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The increased number of cheap stocks available makes the current bear market fairly attractive to investors. However, this provides risk and entails some work sifting through the various low-ball stocks to find a diamond in the rough.
Therefore, it is important to know and understand the sentiments of Wall Street analysts before you make your stock picks so you can see what others are thinking about the market.
This list delivers the stocks Wall Street analysts are watching closely and predict will rise due to their predictions. You should invest accordingly.
|FRBK||Republic First Bancorp||$4.435|
|ICL||ICL Group Ltd||$11.17|
Cheap Stocks: Ally Financial (ALLY)
Ally Financial (NYSE:ALLY), formerly GMAC, is a leading provider of auto finance and mortgage lending solutions in the United States. It was originally founded as the General Motors Acceptance Corporation in 1919 to provide automobile loans to General Motors customers.
This company is one of the fastest-growing companies in the U.S., with over $184.297 billion worth of assets as of March 31.
Ally Financial operates through three segments: Banking, Auto Finance, and Commercial Finance. The Banking segment offers a range of retail financial products to consumers through its branch network and online channels. The Auto Finance segment provides financing for automobile purchases from dealerships nationwide. The Commercial Finance segment offers credit solutions to small-to-medium-sized businesses across North America by delivering equipment leasing or financing and loans for working capital requirements or other needs.
In the first quarter, Berkshire Hathaway (NYSE:BRK-A,NYSE:BRK-B) initiated a position in Ally Financial. They bought nearly 9 million shares worth about $390 million. Ally ranks in the top 22 in the United States. It operates online only and is one of the largest auto lenders nationwide. Their success has come from their thriving auto lending business, which has driven their revenue through the years.
In the first quarter, it took in nearly $1.4 billion (3/4) of its net financing revenue from auto loans. Despite a weaker than expected first quarter for auto sales, American Ally saw its best-ever first quarter this year. The loan originations surged 14% year-over-year to $11.6 billion, with yields over 7%.
The company has been making progress and is now ready for any challenges it may face. You could do a lot worse than putting your faith in this stable performer.
Lam Research Corp. (LRCX)
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Lam Research (NASDAQ:LRCX) is a leading manufacturer of semiconductor fabrication equipment, with several patents in the field.
Dr. David K. Lam co-founded Lam Research in 1980 and had previously helped establish the semiconductor industry at Texas Instruments (NASDAQ:TXN) and Intel Corporation (NASDAQ:INTC).
Lam Research provides advanced semiconductor manufacturing solutions for the global electronics industry. They have pioneered many advances in the industry and have been recognized as one of the top innovators in their industry.
The company’s products include chemical-mechanical polishing systems, etch systems, deposition systems, lithography systems, metrology tools, inspection tools, thermal processing furnaces, and related consumables. Lam’s customers include makers of memory chips for PCs and mobile devices and microprocessors for PCs. They also create logic chips.
A slowdown in chip production and shortages can be attributed to the global pandemic. Manufacturers are now working hard to increase their output — but we’re not going to see the shortfall start being covered until the end of 2022.
Intel’s CEO Pat Gelsinger puts the timeline even further; till the end of 2024. Under this environment, the company takes on massive importance.
Cheap Stocks: Herbalife Nutrition (HLF)
Source: Ken Wolter/Shutterstock.com
Dietary pills are becoming more and more popular. This is due to the convenience of not having to diet or exercise to lose weight.
Some people might argue that this is a bad thing. They believe that it will lead to obesity and unhealthy lifestyles. However, one could also say that these pills can help people achieve their weight goals in a much shorter period than if they were exercising or dieting.
Herbalife Nutrition (NYSE:HLF) is a global nutrition company that manufactures weight management, sports and fitness, and personal care products. It is taking advantage of this secular trend.
The company’s products are sold through distributors in more than 90 countries. Herbalife Nutrition was founded in 1980 and is headquartered in Los Angeles, California.
Herbalife made a global net sales total of $5.8 billion in 2021, which is an increase from the previous year’s figure of $261 million, or 5% compared to the prior year.
According to at least one analysis, the global dietary supplement market is predicted to grow from $71.81 billion to $128.64 billion, at an 8.68% compound annual growth rate over the 2021-2028 period. We should not think that the growth in dietary pill supplements will stop anytime soon.
This is because people are becoming more aware of their health and what they put into their bodies. Therefore, the company can benefit from this secular trend.
Source: rafapress / Shutterstock.com
Nokia (NYSE:NOK) has been a leading mobile phone company for many years and is still going strong.
The company was founded in 1865, and it is the world’s oldest company that is still operating in the same business. It was one of the first companies to produce a mobile phone, and it has been a leading force in the industry for many years.
Nokia’s headquarters are located in Espoo, Finland, but its main office is near Helsinki. It has research facilities worldwide and employs about 10 thousand people globally. The company operates mostly in Europe, Asia, Africa, and North America.
Nokia also owns Nokia Networks, which manufactures telecommunications equipment, and Nokia Technologies, which develops patents and licenses technologies to other companies.
Despite the company having well-established roots in tech, investors are still cautious about being involved with the company due to its past battles and eventual failure to compete in the smartphone space. But, there’s some good news for Nokia: it has made the first step in its turnaround and is now ready to take the lead in next-generation 5G networks.
Cheap Stocks: Bark (BARK)
Source: IgorGolovniov / Shutterstock.com
The adoption of dogs rose exponentially during the pandemic. The trend was predominantly driven by millennials and those living in urban areas. According to the ASPCA, over 23 million American households took on a pet during Covid-19. According to a study in 2021, pets cost the United States $123.6 billion. Therefore, it is a market trend that is gaining prominence.
It specializes in high-quality, sustainable, and eco-friendly products. They have been making dog toys since 2011, and their goal is to provide the best quality toys for your furry friends.
Bark (NYSE:BARK)specializes in direct-to-customer pet products. They became well-known with their monthly subscription service, Barkbox, which offers dog toys for customers.
Bark has already been a success in smaller markets as its natural dog food, and is now moving into larger ones. If Bark can break into more categories — like pet health — they will continue to grow exponentially. The stock is down significantly from when it debuted through a SPAC merger in the second quarter of 2021. Hence, it is one of the best cheap stocks to purchase.
Republic First Bancorp (FRBK)
Republic First Bancorp (NASDAQ:FRBK) offers a wide range of financial products and services to commercial and retail customers through its banking subsidiaries. It has a network of branches that provides banking services to customers, especially in Pennsylvania, New Jersey, and New York.
Republic First Bancorp is a bank that provides banking services to small and medium-sized businesses and consumers. The company operates in two segments: Commercial Banking and Consumer Banking. Despite being a smaller regional bank, it’s still one of the best local banks.
First Republic has been around for a while. And it’s smooth operations helped it grow loan and interest income during the pandemic. They showed significantly more growth than other banks that may have struggled had they not implemented their streamlined operations. They recently implemented a new set of digital capabilities that enable clients to connect with their bankers through an app on their phones.
Customers are at the heart of First Republic’s retail banking model. The result is a difference that has seen the successful bank grow significantly in recent years. First Republic is extremely focused on its existing clients and has found great success. It is one of the best cheap stocks, and Wall Street analysts love it.
Cheap Stocks: ICL Group (ICL)
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ICL Group (NYSE:ICL) is a multi-national manufacturing company that provides services in metals, chemicals, and other physical specialized products.
It has an impressive presence in the industry, with its products being used by some of the most well-known companies. The company has also been recognized for its commitment to innovation, and they have a strong research and development program.
ICL saw its earnings jump 327% in the first quarter of this year, jumping to 47 cents a share or $880 million. They also saw an increase of 67% in their sales, hitting $2.53 billion for the latest quarter vs. $1.510 billion last year. This is the fifth consecutive quarter in which growth has been accelerated.
The company’s products are essential as we move further and further out of pandemic-hit countries. Production will ramp back up again, leading to a growing demand for materials.
Source: Robert Way / Shutterstock.com
Nio (NYSE:NIO) is a Chinese EV startup company making waves in the industry. It is one of the most popular EV startups in China and has been dubbed the Tesla (NASDAQ:TSLA) of China.
Nio’s CEO, William Li, believes that EVs can be an important part of China’s future and aims to help shape it by developing a high-quality EV brand.
For the last few years, NIO has been on fire. In 2021, NIO delivered 91,429 vehicles in total. This is a 109.1% year-over-year growth that demonstrates the capabilities and strength of the company. NIO had 36,721 cars in 2020 — an increase of 111.1% over the prior year. Due to this exceptional performance, the stock increased manifold.
However, the stock came under a lot of pressure because of regulatory constraints from China. It has led to many quality cheap stocks in the Chinese space, and NIO stock is no exception.
Nevertheless, the Chinese EV maker is looking to take back the initiative this year by launching three new models, a fresh listing in Singapore, and expansion in Europe. Since the stock is trading at a historical low, the time to get into the action is now.
On the publication date, Faizan Farooque did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.