Here are the Top 10 Cheap Stocks to buy right now which you need to note down
Smart traders are aware that there are bargains to be had when markets slump and stock prices fall universally. But choosing the best stock to buy can be challenging. The trading strategy of buying the dip should be used with caution as it is not straightforward.
1.Asbury Automotive Group Inc. (ABG)
In addition to operating more than 140 car dealerships across 15 states, Asbury Automotive Group also offers third-party auto insurance and loan services. ABG is currently trading about 20% below its record high from 2021. Pullbacks of more than 25% have historically offered a good long-term entry point to buy the dip, even though the stock dropped by nearly 70% during the early 2020 market crash.
2.United Microelectronics Corporation (UMC)
One of the biggest semiconductor foundries in the world, United Microelectronics provides microprocessor components to companies like Texas Instruments, Intel, Qualcomm, and RealTek. UMC stock has increased 172% over the past five years, but it is currently 32% below its record high set in 2021. UMC has experienced numerous drops of 30% to 50% over the past ten years, and each of these pullbacks served as a great opportunity to buy the dip.
3.Builders FirstSource, Inc. (BLDR)
Building materials like floor and roof trusses, engineered wood, windows, and wall panels are produced by Builders FirstSource. Additionally, they offer installation and building services. Even though the stock is currently trading about 24% below its all-time high set in 2022, shares of BLDR have increased by more than 215% over the past five years. Declines of 30% or more have offered excellent entry opportunities over the past ten years. Keep in mind that the stock has dropped more than 50% on multiple occasions during that time before rising again.
4.TopBuild Corp. (BLD)
Insulation installation services are offered by TopBuild. Additionally, it offers garage doors, paint, fireplaces, gutters, and fireproofing. Similar to Builders FirstSource, TopBuild shares are currently 44% off their all-time high from 2022 despite having increased by nearly 200% over the previous five years. Over the past ten years, entering on pullbacks of 30% or more have been successful, but the stock can be volatile, with multiple periods of decline of more than 50%.
5.Saia, Inc. (SAIA)
Saia is a different transportation business that offers logistics services all over the United States. The stock is trading 34% below its all-time high from 2021 despite having increased 260% over the previous five years. Based on the company’s projected growth, this pullback might represent a good buying opportunity. With average growth rates of 44% and 15.6%, respectively, annual EPS and revenue have grown significantly in recent years. Over the next five years, analysts anticipate that EPS will grow by an average of 19.8% annually.
6.Pool Corporation (POOL)
Distribution of swimming pools and associated products like chemicals, spare parts, cleaners, heaters, pumps, lights, and filters is done by Pool. Over the past five years, shares of POOL have increased by more than 190%. The stock is currently trading 40% below its all-time high from 2021, which is close to its biggest decline in more than ten years. Value investors might want to profit from the decline. Annual growth rates for POOL’s earnings per share and revenue have been high, averaging 46.6% and 24.4%, respectively. Over the next five years, analysts anticipate a 12% annual growth rate in EPS.
7.Entegris, Inc. (ENTG)
Materials are supplied by Entegris to semiconductor producers. It runs businesses all over the world. Despite being 50% lower than its all-time high from 2021, the stock has increased by more than 160% over the past five years. Since this is the biggest decline in more than ten years, long-term value investors may find this to be a good entry point. Recent EPS growth, revenue growth, and expected EPS growth are all increasing at rates close to 17% annually. The stock is currently trading in the middle of its 17.2 to 62.4 P/E range over a five-year period. Forward P/E is 22, while the current P/E is 37.9.
8.Microsoft Corporation (MSFT)
Anyone who is familiar with the stock market or a personal computer doesn’t need an introduction to Microsoft. While Microsoft may not be as well-known as some of the other stocks on our list, investors looking for a blue-chip stock on sale might find it interesting. Despite dominating the tech sector and having a mega-cap size, the $1.77 trillion company has hardly slowed down.
9.Paysafe Limited
Paysafe is a payments company, as the name would imply. The company was founded as a way to connect customers with new online businesses, like video game publishers and subscription services for digital content. Paysafe has expanded into a wide range of payment-related industries over the years. Digital gaming is perhaps the most promising, as there is a demand for trustworthy money transfer services and digital wallets to serve these quickly expanding markets. Paysafe should continue to experience growth in new business thanks to the rapid adoption of sports betting in general and NFL betting in particular.
10.Aval Acciones y Valores Group SA (AVAL)
Grupo Aval is not your typical stock that appears risky because of a dubious business strategy or poor profitability. It’s risky because it’s the biggest banking conglomerate in Colombia. Following the election of President Gustavo Petro, who has outlined plans to restrict mining and oil production, tighten regulations on significant financial institutions, and possibly enact capital controls to stabilize the collapsing Colombian peso, the market in the nation is unsteady.
