• Bank of America (BAC): Bank stocks are down 20% across the board year to date, providing a great buy-the-dip opportunity.
• Starbucks (SBUX): Shares of the coffee chain are down temporarily after the company canceled its stock buyback program.
• Meta Platforms (FB): With a P/E ratio of 17x, it offers the cheapest valuation among mega-cap tech stocks.

While market volatility persists, the current churn in the stock market provides some great buying opportunities for discerning investors who know where to look for deals. Many great cheap stocks are down 10% or more right now, with some falling to fresh 52-week lows.

These are quality companies that have long-term potential and a track record of delivering solid returns to shareholders. Rather than focus on the short-term decline in the share price of these stocks, investors should instead see them as offering an attractive entry point at current levels.

The declines in share prices are likely to be temporary and the long-term upside could be huge. These are not speculative cheap stocks that recently went public and were overvalued and due for a correction. Rather, these are stocks of established, blue-chip companies that are profitable and leaders in their respective sectors.

Here are three great cheap stocks to buy heading in the second quarter of the year.

Bank of America (BAC)

The entire banking sector is on sale right now. The Dow Jones U.S. Banks Index is down nearly 18% since mid-January due to concerns about aggressive monetary policy from the U.S. Federal Reserve and fears of a coming recession.

For its part, Bank of America (NYSE:BAC) is down 14% year-to-date (YTD) at $40 per share. This offers a great entry point to a rock solid stock that has delivered a 76% return to investors over the past five years.

Bank of America, the second-largest bank in the U.S., has been brought low in recent months. However, we are entering a period of higher interest rates as the Fed takes action to cool inflation that is running at a 40-year high.

Investors should keep in mind that bank stocks tend to outperform when rates are higher, as it enables them to charge more interest on their various consumer and business loan products. Looking forward, BAC stock is sure to be a great long-term holding, and investors can get it now while it’s cheap.

Among 23 analysts who cover BAC stock, the median price target on the shares is $50, implying 26% upside from here.

Starbucks (SBUX)

Howard Schultz returned as interim chief executive of Starbucks (NASDAQ:SBUX) on April 4. His first order of business was to halt the company’s share repurchase program, saying the money could be better spent on employee compensation and retail locations.

This comes as a growing number of Starbucks locations vote in favor of unionization. News that the stock buyback program has been stopped pushed SBUX shares, which were already under pressure, sharply lower. Starbucks stock is down more than 30% YTD at about $81 per share.

However, at current levels, Starbucks stock looks like a steal. And despite the company’s union woes, it remains a best-in-class food and beverage company whose stock has returned 34% to investors over the last five years.

Keep in mind that period includes the pandemic, during which a majority of its more than 9,000 retail outlets were forced to close. With a price-to-earnings (P/E) ratio of 23.8x and a dividend yield of 2.4%, SBUX stock is still attractive. And the freeze in the share repurchases is most likely temporary.

The 28 analysts who cover SBUX stock have a median price target on the shares of $114.50, suggesting a potential 41% gain in the coming months.

Meta Platforms (FB)

Among technology stocks, few look as cheap right now as Meta Platforms (NASDAQ:FB). The parent company of Facebook has seen its stock beaten down after it reported disappointing earnings and forward guidance.

There are also concerns about the company’s rebrand and pivot to focus on developing the “metaverse,” a virtual reality world that is mostly conceptual at this point. The concerns and skepticism have pushed down FB stock by more than 35% YTD.

In terms of valuation, Meta Platforms stock looks dirt cheap with a P/E ratio of 17x. That’s anemic for a mega-cap technology growth stock and also lower than the P/E ratio of the aforementioned Starbucks.

While questions remain to be answered at Meta Platforms, the company is likely to be just fine in the long run. While it develops the metaverse, the company can continue to earn strong advertising revenue from its Facebook and Instagram social media platforms.

Of the 48 professional analysts who cover FB stock, the median price target is currently $322.50, which represents a potential 47% gain.

On the date of publication, Joel Baglole held a long position in BAC. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.