In an Aug. 1 column, I suggested that only low-end consumers were struggling, and I stated that “those problems are not going to hurt most large growth stocks significantly.” On Aug. 9, investor and commentator Josh Brown, who has been very pessimistic on the state of America’s consumers until very recently, said on CNBC that the top 75% of consumers are not having financial problems due to inflation. Given Brown’s newfound optimism and the recent market rally, I believe that the Street has become much more bullish on the U.S. economy in recent days, making this a very good time to buy cheap value stocks.

Low valuations, strong financial results, and a positive outlook usually foreshadow very strong stock performances. The names that I’ve included in this column have all three of those characteristics.

Plus, due to largely unwarranted worries about inflation, and the Fed’s reaction to it, these stocks’ valuation has become even more enticing in recent days.

Cheap Value Stocks: MGM Resorts International (MGM)

With fears of the coronavirus having eroded tremendously in the U.S., Las Vegas casinos in general and MGM’s (NYSE:MGM) properties, in particular, are booming. As evidence of the latter statement, consider that in the second quarter, MGM’s adjusted EBITDAR (earnings before interest, taxes, depreciation, and rent costs) from Las Vegas set a new all-time record.

In Las Vegas, MGM’s same-store net revenues soared 60% year-over-year in Q2, while its same-store adjusted property EBITDAR in the city climbed 51% YOY. Its occupancy in Las Vegas last quarter came in at 92%, while its same-store average daily revenue there climbed 34% to $201. In July MGM’s occupancy in Las Vegas increased to 94%.

With China recently reopening Macau and allowing mainland residents to travel to the region again, and major conferences and international travelers returning to Las Vegas, MGM’s medium-term future is very bright.

And as I pointed out in a previous column, MGM’s BetMGM joint venture, which focuses on online betting, is performing very well.

Despite all of these strong, positive catalysts, the forward price-earnings ratio of MGM stock is only 20, while its forward price-revenue ratio is slightly below one. From the morning of Aug. 4 to the close of Aug. 9, the shares slid 10%, making them even more attractive.

NXP Semiconductors (NXPI)

Last month, NXP Semiconductors (NASDAQ:NXPI) reported Q2 earnings per share of $2.53, versus analysts’ average estimate of $2.43. The chipmaker’s revenue climbed 28% YOY to $3.3 billion, against analysts’ average outlook of $2.9 billion. Moreover, the midpoint of the company’s third-quarter sales guidance also came in well above analysts’ mean outlook.

Since the auto market accounts for over 50% of NXP’s revenue and the Internet of Things (IoT) and industrial markets generate another 20% of its top line, NXP is much less exposed than many of its peers to declines in consumers’ spending on PCs and smartphones.

And in Q2, NXP’s automotive revenue soared 36% YOY, while its industrial and IoT sales jumped 25% YOY, showing that those businesses are quite healthy and rapidly expanding.

Indeed, the company’s CEO, Kurt Sievers, said in July that:

When we look at demand signals, we have a high level of confidence in the intermediate term outlook. This is especially true in terms of demand trends in the automotive and industrial markets, which account for the majority of our total revenue.

He added that low-end mobile, PCs, and consumer electronics account for very small portions of the firm’s overall business.

The forward price-earnings ratio of NXPI stock is just 12.9, while the shares slid about 5% in the five days that ended on Aug. 9.

Cheap Value Stocks: Ford (F)

Ford (NYSE:F) is clearly firing on all cylinders. Last month, despite all sorts of doom and gloom abounding about consumers, its overall vehicle sales soared 37% YOY, while the sales of its highly profitable SUVs increased 70% YOY. Most impressively and boding very well for Ford’s future, its electric-vehicle sales boomed 169% YOY,

The automaker’s F-150 Lightning EV is clearly resonating with consumers, and improvements in its supply chain helped boost Bronco sales by an incredible 221% YOY.

On July 27, during Ford’s Q2 earnings call, CEO James Farley said:

Now we’ve been overwhelmed with the demand for our first-generation EVs, the Mustang Mach-E, the Lightning and the E-Transit. These products are in the market now, and we have strong multiyear order banks. We’re selling them as fast as we can make them.

Despite all of these positive catalysts, the forward price-earnings ratio of F stock is just 7.9 The shares fell roughly 6% in the five trading days that ended on Aug. 9.

On the date of publication, Larry Ramer held a long position in MGM stock and owned MGM’s bonds that mature in 2027. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.