2 Dirt Cheap Stocks to Buy With $2,000 Right Now

It's not easy to find bargain stocks these days. The S&P 500 continues to move higher, approaching 7,000. It now trades at a price-to-earnings ratio of 29 and is the second-most expensive it's ever been, according to the Shiller P/E ratio, which takes into account the last 10 years of earnings.

However, not every stock is trading in nosebleed territory. In fact, some stocks still look dirt cheap and could be great investments if you have $2,000 to put into the market.

1. General Motors

General Motors (NYSE: GM) has been a longtime laggard, but recently, the legacy automaker seems to be getting the credit it deserves. The stock jumped on its recent third-quarter earnings report, and the company is now benefiting from a number of trends in the auto industry.

First, and most importantly, it's now clear that electric vehicles (EVs) will not displace traditional combustion vehicles, or at least not as fast as Wall Street once expected. A combination of consumer demand shifting away from EVs and the Trump administration's decision to eliminate the $7,500 EV tax credit has given a decided tailwind to automakers like GM.

Investors also once feared that the legacy automaker could get crushed by tariffs, but the government's recent addition of an offset of 3.75% of the value of all trucks made in the U.S. over the next five years seems to give the company an advantage over foreign automakers, at least for vehicles GM sells in the U.S.

Both of those shifts helped drive third-quarter results above estimates and an improvement in guidance. Revenue in the quarter fell slightly, down 0.3% to $48.6 billion, but that was well ahead of estimates at $45.33 billion. Adjusted earnings per share (EPS) fell from $2.96 to $2.80, which also topped the consensus at $2.32.

GM lowered the estimated gross tariff impact for the year from a range of $4 billion to $5 billion to between $3.5 billion and $4.5 billion, and raised its full-year adjusted EPS guidance from between $8.25 and $10 to a range of $9.75 to $10.50.

Based on that guidance, the stock trades at a price-to-earnings ratio of less than 7, and the company has a track record of buying back stock, reducing its shares outstanding by 15% over the last year. It can certainly do more of that as the company spins off cash.

With the threat from EVs now seeming muted and the tariff situation having improved, GM looks in position to push EPS higher, both through profit growth and share buybacks.

2. Deckers

Deckers Outdoor (NYSE: DECK), the parent company of footwear brands like Hoka and Ugg, has been one of the best-performing stocks of this century, but the company has struggled lately.

Pressure from tariffs and headwinds on consumer discretionary spending has pushed the stock down more than 50% from its peak earlier this year. While some of those concerns are warranted, the stock looks oversold at this point, trading at a price-to-earnings ratio of 14 based on its EPS forecast this year of $6.30 to $6.39.

Deckers is facing challenges, including weakness in the U.S. that led to a 1.7% decline in domestic sales in the quarter, and an estimated $150 million headwind this year from tariffs, though it's making moves to mitigate some of those expenses.

However, the headwinds facing Deckers seem short-term. Consumer spending should eventually improve as the economic cycle turns, and the impact from tariffs will be absorbed by next year.

Meanwhile, there are still bright spots in the business. The international market, including China, is shining as international sales were up 29.3% $591.3 million in the quarter, making up more than 40% of revenue. Wholesale revenue improved 13.4% as the company shifted away from the direct-to-consumer channel, and its core brands both grew double digits in the quarter, though it expects Ugg sales to slow into the key winter months. On the other hand, core franchises at Hoka remain strong.

Overall, Deckers has a proven track record of managing and growing footwear brands, and it should get back to steady bottom-line growth over the long term.

For a reliable winner like Deckers, this price is a true discount.

Jeremy Bowman has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Deckers Outdoor. The Motley Fool recommends General Motors. The Motley Fool has a disclosure policy.