Market Sell-Off Creates Rare Buying Opportunity for Long-Term Investors

By: Swarnalata

Published on: Apr 21, 2025

Market Sell-Off Creates Rare Buying Opportunity for Long-Term Investors
The recent downturn in the stock market has knocked nearly every stock off its highs—but some standout companies are now trading at absurdly cheap valuations. While many of these stocks were already trending downward before the broader market took a dip, the current prices have opened the door for long-term investors seeking growth opportunities.

Here are three growth stocks that are not only undervalued but also positioned for long-term success: Alphabet (GOOG/GOOGL), Adobe (ADBE), and Taiwan Semiconductor (TSMC).

 Why Forward P/E Ratio Matters

To identify whether a stock is truly a bargain, we’ll use the forward price-to-earnings (P/E) ratio—a forward-looking valuation metric based on analyst projections. While these forecasts aren’t perfect, they help us understand where the market thinks the stock is heading.

 Our Benchmark: The S&P 500

• The S&P 500’s forward P/E ratio is 20.2.


• All three of these tech giants are trading below that mark, which means they’re priced below the average U.S. company—despite their dominance and potential.

1. Alphabet (GOOG/GOOGL) – Forward P/E: 17.5

Alphabet, the parent company of Google, YouTube, and Android, has long traded at a discount to its peers—largely due to its dependence on ad revenue. Ads are typically the first thing companies cut during economic slowdowns, which puts Alphabet in the firing line during downturns.

But despite these concerns, Alphabet is still a tech juggernaut. Its current valuation (forward P/E of 17.5) is approaching the lowest levels of the past decade.

Legal Headwinds – Overblown?

Alphabet is also facing regulatory challenges. Recent court rulings declared parts of its advertising and search business monopolies, but any breakup of the company could unlock even greater value for shareholders.

Key Takeaway: Alphabet's dominant position in digital ads, cloud services, and AI makes it a compelling buy—even amid regulatory uncertainty.

2. Adobe (ADBE) – Forward P/E: Historically Low

Once one of the most expensive big tech stocks, Adobe has seen its valuation drop due to concerns about competition from generative AI tools. However, Adobe has countered with its own AI-powered tools, and growth remains steady at ~10% annually.

 Adobe’s Transition: Growth to Value

Adobe is no longer priced like a high-growth stock. Instead, it’s now sitting in value territory, trading at a forward P/E well below the market average—something we haven't seen in over a decade.

Key Takeaway: Adobe’s shift to a lower valuation offers a rare chance to buy this software leader at a discount.

3. Taiwan Semiconductor (TSMC) – Forward P/E: 17

TSMC is the world’s leading semiconductor fabricator, producing chips for giants like Apple and Nvidia. Despite global tensions and potential tariff threats, the company is proactively expanding its U.S. operations with a $100 billion investment—a move that could safeguard it from future trade restrictions.

Resilient and Strategic

Even at a forward P/E of just 17, Taiwan Semi remains an essential piece of the global tech supply chain. While geopolitical risks exist, the company’s strategy to localize some of its production positions it well for future growth.

Key Takeaway: For a company of this global importance, the current valuation is hard to ignore.

 Where Should You Invest $1,000 Right Now?

While Alphabet, Adobe, and TSMC all look like smart long-term buys, always remember that no investment is risk-free. However, if you're thinking long-term, buying top-tier companies at historically low valuations has often been a winning strategy.

Stock market sell-offs create panic—but also opportunity. And for these three tech giants, the opportunity to buy low may not last long.