Are you looking to invest in the stock market but don’t want to break the bank? With so many options out there, it can be overwhelming to choose where to invest your money. Fortunately, there are some cheap stocks that show promise for growth and profitability.
The stock market can be a volatile and unpredictable place, but that doesn’t mean you can’t find some hidden gems that won’t cost you an arm and a leg. These cheap stocks may not seem like much now, but with the right strategy and a bit of patience, they could potentially bring you significant returns in the future.
If you’re ready to dip your toes into the world of investing without spending a fortune, then these 5 best cheap stocks may be worth considering. From up-and-coming companies to undervalued assets, these stocks have the potential to provide you with a solid return on investment. So, if you’re looking to expand your portfolio without breaking the bank, read on to discover the top cheap stocks to buy now.
Introduction
Navigating the stock market can be daunting, but finding promising stocks under 20 dollars is a strategy that appeals to many investors[5]. With affordability in mind, this article zeroes in on well-researched stocks, each valued under 20 dollars and chosen for their healthy market cap, stable or improving earnings, and solid buy recommendations[1]. These attributes make such stocks, once thought riskier due to their price, viable contenders on par with their higher-priced counterparts[5].
The conversation about affordable investment options is ongoing, and this analysis presents an assortment of companies whose stocks under 20 dollars may enrich an investment portfolio[5]. With careful consideration and routine asset evaluation, these stocks present a balanced mix of risk and opportunity in the current stock market[8].
Stock 1: Comcast (CMCSA)
Comcast Corporation (CMCSA), a prominent player in the media and technology sectors, has shown resilience and growth, making its stock a noteworthy consideration for investors looking at stocks under 20 dollars. Here’s an overview of Comcast’s recent financial performance and market position:
- Q4 2022 Performance:
- Revenue: Comcast reported a substantial revenue of $30.3 billion in Q4 2022, marking a 7.7% increase from the previous year [2].
- Net Income: Despite a slight dip, the net income stood at $3.0 billion, down by 3.2% from Q4 2021 [2].
- Annual Overview for 2022:
- Full-Year Revenue: The company’s revenue for the entire year was $116.4 billion, reflecting a 5.7% year-over-year growth [2].
- Annual Net Income: There was a 10.5% decrease in net income, totaling $13.8 billion for the year [2].
- Segment-Wise Growth:
- Cable Communications: This segment saw a 4.9% increase in revenue, reaching $16.3 billion for Q4 2022 [2].
- NBCUniversal: Demonstrating a robust performance, this segment’s revenue rose by 14.5% to $9.8 billion [2].
- Sky: With a 10.1% increase, Sky’s revenue for Q4 2022 was reported at $5.1 billion [2].
Comcast’s stock has not only experienced an upward trend but also offers dividends, with a current yield of around 2.1%, which can be an attractive feature for income-focused investors [2]. The company’s market capitalization, as of the 2023 analysis, stands at approximately $240 billion, underscoring its substantial presence in the industry [2]. Although the stock price as of March 10, 2023, was $40.83 [2], surpassing the 20-dollar mark, it’s the solid fundamentals and growth prospects that make Comcast a potential investment opportunity to consider.
Wall Street analysts have set an average price target for CMCSA at $48.50, suggesting a potential upside of 13.9% from the current share price [3]. With projected revenue of $121,572,000,000 for 2024 [3], Comcast appears to be on a path of continued growth, underpinned by its diverse business operations and strategic market positioning.
Stock 2: VICI Properties (VICI)
VICI Properties (VICI) stands out as a real estate investment trust (REIT) with a strong focus on casino and gaming properties, offering a unique investment opportunity in the real estate sector[4]. Despite its stock price being above the $20 mark, there are several compelling reasons to consider VICI Properties in an investment portfolio:
- Financial Highlights:
- Market Capitalization: $30.36 billion, reflecting the company’s substantial size and stability in the market[4].
- Impressive Revenue and Net Income: With a trailing twelve months (ttm) revenue of $3.61 billion and net income of $2.51 billion, VICI’s financial health is robust[4].
- Earnings Per Share (EPS): An EPS of $2.47 demonstrates the company’s profitability[4].
- Dividend Yield: A significant dividend of $1.66, translating to a yield of 5.70%, is indicative of the company’s commitment to returning value to shareholders[4].
- Stock Performance Metrics:
- PE Ratio: Standing at 11.79, suggesting that the stock could be undervalued relative to its earnings[4].
- Forward PE: A forward PE of 10.69 points to potentially increased earnings expectations in the future[4].
- Analyst Consensus: A “Buy” rating from analysts reinforces confidence in the stock’s potential[4].
- Price Target: Analysts set a 12-month price target of $34.25, indicating a potential increase of 17.62% from the current price[4].
- Company and Portfolio Insights:
- Diverse Portfolio: VICI Properties boasts a portfolio of 93 assets, including renowned properties such as Caesars Palace Las Vegas and the Venetian Resort Las Vegas[4].
- Industry and Sector: Operating within the ‘REIT – Diversified’ industry and ‘Real Estate’ sector, the company benefits from the stability and growth potential of these markets[4].
- Leadership: Under the guidance of CEO Edward Baltazar Pitoniak, the company has shown strong leadership and strategic direction[4].
- Growth Outlook: Revenue for 2024 is forecasted at $3.84 billion, a 6.34% increase from 2023, and earnings per share for 2024 are projected to rise by 7.90%[7].
VICI Properties’ performance in the stock market and its solid financials make it a noteworthy candidate for investors seeking stocks under 20 dollars, despite its current price exceeding that threshold[4][6]. The company’s success in the gaming and hospitality sectors, combined with its strategic asset portfolio, provide a foundation for potential growth and profitability[4][7].
Stock 3: EQT (EQT)
EQT Corporation (EQT) is a distinguished investment organization that specializes in private equity, real assets, and credit, showcasing a diverse portfolio across various industries such as technology, healthcare, and infrastructure[9]. While its stock price as of March 10, 2023, was $28.22, it underscores EQT’s growth beyond the initial 20-dollar mark[9].
- Stock Performance and Financials:
- Market Capitalization: A strong presence in the market with a market capitalization of $16.52 billion[10].
- Revenue and Net Income: Healthy financials with a trailing twelve months (ttm) revenue of $6.91 billion and net income of $1.74 billion[10].
- Shares and Earnings: With 440.43 million shares outstanding, EQT has an EPS (ttm) of $4.22 and a PE Ratio of 8.89, indicating a potentially undervalued stock[10].
- Dividend: Offers a dividend yield of 1.68% with a dividend of $0.63 and an ex-dividend date of February 16, 2024[10].
- Stock Price Movement and Analysts’ Views:
- Recent Close: On March 8, 2024, EQT’s stock price closed at $37.52 with an after-hours price of $37.59[10].
- Analyst Consensus: A “Buy” rating with a price target of $44.15, suggesting a significant potential upside of 17.67%[10].
- Forecasts: Analysts predict a minimum forecast of $30.00, with a potential decrease of 20.04%, and a maximum forecast of $53.00, with a potential increase of 41.26%[11].
- Growth Projections and Market Trends:
- Earnings Growth: Expected to grow slower than the US Oil & Gas E&P industry and the US market[11].
- Revenue Growth: Forecasted to grow faster than the industry but slower than the US market[11].
- Revenue Forecasts: A 1-year revenue forecast showing a slight decrease to $6.8 billion, with 2-year and 3-year forecasts projecting increases to $8.0 billion and $8.3 billion, respectively[11].
- Stock Price History: Opened at around 58 euros in 2023, with fluctuations reaching highs of approximately 61 euros in Q1 and lows around 52 euros in Q2, before stabilizing around 58 euros in Q4[12].
EQT’s robust financial health, combined with its strategic industry positioning, makes it an attractive investment opportunity for those looking at stocks under 20 dollars. The company’s commitment to dividend payments and the analysts’ positive outlook add to its appeal as a potential addition to investment portfolios[10][11].
Stock 4: Tapestry Inc. (TPR)
Tapestry Inc. (TPR) is a renowned multinational luxury fashion holding company known for its ownership of high-end brands such as Coach, Kate Spade, and Stuart Weitzman[13]. Despite its current stock price of $35.71, which is above the target range of stocks under 20 dollars, Tapestry presents a valuable investment opportunity[13]. Here are some key financials and recent developments that highlight the company’s potential:
- Financial Overview:
- Market Capitalization: Standing at $10.78 billion, Tapestry showcases a significant presence in the luxury fashion market[13].
- Dividend Yield: The company offers a dividend yield of 2.94%, with a recent dividend of $1.38, indicating a commitment to shareholder returns[13].
- P/E Ratio: Currently, Tapestry has a P/E ratio of 99.61, which suggests investor confidence in future earnings growth[13].
- Stock Price Range: Over the past 52 weeks, the stock price has fluctuated between a low of $25.99 and a high of $48.80[13].
- Analyst Ratings and Price Targets:
- Total Analysts: 62 analysts have reviewed Tapestry, with the majority giving favorable ratings[13].
- Ratings Breakdown: 46 analysts recommend a ‘Buy’, 16 maintain a ‘Neutral’ stance, and notably, there are no ‘Sell’ ratings[13].
- Average 12-month Price Target: Analysts have set an average price target of $45.84, with a range from $30.00 to $60.00[13].
- Recent Analyst Opinions: Telsey Advisory Group maintains a ‘Buy’ rating with an increased price target of $54, while Jefferies & Company Inc. downgraded to ‘Hold’ with a price target of $50[13].
- Corporate Actions and Market Movements:
- Insider Trades: Notable insider activity includes purchases by Elkins David V and Hourican Kevin at $47.53, and a sale by Faber Johanna W at $30.88[13].
- Upcoming Dividends: Investors can look forward to an upcoming dividend of $1.20 in 2023[13].
- Board Appointments: The strategic appointment of Kevin Hourican and David Elkins to Tapestry’s Board of Directors[14].
- Revenue and Earnings: Tapestry reported a revenue of $6.66 billion with a slight decrease of -0.35%, while earnings increased by 9.31% to $936.00 million[14].
The company’s strong brand recognition and growth potential, bolstered by its strategic leadership and positive market trends, make Tapestry Inc. a noteworthy consideration for investors[13][14]. Moreover, with the luxury market showing resilience, as indicated by strong sales of Coach bags and an upbeat earnings report leading to a raised profit outlook, Tapestry’s stock surge towards a 6-month high reflects investor optimism[14].
Stock 5: Fox (FOX, FOXA)
Fox Corporation (FOX, FOXA) is a dynamic player in the mass media landscape, with its fingers in a variety of pies including television, film, and sports[18]. As investors scout for affordable stocks with potential, Fox’s recent performance and future prospects make it an interesting candidate, despite its stock price hovering above the $20 mark[18][22].
Financial Highlights and Performance
- Stock Price: As of the close on March 8, 2024, FOXA was priced at $28.86, with a slight increase in after-hours trading to $29.00[1].
- Revenue Growth: The company reported a revenue increase of 6.72% in 2023, totaling $14.91 billion, and earnings rose by 2.82% to $1.24 billion[2].
- Market Capitalization: Standing at $13.11 billion, with a total revenue (ttm) of $14.56 billion and net income (ttm) of $837.00 million[4].
- Shares and EPS: With 453.51 million shares outstanding, the EPS (ttm) is at 1.68[4].
Analyst Insights and Stock Forecasts
- Analyst Ratings: The average rating for FOXA is a “Hold” with a 12-month stock price forecast of $33.00, indicating a potential increase of 14.35%[3].
- PE Ratios: The P/E ratio stands at 17.18 with a forward P/E of 7.85, suggesting future earnings growth[5].
- Dividend: Investors can expect a dividend of $0.52, which equates to a yield of 1.80%, with an ex-dividend date of March 5, 2024[5].
- Volume and Beta: Trading volume is reported at 3,289,546 with a beta of 0.79, pointing to less volatility compared to the market[6].
Market Trends and Predictions
- Growth Trajectory: Over the past year, FOXA has experienced a growth of 10%, while FOX saw a slight dip before stabilizing[7].
- Moving Averages: The 50-day and 200-day SMAs for FOXA are at $30.41 and $31.46 respectively, indicating current trading below average levels[14].
- RSI Indicator: The RSI is at 34.43, suggesting the stock may be oversold and could be due for a rebound[14].
- Financial Projections: Revenue is expected to be $14.35B in 2024 and $15.41B in 2025, with EPS projected to increase from $3.29 in 2024 to $3.83 in 2025[17].
Fox Corporation’s robust financial health and strong media portfolio, which includes sports, news, and entertainment, position it as an attractive investment opportunity[18]. The company’s recent strategic acquisitions, such as Tubi and Credible, have further bolstered its growth[12]. With analysts like Jason Bazinet from Citigroup upgrading their outlook from Hold to Strong Buy and increasing the price target from $34 to $35, the future looks promising for Fox[16].
Conclusion
This article offers a cohesive review of select stocks under the symbolic 20-dollar threshold that stand out for their financial stability, growth potential, and favorable assessments by industry experts. The journey through each stock has underscored the vital importance of robust market capitalization, positive revenue streams, and a steady or rising performance outlook. Reflecting on the critical evaluations presented, investors should feel better equipped to navigate the terrain of affordably-priced stocks that promise value and opportunity in their respective sectors.
Considering the potential these stocks hold, it’s clear that strategic investments in undervalued shares can lead to substantial portfolios, even when starting with less. For those ready to embark on this investment path, ensuring consistent monitoring and the insightful analysis of market trends will be paramount to their success. Let these insights serve as a starting point for future exploration and investment decisions, bolstering our collective financial acumen. Discover more about building a diversified portfolio by exploring additional resources here.
References
[1] – https://www.usatoday.com/money/blueprint/investing/best-stocks-under-20/[2] – https://www.marketwatch.com/investing/stock/cmcsa/analystestimates
[3] – https://www.wallstreetzen.com/stocks/us/nasdaq/cmcsa/stock-forecast
[4] – https://stockanalysis.com/stocks/vici/
[5] – https://finance.yahoo.com/quote/VICI/
[6] – https://simplywall.st/stocks/us/real-estate/nyse-vici/vici-properties
[7] – https://stockanalysis.com/stocks/vici/forecast/
[8] – https://www.fool.com/quote/nyse/vici/
[9] – https://coincodex.com/stock/VICI/price-prediction/‘
[10] – https://stockanalysis.com/stocks/eqt/
[11] – https://www.wallstreetzen.com/stocks/us/nyse/eqt/stock-forecast
[12] – https://www.cnn.com/markets/stocks/EQT
[13] – https://markets.businessinsider.com/stocks/tpr-stock
[14] – https://stockanalysis.com/stocks/tpr/
