I think Baron Rothschild’s quote: “Buy when there’s blood in the streets,” is something to consider in today’s market environment. Remember that asset prices reflect future economic circumstances. Therefore, there’s no use in investing in stocks during a cyclical peak as you’ll be taking action “after the fact.” The dip offers investors an opportunity to get into some of the best stocks under $15 (before everyone else does!)
It’s needless to say that 2022’s bear market has caused many companies’ market values to plummet, resulting in many stocks receding into undervalued territory. However, as investors, we need to be careful that we don’t confuse cheap value stocks with quality value plays.
I’ve taken it upon myself to get rid of the froth and identified a list of cheap stocks of great value. Here are the six best stocks under $15 to buy now:
Best Stocks Under $15: Golden Ocean (GOGL)
With the global economy’s prospects fading, you really want to be nimble with your shipping stock picks. I find Golden Ocean (NASDAQ:GOGL) stock appealing as the company’s benefiting from Capesize vessel activity.
Due to the war in Ukraine, an energy shortage has erupted, causing a lot of countries to revert to coal usage. Much of the recent coal supply’s been from distant nations such as South Africa and Australia, stimulating demand for Capesize vessels as they’re suitable for long-distance dry bulk routes.
In its latest financial quarter, Golden Ocean produced $265.18M in revenue, a 67.8% year-over-year increase. The company’s Capesize vessels featured strongly, producing cumulative time charter equivalent rates of $24,800 per day.
With a price-to-earnings ratio of only 3.65x, it has to be said that GOGL stock is at an attractive price level.
Vista Energy (VIST)
If you’re still bullish on the energy sector and possess a risk appetite, then this stock is for you!
Vista’s (NYSE:VIST) cost-effective oil and gas exploration projects in Latin America mean it can generate tremendous profits through operational leverage. The company’s gross profit margin of 71.72% suggests that Vista has achieved economies of scale, allowing it to outprice many of its competitors. Furthermore, Vista’s return on invested capital (or ROIC) of 23.88% means that it’s well positioned in the market and able to capture the current systemic tailwinds in the energy sector.
At a price-to-book discount of 1.18x, VIST stock is a strong buy among these best stocks under $15.
Impala Platinum (IMPUY)
This is an incredibly overlooked stock. Most mining stock investors make the mistake of investing in overly diversified mining houses with extremely high capital expenditure obligations and an overwhelming amount of inefficiencies.
Impala Platinum (NYSE:IMPUY) doesn’t fit that bracket; instead, it’s a streamlined PGM (platinum group metals) miner with some of the best platinum and palladium mining assets in Sub-Saharan Africa, including its flagship Impala mine, Zimplats, and the Royal Bafokeng property.
The stock trades at a price-to-sales ratio of a mere 1.07x and provides a sumptuous dividend yield of 10.89%, providing investors with lucrative total return prospects.
Energy Transfer (ET)
I’m bullish on Energy Transfer (NYSE:ET) at its current price because I think its dividend yield is a once-in-a-lifetime opportunity. The company recently raised its quarterly dividend distribution by 15%, lifting its forward dividend yield to a stunning 8.40%.
Furthermore, Energy Transfer’s fundamentals are robust, and it has recently engaged in a few exciting contracts. For example, It signed a sale and purchase agreement with China Gas to expand its cross-border LNG (liquified natural gas) footprint.
ET stock is arguably undervalued, with a price-to-sales ratio of a mere 0.44x. Energy Transfer looks like a “best in class” cheap energy stock to me!
Sibanye-Stillwater (SBSW)
Sibanye (NYSE:SBSW) is a “buy the dip” opportunity; it’s as simple as that. The stock’s suffered a double-digit slump since the start of the year after enduring a range of operating headwinds. SBSW’s PGM mine in Montana flooded a few weeks ago, which delayed operations. Additionally, the company had to settle wage disputes with its gold mine workers after a multi-month strike.
All these matters have been resolved for now, and Sibanye looks set to commence on its tremendous growth trajectory. The company’s 3-year CAGR (compound annual growth rate) of 40.69% goes to show that it’s emerging as a big player in the precious metals space. Additionally, SBSW’s net profit margin of 19.20% allows it to distribute dividends at a yield worth 10.60% to its investors.
Payoneer (PAYO)
Considering the general drift in the global payments system, exposure to an underfollowed digital payments stock such as Payoneer (NASDAQ:PAYO) might be just what your portfolio needs. The company provides an integrated digital payment platform and is quickly moving up the ranks in an industry that’s forecasted to grow at a CAGR of 20.50% until 2030.
Payoneer recently grabbed the attention of Goldman Sachs analyst William Nance, who upgraded the stock from “neutral” to “buy.”
According to Nance, Payoneer has the potential to monetize its large customer float in the coming years as rising interest rates could provide higher yields on customer cash.
The company’s running at a free cash flow margin of 12.23%, which could play into its valuation shortly. I’m bullish on PAYO stock as a long-term play. Definitely one of the best stocks under $15.
— Steve Booyens
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Source: Investor Place