3 Dirt Cheap Stocks to Buy With $1,000 Right Now

Just a few months ago, the S&P 500 bull market entered its third year -- and the famous benchmark ended the latest calendar year with a 16% gain. All of this is fantastic, but one negative point is that this momentum has pushed stocks' valuations higher -- and this means many stocks are looking expensive these days.

Concern even emerged late last year about the possible formation of an AI bubble. That hasn't happened so far, but investors still remain vigilant regarding the path of valuations. In this context, you may assume that growth stocks are too expensive to add to your portfolio right now.

But I have some good news: With $1,000 or even a bit less, you can get in on all three of the following dirt cheap growth players. Let's check them out.

Image source: Getty Images.

1. Meta Platforms

Meta Platforms (NASDAQ: META) is one of the Magnificent Seven tech stocks that have helped push the overall market higher in recent years. The company's main business is social media, as it owns some of the world's most-loved apps, from Facebook and Messenger to Instagram and WhatsApp. Meta brings in billions of dollars in revenue -- and that's translated into billion-dollar profit -- thanks to advertising across these platforms.

On top of this, Meta has identified artificial intelligence (AI) as a key growth area for its business and is going all in. The company is developing AI -- even its own large language model, Llama -- to supercharge the advertising experience and the results of campaigns. This could offer a significant boost to Meta's revenue over time, and the AI research and development also may lead to other products and services.

All of this makes Meta look dirt cheap right now at 20x forward earnings estimates.

2. Chewy

Chewy (NYSE: CHWY) stock has stumbled over the past year, falling about 8%, but this dip represents an opportunity for the savvy investor. This is because Chewy has built a solid track record of revenue and earnings growth in recent years -- and has even expanded its revenue source.

The company's main business is e-commerce, selling pet supplies, pet food, and more. What I like most about Chewy is that it's built loyalty among customers, as we can see through its Autoship business. With this service, your favorite products are automatically sent to you on a schedule that you determine. Autoship sales represent more than 80% of the company's overall sales -- and that offers investors an idea of revenue ahead.

Over the past two years, Chewy has added to its revenue opportunities by opening Chewy vet clinics -- a move that also may introduce a new population to its e-commerce business. Trading for 26x forward earnings estimates, down from 36x a year ago, Chewy is a bargain buy today.

3. Carnival

Carnival (NYSE: CCL) (NYSE: CUK) faced tough times during early pandemic days as the health crisis put a temporary stop to cruising. This resulted in an annual loss and swelling debt. But the company has fought back over the past few years and generated fantastic results.

The world's biggest cruise operator has made moves to increase efficiency, decrease fuel usage, and boost onboard spending -- and these and other efforts have driven record levels of revenue and a return to profitability. For the year that recently closed, Carnival reported a record level of revenue at more than $26 billion. And Carnival has shown that travelers love its cruises as advance bookings have reached records even at historically high price levels.

Finally, Carnival recently reached a major milestone, returning to an investment grade credit rating at Fitch Ratings.

Today, trading at about 11x forward earnings estimates, down from more than 16x back in 2024, Carnival looks dirt cheap -- making now a great time to get in on this top travel stock.

Adria Cimino has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Chewy and Meta Platforms. The Motley Fool recommends Carnival Corp. The Motley Fool has a disclosure policy.