Buy the Dip: 2 Stocks to Buy Today and Hold for the Next 3 Years

Investors have suffered through a painful market downturn, with the S&P 500 index down 19.3% year to date. But as with every previous sell-off, this too shall pass. While some growth stocks still trade at fair valuations, there are genuine bargains available if you know where to look.

Two value stocks that offer nice growth potential over the long term are Ally Financial (NYSE: ALLY) and Paramount Global (NASDAQ: PARA) (NASDAQ: PARA.A). These stocks trade at single-digit price-to-earnings ratios and could deliver amazing returns over the next three years.

Ally Financial is a popular digital-only bank that has posted impressive operating performance. Over the last six years through fiscal 2021, it grew earnings per share four-fold to $8.22, while reaching a high return on equity (ROE) of 20.2% last year. That is nearly double the average ROE of all U.S. banks.

Source Fool.com