Bargain alert: 7 long-term stocks you can buy in bulk

I think it’s a good idea to buy some undervalued long-term stocks when they’re weak before they start to recover. The current market environment is pretty unforgiving for many stocks, as investors have only invested in a few technology stocks. However, as the market cycle reaches a turning point after the rate cuts, I believe many of these long-term stocks will yield huge gains.

Additionally, many of these stocks have very little downside risk because they have already experienced significant sell-offs. This makes them very attractive compared to the long-term upside potential that many of these companies have. Profitable companies with an established brand are most likely not going to disappoint you in the long run if you hold on to them through the storm.

So here are seven long-term stocks that are trading at bargain prices:

CVS Health (CVS)

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CVS Health (NYSE:CV) operates one of the largest healthcare companies in the country. The stock has fallen over 44% since its peak as the company faces significant headwinds. CVS reported disappointing first-quarter results with earnings per share of $1.31, missing estimates by 38 cents, largely due to rising Medicare Advantage costs that management failed to anticipate.

However, I believe the sharp sell-off presents an attractive long-term buying opportunity. CVS should benefit from falling interest rates, which will ease the burden on its $82 billion debt load. Management is also taking decisive action to rein in Medicare expenses. The rate cut should not be viewed as a tailwind, as interest expenses have consumed nearly a third of operating income.

In addition, the healthcare sector benefits from a strong demographic tailwind from the aging population. As one of the largest and most diverse healthcare companies, CVS is well positioned to capitalize on this increasing demand over the long term. You can rely on a 4.4% dividend yield during the recovery.

Dollar General (DG)

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Dollar-General (NYSE:DG) operates a chain of discount retail stores across the United States. I believe Dollar General is one of the best retail stocks to buy for the long term, especially given the recent share price pullback. While net sales rose a healthy 6.1% year over year to $9.9 billion, the stock was weighed down by near-term headwinds. However, I believe these are only temporary speed bumps for a company that has a long track record of consistent growth and profitability.

Looking ahead, Dollar General should benefit from some strong tailwinds. In this inflationary environment, value remains the top priority for shoppers of all income levels. Dollar General is perfectly positioned to gain market share as consumers tighten their belts. I expect the stock to rise as earnings per share recover.

The company’s popularity with price-conscious shoppers and its 1.84% dividend yield make it an attractive choice for bargain-seeking investors willing to tolerate short-term volatility. While the road ahead may be bumpy, I’m confident this profitable retail giant will rebound solidly with rising earnings in the years to come.

Estee Lauder (EL)

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Estee Lauder (NYSE:EL) is a global leader in prestige beauty. Despite headwinds from inflation and lower consumer spending on non-everyday items, I believe Estée Lauder is poised for a solid long-term recovery once the market cycle begins to turn.

In the third quarter of 2024, Estee Lauder delivered organic sales growth of 6%, exceeding profitability expectations and significantly improving working capital. The company is confident that the second half of fiscal 2024 will prove to be an inflection point for sales and earnings growth.

As a consumer goods company, Estee Lauder is undoubtedly cyclical. However, with the stock down nearly 69% from its 2021 price and revenue growth remaining in positive territory, I think now is an attractive opportunity to buy shares at the bottom. Estee Lauder’s earnings recovery plan will deliver $1.1 billion to $1.4 billion in additional operating profit in fiscal 2025 and 2026. I think this positions the company well to accelerate sustainable growth.

DoubleVerify (DV)

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Double check (NYSE:DV) is a software platform for digital media measurement and analytics. Although the stock has fallen nearly 48% year-to-date as a result of the guidance cut, I believe the market overreacted. In the first quarter, DoubleVerify still managed to increase revenue 15% year-over-year to $141 million, beating analyst estimates.

Although net income declined, management still expects full-year revenue growth of 17% in the middle of the revised range of $663 million to $675 million. While that’s much lower than analyst estimates, I think that’s been more than priced in by the stock’s correction.

Despite the turbulence in the near future, DoubleVerify appears well-positioned to benefit from the inexorable shift in ad spend to digital video formats like social media and CTV. With social video ad spend expected to grow 20% this year and 81% of DoubleVerify’s social measurement volumes coming from video in Q1, the company’s AI-powered solutions are well-positioned to succeed. In my opinion, the recent valuation discount for DV is far too harsh.

Prologis (PLD)

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Prologis (NYSE:PLD) is a real estate investment trust that invests in logistics assets. Although real estate companies have faced strong headwinds recently, I believe that Prologis remains a cheap stock to buy in droves over the long term.

Clients are focused on cost control and net absorption was below average in the first quarter, but management expects limited new supply in late 2024 and into 2025. Prologis delivered strong net effective rent growth of 68% based on housing starts, and its existing leases have a strong mark-to-market rate of 50%, representing over $2.2 billion in incremental rent potential. Occupancy also remains strong at 97% and same-property revenue has increased strongly.

Additionally, I’m not too worried about a real estate crash, as demand for logistics real estate should continue to rise due to onshoring trends. Real estate prices have also remained relatively low compared to other assets. Given a solid 3.5% dividend yield, I think the recent decline presents an attractive entry point for this high-quality REIT.

Alibaba (BABA)

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Alibaba (NYSE:BABA) operates China’s largest e-commerce platforms and cloud computing businesses. Although the stock has disappointed many in the post-pandemic era amid a sluggish Chinese market, I believe Alibaba could offer tremendous upside from here. The Taobao and Tmall group delivered double-digit GMV growth this quarter, and Alibaba International Digital Commerce revenue rose 45%.

The most promising segment is the cloud segment, where revenues grew by double digits and AI revenues jumped by triple digits year-on-year. As China loosens its monetary policy and Alibaba lowers cloud prices, Chinese companies are likely to favor domestic cloud leaders over Western providers. Therefore, I think Alibaba’s growth will pick up again.

It’s a long-term bet, but one with tremendous potential if these tailwinds materialize. The stock may have a murky reputation right now, but there could be bright skies on the horizon. I’m cautiously optimistic that this e-commerce and cloud giant can turn things around.

Lululemon (LULU)

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Lululemon Athletica (NASDAQ:LULU) designs and sells clothing and accessories for an active lifestyle. The recent downturn in the consumer goods sector has undoubtedly impacted Lululemon stock. LULU stock is down nearly 39% year-to-date. However, I believe this makes it one of the best long-term stocks to buy right now.

The company delivered 10% revenue growth (11% at constant currency), driven by continued strong momentum in international markets such as China (+52%) and the broader Rest of World segment (+30%). And while North America saw more modest growth of 4%, I’m encouraged that Canada still delivered solid 12% gains. Same-store sales have also been above double digits in recent years. After the 2021-2022 boom, this trend has of course slowed but remains solid. On the other hand, sales per store have been steadily increasing.

Looking ahead, I expect Lululemon’s reachable market to drive renewed growth acceleration as discretionary pressures eventually ease. With analysts forecasting 10-11% annual revenue growth and 10-15% EPS growth per year going forward, I believe the recent sell-off represents an attractive entry point for long-term investors.

At the time of publication, Omor Ibne Ehsan did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the author and are subject to InvestorPlace.com’s disclosure policies.