The overall market may be priced very richly here, but a handful of names haven’t been swept up in artificial intelligence (AI)-driven mania.

With the S&P 500 currently valued at a multi-year high of more than 26 times its trailing earnings, the idea of buying anything new for your portfolio at this time could be more than a little intimidating.

Not every stock is participating in this pricing insanity, though. Indeed, a handful of names seem strangely undervalued here. The irony? Should the overall market’s artificial intelligence (AI)-driven rally finally start to unwind, investors’ interest in bargain stocks could soar, reinflating these underpriced tickers.

With that as the backdrop, if you’ve got $1,000 – or any other amount of idle cash – you’re ready to put to work but don’t know how or where, here are three dirt cheap prospects that just might fit the bill.

Image source: Getty Images.

1. Merck

Pharmaceutical giant Merck (MRK +1.65%) serves as a reminder of how easily and dangerous it is for a drugmaker to become too dependent on one single product. While no one denies its Keytruda has been almost a miracle treatment for a wide range of cancers, with its key patents set to start expiring in 2028, suddenly nearly half of the company’s top line is in jeopardy. That’s the chief reason shares are down by more than 30% from their early-2024 high.

If you think the company’s not been working to replace the impending loss of most of this revenue, though, you might want to take a closer look. Although no single drug can replace Keytruda, a collection of them can – a collection that includes sacituzumab tirumotecan (or just sac-TMT), licensed from China’s Sichuan Kelun-Biotech. The oncology drug is showing great promise in several phase 2 and phase 3 trials right now.

Today’s Change

(1.65%) $1.39

Current Price

$85.78

Then there’s MK-1084, a KRAS G12C inhibitor for solid tumors administered in conjunction with Keytruda. It’s in phase 3 testing as well, as is V-940 (mRNA-4157), which is an adjuvant cancer vaccine for certain forms of melanoma.

All told, Merck’s management contends it’s got a total of 20 different drugs in its developmental pipeline that could collectively generate $50 billion worth of annual revenue at their peak. It’s just not going to get there until the mid-2030s.

As veteran investors can attest, however, the stronger and more certain an opportunity is, the sooner the market starts pricing it in. With the stock currently valued at only about 9 times next year’s expected earnings of $9.25 per share, the market could begin pricing in Merck’s compelling future very soon.

Bonus: Newcomers will also be plugging in while Merck’s forward-looking dividend yield stands at a healthy 3.8%.

2. Verizon Communications

As impressive as Merck’s dividend yield might be right now, it still doesn’t hold a candle to Verizon Communications’ (VZ +0.33%) forward-looking yield of 7%. Granted, there’s just not going to be any significant growth-driven capital appreciation from a stake in this telecommunications giant.

The big dividend* is *the big selling point. A 7% yield based on a dividend funded by a business of this sort may well be worth it for many investors (and investors who specifically need income in particular).

What’s more, most Americans are practically addicted to their mobile phones. Harmony Healthcare IT reports the average U.S. adult spends more than four hours per day looking at their phones’ screens for one reason or another, while Reviews.org says we check our devices over 200 times every day, regardless of we’ve been prompted to by a notification chime.

For better or worse, we’re not likely to give up our mini mobile computers capable of accessing the entire world now.

Today’s Change

(0.33%) $0.13

Current Price

$39.82

This addiction is good news for the mobile phone service industry. Although the key players like AT&T, T-Mobile US, and Verizon will of course swap customers on a regular basis, by and large this commoditized subscription-based business is what it is: a recurring cash flow engine. Verizon simply needs to ensure it’s delivering service at least as well and as cost-effectively as its rivals are –* which it is*.

You’d be stepping in while the stock’s valued at an only about 8 times next year’s anticipated earnings, by the way.

3. Goldman Sachs

Finally, add Goldman Sachs (GS 0.70%) to your list of dirt cheap stocks to buy while you can still get in, at roughly 14 times analysts’ 2026 profit projections of $55.17 per share.

With nothing more than a passing glance, Goldman Sachs doesn’t look like anything particularly special right now. In fact, although its valuation is below the marketwide average at this time, thanks to the stock’s persistent forward progress since 2023’s lull, GS shares are actually valued above their historical average price/earnings ratio.

There’s a subtle hint buried in this bullishness, though. That is, the market quietly expects a recovery in dealmaking (mergers, acquisitions, public offerings, privatizations, etc.) in the foreseeable future, spurring growth for a huge part of Goldman’s business.

We’re already seeing it, in fact. Whether it’s driven by need or obvious opportunity, Boston Consulting Group reports global dealmaking was up 10% through the first nine months of 2025, led by North America, where Goldman Sachs is a fixture of the industry’s landscape.

Indeed, data-driven business consulting firm WTW reports that the total value of Q3’s worldwide mergers and acquisitions eclipsed the *combined *value of the planet’s M&A activity in Q1 and Q2, confirming this growth’ current acceleration.

Today’s Change

(-0.70%) $-5.54

Current Price

$787.55

And the future looks brighter still. Consulting outfit EY (Ernst & Young) expects the United States’ corporate dealmaking market to grow another 3% next year following this year’s anticipated full-year growth of 9%, jibing with a bullish outlook from Goldman Sachs itself.

Goldman isn’t just a mergers and acquisitions name, of course. It’s not like the stock’s got a massive amount of immediate upside from here, either; analysts’ current consensus 12-month target of $822.75 is only about 4% above this ticker’s present price. Most of the analyst community also only considers the stock a hold at this time.

If you’re looking for an underappreciated and undervalued name to hold through a popping of the artificial intelligence bubble, however, this is a great all-around option.