2 Dirt Cheap Stocks to Buy With $200 Right Now

• CVS Health rebounded past year, but determination is plentifulness of upside near fixed ongoing developments.

• Merck is dilatory crafting a strategy to flooded accrued contention for its biggest currency cow.

• 10 stocks we similar amended than CVS Health ›

Some investors judge the marketplace is presently overvalued. Hype and optimistic expectations, particularly for artificial quality (AI) stocks, are baked into equity prices, oregon truthful the statement goes. This mightiness pb immoderate to debar buying stocks close now.

Another attack is to put successful stocks that look reasonably valued. Two bully examples of this are CVS Health (NYSE: CVS) and Merck (NYSE: MRK). If you person $200 disposable to put (or immoderate amount, really), you mightiness privation to see buying shares successful these dirt-cheap stocks.

After respective years of underperformance, CVS Health's banal rebounded successful 2025 (jumping 77%), with stronger fiscal results. However, determination could beryllium plentifulness of upside near for the company, particularly erstwhile looking astatine its ongoing efforts to chopped costs and absorption connected profitable growth. CVS Health is guiding for gross of astatine slightest $400 cardinal successful 2026. That whitethorn not look impressive, arsenic it expects gross to full astatine slightest $400 cardinal for 2025, too, erstwhile it reports full-year net successful mid-February. But it's worthy noting that the pharmacy concatenation elephantine volition beryllium scaling backmost immoderate of its business, including its Medicare Advantage unit, which brought it plentifulness of gross but besides soaring costs it was incapable to contain.

That whitethorn pb to little income wide but to stronger margins and faster bottom-line growth. CVS Health expects its adjusted net per stock to summation astatine a compound yearly maturation complaint successful the mid-teens done 2028. Meanwhile, adjacent aft past year's beardown performance, CVS Health looks reasonably valued. The institution is trading astatine 11 times guardant earnings, compared to the mean of 18.3 for the healthcare sector.

And lastly, CVS Health has fantabulous semipermanent prospects, fixed its immense pharmacy web and diversified healthcare offerings. That's wherefore CVS Health remains a buy. With its shares trading somewhat beneath $81, $200 tin spend astir 2.5 of them.

Merck has encountered immoderate issues implicit the past mates of years. The company's biggest maturation drivers, crab cause Keytruda and its HPV vaccines Gardasil and Gardasil 9, look to beryllium moving into roadblocks. Many pipeline candidates successful the manufacture are present dubbed "Keytruda killers," arsenic they explicitly purpose to situation the medicine successful cardinal markets. Meanwhile, Gardasil and Gardasil 9's income dropped past twelvemonth owed to issues successful China.