Good morning, investors. We’re now 1,350 days into the bull market that started back in October 2022. And the average S&P 500 stock now trades at 32x forward earnings.
But not everything is expensive. Here are 7 stocks still trading at rare discounts.
7 Discounted Stocks
The average S&P 500 stock is up 8.5% in 2026.
But when you strip out AI and energy, the S&P 500 is actually negative.
This means many quality companies have quietly reset:
Netflix: Still owns one of the strongest entertainment platforms with global scale and pricing power.
Microsoft: Remains one of the most profitable businesses in the world, with AI creating a potential new growth layer.
PayPal: Still processes massive payment volumes and generates strong cash flow despite rising competition.
Adobe: Continues dominating creative software while integrating AI into its existing ecosystem.
Autodesk: Remains deeply embedded in engineering and design workflows through subscription software.
Lululemon: Still has a premium brand and loyal customer base despite slower growth.
Salesforce: Continues generating strong cash flow while improving efficiency and margins.
Discounts exist for a reason.
Some of these companies will recover. Others won’t.
The opportunity is finding which ones the market got wrong.
$1.5 Billion Game
Take-Two is up 51% since the GTA 6 announcement in December 2023.
Sounds impressive. Until you realize the S&P 500 is up 69% over the same period.
How does a company behind potentially the biggest entertainment launch of the decade underperform the market?
Becuase expectations are already sky-high.
GTA 5 reportedly generated around $10 billion in lifetime revenue since launching in 2013, making it one of the most successful entertainment products ever created.
For Take-Two, GTA 6 could be the make or break investors have waited years for.
SpaceX IPO Bust
SpaceX is already down 22% from its IPO high.
But this is not unusual when a company starts trading at over 100x sales.
We’ve seen this before:
Snowflake: IPO valuation above 100x sales → stock still below IPO levels years later
Rivian: IPO’d during EV hype → reached a massive valuation with almost no revenue → fell 85%
SentinelOne: IPO’d around 100x sales → later reset as growth expectations normalized
A great company and a great stock price are two very different things.
Google Joins Dow
On June 29, Alphabet officially replaces Verizon in the Dow.
Verizon joined the index in 2004, but slower growth and a declining stock price reduced its influence in the price-weighted index.
Meanwhile, Alphabet became eligible after its stock split made the share price better fit the Dow’s structure.
But will joining the Dow impact Google’s stock?
Probably not much.
$100M Salaries
We analyzed the 30 highest-paid CEOs in 2025. Here’s what we found.
The top 10 highest-paid CEOs earned roughly $2.4 billion combined.
And their companies delivered an average 1-year stock return of 44%.
Sounds impressive. But two stocks changed everything:
Broadcom (Hock Tan): +120%
Warner Bros. Discovery (David Zaslav): +173%
Remove those two outliers and the average return drops to only 12%.
A reminder that executive pay and investor outcomes do not always move together.
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