makes the stock an attractive investment.
Geo Group
An election winner, Geo Group (GEO -0.72%) continues to be an attractive buy, trading at a forward price-to-earnings ratio of less than 16 based on 2025 estimates and a forward enterprise value-to-EBITDA ratio of 11.
Known for its private prison services, Geo Group's biggest opportunity lies in the Intensive Supervision Appearance Program (ISAP), where they monitor immigrants within the program electronically.
While participation in the program has dipped due to budget constraints, there have been proposals in the past to significantly expand it. Under the current political climate, there's a strong possibility of more funding being allocated towards immigration.
The House appropriation bills proposed an increase in detention center beds by 20%, from 41,500 to 50,000. More importantly, they suggested using electronic GPS monitoring for all non-detained individuals, potentially benefitting Geo Group, which currently monitors a limited percentage of them.
Despite the surge in Geo Group's stock price, it continues to offer substantial growth potential.
e.l.f. Beauty
E.l.f. Beauty (ELF -3.84%) has been one of the success stories in the consumer products sector, with the cosmetics company witnessing a meteoric rise in market share in the mass color cosmetics space over the past few years. Last quarter marked the 23rd consecutive quarter of market share gain for the company.
Drawing inspiration from fashion retailers like Zara, the company follows a fast-follower strategy, swiftly replicating popular prestige products. Its partnership with influential personalities on social media has made it a favorite among millennials and Gen Z.
Despite its impressive growth, the stock is still affordably priced, trading at a forward price-to-earnings ratio of 31 and a PEG ratio of 0.6. PEG ratios below 1 are generally seen as inexpensive, particularly for growth stocks.
With its strong international expansion still in its infancy and its foray into skincare products, e.l.f. has a plethora of growth opportunities ahead. Consequently, this is an excellent, budget-friendly growth stock to invest in.
The text suggests that Sirius XM (SIRI -1.32%) is a budget-friendly investment opportunity due to its modest forward price-to-earnings ratio and enterprise value-to-EBITDA ratio. It mentions the company's potential growth from customizable plans, partnerships with automotive manufacturers, and cost reductions, making its stock tempting to buy.
Regarding Geo Group (GEO -0.72%), despite a surge in its stock price, it continues to offer substantial growth potential due to the opportunity in the Intensive Supervision Appearance Program and the possibility of more funding being allocated towards immigration under the current political climate.
In the context of finance and investing, 'budget-friendly' refers to investment options that are relatively inexpensive but still offer potential for growth. This concept is emphasized in the discussion of Sirius XM and Geo Group as attractive investment opportunities for those looking for budget-friendly investments.
