The summer of 2025 is flying by, and investors have been treated to some wild swings across this year’s trading. Despite some big instances of volatility and risk factors along macroeconomic and geopolitical lines, the S&P 500 has risen roughly 7% across 2025’s trading and isn’t far removed from its all-time high.

On the other hand, some strong businesses have actually seen significant valuation contractions this year — and taking a buy-and-hold approach to the best of the bunch could be a path to fantastic returns. If you’re looking for top stocks trading at substantial discounts compared to their all-time highs, read on to see why two Fool.com contributing analysts think that these industry-leading companies stand out as great investment opportunities right now.

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Amazon stock: Down 12% from its high

Keith Noonan (Amazon): Sometimes, the market has a gut reaction to a company’s earnings report that seems to miss the forest for the trees — and these instances can sometimes present big opportunities for investors. I think Amazon (AMZN -0.23%) stock is one of those types of opportunities on the heels of its recent second-quarter report.

The technology and e-commerce giant notched per-share earnings of $1.68 on revenue of $167.7 billion, which crushed the average analyst estimate’s target for earnings per share of $1.33 on sales of $162.11 billion. Despite the very strong quarterly results, Amazon stock saw a significant pullback following its second-quarter report.

Amazon stock is down roughly 2.5% across this year’s trading, and its share price is down approximately 12% from its all-time high.

The company guided for high levels of spending on artificial intelligence (AI) infrastructure to continue, and some investors were concerned about the near-term impact the big build-out initiative will have on profitability.

Amazon’s Q2 report also arrived the same day that disappointing July jobs numbers were reported and the day after the Trump administration unveiled a series of new tariffs, which certainly didn’t help set the stage for a big post-earnings rally. Amazon’s recent business execution and Q2 results don’t seem to have gotten all the kudos they probably deserve, but that will likely change with time.

Heavy spending on AI infrastructure, robotics, and other potentially explosive growth drivers will certainly put some pressure on Amazon’s earnings in the near term, but making big investments in these categories is probably among the smartest things the company can be doing right now. Amazon’s recent quarterly report was a reminder of the company’s strengths, and the stock looks like a great portfolio addition for long-term investors.

Target stock: Down 62% from its high

Jennifer Saibil (Target): Target (TGT -0.21%) has been a massive disappointment for shareholders over the past few years. It’s been dealing with problems as fundamental as lower consumer discretionary spending and as fleeting as negative public opinion about its political beliefs. However, there are many signs of light amid the darkness, and Target stock’s low price looks compelling for long-term investors.

In its fiscal 2025’s first quarter (ended May 3), sales were down 2.8% from last year, and comparable sales (comps) were down 3.8%. However, digital comps were up 4.7%, driven by a 36% increase in same-day services from its membership program. This category has been a bright spot in Target’s reports throughout this challenging time. It’s a good indication that loyal customers are finding value, and under better circumstances, Target can rebound.

Today’s operating environment is still hostile to a retailer like Target, which is a discount retail chain focused on discretionary shopping. Unlike Walmart, which is one of the country’s biggest grocers, Target’s sweet spots are categories like apparel and home improvement. Home improvement in particular is still suppressed since the real estate industry has been in a funk.

Target tends to perform well under better conditions, and that’s likely to happen again. In the meantime, it continues to upgrade the digital platform and loyalty program, where growth is happening.

Target is a Dividend King, an exclusive status applied to companies that have raised their dividends for at least 50 years straight. It means the dividend is reliable, which is a crucial feature for many dividend investors, and that you can count on it to grow. With the stock down roughly 62% from its high, Target’s dividend yields 4.4%, or more than three times the S&P 500 average.

As the S&P 500 continues to rise, it’s getting harder to find bargains, but Target stock is still cheap. It trades at a forward, one-year P/E ratio of roughly 13, which makes it a great time to buy for long-term investors, especially if you’re looking for passive income.