Top Bargain Stocks to Consider Amid Market Pullback

The market is trending down, providing a perfect opportunity for bargain hunting. Investors should consider Alibaba, e.l.f. Beauty, and Crocs as potential buys while they are undervalued.

Date: 13-03-2025

AI Rating: 6

Market Overview: The current market pullback signifies an opportunity for investors to acquire potentially undervalued stocks. This report identifies three companies, namely Alibaba, e.l.f. Beauty, and Crocs, which might present attractive buying options for investors.

Alibaba (NYSE: BABA): The company is not only viewed as cheap due to its forward P/E ratio of less than 15 but also boasts substantial cash reserves. Its cloud intelligence group reported a 13% revenue growth to $4.3 billion, while its AI-related revenue saw triple-digit percentage growth for six consecutive quarters. The e-commerce segment also showed resilience, with a 5% rise in overall revenue.

e.l.f. Beauty (NYSE: ELF): After suffering a significant share drop of nearly 66%, this company is in bargain territory with a forward P/E of 23 and a PEG ratio of 0.5. However, it recently lowered its revenue growth forecast to just 1-2%, indicating challenges ahead. Nevertheless, the potential for recovery exists, given the brand's success in rapidly growing market share and expanding into the skincare segment.

Crocs (NASDAQ: CROX): Currently experiencing a 20% drop in stock price, Crocs is also attractively priced with a forward P/E of under 8. The company generates substantial free cash flow and has made strides in international markets. While it faces challenges with its HeyDudes brand acquisition, there is ongoing progress in shifting inventory and launching successful new products.

Stocks: CROX ELF BABA