In an expensive market, these stocks are always good deals. Every week, it seems, the stock market hits new all-time highs.â¦
In an expensive market, these stocks are always good deals.
Every week, it seems, the stock market hits new all-time highs. The S&P 500 is up over 25% this year and has more than doubled since its decline in March 2020. In such a situation, investors may have a hard time finding cheap stocks worth buying. . There are always penny stocks, but these tend to increase the risk. Above that, however, are stocks in the $ 5 to $ 10 price range. Many of them are better, established companies that have temporarily fallen out of favor. If they recover, they could make substantial gains for shareholders. So what quality stocks are available below the $ 10 level? These nine cheap stocks look promising by 2022.
Saber Corp. (symbol: SABR)
Saber is a travel agency best known for its Global Distribution System, or GDS. Airlines, cruise lines, and other transportation companies use a GDS to advertise their routes and ticketing options. Travel agents and online travel sites use GDS to check ticket availability. It is basically a market for travel routes. Unsurprisingly, Saber was punished during the pandemic, as global travel came to a halt. However, things picked up quickly and Saber made it through the period. There are only three GDS operators that compete in most markets, giving them high profit margins and a solid base. Meanwhile, Saber was already upgrading its IT systems before the pandemic, which should now start to pay off for the company. Saber shares were trading above $ 20 before the pandemic, but closed at $ 9.22 on November 15.
Playa Hotels & Resorts NV (PLYA)
Playa Hotels & Resorts is another travel stock that has yet to experience a full recovery. The company operates several hotels in Mexico, Jamaica and the Dominican Republic. These hotels are mainly associated with the Hyatt and Hilton brands. Playa’s revenue fell in 2020 but recovers quickly in 2021. Mexico has relatively loose restrictions in the event of a pandemic, so its travel industry has returned to pre-pandemic levels. In the last quarter, Playa recorded a slight operating loss, although it improved significantly from 2020. Meanwhile, revenue jumped to $ 151 million for the quarter, which was only slightly lower than Playa’s quarterly income rate in 2019. Analysts expect Playa to return to profitability. in 2022. The company just issued shares at $ 8.35 per share to strengthen its balance sheet, and investors have the option to buy while the company returns to positive territory. PLYA shares closed at $ 7.91 on November 15.
LP energy transfer (ET)
Energy Transfer is an intermediate energy company. The company owns pipelines and other infrastructure assets for the storage, transportation and processing of oil and gas, and it owns more than 90,000 miles of pipelines crossing 38 states and Canada. Pipelines have gone out of favor in recent years as investors questioned the long-term need for oil and gas assets. However, 2021 has turned the tide on this, and it’s becoming clear that analysts have been drafting obituaries for the fossil fuel industry a bit prematurely. Over time, the company will embrace more renewables, but there are still opportunities for owners of bridging energy assets to make money during the green energy transition. Energy Transfer also offers a dividend yield of 6.6%. Morningstar’s Stephen Ellis set a price target of $ 16.50 per share for this stock, which closed at $ 9.29 on November 15.
AvePoint inc. (AVPT)
AvePoint is a cloud computing company that completed its Specialty Acquisition Company Merger, or SPAC, in July. The company is a software service provider for the Microsoft 365 ecosystem, helping businesses migrate to Microsoft Corp’s cloud offering. (MSFT) and then helping them with things like data storage and security. Microsoft’s business is running at full speed, with the cloud division growing at a breakneck pace. This gave AvePoint a big tail wind. In its second quarter results, AvePoint increased its revenue by 38% year on year, including a 76% jump in its cloud software revenue. AvePoint stock climbed to around $ 12 after the PSPC deal was struck, but fell amid the carnage in the PSPC industry. However, once traders sort the wheat from the chaff, AvePoint should recover. It is an enterprise software company with a differentiated product offering that always sells for a reasonable price. AVPT shares closed at $ 8.33 on November 15.
Paysafe Ltd. (PSFE)
Paysafe is another former SPAC that received a cold reception from the market. The company processes online payments for transactions involving gambling, digital subscriptions, and online gaming. The PSPC which acquired Paysafe is headed by William Foley, a legend in the financial industry. Despite this pedigree, Paysafe shares have fallen around 70% this year as the company missed its forecast in the last quarter and the payment shares sold widely. Ultimately, however, the business is not going anywhere. This is positive free cash flow and it generates healthy earnings before interest, taxes, depreciation and amortization, or EBITDA. While the company needs to improve its digital wallet product to resume growth, investors have punished this company too much for its soft start as a state-owned enterprise. PSFE stock closed at $ 4.51 on November 15.
Grupo Aval Acciones y Valores SA (AVAL)
Grupo Aval is a holding company that controls Colombia’s largest network of banks. Colombia is a very attractive market for banks as regulators impose strict limits on competition and risk taking. The three major banking companies control two-thirds of the overall market, maintaining high rates and profit margins. Downstream, for example, typically gets a higher return on equity than most big banks. The Colombian economy is recovering and the country’s three main exports – oil, coffee and coal – are skyrocketing. An influx of hard currency is expected to give new impetus to a Colombian economy that is already approaching double-digit annual growth in gross domestic product. The stock sells for just 6.6 times forward earnings and pays a 5.1% dividend. AVAL stock closed at $ 5.53 on November 15.
UWM Holdings Corp. (UWMC)
UWM Holdings is a leading mortgage origination company. Like several other companies on this list, it went public through the PSPC merger over the past year. Since its IPO in January, shares have fallen. However, UWM still deserves special attention. The company has benefited from the significant boom in the housing market as mortgage activity increases. Lower interest rates have also helped: When people refinance their mortgages, UWM gets more business. Either way, UWM is making a huge amount of money and trading at 8.4x futures earnings. In 2023, analysts expect UWM’s earnings growth to pick up again, making stocks even more attractive. The stock has strong short-term interest and pays a hefty 6% dividend, offering two more catalysts that could boost the stock by the end of the year. UWMC shares closed at $ 6.85 on November 15.
Banco Bilbao Vizcaya Argentaria SA (BBVA)
BBVA is a Spanish banking conglomerate. The heart of the Spanish banking market has been weak for a decade now. Spain built too many houses in the late 2000s and found itself in a prolonged economic crisis thereafter. However, investors could penalize the company too much for its exposure to Spain. Arguably the jewel in the crown is BBVA’s Mexico branch. This division generates healthy returns on equity and is poised for growth as Mexico emerges as a big winner in the current economic landscape. As industrial companies leave China, Mexico attracts a lot of new business. The bank is also exposed to other Latin American economies which are accelerating with soaring commodity prices. Meanwhile, the stocks are trading at just 8.5 times future earnings estimates. BBVA shares closed at $ 6.65 on November 15.
Nokia Corp. (NOK)
Nokia is a leading supplier of telecommunications and networking equipment. The company has had a long and volatile past, but things have improved more recently. The United States’ efforts to keep Huawei out of the sensitive network equipment market has opened a big window of opportunity for Nokia and Telefonaktiebolaget LM Ericsson (ERIC). In particular, Nokia is a leader in the deployment of 5G communication technology around the world. While Nokia’s revenue has been roughly flat in recent years, analysts see the company returning to some growth as the pandemic disruption ends and 5G adoption accelerates. Meanwhile, stocks are trading at 13.5 times futures earnings, making Nokia a relative boon among tech stocks. NOK shares closed at $ 5.59 on November 15.
Best cheap stocks under $ 10:
– Saber Corp (SABR)
– Playa Hotels & Resorts NV (PLYA)
– LP energy transfer (ET)
– AvePoint Inc. (AVPT)
– Paysafe Ltd. (PSFE)
– Grupo Aval Acciones y Valores SA (AVAL)
– UWM Holdings Corp. (UWMC)
– Banco Bilbao Vizcaya Argentaria SA (BBVA)
– Nokia Corp. (NOK)
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9 best cheap stocks to buy under $ 10 originally appeared on usnews.com
Update 11/16/21: This story was posted at an earlier date and has been updated with new information.