Market Overview - The S&P 500 has declined approximately 6% since the beginning of the year, with a more significant drop earlier in April when global tariffs were announced [1] - Despite a recent recovery, the risk of further market sell-offs remains [1] Investment Opportunities - Long-term investors may find buying opportunities in stocks that are down over 10% this year and trading at low earnings multiples, specifically Pfizer, PayPal, and Builders FirstSource [2] Pfizer - Pfizer's stock has decreased by 13% in 2025, with expectations of nearly unchanged or declining revenue for the year [3][4] - The company trades at a forward P/E multiple of less than 8 and aims to add $25 billion in revenue through in-house development and acquisitions despite potential losses of $18 billion from generics by the end of the decade [4] - Recent acquisitions, including oncology company Seagen, are expected to contribute up to $10 billion in revenue by the end of the decade [5] - Pfizer's mRNA pipeline is projected to generate between $10 billion and $15 billion by 2030, and the company has over 100 drug candidates in clinical trials [6] - The stock offers a dividend yield of over 7%, making it an attractive long-term investment [7] PayPal - PayPal's stock is down more than 20% this year and trades at only 13 times its future earnings, with concerns about a global economic slowdown affecting its growth prospects [8] - The company holds a significant position in the global payments market, accounting for nearly 45% of it, and is well-positioned for long-term recovery [9] - PayPal is expanding into the crypto market with the launch of PayPal USD, offering a 3.7% yield to attract investors, which could drive more transactions and revenue growth [10] - The company's payment volume rose by 10% last year, indicating potential for long-term investment despite short-term concerns [11] Builders FirstSource - Builders FirstSource trades at a forward P/E of less than 13 and plays a vital role in the homebuilding industry [12] - The company experienced a 4% decline in sales in 2024, totaling $16.4 billion, but is expected to benefit from long-term housing market growth [13] - Builders FirstSource has grown significantly from $8.6 billion in sales in 2020, aided by acquisitions and a strong housing market [14] - The company invested $352 million in 13 acquisitions last year and projects a net sales growth of 4% to 4.5% from these acquisitions [15] - Despite a 15% decline in stock price this year, Builders FirstSource remains a strong long-term investment [16]
Stock Market Crash: 3 Absurdly Cheap Stocks to Load Up on for the Long Haul