Cheap stocks are the stocks that are trading at a bargain and are of high value compared to various metrics. It is important to note that a cheap stock does not necessarily mean a low priced stock.
Analysts consider how much each share of a company is worth, depending upon the company’s revenue, earnings, growth potential, and dividend yield. It is after such a detailed analysis that a stock is termed as a cheap stock. Overall, cheap stocks are the ones trading at a discount to one or more of the valuation metrics, including P/E ratio, cash flow, or book value of the assets.
Ticker | Company Name | Last Price | 1-Year Return | Market Cap |
|---|---|---|---|---|
| AMSC | American Superconductor Corporation | $11.88 | 179.53% | 429.3M |
| ANGI | ANGI Homeservices Inc. | $2.03 | -0.98% | 1.0B |
| ASRV | AmeriServ Financial, Inc. | $2.57 | -16.29% | 44.1M |
| AXTI | AXT, Inc. | $2.94 | -16.00% | 130.1M |
| BDR | Blonder Tongue Laboratories, Inc. | $0.06 | #N/A | 916.7K |
| BYFC | Broadway Financial Corporation | $5.00 | -38.12% | 30.2M |
| CRK | Comstock Resources, Inc. | $9.15 | -17.12% | 2.7B |
| CTHR | Charles & Colvard, Ltd. | $0.35 | -69.57% | 10.6M |
| CWBC | Community West Bancshares | $18.40 | 3.25% | 347.2M |
| DAIO | Data I/O Corporation | $3.40 | -17.87% | 30.7M |
| DVD | Dover Motorsports, Inc. | #N/A | #N/A | #N/A |
| EGAN | eGain Corporation | $6.21 | -16.19% | 193.6M |
| ELMD | Electromed, Inc. | $14.42 | 42.07% | 124.1M |
| ENZ | Enzo Biochem, Inc. | $1.14 | -53.28% | 58.4M |
| EPM | Evolution Petroleum Corporation | $5.63 | -16.59% | 188.4M |
| ERII | Energy Recovery, Inc. | $13.60 | -42.91% | 776.3M |
| ESXB | Community Bankers Trust Corporation | #N/A | #N/A | #N/A |
| FBP | First BanCorp. | $16.34 | 45.76% | 2.7B |
| FLNT | Fluent, Inc. | $2.45 | -46.97% | 33.3M |
| FRBK | Republic First Bancorp, Inc. | $0.03 | -97.58% | 1.9M |
| FRD | Friedman Industries, Incorporated | $18.89 | 61.32% | 131.8M |
| GLUU | Glu Mobile Inc. | #N/A | #N/A | #N/A |
| GNE | Genie Energy Ltd. | $15.37 | -2.54% | 420.5M |
| GORO | Gold Resource Corporation | $0.49 | -54.21% | 44.0M |
| GSIT | GSI Technology, Inc. | $3.64 | 83.84% | 92.1M |
| IDEX | Ideanomics, Inc. | $0.81 | -88.23% | 9.7M |
| ISNS | Image Sensing Systems, Inc. | #N/A | #N/A | #N/A |
| IVAC | Intevac, Inc. | $3.64 | -49.93% | 96.8M |
| JVA | Coffee Holding Co., Inc. | $1.70 | -12.82% | 9.7M |
| KOSS | Koss Corporation | $2.30 | -50.75% | 21.3M |
| LINK | Interlink Electronics, Inc. | $7.04 | #N/A | 69.4M |
| LOAN | Manhattan Bridge Capital, Inc. | $5.04 | -1.75% | 57.7M |
| LUNA | Luna Innovations Incorporated | $2.78 | -57.23% | 94.2M |
| NAII | Natural Alternatives International, Inc. | $6.55 | -24.71% | 39.9M |
| OBCI | Ocean Bio-Chem, Inc. | #N/A | #N/A | #N/A |
| OSUR | OraSure Technologies, Inc. | $5.27 | -20.99% | 403.2M |
| PCYG | Park City Group, Inc. | #N/A | #N/A | #N/A |
| PMBC | Pacific Mercantile Bancorp | #N/A | #N/A | #N/A |
| PTN | Palatin Technologies, Inc. | $1.86 | -29.81% | 30.3M |
| PZN | Pzena Investment Management, Inc | #N/A | #N/A | #N/A |
| QBAK | Qualstar Corporation | $7.00 | #N/A | 10.2M |
| RAVE | RAVE Restaurant Group, Inc. | $2.06 | 35.53% | 30.0M |
| RBCN | Rubicon Technology, Inc. | $0.74 | -52.26% | 1.8M |
| RLGT | Radiant Logistics, Inc. | $4.96 | -20.89% | 232.7M |
| SD | SandRidge Energy, Inc. | $14.29 | -5.49% | 530.2M |
| SIEB | Siebert Financial Corp. | $2.14 | 10.88% | 84.7M |
| SMSI | Smith Micro Software, Inc. | $2.00 | -80.31% | 19.2M |
| SND | Smart Sand, Inc. | $2.01 | 21.08% | 86.2M |
| SRAX | SRAX, Inc. | $0.19 | -52.50% | 5.6M |
| TAIT | Taitron Components Incorporated | $3.16 | -10.99% | 19.0M |
| TBBK | The Bancorp, Inc. | $32.92 | 22.42% | 1.7B |
| TRT | Trio-Tech International | $6.36 | 39.17% | 26.5M |
| UAMY | United States Antimony Corporation | $0.24 | -38.46% | 26.4M |
| ULBI | Ultralife Corporation | $8.88 | 119.80% | 147.2M |
| ZAGG | ZAGG Inc | #N/A | #N/A | #N/A |
| ZYXI | Zynex, Inc. | $12.06 | 3.88% | 385.1M |
Factors to Consider Before Investing in Cheap Stocks
Investors must be aware that the cheapness of the stock is not related to the stock price in any way. A $5 stock can be a stock of high value while a $50 can be a cheap stock. Therefore, investors must move above the meaning derived from stock price as the standalone measure of value.
The value of the stock needs to be derived from more meaningful valuation metrics, including P/E ratio, cash flows, free cash flow, and book value. Such metrics prove sufficient to let investors know about the value of the stock and its price compared to the industry and competitors.
In addition to using a stock screener to segregate cheap stocks based on certain parameters, investors must also undertake the in-depth fundamental analysis. A clear understanding of the valuation of businesses, their operating margins, growth potential, and revenues demarcates cheap stocks most authentically.
Which Cheap Stocks Should I Buy?
As discussed above, picking cheap stocks can be very tricky. To make your choice simpler, we have compiled a list of the cheap stocks for your reference. The stocks have earnings growth of more than 10% in the past five years, high P/E ratios, positive net profit margin, and low debt/equity ratios; yet, they are trading at a discount to their valuation.
Investors can add cheap stocks to the portfolio for diversification as they can turn out to be highly rewarding in the long run, with limited risks and a high likelihood of helping investors make money.
