Yahoo Finance The Zacks Analyst Blog Highlights Stocks recently featured in the blog include: Gold Fields, Canada Goose, Paymentus and Hamilton Insurance
For Immediate Releases
Chicago, IL – May 22, 2024 – Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include: Gold Fields Ltd. GFI, Canada Goose Holdings Inc. GOOS, Paymentus Holdings, Inc. PAY and Hamilton Insurance Group, Ltd. HG.
4 Under-$20 Stocks to Bet on as Inflation Subsides
Warren Buffett once said, “You pay a very high price in the stock market for a cheery consensus.” Yet, the higher the price one pays for a stock, the lower the return one can expect. Successful investing is about buying stocks cheap and then having others agree with you. True to form, investors have always looked to buy shares at a low price and sell them high, which is the very definition of making money in the stock market.
Over the past year and a half, the markets have been rebounding from the vagaries of 2022, primarily based on tech recovery built on AI optimism. For first-time investors or ones who want an entry point into the market without putting a lot at stake, the time feels right. Inflation, which was stubbornly high in 2024, also eased in April, thereby uplifting the mood in the stock markets.
Inflation in April rose less than expected, signaling a downward trend. Per the Bureau of Labor Statistics, the Consumer Price Index (CPI) increased 0.3% over March. Annually, CPI rose 3.4%, following a 3.5% rise in March. This marks the first month of slowing annual data since January 2024, after peaking at 9.1% in June 2022.
Core CPI, which does not take into account food and energy costs and is usually considered a better indicator of underlying inflation, also gained 0.3% in April. Core CPI increased 3.6%, the lowest year-over-year gain since April 2021, down from 3.8% in March.
Also, market participants are currently pricing in at least two rate cuts in 2024, with the first one in September. Crucially, retail sales were flat in April, suggesting cooling domestic demand, which aligns with the Fed's goal of weakening demand to control price pressures. This means investors are going to have spare change at their disposal, and they might be looking for cheap stocks to invest in. Also, with the market rebounding and sustaining that momentum for the time being, buying cheap stocks with good prospects might lead to a fast price rise if the choices are judicious.
Our Choices
We have, thus, selected four stocks below the $20 dollar price-point for this purpose. These stocks below flaunt a Zacks Rank #1 (Strong Buy) or #2 (Buy). The search was also narrowed down with a VGM Score of A or B. Here V stands for Value, G for Growth and M for Momentum; the score is a weighted combination of these three metrics. Such a score allows you to eliminate the negative aspects of stocks and select winners. You can see the complete list of today’s Zacks #1 Rank stocks here
Gold Fields Ltd. is a gold producer with reserves and resources spread across globally.
Gold Fields’ expected earnings growth rate for the current year is 50.5%. The Zacks Consensus Estimate for its current-year earnings has improved 21.7% over the past 60 days. The company has a Zacks Rank #1 and a VGM Score of B. It is currently priced at a lucrative $16.80.
Canada Goose Holdings Inc. is a manufacturer of performance luxury apparel for men, women, youth, children and babies worldwide.
Canada Goose’s expected earnings growth rate for the current year is 13.7%. The Zacks Consensus Estimate for its current-year earnings has improved 6.4% over the past 60 days. The company has a Zacks Rank #1 and a VGM Score of A. It is currently priced at a lucrative $13.12.
Paymentus Holdings, Inc. is a cloud-based payment technology and solutions company.
Paymentus’ expected earnings growth rate for the current year is 18.8%. The Zacks Consensus Estimate for its current-year earnings has improved 8.6% over the past 60 days. The company has a Zacks Rank #2 and a VGM Score of B. It is currently priced at a lucrative $18.61.
Hamilton Insurance Group, Ltd. is an underwriting specialty insurance and reinsurance company.
Hamilton Insurance’s expected earnings growth rate for the current year is 40.6%. The Zacks Consensus Estimate for its current-year earnings has improved 29.4% over the past 60 days. The company has a Zacks Rank #1 and a VGM Score of A. It is currently priced at a lucrative $16.46.
Bottom Line
We often see stocks that do not promise much today but get a bump in share price tomorrow. Alternately, some promising stocks do not win over the stock market in the long run. Therefore, the decision of zeroing in on which cheap stock to opt for becomes a significant one. We believe that the stocks mentioned above have strong growth prospects and will allow investors to generate handsome returns in a short space of time.
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Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performance for information about the performance numbers displayed in this press release.
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Paymentus Holdings, Inc. (PAY) : Free Stock Analysis Report
Gold Fields Limited (GFI) : Free Stock Analysis Report
Canada Goose Holdings Inc. (GOOS) : Free Stock Analysis Report
Hamilton Insurance Group, Ltd. (HG) : Free Stock Analysis Report
