10 Cheap Growth Stocks to Buy Now

6. Mesabi Trust (NYSE:MSB)

Price to Earnings ratio: 3.81

Mesabi Trust (NYSE:MSB) is a royalty trust that earns income from the Peter Mitchell Mine, an iron ore operation near Babbitt, Minnesota. With a P/E ratio of 3.8, MSB is one of the best cheap growth stocks to buy.

In a notable vote of confidence, prominent investor Murray Stahl increased his stake in Mesabi Trust (NYSE:MSB) on December 31, 2024. Stahl acquired an additional 183,387 shares at $28.11 per share, bringing his total holdings to 2,843,010 shares. This 6.9% increase in his position highlights his bullish outlook on the Trust’s long-term value proposition. As a seasoned investor known for his deep-value investment approach, Stahl’s move suggests firm conviction in Mesabi Trust’s future prospects.

On January 14, 2025, Mesabi Trust (NYSE:MSB) declared a distribution of $5.95 per Unit of Beneficial Interest, payable on February 20, 2025, to unitholders of record as of January 30, 2025. This substantial increase from the previous year’s $0.37 per unit distribution is primarily due to a $71.2 million arbitration award received on October 4, 2024. This was for underpaid royalties from 2020 to early 2022. Additionally, Mesabi Trust (NYSE:MSB) reported royalty payments of $7.36 million on October 30, 2024, up from $5.67 million in October 2023.