As we navigate the ebb and flow of the market, several growth and low-priced stocks have been throwing punches above their weight. As we delve into the year’s second half, it’s prime time to dive into the treasure trove of dirt-cheap stocks to buy for July. These stocks harbor immense long-term potential. While scoring a bargain is always a thrill, it’s crucial to pinpoint stocks that effectively balance value with long-term viability, steering clear of potential value traps when it comes to affordable stock investment.
These cheap stocks aren’t just cost-effective for the sake of it. They’re backed by solid businesses that have garnered support among a cadre of Wall Street analysts. In the realm of investing in cheap stocks, these gems are certainly worth a look.
Dirt-Cheap Stocks to Buy: Teladoc (TDOC)
- % Below 52-week high: 42.6%
Teladoc (NASDAQ:TDOC) continues to make waves in the bustling telehealth landscape with its relentless drive toward innovation and comprehensive care solutions. From its integrated apps garnering impressive engagement to a diverse late-stage pipeline promising future growth, Teladoc remains a front-runner in its niche.
To expand its position in holistic healthcare, the introduction of provider-based care programs focusing on weight management and pre-diabetes takes center stage. These initiatives, backed by Teladoc physicians, are a testament to their commitment to delivering improved outcomes at lower costs. Coupled with its robust financial footing, Teladoc stands well-equipped to navigate the unpredictable funding environment and push on toward long-term growth ahead.
Moreover, Teladoc delivered a stellar first-quarter financial performance led by strong enrollment and growth in its Integrated Care segment. It posted results that exceeded expectations, further fueling confidence in its outlook.
Evolution Petroleum (EPM)
- % Below 52-week high: 6.5%
Evolution Petroleum (NYSEMKT:EPM), positioned in the heart of Houston, Texas, champions the energy sector as an independent entity. Its goal is to effectively boost shareholder returns through smart ownership and investment in U.S. onshore oil and natural gas properties. Consequently, Evolution has displayed a splendid surge in net income from a modest $5.9 million in fiscal year 2020 to an impressive $32.6 million by fiscal 2022. This upswing showcases its massive potential in a vibrant industry.
Its top and bottom-line growth has soared over the past year, and forward estimates point to more expansion ahead. GuruFocus assigns an incredible 10/10 financial strength rating to the firm with a profitability rank of 9/10. Moreover, the stock trades at just 1.9 times forward sales, 47.5% lower than its 5-year average. That makes it among the best dirt-cheap stocks to buy.
Perdoceo Education (PRDO)
- % Below 52-week high: 22.7%
Perdoceo Education (NASDAQ:PRDO) is effectively carving a niche in the academic sphere with two accredited institutions, Colorado Technical University, and American InterContinental University System, under its wing. It caters to a range of academic interests, including everything from associate to doctorate degree programs and non-degree programs for professional development.
A major stride forward for the company came earlier this year when it brought Coding Dojo on board in a $52.8 million acquisition, with an additional $15 million on the cards, subject to meeting financial milestones. This acquisition has integrated Coding Dojo into Perdoceo’s already robust platform.
Reflecting these positive developments, Perdoceo’s first quarter earnings revealed impressive Non-GAAP earnings per share of 58 cents, surpassing expectations by two cents, and a 6.9% year-over-year revenue increase to $195.6 million. These financials further strengthen Perdoceo’s appeal in the educational sector.
Vipshop (VIPS)
- % Below 52-week high: 9.5%
Vipshop (NYSE:VIPS) is a Chinese-based heavyweight in the online discount retail realm, leveraging its popular e-commerce platform to offer in-demand branded products at impressive discounts. As China’s consumer spending rebounds post-Covid, the company is poised to ride the crest of this resurgence.
Although the road to recovery has had its share of hurdles, Vipshop’s prospects remain remarkably bright. The firm’s potential stands strengthened amidst the improving US-China relations, positioning it as a leading contender amidst cyclical consumer stocks.
Moreover, its financials have shown promise of late; Vipshop’s first quarter total net revenues climbed 9.1% year-over-year to $4.0 billion, while its net income attributable to shareholders soared almost 70% year-over-year to a whopping $270.7 million. This vibrant financial performance and an evolving consumer market illustrate the company’s exciting potential for those with an eye on the long-term horizon.
Ford Motor Company (F)
- % Below 52-week high: 8.6%
As a seasoned veteran in the automotive world, Ford Motor Company (NYSE:F) has effectively embraced the electrification wave, reaping rich dividends from its early adoption. With popular models such as the Mustang Mach-E and the F-150 Lightning electrified already, Ford is at the forefront of the EV revolution.
Moreover, its recent collaboration with Tesla (NASDAQ:TSLA), offering Ford customers access to Tesla’s supercharger network, amplifies the market for Ford EVs. Although Ford hasn’t fully retired from the internal combustion engine (ICE) vehicles, its venture into the burgeoning EV will continue to be the focus for the foreseeable future.
Ford’s robust first-quarter financials, marked by a net income of $1.8 billion and a solid 20% year-over-year revenue bump, underscore the automaker’s powerful performance. The audacious move to electrify the best-selling F-Series pickup truck and other key vehicles positions Ford to seize a significant EV market share, making it one of the best dirt-cheap stocks in my book.
Nokia (NOK)
- % Below 52-week high: 19.7%
Emerging from its former reign in the smartphone realm, Nokia (NYSE:NOK) has effectively morphed into a key contender in the telecommunications infrastructure sector. Under the savvy leadership of its CEO, Pekka Lundmark, Nokia has seized a front-runner position in the global 5G scene. Its stellar execution and astute capital allocation signal a bullish trend for sizeable long-term gains in the thriving 5G market.
With a portfolio brimming with more than 280 commercial 5G agreements, and new ones added each quarter, Nokia isn’t slowing down anytime soon. Particularly noteworthy is Nokia’s strategic stronghold in regions such as India, a nascent 5G market set to explode with over a billion connections by the year-end.
A promising forecast of 2% to 8% sales growth in 2023 and robust top and bottom-line growth, marked by double-digit increases over the past year, make Nokia an enticing consideration for long-term investors.
Sirius XM Holdings (SIRI)
- % Below 52-week high: 32.4%
Another great bet among dirt-cheap stocks to buy is Sirius XM Holdings (NASDAQ:SIRI). It is no stranger to competitive pressures as a titan in the music streaming and satellite industry. Yet, the company’s unique content and devoted fan base position it to stand firm in this dynamic landscape. Pivotal to its continued relevance is its transition to non-linear audio streaming, a strategic move to resonate with the younger demographic.
Following a remarkable turnaround from a massive $677 million net loss in 2020 to delivering solid profits of $318 million, Sirius XM remains on an impressive upward trajectory. Moreover, what’s more impressive is that it has managed to boost its paying subscriber base by at least a million yearly over the past decade.
This impressive blend of growth and resilience paints a radiant picture for Sirius XM’s future. It remains an incredibly profitable business, delivering double-digit growth across key profitability metrics, including its free cash flows. Hence, in a recent update, it announced $1 billion in special dividends and $200 million in share repurchases.
On the date of publication, Muslim Farooque did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines
