expand/collapse risk warning

CFDs come with a high risk of losing money rapidly due to leverage. 71% of accounts lose money when trading CFDs with this provider. You should understand how CFDs work and consider if you can take the risk of losing your money.

CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 71% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.

71% of retail investor accounts lose money when trading CFDs with this provider.

Stocks Trading

Cheapest shares to invest in 2024: a comprehensive guide

Cheapest shares: A Christmas tree in the middle of times square.

Cheapest shares for 2024: discover affordable stock investment options

The pursuit of finding valuable yet affordable investment opportunities in the ever-changing landscape of the stock market remains a key focus for investors. This ongoing search is driven by the desire to uncover stocks that not only fit within a reasonable budget but also hold the promise of significant growth and returns.

Our updated guide focuses on the cheapest shares to invest in for 2024 for both experienced investors and newcomers. In this article, we identify promising low-cost stocks with significant growth potential.

What are cheap stocks?

Cheap stocks are shares of companies that are priced lower than the average price of stocks in the market. In other words, they are stocks that trade at a lower price per share compared to their peers. However, it's important to note that the price of a stock alone does not determine its value or potential for growth.

A stock's value is influenced by many factors, including the company's financial performance, market conditions, industry trends, and more. Therefore, investors should conduct thorough research and analysis before investing in any stock, whether it's cheap or expensive.

How

How to find undervalued stocks

Finding undervalued stocks requires careful research and analysis. Here are a few ways to identify undervalued stocks:

  • Look for companies with low price-to-earnings (P/E) ratios. A low P/E ratio suggests that the stock may be undervalued relative to its earnings potential.
  • Evaluate a company's financial statements, including its balance sheet, income statement, and cash flow statement. Look for companies that have strong financials, including a healthy cash balance, low debt levels, and consistent earnings growth.
  • Research the company's industry and competition. Search for companies that have a strong competitive advantage, such as a unique product or service offering or a dominant market position.
  • Check analyst reports and recommendations. Check for companies that are recommended by analysts with a track record of accurately predicting stock performance.
  • Monitor market trends and news. Look out for companies that have been unfairly punished by market downturns or negative news but have strong fundamentals that suggest a potential rebound in the future.

Remember that investing always carries risks, so it's important to conduct thorough research and analysis before investing in any stock, even if it's undervalued.

You may also be interested in: Penny stock trading: the main points to bear in mind.

7 cheap growth stocks to consider in 2024

There are some stocks that don't cost much but have a lot of potential to grow. Below seven of these stocks are listed. They come from different industries like technology, real estate, and finance. Let's take a closer look at each one and see why they might be good choices for your investment portfolio this year.

1. Zymeworks (ZYME)

A biotech company with a strong cash position and promising pipeline assets, offering substantial upside potential.

  • Company profile: Zymeworks Inc. is a biopharmaceutical company primarily engaged in the development of innovative cancer treatments. The company focuses on creating biotherapeutics using its proprietary Azymetric™ platform, which allows for the development of bispecific antibodies and other complex biologics.
  • Key products and research: Zymeworks is known for its research and development in oncology, with several products in various stages of clinical trials. Their lead product candidates typically target various forms of cancer and are designed to address unmet medical needs in the oncology field.
  • Market performance: As with many biopharmaceutical companies, Zymeworks' stock performance is likely influenced by the progress and results of its clinical trials, partnerships, and potential FDA approvals. The biotech sector, in general, can be volatile, with stock prices reacting significantly to news about drug development progress or regulatory decisions.

P/E ratio as of January 2024 (TTM): 3.69

2. Innovative Industrial Properties (IIPR)

A specialized REIT in the cannabis industry, boasting solid rent collection and an attractive dividend yield.

  • Company profile: Innovative Industrial Properties, Inc. is a real estate investment trust (REIT) specializing in the acquisition, ownership, and management of industrial properties leased to experienced, state-licensed operators for their regulated medical-use cannabis facilities. IIPR focuses on the medical cannabis industry in the United States.
  • Business model and strategy: IIPR's business model involves purchasing and leasing back properties to medical cannabis operators under long-term, net-lease agreements. This model provides the company with stable rental income while allowing cannabis operators to free up capital.
  • Market performance: As a REIT, IIPR's performance is often evaluated based on its dividend yield, rental income stability, and growth potential in the cannabis industry. The stock's performance can be influenced by factors such as changes in cannabis legislation, the growth of the medical cannabis market, and general real estate market conditions.

P/E ratio as of January 2024 (TTM): 17.4

Capitalise on volatility in share markets

Take a position on moving share prices. Never miss an opportunity.

Sign up

3. Shift4 Payments (FOUR)

A fintech company with a first-mover advantage in integrated payment processing, expected to show impressive earnings growth.

  • Company profile: Shift4 Payments is a leading provider of integrated payment processing solutions. The company offers a comprehensive suite of products and services designed to simplify the process of conducting financial transactions for businesses. They cater to a wide range of industries, including hospitality, retail, and e-commerce.
  • Business model and services: Shift4 Payments' business model revolves around offering end-to-end payment solutions that include payment processing, point-of-sale (POS) systems, and related software applications. Their services are known for streamlining payment processing while ensuring security and compliance.
  • Market performance: Shift4 Payments' stock performance is influenced by factors such as the growth of digital payments, the adoption of their services across various industries, and the overall health of the e-commerce and retail sectors. As a fintech company, they are also impacted by technological advancements and competitive dynamics in the payment processing industry.

P/E ratio as of January 2024 (TTM): 36.9

4. Mr. Cooper Group (COOP)

A mortgage business conglomerate benefiting from the current real estate market dynamics, with a low valuation multiple.

  • Company profile: Mr. Cooper Group Inc. is a prominent American home loan servicer and mortgage lender. It provides a variety of services in the mortgage and real estate sectors, including originating, servicing, and transaction-based services for single-family residences.
  • Business model and services: Mr. Cooper Group's business model encompasses a wide range of mortgage services. This includes mortgage origination (helping customers finance homes), mortgage servicing (managing mortgage accounts), and real estate services (assisting in the sale and purchase of homes). The company aims to provide a customer-centric approach to mortgage servicing and lending.
  • Market performance: The performance of Mr. Cooper Group's stock is closely tied to the health of the real estate market, interest rate trends, and the overall economic climate. Factors such as changes in mortgage rates, housing market dynamics, and regulatory changes in the housing finance sector can significantly impact the company's performance.

P/E ratio as of January 2024 (TTM): 9.41

5. Comtech Telecommunications (CMTL)

A communications provider at an inflection point, with strong growth projections and an appealing dividend yield.

  • Company profile: Comtech Telecommunications Corp. is a company specializing in advanced communication solutions. It designs, develops, produces, and markets innovative products, systems, and services for advanced communications solutions. Comtech's offerings are primarily focused on satellite communications, public safety systems, and enterprise-level communications technologies.
  • Business model and services: Comtech's business model provides sophisticated communication solutions to a diverse client base, including government, military, and commercial customers. Their services and products range from satellite ground station technologies to emergency response communication systems and secure wireless communications.
  • Market performance: The performance of Comtech's stock is influenced by various factors, including government spending on defense and communications, advancements in satellite and communication technology, and the company's ability to secure new contracts and maintain existing ones.

P/E ratio as of January 2024 (TTM): -6.34

Capitalise on volatility in share markets

Take a position on moving share prices. Never miss an opportunity.

Sign up

6. Bancolombia (CIB)

A Latin American bank trading at a significant discount, with robust profitability and potential for growth.

  • Company profile: Bancolombia is one of the leading financial institutions in Colombia, with a significant presence in Latin America. It offers a wide range of banking products and services, including personal and corporate banking, mortgages, loans, and investment services. Bancolombia is known for its extensive network of branches and ATMs across the region.
  • Business model and services: Bancolombia's business model is centered around providing comprehensive banking solutions to individuals, businesses, and corporations. The bank focuses on expanding its customer base, enhancing digital banking services, and maintaining a strong presence in key Latin American markets.
  • Market performance: As a major bank in Latin America, Bancolombia's performance is closely linked to the economic conditions in Colombia and its other markets. Factors such as interest rate changes, economic growth, and regional stability can significantly impact the bank's performance.

P/E ratio as of December 2023 (TTM): 5.21

7. Cinemark (CNK)

A profitable cinema chain poised for recovery, trading significantly below its peak.

  • Company profile: Cinemark Holdings, Inc. is a leading motion picture exhibitor, operating a significant number of screens in the United States and Latin America. The company is known for its modern theaters, which often feature enhanced viewing experiences like IMAX and 3D.
  • Business model and services: Cinemark's business model revolves around providing a premium movie-going experience. This includes state-of-the-art projection and sound technology, comfortable seating, and a wide range of concessions. The company also generates revenue through advertising and promotional events.
  • Market performance: Cinemark's performance is closely tied to the film industry, including box office revenues and the success of major film releases. The company's stock can be influenced by trends in consumer entertainment preferences, the competitive landscape of the movie theater industry, and broader economic factors that affect discretionary consumer spending.

P/E ratio as of December 29, 2023, is 25.13

These are seven options for cheap growth stocks in 2024. Each one offers a unique chance to invest in a growing company at a reasonable price. Keep in mind, that investing always has risks, but choosing wisely from these options could lead to rewarding outcomes. Stay informed and consider these stocks as you plan your investment strategy for the year

Investing in cheap stocks can be a strategic way to grow your wealth. However, it's important to approach this with informed research and an understanding of the associated risks. Stay updated, seek advice from financial experts, and take the first step towards a prosperous financial future.

Also recommended: What is CFD trading?

what we should know before trading soft commodities

Steps: how to invest in cheap stocks

Here are some general steps to consider when investing in cheap stocks:

Do your research
Before investing in any stock, it's essential to do your research and analyze the company's financials, market trends, and growth prospects. Look for stocks with strong fundamentals, such as positive earnings growth and revenue growth.
Determine your investment goals and risk tolerance
Consider your investment goals, such as short-term or long-term gains, and your risk tolerance level. Cheap stocks can be volatile, so make sure you're comfortable with the potential risks involved.
Evaluate the stock's valuation
Determine whether the stock is undervalued, fairly valued, or overvalued based on metrics such as price-to-earnings ratio (P/E ratio), price-to-sales ratio (P/S ratio), and price-to-book ratio (P/B ratio).
Consider diversification
Diversify your portfolio by investing in a mix of cheap stocks across different sectors and industries to minimize your risk.
Monitor your investments
Keep track of your investments by monitoring company news, financial reports, and stock performance. Consider setting up alerts or notifications to stay up-to-date with any changes.
Buy and hold
Cheap stocks can be a long-term investment, so consider buying and holding them for a while to maximize potential gains. Avoid selling too early, based on short-term market fluctuations.

Conclusion

Investing in the stock market can be a wise way to grow your wealth, and finding the cheapest shares to invest in can be a smart strategy. However, it's important to remember that investing always involves risk. So, take the time to research, consult with a financial advisor, and start investing in your financial future today.

Learn to trade with help from Skilling

If you are new to trading, we recommend starting with a Skilling demo account for free. With the demo account, you will learn how to use various indicators and trade various instruments such as stocks, cryptocurrencies, forex, and more in the form of CFDs without risking real money.

This article is offered for general information and does not constitute investment advice. Please be informed that currently, Skilling is only offering CFDs.

Do not stop learning about the financial markets

We’ve got a whole host of resources that are ready and waiting to educate newcomers to trading CFDs online, including:

CFD trading account types
Choose the trading account that suits your trading best
CFD trading basics
Learn the core principles of trading the financial markets using CFDs.
CFD trading psychology
Discover the five rules of thumb to mentally master the stock markets.

What is Forex trading?

Forex trading is the buying and selling of currencies on the foreign exchange market with the aim of making profit.
Forex is the world's most-traded financial market, with transactions worth trillions of dollars taking place every day.

What are the benefits?

  • Go long or short
  • 24-hour trading
  • High liquidity
  • Constant opportunities
  • Trade on leverage
  • Wide range of FX pairs

How do I trade Forex?

  • Decide how you'd like to trade Forex
  • Learn how the Forex market works
  • Open a Skilling CFD trading account
  • Build a trading plan
  • Choose a trading platform
  • Open, monitor and close your first position