2 Dirt Cheap Stocks to Buy With $200 Right Now

Some investors believe the market is currently overvalued. Hype and optimistic expectations, especially for artificial intelligence (AI) stocks, are baked into equity prices, or so the argument goes. This might lead some to avoid buying stocks right now.

Another approach is to invest in stocks that look reasonably valued. Two good examples of this are CVS Health (NYSE: CVS) and Merck (NYSE: MRK). If you have $200 available to invest (or any amount, really), you might want to consider buying shares in these dirt-cheap stocks.

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1. CVS Health

After several years of underperformance, CVS Health's stock rebounded in 2025 (jumping 77%), with stronger financial results. However, there could be plenty of upside left for the company, especially when looking at its ongoing efforts to cut costs and focus on profitable growth. CVS Health is guiding for revenue of at least $400 billion in 2026. That may not seem impressive, as it expects revenue to total at least $400 billion for 2025, too, when it reports full-year earnings in mid-February. But it's worth noting that the pharmacy chain giant will be scaling back some of its business, including its Medicare Advantage unit, which brought it plenty of revenue but also soaring costs it was unable to contain.

That may lead to lower sales overall but to stronger margins and faster bottom-line growth. CVS Health expects its adjusted earnings per share to increase at a compound annual growth rate in the mid-teens through 2028. Meanwhile, even after last year's strong performance, CVS Health looks reasonably valued. The company is trading at 11 times forward earnings, compared to the average of 18.3 for the healthcare sector.

And lastly, CVS Health has excellent long-term prospects, given its vast pharmacy network and diversified healthcare offerings. That's why CVS Health remains a buy. With its shares trading slightly below $81, $200 can afford roughly 2.5 of them.

2. Merck

Merck has encountered some issues over the past couple of years. The company's biggest growth drivers, cancer drug Keytruda and its HPV vaccines Gardasil and Gardasil 9, seem to be running into roadblocks. Many pipeline candidates in the industry are now dubbed "Keytruda killers," as they explicitly aim to challenge the medicine in key markets. Meanwhile, Gardasil and Gardasil 9's sales dropped last year due to issues in China.

Even with all those obstacles, Merck continues to execute, with several new approvals and pipeline candidates that could help it bounce back. The company's newer launches include Winrevair for pulmonary arterial hypertension, launched in 2024 and expected to generate over $1 billion in the full fiscal year 2025. Winrevair could also grab important label expansions.

Meanwhile, thanks to an acquisition, Merck has added promising candidates like CD388 to its pipeline, a product that could help revolutionize the flu vaccine market. Merck should have several other key approvals and label expansions through the next few years, and it will be able to count on a new subcutaneous formulation of Keytruda to help fend off the challengers.

So, the company's prospects are still attractive. And Merck stock trades at just 11.6 times forward earnings, making its shares attractive at current levels. Shares are trading at $109 apiece.

Prosper Junior Bakiny has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Merck. The Motley Fool recommends CVS Health. The Motley Fool has a disclosure policy.