Whether you’re a value investor or you just want to limit your potential risk in the markets, focusing on stocks that are well-priced can be a great way to help you earn a better overall return.

These stocks are cheap buys that are trading at attractive multiples, and they can add some great diversification for your portfolio.

1. Delta Air Lines

Delta Air Lines (NYSE:DAL) is not a popular stock at the moment, with another concerning flu virus in the headlines making people wary of traveling. However, that’s precisely why Delta belongs on your watch list. There could be a lot of bearishness that sends Delta’s stock down in the coming weeks as investors pull away from aviation stocks. And with Delta already trading at a very modest 7.7 times earnings and a PEG ratio of less than 1, it’s already a good deal today.

It’s hard to go wrong with a stock that Warren Buffett is a fan of, with the billionaire investor holding an 11% stake of the company today. And it’s easy to see why Buffett would like Delta — the company is a consistent performer. Sales have steadily climbed from $39.6 billion in 2016 to more than $44.4 billion in 2018. The airline’s bottom line looks solid as well, with profits of at least $3.5 billion in each of its past three years.

To make things even better, Delta also pays its shareholders a steadily increasing dividend that currently yields 2.8%, topping the S&P 500’s average around 1.8%.

2. Canadian Imperial Bank of Commerce

Canadian Imperial Bank of Commerce (NYSE:CM) may be an even safer pick than Delta. The Canadian big-five bank is one of the more stable investments you’ll find on the markets. The company’s profit margins have been north of 26% in each of the past five fiscal years, while profits have risen from 3.5 billion Canadian dollars to more than CA$5 billion during that time. In fiscal 2019, the bank also accumulated more than CA$18 billion in free cash flow.

Falling interest rates and a concerning outlook for the economy’s future have made investors bearish on financial stocks. The good news is that has made CIBC a cheap buy, as it’s currently trading at less than 10 times its earnings and less than 1.5 times its book value.

The stock is down slightly over the past 12 months, which is disappointing since the S&P 500 is up about 20% during that same period. However, over the long term, bank stocks are generally safe investments to hold on to, and CIBC is likely to rise in value once the economic outlook improves.

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