10 Best Cheap Stocks to Buy Now
By MarketBeat Staff
While the market has had its ups and downs over the last few years, the P/E ratios of most S&P 500 look expensive relative to historical norms. This has made it very difficult for value investors that are looking for cheap stocks to buy.
This goes both for share price, since most stocks are trading higher on a cost-per-share basis, and their valuation relative to earnings. S&P 500 companies have recently been trading at about 25 times their forward-looking earnings, compared to the historical average of about 15 times earnings during more normal markets.
While the S&P 500 looks relatively expensive, there are still a handful of undervalued stocks trading at less than $10.00 per share. Value investing opportunities for value exist if you know where to look. Putting together a list of cheap stocks to buy now requires looking into some smaller, riskier, unloved, or undiscovered parts of the market. These lower-priced stocks might not look especially attractive today, but long-term investors stand to profit if they are willing to be patient and hold onto shares of these companies through multiple market cycles.
Some of these companies are great investing opportunities because they're too small and too risky to attract most mutual funds and Wall Street money managers. Others have been beaten up by the market after a period of slowing earnings and profits but are now trying to turn around and bounce back.
You might find small-cap stocks, energy companies, technology and A.I. companies, marijuana companies, and companies in industries you may have never previously heard of on this list. While these low-priced stocks have many differences, these 10 stock ideas all share a common characteristic, a super-low share price of $10.00 or less.
