Markets finish week down after bouncing on Bannon's exit >>> READ MORE

5 Great Stocks to Buy for Under $5

They're cheap, they're undervalued, and they could run

    View All  


Alcatel-Lucent (NYSE:ALU)10/24 Close: $1.06/share

Last but not least, French telecom equipment maker Alcatel-Lucent (NYSE:ALU) makes the list of five undervalued stocks under $5.

From a distance, Alcatel-Lucent looks troubled. Shares were trading above $6 a year-and-a-half ago, but now are hovering just above $1. Usually such a plunge in a stock would coincide with a major headwind for a company’s top and bottom line. We saw a hint of that with Alcatel, at least on the top line — 2010’s revenue of $21.5 billion slumped to $19.9 billion last year, and 2012’s top line is likely to slide to $18.72 billion. Thing is, the losses actually have been whittled down as the top line has contracted, meaning the company is doing more high-margin business.

Though still mentally off-limits to some, ALU actually is in something of a sweet spot in its turnaround story … before it has become obvious, but at least after a light starts to shine at the end of the tunnel.

As of this writing, James Brumley did not hold a position in any of the aforementioned securities.

Article printed from InvestorPlace Media,

©2017 InvestorPlace Media, LLC