Cheap Stocks to Buy (That Aren't Penny Stocks!)

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We all want to feel like we’re getting a deal. We coupon, we look for discount codes, and we wait for Labor Day to head to the car dealership or the mattress store.

We do it as consumers and as investors — with stocks we hunt for bargains, hoping to recognize an absurd value before the rest of the market catches on and shares rocket up.

Some people — especially new folks with Robinhood investing accounts — turn to penny stocks or look for the best stocks under $10 or $5 hoping to make some easy money. But that’s actually one of the most destructive ways to invest.

In this video, we break down the difference between stock price and valuation and explain why seemingly expensive stocks (based on price) can actually be “cheap stocks”. We also explain the huge mistake of fixating on share price, or even fixating on just low P/E stocks if you’re trying to follow the tenets of value investing.

Plus, we give you some cheap stocks to buy now!

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Comments

Human says:

Most companies do share buy backs as part of their shenanigans. They do it to make the earnings per share look better so the C suite executives can get their bonuses. This is very common. Buy backs do not benefit shareholders.

Ed March says:

vector vest values the price at 96 while the price is 197 over valued.
TGT is a buy @ price of 113 value of 112

Angry it's a gift says:

FTR bullish $$$$

Maxwell Smart_086 says:

Green flag: stock is above 200 day moving average. Red flag: under 200 day ma. Best. Put a trailing stop on the 200 ma. 😉

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Rick Manley says:

Altria is on sale right now.
The drama will pass, and I got in at an 8.3% div

Jason's Travel Chronicles says:

Cheap stocks!!! Seriously! None of these are cheap!! Cheap means undervalued with a margin of safety.

Supreme Trader says:

Emily impressed me!

Mark Madison says:

Texas roadhouse I have only seen one of them when i was at college but it was my favorite restaurant haven't seen one since

Frank 0020 says:

Think this is site Emily is talking about. P/S per industry: http://pages.stern.nyu.edu/~adamodar/New_Home_Page/datafile/psdata.html

FidelCatto says:

Price to sales is how companies like UBER get way over-valued even excluding depreciation it's still losing money a lot of money and cash

Fred Winslow says:

What happened to Motley fool ????

Value investing ?? Lololololol
Hahahaha

Growth requires a value company
These all fail

NO INSIDE ownership!
Tons OF DEBT !!
not particularly low price margin of safety !
Competitive advantage questionable
Growth is only plus
Ignores economy elevated market

They focus on the weeds petals while in the weeds of PE PEg and ignore the above

The Motley fool must have sold to a seller
They sound exactly like other tv shows

Really is now
For fools

Nice Trade says:

LOL Target !? ..most stores have closed in Canada, the company isn't growing..

JR says:

Very knowledgeable and experienced staff. I am saving this youtube video for futute replay.

torputube says:

P/S is the new P/E because of no earnings? Ok.

Argyrios Tzakas says:

Awesome reaction by Emily at 18:48

DiscreetNinja TV says:

Really? Then why Buffet not pointing his loaded gun onto these "cheap" stocks?

Casey Dresselhouse says:

Go Altria!! They will be just fine. They are pretty damn good at "scrambling" as they have have been for decades when nicotine has been seen as a "bad investment." And that dividend yield is worth the wait!!

Billy Johnson says:

Great video

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