If you’ve been waiting for a sign to jump back into the stock market… this is it.
The Q3 earnings season is over, valuations have shifted, and the market is finally showing us where the real bargains are hiding. And trust me — some of these stocks are SO mispriced that it feels like the market is asleep.
For the past two years, I’ve been running a simple experiment every quarter:
👉 Rank all 20–30 stocks I follow from “cheapest” to “most expensive”
👉 Track their returns over the next 12 months
The results?
Mind-blowing.
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My most expensive picks returned an average of –12% in one sample period.
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My cheapest picks? They returned +50%.
That’s an insane 62-point outperformance, simply by buying what’s undervalued and avoiding what’s overpriced.
And quarter after quarter, the pattern keeps repeating.
Since I started this approach, my annualized return on “cheapest” stocks has averaged 38%, while the “expensive” group barely managed 5%.
So today, as we close out the winter of 2025–2026, here are the Top 5 Cheapest Stocks to Buy NOW based on valuation, growth potential, and market psychology.
Let’s get into it. 👇
🧨 5️⃣ Adobe — The Giant Everyone Thinks Is Dying
Price at rating: ~$318
Everyone suddenly thinks Adobe is doomed because of Figma, Canva, and the explosion of AI design apps. The sentiment got so negative that the stock was priced as if Adobe would grow only 4% a year for the next decade.
Reality check:
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Adobe still has a 42% free cash flow margin
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Corporate clients are deeply locked in
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Switching costs are massive
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AI only needs to be “good enough” for Adobe to keep its moat
The market priced Adobe like it was already defeated. I disagree.
🥗 4️⃣ CAVA — The Mediterranean Chipotle
Price at rating: ~$45
CAVA is basically the “Chipotle of Mediterranean food” — and yes, that’s exactly as powerful as it sounds.
Valuation assumed:
➡️ 17% annual revenue growth for 10 years
But here’s the kicker:
CAVA is planning to increase its store count by… 17% per year for the next 5 years.
Meaning it doesn’t even need comp growth to hit those expectations.
The fast-casual market is weak right now, but CAVA is still outperforming peers. When sentiment turns, this stock is sitting on rocket fuel.
🦉 3️⃣ Duolingo — The AI Panic Bargain
Price at rating: ~$174
Everyone freaked out when ChatGPT 5 dropped new language features, and Duolingo tanked on fear alone.
Yes — they need to:
✔ Improve conversion from free → paid
✔ Expand beyond languages
But the market priced Duolingo as if it will only grow revenue 10% a year.
The company has been growing 40% annually, and projections for the next few years are double what the valuation implies.
If they fix conversion and broaden their learning ecosystem, this is a steal.
🛒 2️⃣ Sea Limited — Southeast Asia’s Undervalued Titan
Price at rating: ~$144 (even cheaper today)
Sea Limited is a monster:
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Garena (gaming)
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Shopee (e-commerce)
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SeaMoney (fintech)
But the market is pricing it like:
❌ TikTok Shop will destroy Shopee
❌ Garena is collapsing
❌ Sea can’t regain margins
At current pricing, the market assumes only 5% annual growth for 10 years.
Analysts expect 20%+ growth for the next two years alone.
This is pessimism gone wild.
🦁 1️⃣ Mercado Libre — The #1 Cheapest Stock Right Now
Latin America’s version of:
🛒 Amazon
💳 PayPal
📦 Shopify
All wrapped into one explosive growth machine.
Concerns?
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Competition from Sea Ltd in Brazil
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Latin America’s political instability
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Loan portfolio risk (which remains healthy)
At today’s price, the market assumes just 7% annual growth for the next decade.
Mercado Libre has delivered 30%+ growth for 25 straight quarters.
This is one of the clearest mispricings in the entire market.
💬 Final Thoughts
These 5 companies aren’t just random picks — they’re valuation anomalies backed by data and multi-year performance tracking. In a market driven by fear, hype, and AI panic, fundamentals matter more than ever.
So now the question is…
Which of these 5 stocks will YOU buy first?
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