3 Dirt-Cheap Stocks to Buy With $1,000 Right Now

We all love a winner, right? I used to pile into stocks already up 50%, 100%, or more. But real money gets made in stocks that Wall Street has already written off, the ones nobody wants to be caught owning any longer.

Right now, three well-known consumer goods names are trading at prices that look almost absurd when you consider their brand power, recognition, and long-term earnings potential. Each has a clear catalyst that the market is underpricing.

Here's why I'd split $1,000 across them today.

1. Lululemon Athletica

I think Wall Street gave up on Lululemon Athletica (NASDAQ: LULU) too early. The sentiment around the stock is that the company grew on hype, only to be undercut by competitors and knock-offs.

Lululemon's share price has been cut by more than half from its 2024 highs, and its forward price-to-earnings (P/E) ratio has cratered to roughly 13. This is below the broader apparel industry average of 15.7. For a premium brand that's never traded this cheaply relative to its earnings power, that's striking.

Here's the angle that I think most investors are missing: Lululemon's Americas segment is soft, yes. U.S. revenue fell 3% last quarter. But the international business is absolutely on fire. International revenue jumped 33% year over year in the third quarter, with mainland China surging 46%. The Rest of World segment grew 19%.

Management expects China's growth above the high end of its original 20% to 25% guidance.​

The company is launching in India through a franchise partnership in the second half of fiscal 2026. It's also going live in Greece, Austria, Poland, Hungary, and Romania.

International is no longer a side project for Lululemon. It's becoming the main revenue engine.​ I'd put a third of my $1,000 here. The U.S. story will normalize, and the global story is just getting started.

Image source: Getty Images.

2. Hershey

Hershey (NYSE: HSY) shares have underperformed the S&P 500 badly over the past year, dragged down by cocoa prices that are 70% higher than 2023 levels. Here's my semi-contrarian angle: Hershey's 2026 guidance blew past expectations. The company expects 4% to 5% net sales growth, versus the 2.69% that many analysts have modeled.

Its CEO, Kirk Tanner, formerly of PepsiCo, is pushing into healthier, zero-sugar products and ramping advertising and marketing spend. Innovation grew by more than 40% in 2024, and the pipeline continues to expand.

Hershey owns more than a third of the U.S. chocolate aisle. That kind of shelf dominance doesn't evaporate because beans got expensive, or because competitors have new, "sexy" items.

Gross margins should inflect higher starting in second-quarter 2026 after a 17-point compression, supported by 9% pricing actions and $230 million in efficiency savings. The turnaround math is already working.

I'd put some of my money here.​

3. Nike

The world's most famous sports brand is 65% off.

Nike (NYSE: NKE) trades around $64, with a trailing P/E of 20. That's cheap compared to Nike's typical valuation over the past decade, when it's often traded at 31 times earnings or more. In other words, the market is treating Nike like its best days are behind it.

Nike's turnaround under CEO Elliott Hill is showing real signs of progress. In the company's fiscal Q2 2026, North America -- Nike's biggest market -- saw a solid 9% sales increase, driven in part by strong performance in running and other sport categories like basketball and training.

Running shoes, in particular, grew more than 20% for the second quarter in a row, and products like the Structure 26 stability shoe sold very well. Nike is also rolling out new initiatives, including the Structure Plus shoe and a training platform called Nike Mind.

Results in Greater China remained weak, with revenue around the mid-teens percentage-wise as Nike works through excess inventory and a promotion-heavy environment. But even with a substantial tariff headwind of roughly 520 basis points in North America, gross margins there only slipped modestly, a sign that the company's "Win Now" strategy is beginning to stabilize the core business.

The biggest catalyst nobody's pricing in? The 2026 FIFA World Cup. Nike is one of the world's dominant soccer brands, and the tournament, hosted in the U.S., Canada, and Mexico this summer, is a major driver of demand.

In the high-case scenario, the World Cup drives outsize growth, and margin improvement exceeds guidance as operational efficiency compounds.​

At roughly $64, you're buying a once-in-a-decade entry point on the planet's strongest athletic brand.​

Micah Zimmerman has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Hershey, Lululemon Athletica Inc., and Nike. The Motley Fool has a disclosure policy.