Have $500? 2 Absurdly Cheap Stocks Long-Term Investors Should Buy Now

Group 1: Market Overview - The S&P 500 is expected to finish its second consecutive year with gains exceeding 20%, indicating that many popular stocks are trading near all-time highs [1] - There are investment opportunities available outside of the favored tech and AI sectors, with some stocks appearing unusually cheap by historical standards [2] Group 2: Retail Sector Performance - Retailers have experienced a mixed start to the holiday season, with cautious consumer spending patterns; while Walmart shows strong customer traffic, competitors like Target are struggling [3] - Lululemon Athletica reported a 9% sales increase for Q3, with management raising its full-year outlook and a gross profit margin improvement to 59% from 58% year-over-year [4] - Lululemon's net income for the quarter surpassed $1 billion, up from $881 million in the previous year [4] Group 3: Lululemon's Growth and Challenges - Lululemon's growth is primarily driven by its international segment, while the U.S. division saw a 2% decline in the last quarter; investors should monitor improvements in the U.S. and Canada [5] - Despite a recent rally, Lululemon's stock is down 20% in 2024 and is trading at 29 times earnings, about half the valuation seen in early 2024 [5] Group 4: Chewy's Market Position - Chewy's shares have outperformed the broader market in 2024 but remain significantly below pandemic highs, down over 40% in the past three years compared to a 30% increase in the S&P 500 [6][7] - The company has struggled to regain growth momentum, with a slight decline in its active customer base; however, over 80% of sales last quarter came from its subscription-like autoship service [7][8] - Chewy is entering attractive categories like pet health, and while fiscal 2025 may show modest improvements, long-term investors may benefit from adding this stock to their portfolio [8][9]