Chevron is an attractive company, but its cyclical nature limits its appeal.
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I Ranked 12 Dirt Cheap Stocks — I’d Only Buy These 2
Jul 3, 2026
The creator discusses how to identify genuinely cheap stocks beyond just low P/E ratios, emphasizing the importance of growth, balance sheet health, and long-term moats. The video aims to rank 12 stocks, focusing on those that are undervalued rather than just appearing cheap due to underlying business issues.
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Tickers discussed in this post
Intuit is the most controversial stock, trading at an unbelievable valuation with strong growth, offering the highest upside despite market concerns about its TurboTax moat.
Disney is a strong buy at under $100, trading at a major discount with significant upside potential despite concerns about its growth profile and profitability.
Northrop Grumman is a defense business with visibility and defensive demand, considered fairly valued to slightly cheap with significant implied upside.
Booking Holdings is a quality compounder with strong growth, but its margin of safety is only around 10%, causing it to miss the top ranks.
Lowe's is a quality business at a reasonable price, but the current discount isn't large enough to be a top pick.
Chevron is ranked #6, appearing cheap relative to the market and its history, with strong cash flow, but its cyclical nature and moderate margin of safety limit its appeal.
Bristol Myers is ranked 8th, appearing cheap with a 4.5% yield and a 9x forward P/E, but concerns about patent cliffs and negative future revenue/EPS growth limit confidence.
CVS Health is ranked 9th; despite a 32% year-to-date rally and positive forward metrics, its valuation is now less attractive with only a 4% margin of safety, limiting upside.
Pfizer is ranked 10th; it appears cheap with a 7.2% yield but has negative forward growth metrics and only a 3% margin of safety, making it not cheap enough given the uncertainty.