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 is no point in investing in stocks during a cyclical peak, because you will be acting “after the fact”. The drop offers investors the chance to access some of the best stocks under $15 (before everyone else does!)
Needless to say, the bear market of 2022 caused the market values of many companies to plummet, causing many stocks to fall into undervalued territory. However, as investors, we must be careful not to confuse cheap value stocks with quality value stocks.
I took it upon myself to shake off the moss and identify a list of high value cheap stocks. Here are the six best stocks under $15 to buy now:
|GOGL||Golden Ocean Group||$11.15|
Best stocks under $15: Golden Ocean (GOGL)
As the outlook for the global economy fades, you really want to be nimble with your shipping action choices. I find golden ocean (NASDAQ:GOGL) attractive stock as the company benefits from Capesize vessel activity.
Due to the war in Ukraine, an energy shortage erupted, forcing many countries to revert to the use of coal. Much of the recent coal supply has come from distant countries such as South Africa and Australia, which has boosted demand for Capesize ships as they are suitable for long distance dry bulk routes.
In its last financial quarter, Golden Ocean achieved a turnover of 265.18 million dollars, a 67.8% increase year over year. The company’s Capesize vessels figured prominently, producing cumulative time charter rates equivalent to $24,800 per day.
With a price/earnings ratio of only 3.65xit must be said that the GOGL share is at an attractive price level.
Vista Energy (VIST)
If you are still bullish on the energy sector and have a risk appetite, then this stock is for you!
Vista (NYSE:VISIT) profitable oil and gas exploration projects in Latin America mean that it can generate huge profits through operational leverage. The company’s gross profit margin 71.72% suggests that Vista achieved economies of scale, allowing it to overprice many of its competitors. Additionally, Vista’s return on investment (or ROIC) of 23.88% means that it is well positioned in the market and able to capture the current systemic tailwinds in the energy sector.
With a price-book discount of 1.18xVIST stock is a solid buy among these top stocks under $15.
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 companies with extremely high capital expenditure requirements and an overwhelming amount of inefficiencies.
Impala Platinum (NYSE:IMPUY) does not match this medium; instead, it is 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 property Bafokeng.
The stock trades at a price-to-sales ratio of just 1.07x and offers a lavish dividend yield of 10.89%offering investors lucrative total return prospects.
Energy Transfer (TE)
I’m optimistic Energy transfer (NYSE:HEY) at its current price because I think its dividend yield is a unique opportunity. The company recently increased its quarterly dividend payout by 15%taking its forward dividend yield to a breathtaking level 8.40%.
Moreover, Energy Transfer’s fundamentals are solid and it has recently entered into some interesting contracts. For example, it signed a sale and purchase agreement with China Gas to expand its cross-border LNG (liquefied natural gas) footprint.
ET stock is arguably undervalued, with a price-to-sales ratio of barely 0.44x. The energy transfer looks to me like a cheap “best in class” energy store!
Best stocks under $15: Sibanye-Stillwater (SBSW)
Sibanye (NYSE:SBSW) is a “buy the dip” opportunity; It’s that simple. The stock has suffered a double-digit drop since the start of the year after enduring a series of headwinds. SBSW’s PGM mine in Montana flooded a few weeks ago which delayed operations. In addition, the company had to settle wage disputes with its gold mine workers after a months-long strike.
All of these issues have been resolved for now and Sibanye looks set to begin her tremendous growth trajectory. The company’s 3-year CAGR (compound annual growth rate) of 40.69% will show that it is becoming a major player in the field of precious metals. In addition, SBSW’s net profit margin of 19.20% allows it to distribute dividends at a yield 10.60% to its investors.
Given the general drift of the global payments system, exposure to under-tracked digital payments stock such as Payer (NASDAQ:PAYMENT) could be just what your wallet needs. The company provides an integrated digital payment platform and is rapidly rising through the ranks in an industry expected to grow at a rapid pace. 20.50% CAGR until 2030.
Payoneer recently caught the eye of Goldman Sachs analyst William Nance, who moved the stock from “neutral” to “buy”.
According to NancyPayoneer has the potential to monetize its large customer float in the coming years as rising interest rates could provide higher returns on customer cash.
The company operates with a free cash flow margin of 12.23%, which could affect its valuation in the near future. I’m bullish on PAYO stocks as a long-term play. Definitely one of the best stocks under $15
As of the date of publication, Steve Booyens held indirect long positions in F, SBSW, VIST, GOGL, ET and IMPUY. The opinions expressed in this article are those of the author, subject to InvestorPlace.com publishing guidelines.