Although it can be exciting to wager on enterprises that everyone else is following, your best bets may stem from so-called bargain stocks. These ideas are from the path less traveled. While they’re higher risk, they could also be intensely rewarding.

While there may be some semblance of safety in numbers, one problem tied to betting on the usual suspects is the reward potential or lack thereof. These ideas are the equivalent of minus-money bets. They’re expected to do well in terms of frequency. However, their returns are limited.

On the flipside, bargain stocks are somewhat similar to plus-money bets or plus odds. If the stars align, you can potentially see robust rewards, in large part because expectations were so low.

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Naturally, these ideas come with higher risk. If you’re willing to accept that, below are bargain stocks to consider.

Albertsons Companies (ACI)

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Based in Boise, Idaho, Albertsons Companies (NYSE:ACI) falls under the consumer defensive category, specifically grocery stores. Currently, ACI attracts attention due to the frustrations involved in attempting to merge with Kroger (NYSE:KR). Obviously, there are anti-competitive concerns tied to bringing together two major grocers. Still, a recent Seeking Alpha report argues that Albertsons is one of the standalone bargain stocks to buy.

In part, ACI stands poised to “produce strong gains for investors, absent a takeover.” Analysts seem to agree, rating shares a consensus moderate buy with an average price target of $23.66. Further, the most optimistic forecast calls for a price per share of $27.25.

Financially, it’s a consistent performer. Since the three months ended Feb. 29, 2024 and looking back four quarters, the company’s average positive earnings surprise stands at 11.35%. On a trailing-12-month (TTM) basis, net income comes in at $1.3 billion on revenue of $79.24 billion.

Experts see revenue in the current fiscal year rising 1.3% to $80.23 billion. Enticingly, shares trade at 0.15X trailing-year revenue, which is super low. It may be one of the bargain stocks to buy.

Magna International (MGA)

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A Canadian parts manufacturer for automakers, Magna International (NYSE:MGA) may play a big role amid changes to the mobility ecosystem. Per its public profile, the company designs, engineers, and manufactures components, assemblies, systems, subsystems and modules for original equipment manufacturers (OEMs) of vehicles and light trucks worldwide.

In many ways, Magna sells tickets to the game rather than being a straight wager on which team will win. Because of this dynamic, MGA could be a superior bet rather than picking among multiple electric vehicle brands, for example. Still, it hasn’t been the most consistent performer, which has led to a downturn in the market for MGA stock.

At the same time, that makes MGA attractive for its valuation. Presently, shares trade at 8.35X forward earnings. Yet for fiscal 2024, experts anticipate that earnings per share will land at $5.68. That’s an improvement over last year’s print of $5.49. Further, in fiscal 2025, EPS could soar to $6.87. Combined with steady revenue growth, Magna makes a candidate for bargain stocks to consider.

Ambev (ABEV)

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Based in Sao Paulo, Brazil, Ambev (NYSE:ABEV) technically falls under the consumer defensive space. People know the company better as a beverage play. Per its corporate profile, Ambev produces, distributes and sells beer, carbonated soft drinks and other non-alcoholic beverages, malt and food products. Cynically, Ambev could rise on demand for beer amid tough economic conditions.

In other words, people need to take the edge off and alcohol tends to be a medium of choice. Adding to the bullish narrative, analysts peg shares as a consensus moderate buy with a $2.96 average price target. Further, the high-side target calls for $3.28 per share.

Financially, Ambev has been consistently robust. In the past nine months since the first quarter of this year, the company’s average positive earnings surprise stands at 23.33%. Despite the ubiquity and relevance of the underlying core products, ABEV hasn’t performed well in the market. That has pushed the forward earnings multiple down to 12.87X.

However, it’s possible that by fiscal 2025, EPS could land at 20 cents, with an optimistic target of 22 cents. That’s not unrealistic, making ABEV one of the bargain stocks to consider.

Visteon (VC)

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Hailing from Van Buren, Michigan, Visteon (NASDAQ:VC) is part of the consumer cyclical industry. Specifically, the enterprise falls under the automotive technology category. Per its public profile, Visteon designs, manufactures and sells automotive electronics and connected car solutions for vehicle manufacturers worldwide. It provides components such as instrument clusters and intelligent voice assistants.

Again, I would label Visteon as a ticket-selling entity. Rather than trying to guess which mining project will strike gold, it’s better to sell shovels. That’s the idea behind VC stock. To be fair, the underlying company’s financials could use some work. In the past four quarters since Q1, the company has been all over the map.

Further, difficulties in the automotive industry have put pressure on Visteon. But at some point, the sector will recover. When it does, VC could swing higher. That’s why it’s important to consider taking advantage of its low price/earnings-to-growth (PEG) ratio of 0.85X now.

Analysts rate shares a consensus moderate buy with a $140.36 average price target. With the high side going up to $161, VC is an enticing name for bargain stocks to buy.

Standard Motor Products (SMP)

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Headquartered in Long Island City, New York, Standard Motor Products (NYSE:SMP) is another player in the auto parts sector to consider. What makes Standard distinct is its focus on specialty components. It manufactures systems like ignitions, emissions and fuel delivery systems. Now, while such acumen might seem anachronistic given the rise of electric vehicles, here’s the thing: EVs aren’t selling all that well right now.

Not only that, hybrid vehicles – which incorporate the efficiency of EVs with combustion-powered engines – have skyrocketed. Even legacy automakers that were deadest on pivoting to EVs have transitioned to hybrids. Therefore, automakers will likely need specialized components to keep their customers happy. That could be a big boon for SMP stock.

Still, the market doesn’t believe in Standard Motor, which is understandable in many respects. That left shares trading at only 0.52X trailing-year revenue. However, it’s important to realize that analysts project slow but steady growth over the next two years.

Moreover, Roth MKM’s Scott Stember sees the potential, rating shares a “buy” with a $42 price target. It’s one of the bargain stocks to consider.

Gilat (GILT)

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Based in Israel, Gilat (NASDAQ:GILT) falls under the technology sphere, specifically communication equipment. Per the underlying public profile, the company provides satellite-based broadband communication solutions in Israel, the U.S. and other international markets. It operates in three segments: Satellite Networks, Integrated Solutions and Network Infrastructure and Services. With the burgeoning interest in the space economy, GILT could be an interesting candidate for bargain stocks.

Financially, the company did see a miss in Q4 2023, posting EPS of 6 cents against a consensus target of 7 cents. Other than that, Gilat has been hitting it out of the park. In the past four quarters since Q1, the average positive earnings surprise clocked in at 175.6%. GILT trades at a modest trailing-year earnings multiple of 12.95X.

In addition, it trades at 1.07X trailing-year revenue. That’s also modest for the underlying industry. And that’s important because in fiscal 2024, experts believe that revenue could rise to $313.9 million. If so, that would represent an 18% growth rate from last year’s haul of $266.09 million. Thus, it’s a worthy idea for bargain stocks to buy.

Pinstripes (PNST)

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Headquartered in Northbrook, Illinois, Pinstripes (NYSE:PNST) operates in the consumer cyclical space. Specifically, it falls under the restaurant category. Per its corporate profile, Pinstripes focuses on providing dining and entertainment concept restaurants. Its main motif is on Italian-American food and beverages. Further, its locations offer bowling, bocce and event space. It also brings to the table private-event options and catering services.

To be sure, Pinstripes’ financial profile presents risks; namely, the company on TTM basis printed a net loss of $9.16 million on revenue of $116.7 million. That’s not great because restaurants typically have thin margins. Still, what’s encouraging for speculators is that the enterprise is seeing quarterly revenue growth (year-over-year) of 14.1%.

For fiscal 2024, analysts believe that Pinstripes will post a loss per share of 22 cents on sales of $121.7 million. Further, patient investors could be rewarded, with fiscal 2025 revenue potentially soaring to $178.83 million.

It’s high risk, high reward. Earlier analysts pegged a $6 price target on PNST, potentially making it one of the bargain stocks to buy.

On the date of publication, Josh Enomoto did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.

A former senior business analyst for Sony Electronics, Josh Enomoto has helped broker major contracts with Fortune Global 500 companies. Over the past several years, he has delivered unique, critical insights for the investment markets, as well as various other industries including legal, construction management, and healthcare. Tweet him at @EnomotoMedia.

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