3 cheap stocks to buy for the fourth quarter of the market



The fourth and final quarter of 2021 is fast approaching and there are still plenty of cheap stocks to buy.

Many blue chip stocks as well as growth-oriented companies saw their prices plummet over the summer and through the historically difficult September.

This drop has built up a lot of inventory for large series in the later months of the year, which includes the busy holiday sale season, when consumer spending is typically at its peak. These are often opportunities that investors can take advantage of.

Here are three cheap stocks to buy for the fourth quarter:

  • Walt disney (NYSE:SAY)
  • United parcel service (NYSE:UPS)
  • MasterCard (NYSE:MY)

Cheap shares to buy in Q4: Walt Disney (DIS)

Source: spiderman777 / Shutterstock.com

Shares of entertainment giant Walt Disney are currently a steal around $ 178 a share. Down from its 52 week high of $ 203.02 and in consolidation for almost six months now, DIS stock offers investors an attractive entry point at its current price.

There is also reason to believe that Mouse House’s stock price will rise in the final months of the year and cross the $ 200 level again.

Cathie Wood of Ark Invest recently stocked up on stocks, buying over 20,000 stocks in a single week for her various exchange-traded funds (ETFs).

The optimism stems from the fact that Disney theme parks and cruises are again factored into the company’s bottom line. And, as its Disney + streaming service continues to add subscribers, albeit at a slower rate than at the height of the pandemic.

Disney’s Parks, Experiences and Products segment, which includes its theme parks, hotels and cruises, reported last quarter revenue of $ 4.34 billion and operating profit of $ 356 million. That compares to $ 1.07 billion in sales and an operating loss of $ 1.88 billion in the same Covid-19 ravaged quarter in 2020.

As concerns persist about the delta variant of the novel coronavirus and its potential impact on Disney and its operations, DIS stock is an attractive buy at its current price. As a result, it is at the top of the list of cheap stocks to buy.

United Parcel Service (UPS)

Close-up of the UPS logo printed on a delivery truck;  partial view of driver sitting behind the wheel, waiting at a red light in the southern San Francisco bay area

Source: Various photographs / Shutterstock.com

At around $ 190 a share, United Parcel Service stock would be a great pickup heading into the fourth quarter, which includes the busy holiday season which is the most profitable time of year for the shipping and logistics company. .

Currently, UPS stock is about 14% below its 52-week high of just under $ 220 per share in early May.

The stock price has fallen back throughout the summer and now looks cheap based on its underlying fundamentals and growth potential. With holiday shipments on the horizon, it wouldn’t be surprising to see the stock pick up in the final months of 2021.

The stock sold after management was disappointed with its downward revision to its US domestic plan operating margin forecast, saying it expects it to hit 9 , 2% in the second half of this year against 11% in the first half of the year.

However, analysts who remain bullish on UPS stocks point out that the company’s margin is expected to increase from 12.7% to 13.7% by 2023. This is due to an improvement in the margin on domestic parcels to states. United from 7.7% in 2020 to 12% in 2023.

Improving margins will come as the growth in e-commerce shipments continues unabated.

Cheap stocks to buy in Q4: Mastercard (MA)

Close up of a stack of mastercard credit debit bank cards.

Source: David Cardinez / Shutterstock.com

Speaking of cheap stocks and holiday sales in the fourth quarter, what about the credit card giant Mastercard?

Despite the economic reopening and rising consumer spending, MA stock traded largely sideways. Since the start of the year, the company’s stock price has fallen more than 2% to around $ 340.

While disappointing for existing shareholders, investors looking for a great financial security to add to their portfolio should see an opportunity to buy into Mastercard. MA stock has always been a reliable blue chip stock and has generated 237% returns over the past five years.

As Mastercard’s core credit card business continues to perform well, the company is also moving into digital payments, announcing the acquisition of Danish fintech company Aiia.

Mastercard is also expanding into cryptocurrencies with its purchase of blockchain analytics start-up CipherTrace.

The payments giant is clearly trying to expand into new areas while maintaining its traditional credit card business. This area is expected to see a big increase as consumers make their way through the busy Thanksgiving and Christmas periods.

Disclosure: At the date of publication, Joël Baglole held long positions on DIS and UPS. The opinions expressed in this article are those of the author, submitted to InvestorPlace.com Publication guidelines.

Joel Baglole has been an economic journalist for 20 years. He spent five years as a reporter for the Wall Street Journal and also wrote for The Washington Post and Toronto Star newspapers, as well as for financial websites such as The Motley Fool and Investopedia.


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