2 Dirt Cheap Stocks to Buy With $2,000 Right Now

Despite a highly valued broader market, General Motors (GM) and Deckers Outdoor (DECK) are highlighted as undervalued investment opportunities. GM's stock recently surged after exceeding Q3 revenue and EPS estimates, raising its full-year adjusted EPS guidance to $9.75-$10.50, resulting in a forward P/E ratio below 7, driven by slower EV adoption, favorable tax policy shifts, and tariff offsets. Deckers Outdoor, trading at a P/E of 14 after a significant decline due to tariff and consumer spending headwinds, shows resilience with strong international sales growth (up 29.3%) and robust performance from its Hoka brand, suggesting its current challenges are temporary for a historically strong brand manager.

Analysis

General Motors (GM) reported robust third-quarter results, with revenue of $48.6 billion exceeding estimates and adjusted EPS of $2.80 surpassing consensus. The company significantly raised its full-year adjusted EPS guidance to $9.75-$10.50, implying a forward P/E ratio below 7. This positive outlook is driven by a deceleration in EV adoption, shifting consumer demand, and a reduced tariff impact ($3.5B-$4.5B) due to a US truck value offset, alongside ongoing share buybacks.

Deckers Outdoor (DECK) presents a potential value opportunity, trading at a P/E of 14 after a significant 50% stock decline from its peak. The company faces short-term headwinds, including a 1.7% decline in domestic sales and an estimated $150 million tariff impact, which have contributed to investor concerns.

Despite these challenges, Deckers exhibits strong underlying business momentum, with international sales surging 29.3% to $591.3 million, now comprising over 40% of total revenue. Wholesale revenue increased 13.4%, and core brands like Hoka continue to show double-digit growth. These factors suggest that current pressures are temporary, positioning Deckers for long-term bottom-line recovery through its proven brand management capabilities.

Key Decisions for Investors

• Investors should consider General Motors (GM) for its compelling valuation (P/E < 7) and improved outlook driven by favorable industry shifts and capital returns.
• Monitor Deckers Outdoor (DECK) for a potential entry point, as its current valuation (P/E 14) appears oversold given strong international growth and the temporary nature of its headwinds.
• Given the broader market's high valuation, these companies offer distinct opportunities for long-term value accumulation.