The 3 Best Bargain Stocks to Buy in May 2024


  • There are several types of bargain stocks, and here are three of the best to buy now. 
  • EVgo (EVGO): EVGO is growing very rapidly but has a very low valuation.
  • El Pollo Loco (LOCO): LOCO is on the right track, but its new CEO can really push it into high gear. 
  • ImmunityBio (IBRX): ImmunityBio’s cancer treatment is well-positioned to become a blockbuster drug. 
best bargain stocks to buy - The 3 Best Bargain Stocks to Buy in May 2024

Source: Champiofoto /

There are several types of bargain stocks available to buy in the stock market. There are, of course, traditional bargain stocks with very low valuations and an average growth rate. Then we have stocks with run-of-the-mill or even above-average valuations, paired with rapid growth. Finally, there are firms that have powerful, upcoming catalysts and low valuations.

Sometimes the latter companies may have high price-earnings and/or elevated price-to-sales ratios. But their market capitalizations are low in light of their huge, future opportunities. In many cases, the latter names are only appropriate for long-term investors. And bargain stocks in general are often most appropriate for investors who are willing to wait long periods of time for their profits to materialize. That’s because stocks often have low valuations because the Street is skeptical about their businesses and outlooks. And sometimes, it takes a great deal of time to convince the Street that it was mistaken. The three best bargain stocks to buy listed in this column are a mixture of the different varieties that I described above.


An EVgo charging station at the Victor Valley Mall in the City of Victorville.
Source: Felipe Sanchez /

EVgo (NASDAQ:EVGO), which owns and operates EV chargers, is growing extremely quickly and has a very low valuation. This combination makes EVgo one of the best bargain stocks to buy.

Last quarter, EVgo’s sales soared 118% versus the same period a year earlier to $55.2 million. Additionally, the amount of electricity used on its network nearly tripled year-over-year to 53 gigawatt-hours, while it added almost 109,000 new customer accounts in Q1. Indeed, EVgo’s customer account count soared 63% YOY to over 981,000. And the firm’s adjusted EBITDA loss fell 64% YOY to just $7.2 million.

Also importantly, EVgo’s operations burned $14 million of cash, while its capital expenditures came in at $13.5 million. But the firm had $175.5 million of cash, cash equivalents and restricted cash as of the end of Q1, while it had only $68 million of debt. So EVgo will not have a cash crunch anytime soon and may never experience one again.

Moreover, EVgo is very well-positioned to benefit from the continued, rapid expansion of America’s EV fleet going forward.

The forward price-sales ratio of EVgo is a tiny 1x, and its enterprise value-to-revenue ratio is an even smaller 0.44 times.

El Pollo Loco (LOCO)

El Pollo Loco restaurant exterior and sign
Source: Ken Wolter /

Like EVgo, Mexican fast food chain El Pollo Loco (NASDAQ:LOCO) is growing rapidly and has a very low valuation. Unlike EVgo, El Pollo Loco is already profitable.

In Q1, Loco’s income from operations soared 24% YOY to $9.7 million. Its restaurant contribution came in at $17.1 million, or 17.6% of its company-operated restaurant revenue. An increase of over 2% YOY. The latter metrics show that the sales and margins of the firm’s company owned restaurants are quickly rising.

I’m confident that the company’s new CEO, Liz Williams, has the necessary experience and expertise to continue to further improve Loco’s financial performance going forward. That’s because Williams was president of Yum Brands’ (NYSE:YUM) Taco Bell International.

In light of the company’s strong growth, its forward price-earnings ratio of 13 times is quite low.

ImmunityBio (IBRX)

Scientist using a microscope
Source: Maksim Shmeljov /

Last month, the U.S. Food and Drug Administration approved ImmunityBio’s (NASDAQ:IBRX) Anktiva drug as a treatment for some types of bladder cancer. The market for treating these categories of bladder cancer in the U.S. was estimated to be worth $1.7 billion last year.

The approval triggered a royalty payment of $100 million to ImmunityBio that should enable it to easily afford to manufacture the drug and hire the necessary salespeople to pitch it to doctors and hospitals. By stimulating the body’s immune system, Anktiva is able to get the system’s cells to attack tumors.

Over 60% of the patients with advanced bladder cancer who took Anktiva did not have any detectable tumors after they received the drug. Two other bladder cancer treatments on the market have much lower complete response rates of 51% and 41%.

In news that really makes IBRX stock a great buy, the drug maker reported that Anktiva had almost doubled the median overall survival rates, compared to standard-of-care chemotherapy, of patients with advanced non-small cell lung cancer.

In 2021 alone, over 134,500 died of lung cancer in the U.S. If 50% of those patients had been treated with Anktiva and the drug cost $50,000 annually, ImmunityBio would have received $3.36 billion of revenue that year.

Given Anktiva’s effectiveness, along with the possibility that it could potentially treat other types of cancers, the drug maker’s market capitalization of $5.6 billion is far too low.

On the date of publication, Larry Ramer held long positions in EVGO and IBRX. His wife held a long position in LOCO. The opinions expressed in this article are those of the writer, subject to the Publishing Guidelines.      

Larry Ramer has conducted research and written articles on U.S. stocks for 15 years. He has been employed by The Fly and Israel’s largest business newspaper, Globes. Larry began writing columns for InvestorPlace in 2015. Among his highly successful, contrarian picks have been SMCI, INTC, and MGM. You can reach him on Stocktwits at @larryramer.

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