Well, if this is your first time buying stocks or your are seasoned professional you should consider buying the following cheap stocks and they will grow and have a big return on investment for your bucks,
Lance Armstrong Invested $100 Thousand in Uber, the Ride-sharing company, and that’s an investment that is now worth $4.5 Million.
Every investor in their right mind wants to find cheap stocks to buy. It just so happens that the following shares are cheap in several senses: They look like they could be primed for significant advances, and they also happen to trade for less than $5 a pop. Remember, with prices that low, this group of names is far riskier than your typical S&P 500 member – so keep the risk-versus-reward dynamic in mind before pulling the trigger. Here are five of the best cheap stocks to buy now for less than $5 per share.
1. Denbury Resources (NYSE: DNR)
Like many of the best cheap stocks to buy now, Denbury is rife with both opportunity and risk – best illustrated by its wild ride from $17 per share in 2014 to less than $1 in 2017. Now trading above $4 a share, this $2 billion company is a U.S. oil and natural gas producer whose fate is intertwined with energy prices.
DNR can be considered an attractive technical play, a momentum play and a patient, long-term option for bullish energy investors. However, its leverage (a debt-equity ratio above 4.2) exaggerates the correlation with oil, so an energy bear market is the most significant risk. Still, a forward price-earnings ratio of 6.9 is enticing.
2. Office Depot (ODP)
Office Depot is one of the more interesting cheap stocks to buy below $5 for several reasons. First, the office supplies chain is unambiguously profitable, and analysts expect revenue growth this year (about 6 percent). Second, ODP pays a pretty sizable dividend, which looks safe for the time being, of 4.2 percent.
Third, this stock is cheap by several traditional measures, including forwarding P/E (6.9), price-sales (0.13), price-book (0.6) and price-free cash flow (4). Finally, one of Wall Street’s favourite hedge fund managers, David Einhorn, just bought 2.1 million shares of ODP in the first quarter through his fund, Greenlight Capital.
3. Genesis Healthcare (GEN)
Long-term buy-and-hold investors would ironically be best served by ignoring shares of Genesis Healthcare, which owns and operates long-term care facilities. GEN is more for the proverbial Wall Street gunslinger with a shorter-term outlook and a tendency to play momentum stocks.
That’s because GEN shares, despite only trading about $2 a pop, have rallied violently higher in 2018, with shares up 175 percent through June 1. The money-losing company has been aggressively restructuring, selling off dozens of facilities, refinancing, and negotiating lease reductions in the last four months. In addition, since GEN shares were aggressively sold short, a short squeeze has helped propel the stock higher, though the business remains troubled.
4. Genworth Financial (GNW)
No list of the best cheap stocks to buy now is complete without Genworth Financial. A mortgage and long-term care insurer, GNW is not only inexpensive at 3.5 times forward earnings, but it’s also coming off two impressive straight quarters and is growing revenue, with shares up more than 20 percent since the May 2 earnings report.
Importantly, GNW can be considered a “merger arbitrage” opportunity; China Oceanwide Holdings Group has agreed to buy GNW for $5.43 per share – nearly a 50 percent premium from late May. GNW has said the deal’s deadline is July 1, but regulators must approve it first. (As of now, the market thinks that unlikely.)
5. Zynga (ZNGA)
Something miraculous happened to Zynga shareholders recently. It’s virtually peerless in Wall Street history: On May 2, the company’s founder and former CEO, Mark Pincus, voluntarily diluted his voting rights in the company, abolishing the dual-class structure that gave him 70 percent control.
He now controls 10 percent of voting shares. The mobile and social gaming company behind games like “Words With Friends,” “Zynga Poker,” “FarmVille,” and “CSR Racing” saw shares soar 20 percent in the following weeks. This extraordinarily bullish move makes ZNGA far more attractive to institutional and individual investors alike. Of course, growing sales and profits don’t hurt, either.
