In this article, we will take a look at the 15 best very cheap stocks to buy right now. You can skip our detailed analysis of these companies and go directly to the 5 Best Very Cheap Stocks to Buy Right Now.
The pandemic-led recession brought massive financial distress to the global market. Many businesses from small to large-cap enterprises across all industries have struggled during the surge of COVID-19. While the unemployment rate peaked in April 2020, according to an analysis by Congressional Research Service, investors are optimistic about the market’s rebound, driven by anticipation of a period of high growth as the vaccination rate increases and the economy completely reopens.
The global market has slowly bounced back from its dark days. The Federal Reserve has upped its 2021 GDP forecast to 7% from 6.5%. Officials are also seeing a decline in the unemployment rate for the year to 4.5% from 5.8% recorded in May. Investors remain confident about the market’s recovery with S&P 500 Index gaining over 36% in the last twelve months. On the other hand, The Russell 2000 Index and Russell 3000 are up 62% and 39% respectively, over the past twelve months. The market signals a healthy recovery that’s why many investors, young and novice retail traders, are encouraged to diversify their portfolios with cheap stocks that offer long-term growth.
What Best Very Cheap Stocks Should You Invest In?
To make money investing in cheap stocks, it is crucial to study a stock’s valuation, the company’s financial health, business model, and its long-term growth potential.
Investors are crazy about cheap stocks in tech, biopharma, renewable energy, and crypto industries. One such cheap stock is Sundial Growers Inc. (NASDAQ: SNDL). Since its foundation in 2006, the Canadian cannabis grower has created a name for itself in the modern cannabis industry. Sundial Growers Inc. (NASDAQ: SNDL) sells weed products for adult use in Canada. The company’s market capitalization is $1.95 billion. The stock has returned almost 122% to investors so far this year. SNDL’s stock has also increased by 49% in the last month. The stock’s 52-week range is $0.1380 – $3.9600
Another cheap stock that is gaining a lot of attention is AI firm Ideanomics, Inc. (NASDAQ: IDEX). The New York-based company was founded in 2004 and operates two divisions, Ideanomics Mobility and Ideanomics Capital. The company has established operations in China, Malaysia, and Ukraine. The company offers financing solutions for commercial EVs and provides fintech solutions for the financial sector. Ideanomics, Inc. (NASDAQ: IDEX) has recently acquired California-based electric tractor manufacturer Solectrac Inc. The company has a market cap of $1.34 billion. The stock has offered investors returns exceeding 175% over the past twelve months. Shares of IDEX are also up 28% in the last month. The stock’s 52-week range is $0.8000 – $5.5300
Photo by Yiorgos Ntrahas on Unsplash
Nokia Corporation (NYSE: NOK) is one of the best very cheap stocks to buy right now if you are looking to diversify your tech portfolio. The company has scooped up a total of 165 commercial 5G deals globally. In April 2021, Nokia Corporation (NYSE: NOK) locked in a deal with Chunghwa Telecom to provide 5G services in Taiwan. Subsequently, the 5G company also won an agreement with a major telecom company Etisalat, to provide ultra-fast 5G broadband services in UAE. The company has a market cap of $31 billion. The stock has offered investors returns exceeding 29% over the past twelve months. Shares of NOK are also up 11% in the last month.
In 2016, chip-maker Advanced Micro Devices, Inc. (NASDAQ: AMD) traded for only $8 per share. Today, the chip giant is already trading for $85.62 per share and has a market cap of $104 billion. With the success of its Ryzen processors, Advanced Micro Devices, Inc.’s (NASDAQ: AMD) innovative semiconductor technology has grown significantly over the last five years.
Online retailer Amazon.com, Inc. (NASDAQ: AMZN) started trading at $18 per share in 1997. Today, the stock trades for $3,401.46 per share and has a market cap of $1.71 trillion. The once-small virtual bookseller has grown into one of the world’s largest e-commerce platforms. Amazon.com, Inc. (NASDAQ: AMZN) has expanded its business outside e-commerce to cloud computing services, video-on-demand subscription services, and food and grocery, and acquisitions among other things. Amazon.com, Inc. (NASDAQ: AMZN) recently announced the acquisition of Wickr, a secure messaging app based in New York, with the aim of making its services available to Amazon Web Services users. The stock has gained 27% in the last twelve months.
Apple Inc. (NASDAQ: AAPL) was not always among the world’s largest technology companies. The iPad-maker was trading for under 80 cents per share in the early 2000s, and it is now trading for over $133 per share as of this writing. The $2 trillion dollar tech company sells trendy electronic products such as iPhone, iMac, iPad, and iWatch. In the midst of the COVID-19 pandemic, Apple Inc.’s (NASDAQ: AAPL) contactless payment service Apple Pay became more popular. The stock has gained 47% in the past twelve months.
Choosing valuable stocks is becoming difficult by the day, even for smart money. The entire hedge fund industry is feeling the reverberations of the changing financial landscape. Its reputation has been tarnished in the last decade, during which its hedged returns couldn’t keep up with the unhedged returns of the market indices. On the other hand, Insider Monkey’s research was able to identify in advance a select group of hedge fund holdings that outperformed the S&P 500 ETFs by more than 124 percentage points since March 2017. Between March 2017 and February 26, 2021, our monthly newsletter’s stock picks returned 197.2%, vs. 72.4% for the SPY. Our stock picks outperformed the market by more than 124 percentage points (see the details here). We were also able to identify in advance a select group of hedge fund holdings that significantly underperformed the market. We have been tracking and sharing the list of these stocks since February 2017, and they lost 13% through November 16. That’s why we believe hedge fund sentiment is an extremely useful indicator that investors should pay attention to. You can subscribe to our free newsletter on our homepage to receive our stories in your inbox.
Our Methodology
We picked affordable stocks with positive growth catalysts to provide you with the most accurate list of the best very cheap stocks to buy right now. We also took into account analysts’ ratings, hedge fund sentiment, and fundamentals while choosing these stocks.
With this context in mind, here is the list of the 15 best very cheap stocks to buy right now.
Best Very Cheap Stocks to Buy Right Now
15. Torchlight Energy Resources, Inc. (NASDAQ: TRCH)
Number of Hedge Fund Holders: 4
Price as of June 25: $4.95
We start our list of the 15 best very cheap stocks to buy right now with Torchlight Energy Resources, Inc. (NASDAQ: TRCH). The Texas-based oil and gas company was founded in 2010. Torchlight Energy Resources, Inc. is one of the fastest-growing oil penny stocks as the company primarily focuses on the acquisition and development of high-value domestic oil fields in Texas. Torchlight Energy and Metamaterial Inc. (OTC: MMATF), a developer of smart materials and optical solutions, announced plans to merge in December 2020, which is expected to be completed in the second quarter of 2021.
The company has a market cap of $475 million. Torchlight Energy Resources, Inc.’s share price is up a whopping 576% in the last year, a massive gain in a single year. It’s also up 68% in about a month. As of March 31, the company’s total assets equaled $56 million.
Like Sundial Growers Inc. (NASDAQ: SNDL), Ideanomics, Inc. (NASDAQ: IDEX), and Nokia Corporation (NYSE: NOK), Torchlight Energy Resources, Inc. (NASDAQ: TRCH) is one of the best very cheap stocks to buy right now.
There were 4 hedge funds that reported owning stakes in Torchlight Energy Resources, Inc. (NASDAQ: TRCH) at the end of the first quarter, up from 1 fund a quarter earlier. The total value of these stakes at the end of Q1 is $3.21 million.
14. Comstock Mining Inc. (NYSE: LODE)
Number of Hedge Fund Holders: 4
Price as of June 25: $3.47
Comstock Mining Inc. (NYSE: LODE) ranks 14th on the list of 15 best very cheap stocks to buy right now. The Nevada-based mining firm was founded in 1999. Comstock Mining Inc. is one of the fastest-growing producers of silver and gold in the Basin and Range Province of Nevada. The company promotes sustainable mining by collecting natural products using cutting-edge technology.
The company has a market cap of $186 million. Shares of LODE surged 516% over the last twelve months. The stock is also up 30% in the past month. The company’s first-quarter net income was $8.2 million, or $0.22 per common share, compared to a loss of $0.3 million, or $(0.01) per common share, in the first quarter of 2020. Total assets increased by 63% to $70.0 million in Q1 2021, driven by $17.0 million in equity raises, capital ventures in LINICO, and increases in notes receivable and advances.
Like Sundial Growers Inc. (NASDAQ: SNDL), Ideanomics, Inc. (NASDAQ: IDEX), and Nokia Corporation (NYSE: NOK), Comstock Mining Inc. (NYSE: LODE) is one of the best very cheap stocks to buy right now for new investors.
There were 4 hedge funds that reported owning stakes in Comstock Mining Inc. (NYSE: LODE) at the end of the first quarter. The total value of these stakes at the end of Q1 is $1.09 million.
13. Lloyds Banking Group plc (NYSE: LYG)
Number of Hedge Fund Holders: 5
Price as of June 25: $2.60
Lloyds Banking Group plc (NYSE: LYG) ranks 13th on the 15 best very cheap stocks to buy right now. The London-based consumer bank provides personal and commercial financial solutions such as leasing, debt capital market services, and risk management. On top of that, Lloyds Banking Group plc also offers insurance life and car insurance products. The British bank supports the commercialization of electric vehicles by leasing cars. The company’s motor business has financed over 1.1 million cars. The company currently pays an annual dividend of $0.03 per share, with a 1.17% dividend yield.
The company has a market cap of $48 billion. Shares of LYG increased 57% over the past twelve months. The company’s net income in the first quarter of 2021 came in at $5.2 billion. On April 12, Deutsche Bank upgraded Lloyds Banking Group plc to a Buy rating.
There were 5 hedge funds that reported owning stakes in Lloyds Banking Group plc (NYSE: LYG) at the end of the first quarter. The total value of these stakes at the end of Q1 is $14.1 million.
Here is what Fiduciary Management has to say about Lloyds Banking Group plc in their Q1 2021 investor letter:
“In the first quarter of 2020, we purchased Lloyds Banking Group PLC, which is the market leader in the homogenous and consolidated U.K. market. With Lloyds, we were able to buy a well-capitalized, low-cost, high-quality bank that traded down to around half of the tangible book value. The loan book is roughly two-thirds residential mortgages with an average loan-to-value of under 45%, allowing us to sleep at night.”
12. Ayro, Inc. (NASDAQ: AYRO)
Number of Hedge Fund Holders: 5
Price as of June 25: $4.99
Ayro, Inc. (NASDAQ: AYRO) ranks 12th on the list of 15 best very cheap stocks to buy right now. Founded in 2017, the Texas-based automaker creates and sells fully electric vehicles for local delivery and urban transportation. Ayro, Inc. launched the first fully electric vaccine vehicle (EVV) in March, with the goal of increasing COVID-19 vaccination and testing availability. In June, the company received its first order of its new light-duty EV Club Car Current worth $2 million.
The company has a market cap of $200 million. Shares of AYRO jumped 110% over the past twelve months. The company’s revenue in the first quarter of 2021 came in at $788,869, up 437% from $146,819 in the same period in 2020. As of March 21, Ayro, Inc. (NASDAQ: AYRO) has total assets amounting to $97,193,229 versus its total liabilities of $3,216,769.
Like Sundial Growers Inc. (NASDAQ: SNDL), Ideanomics, Inc. (NASDAQ: IDEX), and Nokia Corporation (NYSE: NOK), Ayro, Inc. (NASDAQ: AYRO) is one of the best very cheap stocks to buy right now.
There were 5 hedge funds that reported owning stakes in Ayro, Inc. (NASDAQ: AYRO) at the end of the first quarter, up from 3 funds a quarter earlier. The total value of these stakes at the end of Q1 is $4.04 million.
11. Genius Brands International, Inc. (NASDAQ: GNUS)
Number of Hedge Fund Holders: 6
Price as of June 25: $2.01
Ranking 11th on our list of the 15 best very cheap stocks to buy now is Genius Brands International, Inc. (NASDAQ: GNUS). Genius Brands International, Inc. CEO Andy Heyward reckons the company has the potential to become the Netflix (NASDAQ: NFLX) of children’s television. The company owns and operates Kartoon Channel!, which delivers family-friendly entertainment across a multitude of platforms including Amazon.com, Inc.’s (NASDAQ: AMZN) Amazon Prime, Apple Inc.’s (NASDAQ: AAPL) Apple TV, Roku, Inc. (NASDAQ: ROKU), and Alphabet Inc.’s (GOOG) Google Play. The company’s portfolio of children’s programs includes “Llama Llama” for Netflix and “Stan Lee’s Superhero Kindergarten”. On June 8, the company announced to join the Russell 3000 index.
The company has a market cap of $617 million. Shares of GNUS jumped 44% over the past month. The stock is also up 14% in the last five days. The company’s first-quarter revenue increased 218% to $1.1 million, up from $334,739 in the same quarter in 2020. In February, Genius Brands International, Inc. (NASDAQ: GNUS) finalized the acquisition of ChizComm Ltd. and ChizComm Beacon Media, a Canadian marketing and media company, for over $100 million in annual media expenditure.
There were 5 hedge funds that reported owning stakes in Genius Brands International, Inc. (NASDAQ: GNUS) at the end of the first quarter. The total value of these stakes at the end of Q1 is $5.42 million.
10. Atossa Therapeutics, Inc. (NASDAQ: ATOS)
Number of Hedge Fund Holders: 6
Price as of June 25: $8.62
Ranking 10th on the list of 15 best very cheap stocks to buy right now is Atossa Therapeutics, Inc. (NASDAQ: ATOS). The Seattle-based clinical-stage pharmaceutical company creates innovative treatments for breast cancer and infectious diseases, such as COVID-19. The company is also in Phase 2 clinical trial of COVID-19 nasal spray. AT-301 nasal spray is designed as an at-home prescription to prevent COVID-19 symptoms and to slow the rate of infection. In the first quarter of 2021, Atossa Therapeutics, Inc. (NASDAQ: ATOS) has seen a surge in research and development expenses amounting to $1.38 million, a 47% increase from $939,000 in the same quarter in 2020.
The company has a market cap of $521 million. Year to date, the stock has offered over 354% of returns to investors. Shares of ATOS are also up 49% in the last month. The pharmaceutical firm had estimated $137.7 million in cash, cash equivalents, and restricted cash as of March 31, 2021. Analysts covered a Buy rating on Atossa Therapeutics, Inc., with an average price target of $7.50 per share.
Like Sundial Growers Inc. (NASDAQ: SNDL), Ideanomics, Inc. (NASDAQ: IDEX), and Nokia Corporation (NYSE: NOK), Atossa Therapeutics, Inc. (NASDAQ: ATOS) is one of the best very cheap stocks to buy right now.
There were 6 hedge funds that reported owning stakes in Atossa Therapeutics, Inc. (NASDAQ: ATOS) at the end of the first quarter, up from 3 funds a quarter earlier. The total value of these stakes at the end of Q1 is $7.81 million.
9. Sundial Growers Inc. (NASDAQ: SNDL)
Number of Hedge Fund Holders: 7
Price as of June 25: $0.97
Sundial Growers Inc. (NASDAQ: SNDL) ranks 9th on the list of 15 best very cheap stocks to buy right now. The Canadian cannabis company was founded in 2006 and has since made a name for itself in modern-day cannabis farming. The company offers buds, pre-rolls, and cannabis-infused vapes for adult use in Canada. In May, Sundial Growers Inc. (NASDAQ: SNDL) announced its acquisition of Canadian cannabis retailer Inner Spirit Holdings Ltd for $131 million. The company markets cannabis through its brands including Sundial, Top Leaf, Palmetto, and Grasslands. In the first quarter of 2021, Sundial Growers Inc. sold 3,989 kilograms of cannabis.
The company has a market cap of $1.95 billion. Year to date, the stock has offered over 122% of returns to investors. Shares of SNDL are also up 49% in the last month. The company’s revenue from branded products in the first quarter of 2021 came in at $7.2 million. The company also recorded $2.8 million in revenue from interest to third-party loans, plus $12.9 million in capital gains. On March 10, Cantor Fitzgerald initiated coverage on Sundial Growers Inc. with a Neutral rating and a price target of $1.15 per share.
There were 7 hedge funds that reported owning stakes in Sundial Growers Inc. (NASDAQ: SNDL) at the end of the first quarter, up from 2 funds a quarter earlier. The total value of these stakes at the end of Q1 is $18.8 million.
8. Ideanomics, Inc. (NASDAQ: IDEX)
Number of Hedge Fund Holders: 7
Price as of June 25: $3.09
Ideanomics, Inc. (NASDAQ: IDEX) ranks 8th on the list of 15 best very cheap stocks to buy right now. The New York-based AI company was founded in 2004 and promotes the commercialization of electric vehicle use. Aside from offering EVs and electric motorbikes, the company also markets charging infrastructure and fully electric farming tractors. In May, the company completed its $50 million acquisition of California-based fuel cell engine manufacturer U.S. Hybrid.
The company has a market cap of $1.34 billion. The stock has offered investors returns exceeding 175% over the past twelve months. Shares of IDEX are also up 28% in the last month. First-quarter revenue came in at $32.7 million, up from $378,000 in the first quarter of 2020. On April 14, Roth Capital initiated coverage on Ideanomics, Inc. with a Buy rating and a price target of $7 per share.
There were 7 hedge funds that reported owning stakes in Ideanomics, Inc. (NASDAQ: IDEX) at the end of the first quarter, up from 5 funds a quarter earlier. The total value of these stakes at the end of Q1 is $20.9 million.
7. Denison Mines Corp. (NYSE: DNN)
Number of Hedge Fund Holders: 10
Price as of June 25: $1.32
Denison Mines Corp. (NYSE: DNN) ranks 7th on the list of 10 best very cheap stocks to buy right now. The Toronto-based uranium exploration and development company was founded in 1997 as International Uranium Corporation. The company has an interest in Wheeler River (90%), Hook-Carter (80%), Waterbury (64.2%), and McClean Lake Mill (22.5%).
The company has a market cap of $1.12 billion. The stock has offered investors returns exceeding 313% over the past twelve months. Shares of DNN are also up 24% in the last month. The company’s revenue in the first quarter of 2021 increased 13% to $3.82 million, up from $3.4 million in the previous quarter. Three analysts posted a Buy rating on Denison Mines Corp., with an average price target of $1.61 per share.
There were 10 hedge funds that reported owning stakes in Denison Mines Corp. (NYSE: DNN) at the end of the first quarter, up from 6 funds a quarter earlier. The total value of these stakes at the end of Q1 is $18.2 million.
6. Globalstar, Inc. (NYSE: GSAT)
Number of Hedge Fund Holders: 10
Price as of June 25: $1.88
Globalstar, Inc. (NYSE: GSAT) ranks 6th on the list of 15 best very cheap stocks to buy right now. The Louisiana-based satellite network company provides asset management, emergency, and remote communications, data management and mapping services, and embedded satellite transmitters to the workforce in various industries such as agriculture, forestry, energy, transportation, construction, commercial maritime, and government and public safety.
The company has a market cap of $2.3 billion. The stock has offered investors returns exceeding 280% over the past twelve months. Shares of GSAT are also up 14% in the last month. First-quarter revenue came in at $27 million, down from $32 million in the first quarter of 2020.
Like Sundial Growers Inc. (NASDAQ: SNDL), Ideanomics, Inc. (NASDAQ: IDEX), and Nokia Corporation (NYSE: NOK), Globalstar, Inc. (NYSE: GSAT) is one of the best very cheap stocks to buy right now.
There were 10 hedge funds that reported owning stakes in Globalstar, Inc. (NYSE: GSAT) at the end of the first quarter, up from 9 funds a quarter earlier. The total value of these stakes at the end of Q1 is $163 million.
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Disclosure: None. 15 Best Very Cheap Stocks to Buy Right Now is originally published on Insider Monkey.
