Have $500? Here are 3 incredibly affordable stocks long-term investors should consider buying now.
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The evolving landscape of Google’s parent company, Alphabet, is leading to some surprisingly low ratings for the stock.
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Berkshire Hathaway, under Warren Buffett’s direction, is eyeing Constellation Brands, which might signal caution for investors.
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Currently, the target company is providing a solid stream of revenue, all while maintaining very low prices and returns.
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Many investors are noticing that, despite the overall market recovering well, there are still significant deals to be found. Some stocks have plummeted to very low prices, and even with a modest investment of $500, there are intriguing opportunities ahead:
Interestingly, Alphabet, which has been leading in the artificial intelligence space, might seem unexpectedly accessible to investors at the moment. The rise of AI chatbots, notably OpenAI’s ChatGPT, has presented a serious challenge to Google Search, which could affect its ad-driven revenue model. As users get directed to other sites, it raises concerns about how Google sustains its business.
However, Alphabet has been preparing for a time when ad revenue becomes less crucial, with projections for that revenue reducing to 74% by Q1 of 2025. Alphabet also owns several high-tech subsidiaries, like Google Cloud, which currently constitutes about 14% of its earnings. Waymo, valued at around $45 billion after recent funding, might soon serve as a substantial revenue source as autonomous driving technology advances.
On top of this, Alphabet boasts a robust liquidity of $95 billion, with an additional $75 billion in free cash flow over the past year, allowing for innovation and growth opportunities. With a low price-to-earnings ratio, this situation may provide a unique chance for investors to consider this tech giant at a reasonable cost.
As for Constellation Brands, this alcohol company is facing notable challenges in 2025. Their partnership with Grupo Modelo is expected to enhance distribution of the leading beer brand, Modelo, in the U.S.
However, rising tariffs might impact beer competitiveness, especially since a significant portion of their revenue comes from beer sales, and shifting drinking habits among younger generations might further complicate demand.
Warren Buffett’s Berkshire Hathaway has recently shown interest in Constellation, making it their largest stock acquisition in Q1 of 2025. Constellation has consistently raised its annual dividend, currently at $4.08 per share, presenting a dividend yield that’s about twice the S&P 500 average. Though revenue is projected to decline by 7% in FY 2026, analysts foresee a rebound in revenue growth in the subsequent year.
Notably, Buffett’s team seems to be focusing on the stock’s potential value, signaled by a forward P/E ratio of 14, which, coupled with its dividend, might merit investor attention.
Target has faced struggles in recent years amid economic uncertainties. As a higher-end discount retailer, its offerings aren’t as appealing in the current climate. The retailer has also seen increased inventory costs while trying to navigate political challenges with customer sentiment.
Nonetheless, Target has a footprint of roughly 2,000 stores across the U.S., meaning that a large segment of the population lives within close proximity. Its dividend payouts of $4.56 per share yield about 4.5%, suggesting some security for investors despite these challenges. The company’s long-standing streak of dividend increases is likely to continue to avoid reputational harm.
At the moment, concerns are intense enough that Target’s stock is trading at just 12 times revenues, a stark contrast to Walmart’s much higher P/E ratio. This could indicate a buying opportunity for those looking at growth and income stocks at considerable discounts.
It’s essential to weigh these factors carefully before deciding on an investment in Alphabet.
The Motley Fool’s analysis team has identified ten stocks they believe are timely purchases, with Alphabet notably absent from the list, suggesting potentially higher returns on those alternatives.
Bear in mind; the stock market has historically favored certain stocks to deliver impressive returns. For example, an investment of $1,000 in Netflix when recommended could have turned into over $671,000 today. Likewise, an early investment in Nvidia would have yielded over a million dollars today.
The average return from the Stock Advisor program has outstripped market expectations, so investors might want to check out their current recommendations.
*Note: These returns are as of July 7, 2025.
Suzanne Frey, an executive at Alphabet, sits on the board of the Motley Fool. There are financial ties with Berkshire Hathaway and Target, and the Motley Fool has positions in Alphabet and Constellation Brands as well. For further details, please refer to the Motley Fool’s disclosure policy.
If you have $500, consider looking into three attractive yet undervalued stocks currently recommended for long-term investment.
