Got $1,000? 3 Stocks to Buy Now While They're on Sale

The S&P 500 continues to hit new highs, and it's becoming alarmingly expensive. The cyclically adjusted P/E ratio, or CAPE ratio, recently hit its second-highest level ever, and its highest rate since the market crashed in 2000.

There are reasons this time might be different, but there's no ignoring that it's getting harder to find bargains in the market. If you have $1,000 to invest today and are looking for stocks on sale, Target (NYSE: TGT), Carnival (NYSE: CCL), and On Holding (NYSE: ONON) look like good deals.

1. Target

Target has been in the dumps for several years, dealing with issue after issue. Sales and profits have dropped, but there have been many silver linings along the way. The company still has a large store and consumer base, and it demonstrated progress in the 2026 fiscal first quarter (ended May 2). It impressed the market so much that the stock is up 31% this year, well ahead of the S&P 500's 10% gain.

It has a new CEO, and the company is aggressively making changes. It's refreshing its merchandise collection, bringing more technology into its operations, and renovating stores to create an improved shopping experience. Sales increased 6.7% year over year in the first quarter, and comparable sales were up 5.6%. Those are fantastic results for the struggling retailer, but as management acknowledges, it still has a ways to go.

However, Target is a Dividend King, which means it has raised its dividend for at least 50 years. This coming June will be the 55th consecutive increase, and shareholders can rely on Target for their quarterly check. Target's dividend yields a high 3.6% at the current price.

Target stock trades at 17 times trailing 12-month earnings. The market is still unsure about where the recovery is headed, but it looks priced to buy for long-term or passive income investors as the business recovers.

2. Carnival

Carnival continues to demonstrate impressive growth despite headwinds of all kinds, but the market continues to price in all of those headwinds. It trades at a P/E ratio less than 12, which could be a good entry point for long-term investors who can handle volatility.

The results have been strong. In the 2026 fiscal first quarter (ended Feb. 28), revenue increased 6% year over year to a record $6.2 billion. Earnings per share (EPS) were up 50% to $0.19, and it had record net yields, a cruise profitability metric.

Despite inflation, demand remains robust, and Carnival has its highest-ever booking levels in the first quarter. The booked position for the rest of 2026 is at historical highs for price and occupancy, and bookings for 2027 and beyond are at record highs.

The newest headache for Carnival is soaring oil prices. Cruise companies are highly exposed to oil prices, since it's one of their main costs. Despite this volatility, profitability remains strong, and management explained that operational efficiency is helping to offset the impact of rising costs.

Carnival is the leading cruise company, and over time, Carnival stock should rebound and reward patient investors.

3. On

On is a relatively new player in athletic wear. You may recognize the distinctive logo on its products or the distinctive shoe sole on its sneakers. The brand has been catching on as a popular alternative to other premium brands, and it's still rolling out across the globe. It has developed a loyal following of affluent fans that are more resilient under pressure, and the company has a high rate of full-price sales.

That's why, despite inflationary pressure and a retail landscape where many of its peers are struggling, On continues to deliver robust results. In the 2026 first quarter, sales increased 26% year over year (currency-neutral), driven by direct-to-consumer sales growth of 28% and wholesale growth of 25%.

The company is also incredibly profitable despite rising costs. Gross margin improved from 59.9% to 64.2%, and net income rose 82.2%.

There may be pressure ahead, and the growth rate has decelerated, which is why the stock is down. However, it's already heading higher, and it trades at 42 times trailing 12-month earnings, just off its all-time low.

Jennifer Saibil has positions in On Holding. The Motley Fool has positions in and recommends On Holding and Target. The Motley Fool recommends Carnival Corp. The Motley Fool has a disclosure policy.