Finding cheap stocks to buy now is getting harder and harder. That’s what happens when markets are notching all-time highs. And that can create serious pitfalls for investors trying to find the best cheap stocks.
There are different ways of thinking about cheap stocks to buy — and some are better than others. Some penny stocks may look like the best cheap stock to buy now because of their low nominal value, but that does not necessarily make them truly cheap. (Not when they go to zero.)
Then there are value stocks. These really are the best cheap stocks to buy now — even if the nominal or face price is, say, $500. If it later goes up to $600, well, you indeed found yourself one of the top cheap stocks.
And let’s not forget about exchange-traded funds as one the best sources for cheap stocks to buy. ETFs can offer one-stop-shopping for a diverse basket of cheap stocks to buy.
Here’s a quick look at three ways to find the best cheap stocks to buy now: