While investors should consider paying extra for a high-quality stock, that doesn’t necessarily imply you must accept a high price.
There’s no bad time to invest in a solid stock, but securing a great stock at a lower price is even more advantageous.
With this in mind, particularly given the high valuations observed in many stocks, let’s explore three long-term opportunities currently available at reasonable prices.
1. Duolingo
Duolingo (DUOL 6.20%) might sound familiar, but you may not recall why. The company offers language-learning resources through its website and mobile app. Although most of its 50 million daily users benefit for free, 11.5 million subscribers pay a modest monthly fee for premium features.
Today’s Change
(-6.20%) $-7.00
Current Price
$105.94
Key Data Points
Market Cap
$4.9B
Day’s Range
$104.59 – $112.31
52wk Range
$104.51 – $544.93
Volume
108K
Avg Vol
2M
Gross Margin
71.39%
Duolingo’s growth trajectory is impressive. In the third quarter, it reported $271.7 million in revenue, reflecting a 41% increase from the previous year, significantly outpacing the 20% growth in its user base. It generated $80 million in earnings before interest, taxes, depreciation, and amortization (EBITDA) and anticipates fourth-quarter revenue could rise by over 30%, approaching $275 million, with 28% of that projected as EBITDA. Remarkably, Duolingo maintains profitability despite its young status, making it attractive at roughly 14 times analysts’ expected 2026 earnings of about $8.
2. Nice
Are you familiar with the term agentic artificial intelligence (AI)? It refers to AI technologies that facilitate seemingly natural conversations between humans and AI systems. While earlier interactions felt clunky, today’s AI-powered chats are often indistinguishable from real conversations.
Nice (NICE 2.83%) is one of the leading companies specializing in this technology, servicing big names like Visa, Accenture, Morgan Stanley, and Valvoline.
Image source: Getty Images.
Though growth isn’t rapid at the moment, with last year’s growth averaging around 8%, it’s stable, especially with the integration of genuine artificial intelligence. Its annual recurring revenue for AI technology reached $328 million at the end of last year, reflecting a 66% year-over-year increase. Investing in Nice places you in the burgeoning agentic AI sector, anticipated to grow at an average annual rate of 42% through 2031. Current valuations allow potential entry at roughly 10 times its projected 2026 earnings of around $11 per share.
3. Dell Technologies
Finally, consider adding Dell Technologies (DELL 2.49%) to your bargain stock list. The stock trades for around 12 times the anticipated per-share earnings of nearly $10 this year.
Dell has been somewhat absent from the discussions surrounding artificial intelligence, but it’s making strides in the sector. AI contributed significantly to an 11% year-over-year revenue increase to $27 billion in the third quarter, demonstrating Dell’s capacity to provide highly customizable performance platforms.
Today’s Change
(-2.49%) $-3.05
Current Price
$119.22
Key Data Points
Market Cap
$79B
Day’s Range
$118.94 – $124.20
52wk Range
$66.25 – $168.08
Volume
333K
Avg Vol
7M
Gross Margin
20.68%
Dividend Yield
1.76%
Looking ahead, the projections for Dell are optimistic; CFO David Kennedy indicated that fiscal year 2026 would see record growth, with AI shipments expected to reach $25 billion, a remarkable 150% increase. Despite recent sell-offs, reflective of broader trends in the AI sector, the stock remains well-positioned for recovery as investors recognize Dell’s agility in navigating upcoming challenges. Keep an eye out for a rebound toward analysts’ consensus target of $115.39.
