Two merit stocks that haven't been this cheap in over 10 years.

If you're a deep value investor, you'll want to keep a close eye on a few beaten-down stocks right now. These are not the safest stocks to buy, as there is some uncertainty about their future. However, these stocks are already trading at steep discounts, and they are not unknown in their respective industries.

The two stocks I'm talking about areWalgreens Boots Alliance （Nasdaq ResonanceStock Code(WBA)respond in singingiRobot (NASDAQ: IRBT)These two stocks may not be suitable for risk-averse investors. Although these two stocks may not be suitable for risk-averse investors, if you are willing to be patient and can bear some risk, then you may want to consider these two stocks.

1. Walgreens Boots League

Walgreens Boots Alliance has some great assets in its portfolio, namely its brand names. When you think of Walgreens, you probably think of your neighborhood drugstore. This brand recognition helps it stand out from the crowd of drugstores, and may entice consumers to visit Walgreens drugstores where they are, rather than the Walgreens Boots Alliance.Wal-MartSuch a big store.

The risk for Walgreens is that the company is struggling to improve profitability. Walgreens also cut its dividend this year and is in the midst of a major turnaround plan to launch 1,000 primary care clinics by 2027. The company has partnered with primary care provider VillageMD to begin this effort.

The turnaround strategy is a risky one, but Tim Wentworth, the company's new chief executive, has generated a lot of interest. He took over in October, cut the dividend in January and wasted little time in making what seemed to many investors to be an obvious move.

Dividend payouts are unsustainable, and certainly not sustainable if the company still wants to focus on its long-term healthcare strategy. That's why I don't recommend relying on dividends, because even with a lower dividend yield, dividend payouts are not necessarily safe.

If you're going to invest in Walgreens, it's tempting to do so because the share price has fallen to levels not seen since the 1990s. This is a once-in-a-lifetime buying opportunity. But only if everything goes well and Wentworth manages to turn around its losses.

In this case, many companies will fail. All an investor has to do is look atRite AidThe risks can be found in the bankruptcy of Walgreens. Walgreens is banking on its trusted name and reputation to help it become the go-to place for people's healthcare problems and pharmacy needs, not Walmart orAmazonThe

Walgreens is a risky stock because it has posted net losses in three of the last four quarters. If you're a contrarian willing to take some risk and believe in Wentworth, then Walgreens stock could have huge upside. But you should think carefully about your own financial situation before investing, because if the healthcare company doesn't do as well as it should, you could be on the hook for big losses.

2. iRobot

iRobot is also associated with Amazon, but for different reasons. Rather than being a competitor, Amazon sought to acquire the maker of robotic vacuum cleaners. Unfortunately, due to regulatory hurdles in the European Union, the deal ended up falling through this year, and iRobot's stock price plummeted.

iRobot's share price hasn't been this low since 2009, with its valuation hovering around its book value at a P/E of 1.3. This heavily discounted stock is trading at a P/E of 0.3x.

The problem is that iRobot's business isn't growing and its losses are increasing. In the last three months of 2023, iRobot reported total revenues of $307.5 million, down 14% from the same period last year, and while the company's net loss did shrink from $84.1 million in the previous quarter to just $63.6 million, the lack of profitability is still a major problem for the company.

iRobot has been cutting costs and laying off employees, but the company needs a path to profitability and some growth catalysts to get investors back bullish on its stock.

Now, with increased competition and more affordable options, the company and its Roombas face a tough road from here on out. The stock's modest market capitalization of $270 million suggests that there's plenty of room for the stock to grow - Amazon is willing to pay $1.4 billion for the company. If iRobot can improve its finances, it could become a safer option for investors and perhaps attract another buyer.

But like Walgreens, this is a high-risk stock and investors should be prepared for significant volatility.

Should you invest $1,000 in the Walgreens Boots Coalition now?

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John Mackey, former chief executive officer of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool's board of directors. david Jagielski has no position in any of the stocks mentioned above. the Motley Fool has stock recommendations for Amazon, Wal-Mart, and iRobot. the Motley Fool has a disclosure policy. The Motley Fool has a disclosure policy.

Two Battered Stocks That Haven't Been This Cheap in Over a Decade was originally published by The Motley Fool.