The stock market has been in rally mode this year. The S&P 500 has gained nearly 20%, while the tech-heavy Nasdaq 100 is up over 35%. Because of that, most stocks aren’t as cheap as they were at the beginning of the year.
However, there are still a few bargains out there. Verizon (VZ 0.16%) and Kinder Morgan (KMI 0.35%) trade at absurdly cheap valuations these days. That’s one of the many factors making them look like great long-term investments for those with around $500 to invest right now.
A dirt cheap cash flow machine
Verizon shares currently sit about 11% below their peak from earlier this year. That has the telecom giant trading at a cheap price. It trades less than 8 times its forward price-to-earnings (PE) and about 11.5 times its free cash flow (or an 8.7% free-cash-flow yield).
That’s absurdly cheap compared to broader market indexes. The S&P 500 trades at over 20 times…
