In 2013, the average stock price was in the range of $30-50. With inflation and rapidly rising valuations, the stock market is getting quite expensive for the everyday investor. While cheap stocks do exist, many carry risks that larger blue chip stocks don’t. This is due to a smaller market cap and higher general volatility. Also, the fact that due to their smaller size, macroeconomic events affect them much more than they affect larger companies.
Let’s explore three cheap stocks that could help your portfolio reach the rate of return you desire. All three companies are in very different sectors, which will help you diversify your portfolio, making it more resilient in the long run.
Sirius XM (SIRI)
Sirius XM (NASDAQ:SIRI) is an audio entertainment company in North America. It has distinct segments of Sirius XM, Pandora and Off-platform. It provides music, sports, entertainment, comedy, talk, news, traffic and weather channels, among other content. Also, it provides podcast and infotainment services on a subscription basis.
Furthermore, SIRI has great financials. While revenue did fall between fiscal year 2022 and 2023, a 0.55% decrease was seen with an increase of 4.1% in profit. This indicates that management is prioritizing efficiency, which is a great indicator for investors. And, 11 analysts have given this stock an average growth target of 40.99%.
In addition, the company is trying to streamline its current products, which includes moving current services to a different platform to increase engagement. New products such as the 360L, which acts as a radio and two-way internet connection point for cars show that the company is innovating behind the scenes.
GoodRX (GRDX)
GoodRx Holdings Inc. (NASDAQ:GDRX) offers information and tools that enable consumers to compare prices and save on their prescription drug purchases in the U.S. The company operates a price comparison platform that provides consumers with curated, geographically relevant prescription pricing and access to negotiated prices.
Additionally, GDRX has positive financials, with quarterly revenue growth of 7.60% and an operating margin of 10.30%. The stock has a beta of 1.38, which indicates that the stock is 34% more volatile than the overall market. Also, the beta indicates that the stock is expected to give returns that outpace the market.
So, with a solid financial performance, innovative technology and a growing suite of services, GoodRx Holdings Inc. is well-positioned to capitalize on the increasing demand for affordable healthcare. Recently, it was named one of the 2024 TIME100 Most Influential Companies. Investors looking for a promising stock in the healthcare sector should consider GDRX stock as a valuable addition to their portfolio.
Kinross Gold (KGC)
Kinross Gold Corp. (NYSE:KGC) engages in the acquisition, exploration and development of gold properties principally in the U.S, Brazil, Chile, Canada and Mauritania. The company operates the Fort Knox mine and the Manh Choh project in Alaska, along with more projects throughout the U.S., Canada, Brazil and Chile.
Currently, KGC stock trades at $8.09, with a market cap of almost 10 billion dollars. It has seen positive operating and profit margins of 7.06% and 4.82% respectively, indicating company growth. Also, it has consistently beaten EPS predictions, surprising investors in both Q4 of 2023 and Q1 of 2024.
With a proven track record of delivering value to shareholders and a portfolio of high-quality assets, Kinross Gold is well-positioned to capitalize on favorable market conditions. However, investors should know that the short-term volatile nature of gold makes this pick a bit more risky than most. Even still, the company’s ongoing exploration and development make Kinross Gold Corp. a great undervalued stock under $10.
On the date of publication, Achintya Pasricha did not hold (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.
