Cheap stocks allow you to invest in equities without breaking the bank. We define a stock as cheap when it trades for less than $20 per share.
In this guide, we explore the 10 best cheap stocks to buy now for maximum upside potential, alongside a quick overview of how to invest in your chosen equities at 0% commission.
Best Cheap Stocks to Buy Right Now in 2022
Political unrest in Europe, growing crude oil prices, and inflation fears has resulted in enhanced volatility in the US stock market.
Having said that, this can sometimes result in undervalued companies or opportunities to buy stocks on the cheap.
As such, below we’ve listed the 10 best cheap stocks to buy today:
- Lucky Block – Overall Best Cheap Stock to Buy Now
- Ford – Cheap Automobile Stock with Exceptional Growth Potential
- Vodaphone – Dividend-Paying Telecom Giant With Attractive Entry Price
- Amcor – Invest in High Growth Global Packaging and Containers Sector
- American Airlines – Buy Shares in Cheap Aviation Stock
- SoFi Technologies – Invest in a Fintech Disrupter at a Cheap Price
- Viatris – Global Pharmaceutical Spin-Off With Lots of Growth Potential
- Hewlett Packard Enterprise – Multinational IT and Cloud Platform Under $20
- Under Armour – Athletic Apparel Stock Set to Regain Momentum
- Carnival – Largest US Cruise Liner Stock Bouncing Back From Covid-19 Struggles
Your capital is at risk. 68% of retail investor accounts lose money when trading CFDs with this provider.
You will be wise to research in full before investing funds in cheap stocks. Next, we help clear the mist by taking a closer look at the 10 companies listed above.
A Closer Look at the Best Cheapest Stocks to Buy Today
Some market commentators expect the aforementioned global macroeconomic and geopolitical risks to continue to impact many sectors in the coming months.
Many outside influences can lead to stocks being undervalued or not living up to their full potential. As such, some of the cheapest stocks to buy right now might end up being the most promising additions to your portfolio.
See our pick of the cheapest stocks below to see which might suit your financial goals.
1. Lucky Block – Overall Best Cheap Stock to Buy Now
Our number one pick when it comes to cheap stocks is Lucky Block. Lucky Block’s price is hovering around the $0.001830 level, making it the cheapest asset on our list. However, it’s important to note that Lucky Block is not actually a stock – it’s a cryptocurrency used for various crypto-gaming use cases.
The Lucky Block platform is hosted on the Binance Smart Chain (BSC) and aims to revolutionize the outdated lotto industry. Users can buy lotto tickets using LBLOCK, Lucky Block’s native token, and take part in daily prize draws. Since these draws take place on the blockchain, all aspects of the process are fully transparent, significantly increasing safety and fairness.
Lucky Block’s whitepaper highlights that LBLOCK holders will also receive a passive income stream through regular dividend payments. These payments correlate with the number of people using Lucky Block’s platform – so the greater the user base, the higher the rewards. The yield on offer through these dividend payments is estimated at over 19% per year, far higher than equity yields.
Lucky Block is also attractive from a capital gains perspective, as the token has already produced quadruple-digit returns earlier this year. Although LBLOCK is significantly down from February’s all-time highs, the development team recently launched LBLOCK V2, an ERC-20 token. This means it’s compatible with many centralized exchanges, offering scope for listing in the future.
Now could be the ideal time to buy Lucky Block, as the platform’s lotto draws are scheduled to begin in the next couple of weeks. Lucky Block’s web-based and iOS apps are in the final stages of their development, which will act as the central hub for all gaming activities. Once these are released, it’ll make Lucky Block’s services much more accessible – leading to greater investment in LBLOCK.
Cryptoassets are a highly volatile unregulated investment product.
2. Ford – Cheap Automobile Stock with Exceptional Growth Potential
Ford is a US-based legacy carmaker that’s been around since 1903. Ford is one of the best cheap long-term stocks to buy as the company is fully embracing the future of electric vehicles. The ability of conventional automakers like Ford to adapt and compete with Tesla could decide the EV industry’s new leader.
Ford has taken the electric vehicle transition very seriously. Some of the firm’s EV models include the Ford Mustang Mach-E, F-150 Lightning, and the E-Transit-350 Cargo. In a consumer report released in February 2022, Ford’s Mustang Mach-E beat Tesla’s popular Model 3 for the spot of the best electric vehicle.
As such, although Ford is still in the early phases of its EV transition, it appears to be moving in the right direction. In 2021, it delivered 27,140 Mustang Mach-E cars. Various versions of the Ford E-transit van are also available. In March 2022, the company launched the Pro AC Charging Station to power it. In April 2022, the F-150 Lightning will be launched.
Moreover, Ford will boost its investment in electric vehicles to $50 billion by 2026, up from $30 billion by 2025. Ford confirmed that it will handle its EV business apart from its combustion engine division. The company expects to create more than 2 million electric vehicles through its new dedicated division, Ford Model e, by 2026.
This will make up a third of its annual worldwide output, with electric vehicles expected to account for 50% of total volume by 2030. Investors will be watching how well Ford’s electric vehicles sell in the coming quarters and years, but the company’s aggressive drive to compete with Tesla is encouraging.
Ford received 72,000 car orders in February 2022 alone, up from 54,000 the previous month. While trucks and SUVs account for the majority of those sales, Ford EV sales rose by over 55% in the same month. The P/E ratio is over 8 times as of writing. Finally, Ford is one of the top cheap dividend stocks on this list. At the time of writing the running yield is at almost 2.5%.
Your capital is at risk. 68% of retail investor accounts lose money when trading CFDs with this provider.
3. Vodafone – Dividend-Paying Telecom Giant With Attractive Entry Price
Vodafone is a telecom company with more than 300 million mobile customers and it is the largest 5G network in Europe. The company was founded in the UK in 1984 and now operates on a global scale. The firm also owns the money transfer cell phone app, M-PESA.
This is the largest money service platform of its kind in Kenya. Moreover, Vodafone has expanded its operations in South Africa, Tanzania, Ghana, Mozambique, Egypt, Lesotho, and more. The performance of Vodafone stock has been dismal for investors, especially when you consider that over five years of trading, its shares have fallen by over 34%.
Investors were no doubt turned off by the company’s dwindling sales and high levels of debt. Not only that, but the firm suffered from a reduction in revenue as the COVID-19 took hold. That said, during the last few months of 2021, Vodafone announced better-than-expected revenue results.
Globally, Vodafone reported an increase in revenue of over 4% to €11.7 billion (around $12.7 billion) during this period. The company cited strong growth in Africa, where it has almost 190 million users spanning eight countries. The company will also make money from roaming fees following the UK’s exit from the EU.
Vodafone’s profit forecast for the year 2022 has been revised, from €15 billion to €15.2 billion (around $16.3 billion to $16.5 billion). It has also raised its objective for free cash flow by €100 million (approximately $108.6 million).
Vodafone is another one of the best cheap stocks that pay dividends. The running dividend yield is 6% at the time of writing. Market analysts foresee this cheap stock having a dramatic turnaround in 2022. That is provided it can reduce its financial burden and improve its operational performance. As such, you might look to grab cheap stocks like this before they rise in value.
Your capital is at risk. 68% of retail investor accounts lose money when trading CFDs with this provider.
4. Amcor – Invest in High Growth Global Packaging and Containers Sector
Amcor is a packaging firm that operates all over the world. The company creates closures, rigid containers, flexible packaging, customized cartons, and other services. Amcor’s products are used for home and personal care, beverages, food, medical devices, and pharmaceutical items.
This well-established packaging company is based in Zurich, Switzerland. Amcor has developed dramatically in recent years. This is especially the case since completing the purchase of the Bemis Company in June 2019. The acquisition increased the company’s global reach.
As such, it has opened up and created new consumers for its goods. This results in better economies of scale and increased efficiency and profits. Amcor now has operations in North and Latin America, Asia, Africa, and Europe. The company anticipates overall cost savings to be at least 10% higher than its initial objective of $180 million in fiscal 2022.
The global packaging market is expected to be worth around $400 billion by the year 2027. As such, Amcor is one of the best cheap stocks to watch. The COVID-19 pandemic’s impact on Amcor’s sales has been positive. The company has shown growth across a wide range of industries, including high-value end markets like cheese, protein, pet food, and coffee.
Moreover, consumer demand for rigid packaging is increasing. The company has noted a rise in its hot-fill container and beverage volumes. Growth is also aided by brand expansions. This includes the launch of new health and wellness goods in PET containers.
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