3 Struggling Stocks That Could Be Bargain Buys Right Now

Core Viewpoint - Many stocks are facing challenges this year due to concerns over tariffs and trade wars, which could lead to a recession, prompting companies to raise concerns about rising costs and investor fears of a market sell-off [1] Group 1: Target - Target's stock has declined 16% this year, with concerns about economic conditions affecting future results, particularly due to reliance on discretionary purchases and potential price increases from tariffs [4] - Despite near-term risks, Target remains a sound investment, trading at 13 times trailing earnings, significantly below the S&P 500 average of over 23 [5] - The stock is near a five-year low, with a recent dividend yield of 3.9%, and has a history of raising dividends for over 50 consecutive years, making it an attractive option for long-term investors [6] Group 2: e.l.f. Beauty - e.l.f. Beauty is particularly vulnerable to tariffs, as it produces approximately 80% of its cosmetics in China, and has seen its stock plummet nearly 40% this year due to investor concerns [7][8] - The company projects sales growth of 27% to 28% for the current fiscal year, down from a previous forecast of 28% to 30%, but is still on track to generate $1.3 billion in sales, a 30% increase from the previous year [8][9] - The stock trades at over 40 times trailing earnings but drops to 18 based on forward P/E multiples, indicating potential value for investors despite tariff risks [9] Group 3: Best Buy - Best Buy faces challenges from tariffs and may need to raise prices, as it imports products from China and Mexico, with its stock down 7% this year, the mildest decline among the discussed stocks [10][11] - The company projects comparable sales growth of 0% to 2% for the current fiscal year, not accounting for tariff impacts, indicating potential short-term challenges [11][12] - With a forward P/E multiple of less than 13 and a dividend yield of 4.8%, Best Buy presents an attractive opportunity for investors willing to be patient [12][13]