Cheap Stocks to Buy Now (That Aren’t Penny Stocks!)

We’re all looking for deals, here’s how to safely shop the bargain bin when you’re investing.

| More on:

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 turn to penny stocks or look for the stocks under $5 or $10 hoping to make some easy money. But that’s actually one of the most destructive ways to invest.

In this video from our YouTube channel, 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 focusing on just low P/E stocks if you’re trying to follow the tenets of value investing. Plus, we give you some cheap stocks for your watch list!

A full transcript will be posted after the broadcast finishes.

This article represents the opinion of the writer, who may disagree with the “official” recommendation position of a Motley Fool premium service or advisor. We’re Motley! Questioning an investing thesis — even one of our own — helps us all think critically about investing and make decisions that help us become smarter, happier, and richer, so we sometimes publish articles that may not be in line with recommendations, rankings or other content.

Chris Hill has no position in any of the stocks mentioned. Emily Flippen owns shares of Constellation Brands. Ron Gross has no position in any of the stocks mentioned. The Motley Fool owns shares of and recommends Texas Roadhouse. The Motley Fool recommends Constellation Brands and Zynga. The Motley Fool has a disclosure policy.

More on Tech Stocks

investment research
Tech Stocks

Is OpenText Stock a Buy, Sell, or Hold for 2025?

Is OpenText stock poised for a 2025 comeback? AI ambitions, a 3.8% yield, and cash flow power make it a…

Read more »

The virtual button with the letters AI in a circle hovering above a keyboard, about to be clicked by a cursor.
Tech Stocks

Emerging Canadian AI Companies With Big Potential

These tech stocks are paving the way to an AI-filled future, but still offer enough growth ahead for a strong…

Read more »

Young Boy with Jet Pack Dreams of Flying
Tech Stocks

Is Constellation Software Stock a Buy, Sell, or Hold for 2025?

CSU stock has long been a strong option for high growth, high value stocks. But are there now too many…

Read more »

An investor uses a tablet
Tech Stocks

Canadian Tech Stocks to Buy Now for Future Gains

Not all tech stocks are created equal. In fact, these three are valuable options every investor should consider.

Read more »

dividend growth for passive income
Tech Stocks

2 Rapidly Growing Canadian Tech Stocks With Lots More Potential

Celestica (TSX:CLS) and Constellation Software (TSX:CSU) are Canadian tech darlings worth watching in the new year.

Read more »

BCE stock
Tech Stocks

10% Yield: Is BCE Stock a Good Buy?

The yield is bigger than it's ever been in the company's history. That might not be a good thing.

Read more »

Happy shoppers look at a cellphone.
Tech Stocks

So You Own Shopify Stock: Is it Still a Good Investment?

Shopify (TSX:SHOP) stock has had a run, but there's still room to the upside.

Read more »

A person uses and AI chat bot
Tech Stocks

AI Where No One’s Looking: Seize Growth in These Canadian Stocks Before the Market Catches Up

Beyond flashy headlines about generative AI, these two Canadian AI stocks could deliver strong returns for investors who are willing…

Read more »