At the risk of being overly simplistic, I propose there are two kinds of absurdly cheap stocks: those poised to create value long term and those that will likely destroy value. These two kinds of companies might look the same from a valuation perspective. But valuation metrics largely look backwards. By contrast, investors must look forward.

Brazilian financial-technology (fintech) company PagSeguro Digital (NYSE: PAGS) and home furnishings retailer Williams-Sonoma (NYSE: WSM) are two absurdly cheap stocks that I believe can create value for their shareholders long term. Here's why.

Certainly a high-growth, profitable company wouldn't have a cheap stock, would it? Well, perhaps you haven't looked at PagSeguro. It's all of those things right now.

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Source Fool.com