<div id="readability-page-1">Investors cannot deny that many high-profile stocks, and the market in general, are again on the rise. Amid stock gains, several companies have made plans to launch IPOs, and indexes such as the S&amp;P 500 (^GSPC -0.33%) and Nasdaq Composite (^IXIC -0.22%) have recently closed at record highs. Fortunately for investors, this does not mean that bargains are unavailable. Some stocks have fallen to absurdly cheap prices, and even with a $500 investing budget, the following three stocks offer such opportunities. <div><img src="https://imageproxy.pbkrs.com/https://g.foolcdn.com/image//query-b3A9cmVzaXplJnVybD1odHRwczovL2cuZm9vbGNkbi5jb20vZWRpdG9yaWFsL2ltYWdlcy84MjQ0OTQvcGlnZ3ktYmFuay1raXNzLmpwZyZ3PTcwMA?x-oss-process=image/auto-orient,1/interlace,1/resize,w_1440,h_1440/quality,q_95/format,jpg" width="700" height="466" original-src="https://imageproxy.pbkrs.com/https://g.foolcdn.com/image//query-b3A9cmVzaXplJnVybD1odHRwczovL2cuZm9vbGNkbi5jb20vZWRpdG9yaWFsL2ltYWdlcy84MjQ0OTQvcGlnZ3ktYmFuay1raXNzLmpwZyZ3PTcwMA"/>Image source: Getty Images. </div> <h2>1. Alphabet</h2> Despite leading the way with artificial intelligence (AI) in previous years, it may initially surprise investors that Alphabet (GOOGL 1.46%) (GOOG 1.47%) has become unexpectedly affordable. OpenAI's ChatGPT appeared to catch the company off guard, as the AI chatbot became the first serious competitive threat in decades to Google Search. Moreover, AI-driven searches direct users to websites less frequently, potentially compromising the ad-driven business model that has made Google a tech powerhouse. However, Alphabet has long planned for the day when ads are a less critical revenue source, and the percentage of company revenue coming from advertising fell to 74% in the first quarter of 2025. The Google parent owns numerous tech-related businesses outside the ad realm. One of them, Google Cloud, now makes up 14% of the company's revenue. Additionally, Waymo, valued at $45 billion by a recent fundraising round, could become a more significant revenue source once autonomous driving becomes more prevalent. Furthermore, Alphabet holds a staggering $95 billion in liquidity and generated an additional $75 billion in free cash flow over the trailing 12 months, giving the company a unique ability to create or acquire the innovations it needs to prosper. When also factoring in its 20 P/E ratio, the worries about ad revenue give investors an opportunity to buy this tech juggernaut at an unusually reasonable price. <h2>2. Constellation Brands</h2> Alcohol giant Constellation Brands (STZ 0.09%) has dealt with significant headwinds, particularly in 2025. Its partnership with Grupo Modelo enables it to distribute America's No. 1 beer, Modelo, in the U.S. Unfortunately, since 84% of the company's revenue came from beer in fiscal 2025, rising tariffs could make beers like Modelo and Corona less competitive. Moreover, Gen Z drinks considerably less beer than older generations, indicating that competition from products like cannabis could lower demand for its beverages. However, the company has drawn recent interest from Warren Buffett's Berkshire Hathaway, whose largest stock purchase in the first quarter of 2025 was shares of Constellation. Additionally, Constellation's annual dividend of $4.08 per share has risen for 10 straight years. It also offers a dividend yield of 2.5%, which is approximately double the S&amp;P 500 average. Furthermore, although revenue is expected to fall 7% in fiscal 2026 (ending Feb. 28, 2026), analysts anticipate revenue growth to resume next year, even as net losses in the previous fiscal year left Constellation temporarily without a P/E ratio. Still, Buffett's team more likely focused on Constellation's forward P/E ratio of 14 as it decided to add shares. That valuation, along with its dividend yield, may justify following Berkshire into this alcohol stock. <h2>3. Target</h2> Target (TGT -0.47%) stock has suffered in recent years amid an uncertain economy. As a more upscale discount retailer, its products seem to hold less appeal in the current economic environment. Moreover, Target has held elevated inventories since just after the pandemic, adding to the company's costs. Also, its embrace of DEI, followed by the reversal of that decision, appears to have alienated some customers over political differences. Still, Target operates nearly 2,000 stores in all 50 states. Since that means more than 75% of the U.S. population lives within 10 miles of a Target, it is likely the best-positioned U.S. company in omnichannel retailing other than Walmart. It is unlikely Target's missteps will sink its dividend. That payout, which pays investors $4.56 per share annually, yields about 4.5%. Also, the possible reputational damage that could come with abandoning its 54-year streak of payout hikes as a Dividend King make it likely the company's dividend will continue to rise. Finally, the worries have become so severe that Target stock sells for just 12 times earnings, a modest level considering Walmart's 41 P/E ratio. Such a valuation likely prices its troubles in the retail stock. When also factoring in its generous dividend, Target offers investors a potentially lucrative growth and income stock at a significant discount. </div>

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Investors are finding opportunities in three undervalued stocks despite a rising market. Alphabet (GOOGL) is seen as affordable due to its diversification and strong cash flow, despite challenges from AI. Constellation Brands (STZ) faces headwinds but has Warren Buffett's backing and a solid dividend yield. Target (TGT) is positioned well in retail with a strong dividend, despite recent struggles. Each stock presents a potential bargain for long-term investors with a $500 budget.

- The article discusses the recent rise in high-profile stocks and the overall market, highlighting opportunities for investors despite some stocks being undervalued.  
- It focuses on three companies: Alphabet, which is adapting to AI challenges while maintaining strong revenue streams; Constellation Brands, facing headwinds but supported by Warren Buffett's investment and a solid dividend; and Target, which, despite recent struggles, remains well-positioned in retail with a strong dividend yield.  
- Overall, these stocks present potential investment opportunities for those with a budget of $500.

Have $500? 3 Absurdly Cheap Stocks Long-Term Investors Should Buy Right Now.