The market's been on quite a run lately, but I'm getting that familiar feeling of valuations getting stretched. S&P 500 is up over 16% year to date, and everyone's chasing AI stories. Thing is, when you look at metrics like the Shiller P/E ratio, we're basically back to dot-com bubble territory. That's why I've been hunting for actual bargains where you can still find what stocks to buy now without feeling like you're catching a falling knife.

Let me break down three companies I think offer solid value plays if you're looking to add to your portfolio.

First up is Citigroup. Yeah, I know, it's been a laggard for years. The bank's massive global footprint became a liability rather than an asset—bloated costs, regulatory headaches, the whole mess. They took $400 million in fines back in 2020 and another $136 million hit more recently. But here's what's interesting: new CEO Jane Fraser actually seems to be fixing it. Since 2021, she's been systematically dismantling the dead weight. They've shut down consumer operations in 14 countries, cut costs, and spun off Banamex in Mexico. The return on equity is creeping up from 7.4% to 8.9% this year. Trading at just 1.06 times tangible book value compared to JPMorgan's 2.99 and Bank of America's 1.88, Citi looks genuinely cheap right now.

Then there's PayPal. It's funny how far this stock has fallen from its high-flying days. Bouncing between $50 and $100 for years, trading at 11.3 times forward earnings—basically priced like a bank. But the new CEO Alex Chriss, who came from Intuit, is actually doing something interesting. They've rolled out better payment solutions for small businesses, partnered with OpenAI on AI-powered shopping tools, and just launched an advertising platform. The company's still growing steadily, and I genuinely don't think the market is pricing in the potential from these initiatives yet.

Finally, Progressive. This one's been a monster performer over three decades—16.9% annual returns. The auto insurance space is cyclical though, and we're in a tougher period right now with inflation pressures. Progressive just announced a $1 billion refund to Florida policyholders because profits got too fat. Stock's down 17% over the past year, which honestly looks like a gift. At 11.5 times earnings, it's trading cheaper than it has in years. The company's data-driven approach and underwriting prowess haven't gone anywhere.

The common thread here is that all three are trading at discounts that don't reflect their actual fundamentals or turnaround potential. When the broader market is this expensive, finding what stocks to buy now means looking at companies that have been beaten down but have real catalysts. These three fit that bill.