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3 Absurdly Cheap Stocks to Buy With $1,000 While the Market Is This Nervous

Key Points

Many investors feel nervous about the current investing environment, and the hesitation is understandable. Oil prices have spiked, and supply chains have broken down amid conflict in the Middle East. Also, the Shiller P/E ratio has risen to 40, a level near historical highs.

Fortunately, if the market is good at delivering one thing, it is opportunity, and that applies even under difficult conditions. That might motivate investors to seek stocks that can succeed in any environment, and these three names likely fit the bill.

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1. Domino’s Pizza

Domino’s Pizza (NASDAQ: DPZ) has emerged as an unexpected winner among consumer discretionary stocks. Investors may recall that it was one of the few stocks to rise during the COVID-19 pandemic, as the pizza chain’s order and delivery model was well-suited for ordering out.

Much of that growth pulled back as lockdowns ended. However, Domino’s has differentiated itself in more ways than just delivery. It utilizes “fortressing,” opening up a large number of stores in nearby areas. Although most companies would call that practice cannibalizing, Domino’s has built a competitive advantage by shortening delivery times.

Additionally, it capitalizes on technology, and not just through its app and websites. Instead, customers can order on platforms varying from car dashboards to Apple Watches, taking advantage of impulse shoppers.

Admittedly, this is more of a safety play, as revenue increased by 5% in 2025, a time when net income grew by only 3% amid rising expenses.

Nonetheless, its $7.96 per share annual dividend increased by 15% last year, a testament to its success. Also, the yield of 2.2% is well above the 1.1% average for the S&P 500 (SNPINDEX: ^GSPC).

Finally, Domino’s P/E ratio of 21 is at multiyear lows, and considering that $369 buys one share, investors can buy a starter position cheaply.

2. Clorox

Clorox (NYSE: CLX) is a consumer staples conglomerate consisting of its flagship bleach product along with Hidden Valley salad dressing, Kingsford charcoal, Burt’s Bees personal care products, and other brands.

Like Domino’s, it benefited from the pandemic as the population became obsessed with cleanliness. That impulse faded as pandemic-related fear receded, causing the stock price to fall.

Unfortunately, issues such as a major cyberattack in 2023 and a change in customer relationship management (CRM) systems led to a significant sales decline. That long-term drop means that Clorox stock now sells at a discount of more than 55% from its all-time high in 2021.

Indeed, the fact that net sales declined by 10% yearly in the first half of fiscal 2026 (ended Dec. 31, 2025) shows that the struggles continue. Still, analysts expect that sales decline to come in at 6% for the fiscal year before net sales rebound by 13% in fiscal 2027.

Moreover, even though profits fell 19% annually to $237 million in the first half of fiscal 2026, the situation is likely not that bleak.

All this makes Clorox a relatively safe, undervalued dividend stock. The payout, which has risen annually for decades, is now $4.96 per share, a yield of 4.7%. When also considering the 17 P/E ratio, investors could have a lucrative growth and income stock by buying three shares for $312.

3. Target

Target‘s (NYSE: TGT) struggles may outweigh absurd cheapness in the minds of some investors. Net sales have declined for years, and challenges such as chronically high inventories, messy stores, and controversial political decisions alienated many shoppers.

However, former COO Michael Fiddelke took over as CEO in February and has set out to revive the brand. He pledged to invest $5 billion in improving stores and supply chains and incorporating more technology.

Target’s turnaround has a high chance of succeeding. More than 75% of Americans live within 10 miles of a Target store, making it well-positioned for omnichannel selling. It could also benefit by restoring its reputation as an upscale discounter that built its brand.

Admittedly, this comeback remains somewhat speculative. Target’s net sales fell 2% in 2025, and profits fell 9% to $3.7 billion amid rising depreciation costs.

Nonetheless, the company forecasts a 2% net sales increase in 2026, a sign that conditions may have begun to improve. Also, its troubles have not stopped it from maintaining a 54-year streak of payout hikes, making it a Dividend King. That dividend, which is now $4.56 per share yearly, yields 3.8%.

Finally, investors can buy this stock for 15 times earnings, meaning a purchase of 2.7 shares for $320 could deliver market-beating returns as conditions improve.

Should you buy stock in Domino’s Pizza right now?

Before you buy stock in Domino’s Pizza, consider this:

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Will Healy has positions in Clorox and Target. The Motley Fool has positions in and recommends Apple, Domino’s Pizza, and Target and is short shares of Apple. The Motley Fool has a disclosure policy.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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