“You get what you pay for” is an old saying with some truth to it. Still, we shouldn’t misinterpret this adage to mean that good investments must be pricey. In fact, there are some surprisingly high-quality, but still cheap, stocks to invest in.
Just because a stock is affordable to most investors doesn’t mean that it represents a bad company. Also, whether a stock is truly cheap should be measured according to the company’s intrinsic value. And that, in turn, is a function of the company’s fundamentals, among other factors.
After conducting some deep due diligence, four cheap stocks to invest in rose to the top of the list:
All right, market spendthrifts, let’s get ready to dig into some bargains and see which ones deserve your dollars and cents.
Nomura Holdings (NMR)
Think cheap stocks always skimp on the dividend payouts? Think again! NMR stock offers a forward annual dividend yield of 3.95%, beating out many higher-priced stocks.
And with a trailing 12-month price-to-earnings ratio of 16.7, this stock’s not just cheap but a good value as well. But what exactly does Nomura Holdings do? It’s the largest investment bank in Japan and has robust operations in China besides.
Sometimes finding bargain-priced stocks means going outside of your comfort zone and your home country. And if you feel that a cooling of tensions between Asia and the U.S. are in store, then NMR stock might just be the cheap stock you’ve been looking for.
Sirius XM (SIRI)
Can you be a Sirius investor without spending a lot of money? Indeed you can, with a dirt-cheap stake in SIRI stock. Ever since the cord-cutting craze started, satellite broadcasting has evolved, and investors are taking notice.
There’s no denying that Sirius XM’s subscriber growth was stunted by a decline in new-automobile sales. That’s likely a temporary speed bump though, as the world continues to recover from the ravages of the novel coronavirus.
It’s too late now to grab shares at the pandemic-crisis bottom, but SIRI stock still has room to run before it retakes its 2020 high. And as long as people are cooped up at home and demanding more content, Sirius XM should remain a profitable enterprise.
ADT (ADT)
Without a doubt, the need for home and business security systems still exists in the wake of the Covid-19 pandemic. In fact, the uptick in civil unrest might increase the demand for ADT’s security and surveillance services.
But ADT isn’t just about old-fashioned security systems anymore. Just recently, ADT announced that it’s partnering up with delivery company Instacart to provide mobile-safety solution Safe by ADT to Instacart’s 500,000 shoppers.
And so, through this partnership, ADT is leaping into the future (or at least the present) with a decidedly modern in-app safety feature. Forward-looking investors might consider ADT stock, as the company increases its relevance in an increasingly app-driven world.
OrganiGram (OGI)
Are you ready to jump into the invigorating but topsy-turvy world of pot stocks? If you can handle the volatility, then OGI stock makes for a very affordable entry point to the great big world of (somewhat) legalized cannabis.
To a considerable extent, OGI shares are depressed due to the disappointment surrounding the launch of Cannabis 2.0 in Canada. Evidently, an oversupply of product coupled with insufficient demand for cannabis derivatives (vapes, edibles, beverages, topicals, etc.) took a toll on the industry.
Fortunately for the company’s investors, OrganiGram isn’t fully dependent on derivatives. As evidence of this, note that the company just announced a deal to potentially provide 6,000 kilograms of dried cannabis flower to Israeli medical marijuana producer Canndoc.
That’s a whole lot of pot and you stand to rake in a whole lot of profits if OGI stock eventually rebounds on the heels of this cannabis mega-deal.
As of this writing, David Moadel did not hold a position in any of the aforementioned securities.
