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7 Cheap Stocks With Strong Technical Signals


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Investors typically overlook cheap stocks. It's easy to conflate the word "cheap" with the lack of value or even with underperformance. These are only investments that suckers would buy, right?

Wrong.

There are plenty of "cheap" stocks that have solid charts. The ones listed below, in particular, look especially close to a breakout.

That's not to say cheap stocks can't blow up in your face. They sure can. But if you find the right ones like we believe we have, then you can reap the high reward for taking the high risk.

Read on to find out what cheap stocks to invest in today:

Cheap Stocks to Invest in Today: Northern Oil and Gas (NOG)

Shares of Northern Oil & Gas, Inc.  (NYSEAMERICAN: NOG ) are breaking up and out of a year-to-date downtrend range with a move above its 50-day moving average for a gain of 8%. Watch for a move back to its January high, which would be worth a move of nearly 60% from current levels.

Shares are well off of the highs above $17 set back in 2014. But with crude oil pushing over the $70-a-barrel threshold once more, shares look ready for a sustained uptrend.

The company reported results this morning, with earnings of 17 cents per share beating estimates by five cents on a 61.8% rise in revenues. Daily production exceeded guidance by 35% on an annual basis.

Management raised their full-year production guidance as well, barging an increase of upwards of 30% from last year.

Cheap Stocks to Invest in Today:  Yamana Gold (AUY)

With the job market continuing to tighten and inflationary pressures building, precious metals look ready for a leg higher. And that should benefit the beaten down gold mining sector, which has been in a sideways doldrum since late 2016.

Yamaha Gold Inc  (NYSE: AUY ) should catch a tailwind, setting up a run at the January high for a gain of nearly 30% from current levels.

The company will next report results on July 26 after the close. Analysts are looking for earnings of three cents per share on revenues of $488.8 million.

When the company last reported on May 2, a loss of 17 cents per share missed estimates by 18 cents on an 11.4% rise in revenues.

Cheap Stocks to Invest in Today:  Nokia (NOK)

Nokia  (NYSE: NOK ) shares have pushed up and out of double-top resistance going back to February, returning to the trading range seen last summer. This caps a 35% rally off of the lows seen back in December.

The stock has been rangebound since late 2013 as it tries to engineer a comeback after badly bungling the smartphone revolution. Analyst sentiment is turning around, however, as it focuses on providing infrastructure products and services to the wireless industry.

The company will nexts report results on July 26 before the bell. Analysts are looking for earnings of four cents per share on revenues of $5.2 billion.

When the company last reported on April 26, results missed estimates on an 8.5% decline in revenues amid an ongoing focus on cost cutting ahead of hopes for revenue growth via the rollout of the 5G wireless standard.

Cheap Stocks to Invest in Today:  BlackBerry (BB)

BlackBerry  (NYSE: BB ) shares look set to rise up and out of a three-month consolidation range - which in turn, marked. Return to the trading range seen last fall - potentially setting up a return to its January high.

That would be worth a gain of more than 30% from current levels. Shares are only now beginning to recover from a negative response to the reporting of quarterly results back in late March.

The company will next report results on June 21 before the bell. Analysts are looking for a breakeven result on revenues of $210 million.

When it last reported on March 28, earnings of five cents per share beat estimates despite a 16.4% decline in revenues. Gross margins hit a record of 76%.

Cheap Stocks to Invest in Today:  Mattel (MAT)

Mattel  (NYSE: MAT ) shares look ready to bounce off of multi-month support with an upward cross of its 50-day moving average.

Sentiment has been a drag in the wake of the Toys R Us bankruptcy and widespread trouble in the toys industry. But with the retailer's liquidation over, the stage is set for a turnaround.

The company will next report results on July 26 after the close. Analysts are looking for a loss of 29 cents per share on revenues of $885.7 million.

When the company last reported on April 26, a loss of 60 cents per share missed estimates by 21 cents on a 3.7% decline in revenues. Gross margins fell by 3.8%.

Cheap Stocks to Invest in Today:  Supervalu (SVU)

SuperValu  (NYSE: SVU ) shares are peaking up and out of a long, bottom-forming trading range going back to October setting up what looks like a possible run at the 200-day moving average.

That level hasn't been crossed since late 2016 as worries about retailing and the threat to the traditional grocery business from Amazon has weighed. But now, the industry is fighting back and M&A rumors are swirling.

The company will next report results on July 24 after the close. Analysts are looking for earnings of 63 cents per share on revenues of $4.8 billion. When the company last reported on April 24, earnings of 86 cents per share beat estimates by seven cents on a 42% rise in revenues.

Cheap Stocks to Invest in Today:  Uranium Energy Corp. (UEC)

Uranium Energy  (NYSE: UEC ) shares are emerging out of a February-April trading range to move in on its January high. A rally back to the $2-a-share level would be worth a 20% gain from here.

The stock has been trendless and rangebound for years as nuclear energy has lost favor with politicians, who battle back and forth between renewables and "clean" fossil fuel alternatives like clean coal (a favorite of the Trump Administration).

But a turnaround could be underway if Trump adopts more of an "all of the above" approach, and reconsiders nuclear.

When the company last reported back on December 11, a loss of three cents per share just missed the single analyst estimate by a penny.

Anthony Mirhaydari is the founder of the  Edge  (ETFs) and  Edge Pro  (Options) investment advisory newsletters. Free two- and four-week trial offers have been extended to InvestorPlace readers.

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The post 7 Cheap Stocks With Strong Technical Signals appeared first on InvestorPlace .



The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.



This article appears in: Investing , Stocks
Referenced Symbols: NOG , AUY , NOK , BB , MAT



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