5 Stocks That Are Still Cheap in This Market

The Dow hit all-time highs. The S&P broke a new record. But these stocks? They're still cheap.

By Anthony Mirhaydari, InvestorPlace Market Strategist

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U.S. equities are pushing strongly higher on Monday, bolstered by the passage of the GOP’s tax reform plan over the weekend as well as the general lift prices normally see this time of year due to seasonal factors. Santa Rally, and all that.

There is a bit of a randomized nature to all this, with gains concentrated in areas like financials while Big Tech stocks weaken notably. Is this harmless sector rotation? Or is this something more nefarious, like the start of a protracted selloff?

At this point, the former looks to be the more likely scenario. But with valuations flying high, trying to find a modicum of value in this environment is tougher than snagging a Black Friday doorbuster deal.

But I’ll give it a try! Here are five cheap stocks that still look good:

Cheap Stocks: Teekay Tankers

Shares of Teekay Tankers Ltd. (NYSE:TNK) look ready to rise up and off of double-bottom support near $1.40, setting the stage for the first sustained uptrend since shares peaked near $7.25 in late 2015.

The company provides marine transportation for crude oil and other energy products and has seen revenue take a hit from refinery maintenance, the OPEC output cut agreement, and tanker fleet growth.

The company will next report results on Feb. 22 before the bell. Analysts are looking for a loss of four cents per share on revenues of $94.9 million. When the company last reported on Nov. 9, a loss of eight cents per share beat estimates by four cents on a 16.8% decline in revenues.

Cheap Stocks: JCPenney

J C Penney Company Inc (NYSE:JCP) shares look ready to move up and out of a year-long breakdown pattern that started last December and has resulted in a near-70% decline in value as the retailer struggles to turn operations around.
All this after a disastrous tenure by the former head of Apple’s retail operation, who embraced an ill-fated upmarket attempt in a downright horrible environment for department stores in general.

The company will next report results on Feb. 23 before the bell. Analysts are looking for earnings of 43 cents per share on revenues of $4 billion.

The company looks better placed than rivals to compete in the post-Amazon world with its focus on coupon-cutting, quality-at-low-cost and a move into high-ticket appliances.

Cheap Stocks: Cliffs Natural Resources

Shares of Cleveland-Cliffs Inc (NYSE:CLF), an iron ore mining company, look set for an upside move here, capping a decline that resulted in a loss of roughly half of the value of the highs set in February.

Shares are perking up on possible M&A speculation as well as ongoing potential for possible trade action against China from the Trump Administration.

The company will next report results on Feb. 8 before the bell. Analysts are looking for earnings of 24 cents per share on revenues of $627 million. When the company last reported on Oct. 20, earnings of 36 cents per share beat estimates by three cents on a 26.2% rise in revenues.

Cheap Stocks: Caesars Entertainment

Casino operator Caesars Entertainment Corporation (NASDAQ:CZR) has had a tough time recently, struggling to rise out of a long multi-month consolidation range as tourism to Las Vegas took a hit after that tragic mass shooting incident.

Sentiment could be ready to turn, however, with recent positive coverage in Barron’s as the company emerges from a contentious 2008 leveraged buyout.

The company will next report results on Feb. 14 after the close. Analysts are looking for earnings of five cents per share on revenues of $2.1 billion.

When the company last reported on Nov. 1, a loss of $4.89 missed estimates by $3.14.

Cheap Stocks: Under Armour

The one-hot athletic apparel maker Under Armour Inc (NYSE:UAA) has suffered an embarrassing fall from grace as the likes of Nike (NYSE:NKE) have stepped up their game.

Shares are trading at just a fraction of the high of $55 set in late 2015. But fresh leadership is stepping in now helping prices lift off from their early November lows. Particularly, look for a fresh marketing angle and new products to recapture lost market share.

The company will next report results on Jan. 30 before the bell. Analysts are looking for a breakeven result on revenues of $1.3 billion. When the company last reported on Oct. 31, earnings of 22 cents per share beat estimates by three cents on a 4.5% decline in revenues.

Anthony Mirhaydari is the founder of the Edge (ETFs) and Edge Pro (Options) investment advisory newsletters. Free two- and four-week trial offers have been extended to InvestorPlace readers.


Article printed from InvestorPlace Media, https://investorplace.com/2017/12/stocks-that-are-still-cheap/.

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