After tumbling sharply in the early months of the COVID-19 pandemic, stocks posted a remarkable turnaround, rallying hard through 2020 and all the way until the end of 2021, albeit with a few hiccups. The specter of rising inflation and interest rates began to take their toll in early 2022, however, with the market as a whole, and high-multiple stocks in particular, selling off sharply in January and remaining volatile in the fourth quarter. Show
Read More: 5 Things You Must Do When Your Savings Reach $50,000 The U.S. officially entered a bear market on June 13, when, as CNBC reported, the S&P 500 closed over 21% below January’s all-time record high. While no one can predict how long the bear market will last, one thing is certain: In this economic environment, with shares falling and inflation on the rise, some investors will shy away from high-flying, high-dollar stocks and look instead toward lower-priced stocks. Some of the companies listed below haven’t yet made their mark, but you should be sure to talk with your financial advisor before diving in. Some low-priced stocks may have yet to move, but others trade in the single digits due to poor or uncertain operating histories. As with any investment, make sure that the names you pick are in line with your investment objectives and risk tolerance before you make any moves. Which Are the Cheapest and Best Stocks To Buy Today?Here are 27 low-priced stocks with the potential to grow. Company Name and SymbolStock YTD % ChangeSectorPriceAres Capital (ARCC)-22.54%Asset Management$11.21Alliance Resource Partners (ARLP)+79.11%Thermal Coal$22.64Alto Ingredients Inc. (ALTO)-15.38%Specialty Chemicals$4.07American Vanguard Corp. (AVD)+40.70%Agricultural Inputs$23.06Arhaus Inc. (ARHS)-43.32%Consumer Cyclical — Home Improvement Retail$7.51BlackRock TCP Capital Corp. (TCPC)-15.69%Asset Management$11.39Brigham Minerals Inc. (MNRL)+49.72%Oil and Gas Exploration and Production$30.01Capital Bancorp Inc. (CBNK)-6.45%Banks — Regional$24.51Catalyst Pharmaceuticals Inc. (CPRX)+86.85%Biotechnology$12.65The Duckhorn Portfolio Inc. (NAPA)-38.82%Beverages — Wineries and Distilleries$14.28Energy Transfer (ET)+44.35%Oil and Gas Midstream$11.88The Hackett Group, Inc. (HCKT)-0.78%Information Technology Services$20.37Karat Packaging Inc. (KRT)-28.50%Packaging and Containers$14.45Maravai LifeSciences Holdings Inc. (MRVI)-59.28%Biotechnology$17.06Mattel Inc. (MAT)-10.16%Leisure$19.37Modine Manufacturing Co. (MOD)+46.28%Auto Parts$14.76Natural Grocers by Vitamin Cottage Inc. (NGVC)-22.60%Grocery Stores$11.03NexPoint Real Estate Finance Inc. (NREF)-19.01%REIT — Diversified$15.59Oxford Lane Capital Corp. (OXLC)-36.45%Closed-End Fund — Debt$4.90Radiant Logistics Inc. (RLGT)-19.89%Integrated Freight and Logistics$5.84Ramaco Resources Inc. (METC)-21.69%Coking Coal$10.65Riley Exploration Permian Inc. (REPX)+39.96%Oil & Gas E&P$27.04Rimini Street Inc. (RMNI)-9.88%Software — Application$5.38Silvercrest Asset Management Group Inc. (SAMG)-1.81%Asset Management$16.86Sinclair Broadcast Group Inc. (SBGI)-27.77%Communication Services — Broadcasting$19.09SSR Mining Inc. (SSRM)-24.97%Gold$13.28Vector Group (VGR)-17.51%Tobacco$9.47Data is accurate as of Oct. 20, 2022.What Factors Affect Returns?With any investment, there is a degree of risk as well as return. When deciding which cheap stocks to buy, here are key factors to keep in mind: P/E ratio, price-to-book value, cash flow and earnings reports. Read more about how each of these factors works when it comes to low-priced stocks. P/E RatioTo calculate a P/E ratio, simply take a company’s stock price and divide it by the company’s net earnings. In a general sense, stocks with a high P/E are considered expensive, and those with a lower P/E are considered cheap. Price-to-Book ValueBook value is essentially a company’s net worth, as it equals a company’s assets minus its liabilities. Theoretically, if you had to liquidate a company, the company’s book value would be what remains. Stocks trading below book value could be good cheap stocks. Cash FlowNet cash flows, cash from operations and free cash flow are just a few of the cash flow metrics used to analyze a company’s value. A company with a low price relative to cash-flow measures is less expensive than one with a higher ratio. Earnings ReportsEarnings reports offer a wealth of information on companies, including their profits and losses. They also note whether a company performed as expected for a given period. Digging into past earnings reports can help you anticipate future performance and decide whether cheap dividend stocks are a good buy. Is There a Downside To Investing in Cheap Stocks?There’s no such thing as a crystal ball on Wall Street. Even stocks that appear undervalued with high growth prospects might not go up in value for any number of reasons. Some companies simply fail to live up to projections. And others are destined to remain undervalued for years, simply due to investor sentiment.
Choosing the Top Brokers for Cheap StocksHere are the best brokers when it comes to cheap stocks:
Choose a user-friendly platform with low or no fees and excellent customer service. Research your stock choices and buy when you’re ready. FAQs on Buying Cheap StocksMany people often wonder about investing in cheap stocks. Here are some answers to those frequently asked questions.
Daria Uhlig and Melanie Grafil contributed to the reporting for this article. Data is accurate as of Oct. 20, 2022, and is subject to change. Editorial Note: This content is not provided by any entity covered in this article. Any opinions, analyses, reviews, ratings or recommendations expressed in this article are those of the author alone and have not been reviewed, approved or otherwise endorsed by any entity named in this article. This article has been updated with additional reporting since its original publication. This article originally appeared on GOBankingRates.com: 27 Best Cheap Stocks To Buy Now The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. What is best stock to buy right now?Top 10 Stocks To Buy Right Now. ServiceNow, Inc. (NYSE: NOW). Alphabet Inc. (NASDAQ: GOOG). Amazon.com, Inc. (NASDAQ: AMZN). The Walt Disney Company (NYSE: DIS). Palo Alto Networks, Inc. (NASDAQ: PANW). The Boeing Company (NYSE: BA). Prologis, Inc. (NYSE: PLD). Johnson & Johnson (NYSE: JNJ). What is the best $5 stock?9 best cheap stocks to buy under $5:. Lloyd's Banking Group PLC (LYG). Banco Bradesco SA (BBD). Telefonica SA (TEF). Nomura Holdings Inc. (NMR). Rolls-Royce Holdings PLC (RYCEY). Telecom Italia SPA (TIIAY). SCOR SE (SCRYY). Tilray Brands Inc. (TLRY). What are the best stocks under $1?Nevertheless, if you must get that adrenaline going, below are the best penny stocks under $1.
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The 7 Best Penny Stocks Under $1 to Buy Now.. Where is the best undervalued stock to buy now?How to find undervalued stocks. Look at the company's price-to-earnings ratio and market cap. One way to find undervalued stocks is by looking at a stock's price-to-earnings ratio, also known as PE ratio. ... . Target undervalued sectors. ... . Do your research. ... . Explore emerging industries.. |