Navigating Wall Street’s topsy-turvy landscape since 2020 has been a voyage filled with unexpected twists and turns. It’s been incredibly challenging, from the depths of the coronavirus market crash to the peaks of a buoyant bull market, followed by another bearish downturn. However, amidst the chaos, the astute investor has a golden opportunity. Hidden within today’s market are numerous stocks, each a potential gem, ripe for the picking in under $100. These aren’t just cheap stocks to buy; they’re intelligent investments waiting to be uncovered.
Wagering on firms with robust growth potential can be invaluable during market uncertainties. Investing wisely in these affordable stocks could lead to substantial long-term gains in your portfolio, especially during a bull run.
Cheap Stocks to Buy: Ford (F)
You might be surprised to see Ford (NYSE:F) among cheap stocks to buy; it is a true beacon of value in the automotive space, trading at just 0.25 times forward sales. This represents a staggering 69% drop from the sector median, spotlighting Ford as an undervalued giant. Additionally, its 7.21% dividend yield is a compelling draw for dividend-focused investors.
Despite the headwinds from the recent UAW strike, costing Ford a hefty $1.3 billion and a loss of 80,000 vehicles, the company’s outlook glimmers with promise. Ford’s plan to effectively restart production showcases its resilience and adaptability, pivotal for long-term growth. This undervaluation period could prove to be a golden opportunity for savvy investors.
Ford’s new labor agreement, encompassing a 25% wage increase over the next four and a half years, underscores a deep commitment to workforce stability. Hence, with these strategic moves, Ford is well-positioned for a robust rebound, anchored by solid fundamentals.
Kinross Gold (KGC)
Kinross Gold (NYSE:KGC) emerges as a compelling pick among gold miners. Moreover, if gold prices break past the $2,000 to $2,200 per ounce barrier in 2024, KGC stock could see a significant surge, potentially doubling in value. This optimism is fueled by its attractive forward price-earnings ratio of 13.3 and a decent dividend yield of 2.26%.
Kinross has maintained its course despite selling Russian assets last year, projecting stable production through 2025. This resilience, even in the face of geopolitical challenges, underscores the miner’s robust operational capabilities.
Kinross’s recent performance further solidifies its standing. It surged past third quarter adjusted earnings estimates, propelled by solid gains in production and average realized gold prices. The company reported a heartening 28% year-over-year (YOY) increase in sales to $1.1 billion, with a significant jump in average realized gold price to $1,929/oz. Furthermore, third quarter production saw an 11% increase, primarily driven by higher output at the Tasiast mine in Mauritania and the Paracatu mine in Brazil. Consequently, Kinross remains on track to meet its full-year guidance, reinforcing the stock’s robust growth and profitability.
Cheap Stocks to Buy: United Microelectronics Corp (UMC)
United Microelectronics Corp (NYSE:UMC), a Taiwan-based semiconductor giant, is a critical wafer foundry service device producer. With 12 production facilities across Asia and offices in Europe, China, Japan, and the United States, its footprint is massive on a global scale. The company’s recent third-quarter earnings report presented a mixed picture. At the same time, sales dropped by 24%, and net income dropped by 41%; United Microelectronics still managed to blow past Wall Street’s top-line estimates.
Despite these challenges, United Microelectronics has experienced a 17% growth in its year-to-date (YTD) price and an attractive dividend yield of 7.71% annually. However, concerns linger among investors about the future, and with the semiconductor industry evolving, United Microelectronics’ ability to navigate these challenges will be critical for sustained expansion and investor confidence.
Nio (NIO)
Nio (NYSE:NIO), one of the frontrunners in the Chinese electric vehicle (EV) manufacturer, stands out as a compelling play, trading at desirable levels. Having rebounded from near bankruptcy, Nio faces challenges in a competitive market but shows promising signs of recovery. Analysts remain optimistic, predicting the stock could more than double by 2025 as the EV industry steadies, supported by the firm’s competitive price-to-sales ratio of 1.6 times.
In a strategic move, Nio plans to effectively reduce its workforce by 10%, which could lead to increased efficiency and more robust future performance, as seen in other businesses following similar paths. This leaner approach might help Nio focus more effectively on its objectives. Furthermore, Nio delivered 16,074 vehicles in October 2023, a massive 59.8% YOY increase. So far this year, the company has delivered 126,067 vehicles, up 36.3% from the prior-year period. Additionally, Nio has established a robust global infrastructure with extensive Power Swap and Charger Stations, laying a solid foundation for long-term success.
Cheap Stocks to Buy: Destination XL (DXLG)
Destination XL (NASDAQ:DXLG) emerges as a speculative yet intriguing investment option. The big and tall men’s apparel provider, trading at roughly eight times earnings with a healthy balance sheet, DXLG offers a unique proposition in this niche. Its trailing twelve-month sales of more than $500 million in a $23 billion market highlight its long-term potential.
Moreover, its relevance is enhanced by the company’s efficient management and strategic responses in the post-pandemic scenario, which solidified its financial standing. Its financial strength rating stands at an impressive 7 out of 10, according to Gurufocus.
Also, its growth potential is further underscored by analysts rating the shares a “moderate buy” with a target of $7.50, projecting an impressive growth of 56.9%. For speculative investors, DXLG represents a unique opportunity in the retail sector, tapping into a growing and increasingly relevant market segment. If you’re looking for cheap stocks to buy, it’s a good contender.
SoundHound AI (SOUN)
SoundHound AI (NASDAQ:SOUN), an independent voice AI platform, is efficiently carving a niche in the tech space with its innovative end-to-end solutions. The company’s potential is massive, predicting a total addressable market of nearly $160 billion by 2026. Adding to its credibility, SoundHound collaborates with industry giants, including Oracle (NYSE:ORCL), Block (NYSE:SQ), Toast (NYSE:TOST), and others.
A notable achievement for the company has been its successful deployment of a pilot Chat AI with DS Automobiles, a Stellantis (NYSE:STLA) brand. This accomplishment led to a massive increase in the company’s substantial bookings backlog, reaching an extraordinary $342 million YOY. Financially, SoundHound is on an upward trajectory. The firm reported an 18.8% increase in revenue, reaching $13.3 million. Its GAAP operating income saw a 46% improvement, with GAAP net income loss showing momentous YOY enhancements. With its continued growth and strategic collaborations, SoundHound is well-positioned for long-term success.
ReWalk Robotics (RWLK)
ReWalk Robotics (NASDAQ:RWLK) is last on the list of cheap stocks to buy, but certainly not least. It’s is a true pioneer in wearable robotic exoskeletons, redefining mobility for those with spinal cord injuries. Perhaps what’s most fascinating is ReWalk’s potential to aid wounded service members, facilitating their integration into civilian life with restored dignity and capability.
In its most recent financial update, ReWalk reported a significant revenue jump in sales to $4.4 million, a 394.4% bump on a YOY basis, while maintaining a solid cash position of $32.6 million and no debt. Moreover, 2023 has been a landmark year for its business following a major legal win in Germany and positive developments with the U.S. Medicare system. These achievements and expanding U.S. Veterans Affairs training centers point to a remarkably bright future for the company. ReWalk’s strategic positioning, free from debt and backed by solid financials, positions them for sustained growth in this transformative healthcare sphere.
On the date of publication, Muslim Farooque 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.
