3 Absurdly Cheap Stocks That Look Like Steals Right Now

Three large-cap names — United Parcel Service, Novo Nordisk and Adobe — are trading well below the S&P 500’s average P/E and have fallen roughly 24%, 45% and 24% year-to-date respectively, presenting what the author frames as potential value opportunities. UPS (P/E <15) has stable quarterly revenues near $21 billion but faces cyclical headwinds from tariffs and weaker global trade; management is reducing low-margin Amazon volume and the stock yields nearly 7%, suggesting income and margin-focused upside if economic activity recovers. Novo Nordisk (P/E ~13) has been hit by a CEO resignation, trimmed guidance and competitive pressure from Eli Lilly and compounding pharmacies selling semaglutide copies (the company is pursuing litigation), yet still reported 15% sales growth year-to-date ex-FX and remains a leading GLP‑1 franchise with long-term growth optionality. Adobe (P/E ~21) posted record revenue (Q ended Aug. 29: sales +11% to $6bn) and retains strong 30% margins and pricing flexibility despite AI-driven low-end competition, implying resilience in professional workflows and room to trade share for growth if needed.

Analysis

Three large-cap names — United Parcel Service, Novo Nordisk and Adobe — have fallen roughly 24%, 45% and 24% year-to-date respectively and now trade below the S&P 500 average P/E (UPS <15, NVO ~13, ADBE ~21). The article frames these moves as potential value opportunities because each company remains profitable and has identifiable growth or cash-return levers.

UPS has produced roughly $21 billion in revenue in each of the past three quarters but faces cyclical headwinds from tariffs and softer global trade; management has reduced low-margin Amazon volume to protect profitability and the stock yields nearly 7%, positioning it as an income/cyclical recovery trade. Novo Nordisk reported 15% sales growth in the first nine months excluding FX yet has been penalized for a surprise CEO resignation, trimmed guidance, and competitive pressure from Eli Lilly and compounding pharmacies — litigation outcomes could materially affect near-term growth.

Adobe posted record quarterly revenue (quarter ended Aug. 29: sales +11% to $6 billion) and sustains ~30% margins but faces low-end competition from AI tools; management can choose to sacrifice some margins to defend or grow share. Key drivers to watch are global trade and UPS margin trends, Novo legal/guidance clarity, and Adobe’s AI impact on professional demand and pricing, which will determine whether current discounts are temporary or structural.

Key Decisions for Investors

• Consider selectively accumulating UPS for yield and cyclical upside given a sub-15 P/E and ~7% dividend, but size positions modestly and monitor global trade volumes, tariff developments and management's margin-improvement execution
• Treat Novo Nordisk as a long-term GLP-1 growth exposure to buy on signs of legal wins or clearer guidance, but limit position size until litigation outcomes and leadership stability reduce near-term execution risk
• Accumulate Adobe on weakness or on confirmation of continued enterprise/professional revenue strength given record revenue and ~30% margins, while watching AI-driven user adoption, pricing moves and margin trends as reevaluation triggers
• Use upcoming quarterly reports and the specific catalysts highlighted (UPS volume/Amazon exposure, Novo legal rulings and guidance, Adobe AI/pricing decisions) to scale into positions rather than making full allocations immediately