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Entry is the asset's closing price on the publication date. Current is the last close on record.
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Entry $30.29 21 Jul 2026Current $29.88 06 Aug 2026Result −$0.41
three dirt cheap stocks you can buy with $1,000 right now
Context In this video, we'll show you three dirt cheap stocks you can buy with $1,000 right now.... The first stock on our list is Sirius XM, ticker symbol S IR.
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Entry $287.90 21 Jul 2026Current $320.03 07 Aug 2026Result +$32.13
The second dirt cheap stock that deserves a closer look is Royal Caribbean, ticker symbol RC.
Full Transcript
In this video, we'll show you three dirt cheap stocks you can buy with $1,000 right now. These are businesses that are trading at surprisingly attractive valuations despite owning durable competitive advantages, generating meaningful cash flow, and operating in industries that could continue creating value for years to come. By the end of this video, you'll understand why the market may be overlooking these companies and why patient long-term investors may want to pay closer attention. The first stock on our list is Sirius XM, ticker symbol S IR. When investors hear the words media company, they often think about streaming wars, shrinking audiences, or businesses struggling to stay relevant. But Sirius XM is a very different story. This is one of those rare companies that still occupies an incredibly unique position in its industry. If someone wants premium satellite radio with nationwide coverage, there is really only one meaningful option. Sirius XM has effectively controlled this niche ever since the merger of the only two satellite radio providers nearly two decades ago. That kind of market dominance is incredibly difficult to replicate. Unlike businesses that constantly battle dozens of competitors for customers, Sirius XM enjoys an ecosystem that has already been built over many years. Millions of drivers across North America are already familiar with the service. And for many subscribers, it has become part of their daily routine. Whether someone is commuting to work, driving across the country, or simply wanting commercial free music, sports, comedy, talk shows, news, or exclusive programming, Sirius XM remains one of the few services capable of delivering that experience almost anywhere. That may not sound revolutionary in today's streaming world, but investing isn't always about finding the newest technology. Sometimes it's about finding companies that continue producing enormous amounts of cash while trading at valuations that assume very little future success. And SiriusXM may fit that description remarkably well. Today, the company serves approximately 33 million subscribers, giving it one of the largest recurring subscriber bases in the media industry. That recurring revenue matters. Subscription businesses are often prized because they produce predictable cash flows. Every month, millions of customers continue paying for access, creating stability that many advertisingdriven businesses simply don't have. Of course, Sirius XM has not been without challenges. The company has spent the past several years navigating changing consumer habits. Younger drivers increasingly rely on smartphones, music streaming platforms, podcasts, and connected vehicles for entertainment. The rise of internet connectivity inside cars has created new alternatives that simply didn't exist 15 years ago. At the same time, the rising cost of vehicle ownership has forced many consumers to reconsider monthly subscriptions. Those trends slowed Sirius XM's growth. For roughly three consecutive years, revenue drifted slightly lower. Many investors looked at those numbers and immediately concluded that the company's best days were behind it. But investing often rewards people who notice when negative trends begin stabilizing before everyone else does. And that's exactly why Sirius XM has started attracting fresh attention. After several years of modest revenue declines, the company has now posted two consecutive quarters of year-over-year revenue growth. The increases have been relatively small. But that's actually the important point. Businesses don't need explosive growth to become attractive investments. Sometimes all they need is evidence that the decline has stopped. Because once stability returns, investors often begin reassessing what the business is actually worth. One reason SiriusXM continues attracting value investors is its extraordinary ability to generate cash. Even during periods when revenue was slowly declining, the company consistently produced more than $1 billion in annual free cash flow. Think about that for a moment. Many fast growing companies still struggled to generate positive cash flow. SiriusXM was producing well over $1 billion while investors were worrying about slowing subscriber growth. That cash gives management tremendous flexibility. It allows the company to continue investing in its platform. It allows management to reward shareholders. And perhaps most importantly, it provides resilience during uncertain economic periods. Cash flow often tells a much more important story than revenue alone. A company can temporarily experience slower sales growth. But if it continues generating enormous amounts of cash, shareholders can still benefit substantially over time. Now, let's talk valuation. One reason SiriusXM appears on so many value investing watch lists is because the stock trades at less than nine times forward earnings. That is an unusually low multiple for a profitable subscription business with millions of recurring customers. Markets often assign low valuations to businesses they believe are permanently declining. The question every investor needs to ask is simple. Is Sirius XM permanently deteriorating or is the market simply pricing in too much pessimism? If the answer ends up being somewhere in the middle, today's valuation could eventually look far more attractive than it appears. Another reason long-term investors continue paying attention is the company's shareholder friendly capital allocation. Management hasn't simply accumulated cash. They've consistently returned it. The company has aggressively repurchased shares while also paying a meaningful dividend. Today, SiriusXM offers a dividend yield approaching 4%. That creates an interesting combination. Investors aren't simply hoping the stock price rises. They're also getting paid while they wait. For long-term investors focused on compounding, dividends become increasingly powerful over time, especially when those dividends are supported by strong free cash flow. Now, here's another fascinating detail. One of the world's most respected long-term investors clearly sees value here. Over the past several years, Berkshire Hathaway has steadily increased its ownership position in SiriusXM. Today, it owns more than 37% of the company. That doesn't automatically mean the stock will outperform. No investor is right every single time, but it does suggest that experienced value investors believe the market may be underestimating the company's long-term earnings power. When sophisticated investors continue accumulating shares in a business trading at a singledigit earnings multiple, it's worth paying attention. Beyond valuation, Sirius XM also benefits from several structural advantages that are easy to overlook. The automotive industry remains one of its biggest strengths. Millions of vehicles already include Sirius XM receivers. For many drivers, activating the service requires almost no effort. That convenience creates an easier path towards subscriber acquisition than companies starting from scratch. The company also continues expanding beyond traditional satellite broadcasting. Its streaming capabilities allow subscribers to access content across multiple devices, creating a more flexible listening experience while helping Sirius XM remain relevant as consumer behavior evolves. Exclusive programming also strengthens customer retention. Whether it's premium music channels, live sports coverage, comedy, news, or well-known personalities, exclusive content gives subscribers reasons to remain loyal. That helps explain why churn has historically remained relatively low despite competitive pressures. Every subscription company lives and dies by customer retention. Keeping existing subscribers is usually far less expensive than constantly acquiring new ones. and SiriusXM has historically done a respectable job maintaining that balance. Of course, no investment is without risk. The biggest question remains whether the company can successfully attract younger audiences while maintaining its existing subscriber base. Consumer entertainment habits continue evolving rapidly. Competition for attention has never been greater. The connected vehicle continues changing how people consume audio content. Those are legitimate challenges. Investors should also recognize that economic slowdowns can influence discretionary spending. Some households may decide that entertainment subscriptions become optional during difficult periods that could pressure subscriber growth in the short term. But this is where valuation becomes especially important. When expectations are already relatively low, companies don't necessarily need spectacular results to reward shareholders. Sometimes they simply need to perform better than investors expect. That's one reason value investing can be so powerful. The market occasionally becomes overly focused on recent disappointments while overlooking durable competitive strengths. SiriusXM still owns a unique platform. It still generates exceptional cash flow. It still rewards shareholders through dividends and buybacks. It still serves roughly 33 million subscribers. And it's showing early signs that the business may finally be stabilizing after several difficult years. Those aren't characteristics you usually find in companies trading below nine times forward earnings. Will Sirius XM suddenly become the fastest growing media company? Probably not. But it doesn't have to. If management continues stabilizing revenue, maintains strong free cash flow, keeps rewarding shareholders, and gradually improves investor confidence, the stock may not need explosive growth to generate attractive long-term returns. Sometimes the best investments aren't the companies making the loudest headlines. Sometimes they're the quiet cash generating businesses that investors stopped paying attention to years ago. and SiriusXM may be exactly that kind of opportunity. If this resonates with you, you're exactly who this channel is for. Please hit the like button, share the video, and leave your thoughts in the comments. Subscribe to the channel so you don't miss out on the next important financial investing update. Remember to do your own research before you invest in any stock. The second dirt cheap stock that deserves a closer look is Royal Caribbean, ticker symbol RC. When most people think about cruises, they usually picture vacations, beaches, buffets, and entertainment. But from an investment perspective, Royal Caribbean is much more than a travel company. It operates one of the most efficient businesses in the global vacation industry, serving millions of passengers every year while benefiting from trends that could continue supporting growth for decades. One of the biggest misconceptions investors make is assuming the cruise industry is already mature. The numbers tell a very different story. Cruise vacations account for only about 2% of the entire global travel and tourism market. That means roughly 98% of travel spending still happens somewhere else. Think about what that implies. If cruises continue becoming more popular among younger travelers, families, retirees, and international tourists, there is still an enormous runway for long-term expansion. Royal Caribbean doesn't need to dominate the entire travel industry. Even capturing a slightly larger share of that massive market could translate into years of higher revenue and earnings growth. That is one of the reasons investors continue paying close attention to this business. Unlike many companies that have already saturated their addressable market, Royal Caribbean is operating in an industry where overall participation can continue increasing. That creates a very attractive backdrop for long-term investors. Now, let's talk about why Royal Caribbean stands out from the rest. Among the major cruise operators, Royal Caribbean trades at the highest valuation. Normally, that would be a reason for caution, but sometimes paying a slight premium actually makes sense. Because not every company deserves the same valuation, Royal Caribbean has consistently demonstrated stronger operational execution, higher profitability, and faster growth than many of its peers. The market is rewarding quality. Even after that premium, the stock still trades at only about 15.7 times forward earnings. Compared to many businesses growing earnings at double-digit rates, that valuation remains surprisingly reasonable. In other words, investors are paying a modest multiple for a company that continues delivering impressive financial performance. That combination doesn't appear very often. One of the strongest reasons investors continue favoring Royal Caribbean is management's confidence in future demand. The company expects both revenue and earnings to increase approximately 11% this year. That is significant. Double-digit growth isn't easy to achieve for a company of this size. It suggests that demand remains healthy despite ongoing economic uncertainty. One of the most encouraging signals came from the company's recent quarterly update. Bookings remained exceptionally strong. That's important because bookings provide a glimpse into future revenue. People reserve cruise vacations months before they actually board the ship. Strong booking trends indicate that customers continue planning vacations well into the future, giving management greater visibility into upcoming financial performance. That level of demand also demonstrates something interesting about consumer behavior. Even when inflation affects household budgets, many travelers continue prioritizing experiences. People may postpone buying certain products, but memorable vacations often remain high on their priority list. Royal Caribbean has positioned itself perfectly to benefit from that shift. Experiences increasingly matter more than possessions. That trend has been building for years. Younger generations consistently spend more on travel and shared experiences than previous generations did at similar ages. Royal Caribbean continues benefiting from that cultural shift. Another major strength is value. Cruises often deliver significantly more vacation for the money than many traditional travel alternatives. Accommodation, meals, entertainment, transportation between destinations, and numerous onboard activities are bundled into one package that makes cruises especially attractive for families looking to maximize vacation budgets. When consumers perceive strong value, demand tends to remain resilient. Royal Caribbean has successfully built a reputation around delivering premium experiences while maintaining competitive pricing. That balance helps support repeat customers, and repeat customers are incredibly valuable. Every satisfied guest becomes a potential future booking. Repeat passengers also tend to spend more on board over time because they're already familiar with the experience and comfortable purchasing additional services. Those onboard purchases create another important revenue opportunity. Ticket sales represent only one piece of the business. Passengers also spend money on specialty dining, beverage packages, shore excursions, internet access, entertainment upgrades, retail shopping, casinos, and spa services. Each additional purchase increases revenue without requiring the company to acquire another customer. That improves profitability. Royal Caribbean has become exceptionally good at optimizing that onboard spending. Technology has also become an increasingly important competitive advantage. Modern ships are designed with sophisticated digital systems that improve guest experiences while helping management operate more efficiently. Mobile applications simplify reservations, dining, entertainment scheduling, and onboard purchases. Behind the scenes, data analytics help optimize staffing, inventory management, fuel efficiency, and customer engagement. These operational improvements may not receive much media attention, but they contribute directly to stronger margins. Efficiency matters, especially in an industry with large fixed costs. The better management becomes at filling ships and maximizing onboard revenue, the more profitable each sailing becomes. Another advantage is the company's continued investment in new ships. Newer vessels typically command higher prices because they offer upgraded amenities, expanded entertainment, innovative attractions, and improved fuel efficiency. Passengers are often willing to pay premium prices for those experiences that allows Royal Caribbean to grow revenue while simultaneously improving operating margins. The company's fleet has become one of its strongest competitive assets. Every new generation of ships raises the bar for customer expectations that creates excitement among travelers and encourages repeat bookings from guests wanting to experience the latest offerings. It's also worth recognizing that building a global cruise business requires enormous capital. Ships cost billions of dollars. Ports require long-standing relationships. Operational expertise takes decades to develop. Brand recognition cannot be created overnight. Those barriers to entry protect established operators like Royal Caribbean. New competitors simply cannot appear and replicate this business quickly that creates a durable competitive advantage. Now every investment comes with risks. Cruise companies remain sensitive to economic conditions. If consumers become significantly more cautious about discretionary spending, vacation demand could soften. Fuel prices can also affect operating expenses. Weather disruptions occasionally impact itineraries. Geopolitical events can temporarily influence international travel. These are realities investors should always consider. However, Royal Caribbean has repeatedly demonstrated an ability to adapt. The company emerged from one of the most challenging periods in travel history with stronger pricing power, improved operational discipline, and renewed consumer demand. That resilience says a great deal about the strength of the business. Investors should also appreciate management's commitment to returning capital to shareholders. The company recently increased its quarterly dividend, which now yields approximately 1.8%. While the dividend isn't the primary reason to own the stock, it reflects management's confidence in future cash generation. Companies generally don't increase dividends unless they believe future earnings can support them. That sends an encouraging signal. Perhaps the biggest takeaway is this. Royal Caribbean isn't simply recovering. It's continuing to grow. Revenue is increasing. Earnings are increasing. Bookings remain strong. margins continue improving. Industry penetration remains remarkably low. And despite all of that, the stock still trades at a valuation that many investors would consider inexpensive compared to its long-term growth potential. For investors looking for a combination of quality growth and reasonable valuation, Royal Caribbean presents an interesting opportunity. It isn't the cheapest company in its industry. But sometimes the highest quality business deserves a slightly higher multiple. Over long investment horizons, buying stronger businesses at fair prices often produces better outcomes than buying weaker businesses simply because they appear cheaper. Royal Caribbean has demonstrated exactly why quality matters. As more travelers discover cruising, as international demand expands, and as the company continues executing its long-term strategy, shareholders could benefit from years of continued earnings growth. That combination of durable demand, operational excellence, expanding profitability, and attractive valuation is exactly what many long-term investors search for. Before we move on to the final stock on today's list, I want to thank the sponsor of today's video. This video is brought to you by Value Stocks Investing Master Course. If you're looking to grow your wealth by investing in solid undervalued stocks, but not sure where to start, I created the value stocks investing master course to teach you how to identify great companies, make smart investment decisions, and build a portfolio that lasts. Click the link in the description and pinned comments to get the course today, and take control of your financial future. The third and final dirt cheap stock on today's list is Upbound, ticker symbol UPBD. At first glance, this probably isn't a company that generates a lot of excitement on Wall Street. It doesn't build artificial intelligence software. It isn't launching rockets into space, and it isn't developing breakthrough medical treatments. Instead, Upbound focuses on something much more practical, helping millions of consumers access everyday essentials through flexible payment solutions. That may not sound flashy, but sometimes the most overlooked businesses are the ones quietly building durable, competitive advantages while investors chase the latest trends. To understand why Upbound deserves a place on this list, you first have to understand the problem it solves. Millions of households need furniture appliances electronics and other necessities. But not everyone has excellent credit or enough cash available to make large purchases upfront. Unexpected life events happen. A refrigerator breaks. A washing machine stops working. Someone moves into a new apartment and needs basic furniture immediately. Waiting months to save enough cash isn't always an option. Upbound provides another path. The company allows customers to lease products with the opportunity to own them over time. That flexibility opens the door for consumers who might otherwise struggle to access these everyday essentials. More importantly for investors, this isn't a niche business serving only a handful of communities. It operates through more than 1,700 retail locations, giving it a nationwide footprint and a wellestablished customer base. Scale matters. A large store network increases brand recognition, strengthens supplier relationships, and creates operating efficiencies that smaller competitors often struggle to match. But here's where the story becomes even more interesting. Upbound today is no longer simply the company many investors remember as Rent a Center. Management has spent the past several years transforming the business into a diversified financial technology and consumer solutions platform. That transformation is one of the biggest reasons the company deserves another look. Instead of relying on a single revenue source, Upbound now operates through multiple complimentary businesses. The traditional leaseto own retail business remains an important contributor, but it is no longer the entire story. The company's aimma platform allows other retailers to offer leaseto own solutions directly to their own customers. Think about what that means. Instead of only generating revenue inside Upbound's own stores, the company can now expand its reach through retail partners across the country. that significantly increases its potential customer base without needing to build thousands of additional locations. It is an asset light way to grow. Every successful retail partnership strengthens the ecosystem while creating another recurring source of revenue. The company has also expanded into consumer financial technology through Bridget, a rapidly growing budgeting and financial wellness app. Bridget helps users manage their finances, monitor spending, build healthier financial habits, and access helpful budgeting tools. This gives upbound exposure to another attractive long-term trend. Consumers increasingly want digital financial services that help them better manage their money by combining retail financing, lease to own technology, and digital financial tools. Upbound is creating a much broader platform than many investors realize. Diversification matters. When a company depends entirely on one business line, any slowdown can have an outsized impact on overall results. Multiple revenue streams provide greater stability and additional growth opportunities. That strategy already appears to be working. Management expects fullear revenue between $4.7 billion and $4.95 billion, representing the company's third consecutive year of revenue growth. That is an important milestone. Consistent topline growth demonstrates that demand for the company's products and services remains healthy. Revenue alone, however, never tells the full story. Profitability is equally important. Fortunately, Upbound is delivering there as well. Management expects earnings per share between $4 and $4.35 this year. Now, let's connect those earnings to valuation. Based on those projected profits, the stock trades at less than five times forward earnings. That is remarkably inexpensive. Many companies with stable earnings trade at two or three times that valuation. Some growth companies trade at 10 or even 20 times higher multiples. Markets sometimes assign very low valuations when investors become overly focused on perceived risks, but that can create opportunities for patient investors willing to look beyond short-term sentiment. One of the biggest attractions here is shareholder income. Upbound currently offers a dividend yield of roughly 8.3%. That is the highest dividend yield among the three companies discussed in today's video. A dividend of that size naturally grabs investors attention. Of course, high dividend yields should always be evaluated carefully. The key question isn't simply how large the dividend is. It's whether the business generates enough cash to support it. In Upbound's case, the combination of growing revenue, healthy earnings, and diversified operations provides a stronger foundation than many investors might initially assume. If management continues executing successfully, shareholders could potentially benefit from both capital appreciation and meaningful dividend income. That combination can be particularly attractive for long-term investors focused on total returns. Another reason Upbound deserves attention is the broader economic backdrop. Home ownership has become increasingly expensive in many markets. Higher mortgage rates and elevated home prices have forced many consumers to remain renters longer than previous generations. That shift creates a larger addressable market for companies serving the rental community. Whether someone is furnishing a first apartment or replacing household essentials without taking on traditional debt, flexible payment solutions remain relevant. Upbound has positioned itself directly within that trend. Rather than fighting against changing consumer behavior, the company is adapting alongside it. That gives the business long-term relevance beyond temporary economic cycles. Technology also continues improving the customer experience. Digital applications streamline approvals, simplify payments, and reduce friction throughout the leasing process. Consumers increasingly expect convenience. Companies that combine financial flexibility with easy digital experiences often strengthen customer loyalty over time. Management's willingness to evolve the business instead of relying exclusively on its legacy retail model is another encouraging sign. Many companies struggle because they refuse to adapt. Upbound has shown a willingness to expand into new areas while leveraging the strengths it already possesses. Of course, investors should also recognize the risks. Upbound serves customers who can be more sensitive to economic conditions. If unemployment rises significantly or household finances weaken, payment performance could come under pressure. Credit related businesses always require disciplined risk management, competition within consumer finance also continues evolving. The company must continue innovating to maintain its leadership position. These are important factors every investor should evaluate before making an investment decision. But once again, valuation plays a critical role. When a profitable company with multiple revenue streams trades below five times forward earnings while paying an 8.3% dividend, much of that uncertainty may already be reflected in the stock price. That doesn't eliminate risk, but it can improve the balance between potential upside and downside for long-term investors. Stepping back, there is an interesting pattern connecting all three companies discussed today. None of them are the market's most popular stocks. None of them dominate financial headlines every week. Instead, each business combines durable competitive strengths with unusually attractive valuations. Sirius XM controls a unique premium satellite radio platform supported by millions of loyal subscribers and exceptional free cash flow. Royal Caribbean continues leading one of the fastest growing segments of global travel while producing impressive revenue and earnings growth. Upbound serves an important consumer need through multiple complimentary businesses while trading at one of the lowest earnings multiples on today's market. Each company faces challenges. Every investment does. But long-term investing has never been about finding perfect businesses. It's about identifying good businesses that the market may be undervaluing. Sometimes those opportunities appear because investors become too focused on recent headlines. Sometimes they appear because an entire industry falls out of favor. And sometimes they appear simply because Wall Street becomes distracted by the next exciting trend. History has shown that patient investors willing to buy quality businesses at attractive prices often place themselves in a stronger position over time. That doesn't mean every inexpensive stock deserves your money. Some stocks are cheap for good reasons. The goal is finding businesses where the market's pessimism has become greater than the underlying reality. These three companies may fit that description. Whether you decide to invest in one of them or simply add them to your watch list, they are certainly worth following closely over the coming years. If you want exclusive stock tips, in-depth analysis, real-time trade alerts, and free investing guides, join the Stocks Galore Patreon today and take your investing game to the next level. Our members get full in-depth analysis on most of the stocks mentioned here. Head over to patreon.com/stockgalore and become part of our growing community of smart investors. Link is in the description. Before we wrap up, I'd love to hear your opinion. Which of these three businesses do you believe has the strongest long-term competitive advantage? SiriusXM with its subscription-based media platform, Royal Caribbean with its leadership in the growing cruise industry, or Upbound with its diversified lease to own and financial technology platform. Let me know your answer and your reasoning in the comments below. Do not forget to like the video, share your thoughts in the comments, and subscribe so you do not miss the next important investing update. Thanks for watching and I will see you in the next
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