The United States Treasury Secretary, Janet Yellen, recently expressed her confidence in the economy’s ability to recover from the recession without causing significant harm to the job market or sparking excessive inflation. She believes that the United States will successfully navigate this economic challenge, maintaining control over consumer-price increases.This is leading to many investors considering cheap stocks to buy.
Unemployment has remained near its lowest level in 50 years at around 3.5%, and this marks an opportune moment to explore investments in undervalued companies. As the economy strengthens, businesses such as these are expected to thrive and experience a substantial increase in valuation. These undervalued companies will do just that and are valuable cheap stocks to buy for your growth-oriented portfolio.
Anixa Biosciences Incorporated (ANIX)
Anixa Biosciences Incorporated (NASDAQ:ANIX) is a clinical-stage biotechnology company focused on the treatment and prevention of cancer. ANIX stock is worth $3.39 and is down 20% YTD.
However, ANIX stock is recovering nicely as it grew over 5% in one day after the news of partnering with the Cleveland Clinic to develop a vaccine aimed at combatting one of the deadliest forms of breast cancer. Anixa’s approach to fighting cancer is quite unique. Instead of directly killing cancer cells, its vaccine stimulates the body’s immune system to recognize and weaken/eliminate these rogue cells.
More notably, the Biopharmaceuticals market size is expected to grow from $478.20 billion in 2023 to $704.91 billion by 2028 at a CAGR of 8.07% during the forecast period. Financials have also been strongly recovering as demonstrated through the quarterly financials for July. Net income of -$2.51 million has grown 8.56% YoY and net change in cash of -$2.42 million is up 30.36% YoY. This is definitely one of the top cheap stocks to buy.
Kinross Gold Corporation (KGC)
Kinross Gold Corporation (NYSE:KGC) is a Canadian-based gold and silver mining company. With KGC stock being valued at $4.77, the stock is cheaply undervalued. Yahoo! Finance reports 15 analysts having a mean price target of $5.95, with the range spanning from as low as $3.50 to as high as $7.15.
Financials for Kinross are proving to be strong and healthy. Its most recent quarterly financials of revenue at $1.09 billion has grown 32.96% YoY and beat analyst expectations by 8.51%. Net income of $151 million additionally grew 474.69% YoY. A diluted EPS of $0.12 increased by 500% YoY which beat analyst expectations by 60.20%.
The global mining equipment market was valued at $135 billion in 2022. It is expected to grow at a 5.1% CAGR by 2030 from the advancements in digital mine innovation.
This year, Kinross has acquired 5,018,017 common shares of Allegiant Gold, a mid-stage precious metals exploration stage company. Kinross has further purchased 10,036,034 units of Allegiant Gold. This represents a strategic move that diversifies Kinross’ portfolio and provides exposure to precious metals in the long term. This demonstrates a commitment to strategic growth. Furthermore, investing in a well-known mid-stage exploration company such as Allegiant Gold gives the opportunity for Kinross to benefit from potential discoveries and resource development in the future.
Tencent Holdings (TCEHY)
Tencent Holdings (OTCMKTS:TCEHY) is a Chinese multinational technology and holding company that offers E-commerce, cloud computing and entertainment platforms.
Despite TCEHY stock being down 9.62% YTD, the stock is dirt cheap relative to its peers at $40 per share. The median 12-month price for TCHEY is $56.20, with a range spanning from a low of $39.95 to a high of $63.73. According to WSJ, analysts have given 96 “buy” ratings on this stock in the past two months.
In 2023, the global media and entertainment sector is poised to grow at a 5.4% CAGR from $2.32 trillion to over $2.7 trillion by the end of 2027. With technology improvements throughout sectors such as social media and OTT platforms, the entertainment market is due for long-term growth.
Financials for Tencent have been faring well, with 2023 Q2 revenue ending at $149.21 billion which grew 11.32% YoY. The company also shows an impressive EPS of $3.88 beating estimates by 3.36% and growing over 30% YoY. FCF yield is also at 7%, which adds on to how strong Tencent is financially.
On the date of publication, Michael Que did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
The researchers contributing to this article did not hold (either directly or indirectly) any positions in the securities mentioned in this article.
