

While sustained earnings growth is key, profitability is even more important, so no stocks should have seen negative EPS in the past four years. No negative earnings in the last four years.EPS must be higher than the prior year in each of the last four years. Chosen stocks have averaged at least 12% sales growth per year over the last five years. Sustained average annual revenue growth.Each stock on the list has averaged at least 15% yearly EPS growth over the last five years. exchanges and meet the following requirements: The stocks outlined above are traded on U.S. Our curated list of cheap stocks to buy now is built using strict criteria. Having stabilized throughout 2022, investors may be willing to step back in to buy, especially if other Chinese stocks move up as well. It was overbought and has been coming back to reality ever since. With some stats looking so attractive, why is the stock down so far? The 2020 and early 2021 rally saw the stock price increase by more than 1,000%. Even with that big drop, the stock has still outperformed the S&P 500 by an average of 23.4% per year over the last five years, for the best performance on this list. However, the stock currently trades more than 40% below its 52-week high and more than 60% below its all-time 2021 high. P/E values have ranged between 1.9 and over 100 when the stock had a big rally in 20. It has the lowest forward P/E ratio on the list. Earnings have grown an average of 63.2% per year over the last five years, and analysts expect 74.9% EPS growth per year over the next five years. The company is one of our picks for the best solar power stocks.ĭQ ranks highest on the list in many categories. Each company has a multiyear history of growing earnings per share (EPS) and revenue, and analysts are still expecting similar growth in the years ahead.ĭaqo manufactures and sells polysilicon, which is a key material for manufacturing solar panels. We have identified nine cheap stocks to buy that have fallen along with the S&P 500 over the last year and have yet to recover. When you know which metrics of quality to track to uncover cheap stocks to buy, you can pick winners that the market may reward with higher prices after the dip.

The truth is that many great companies get dinged in short-term market drops but tend to perform very well over time. Think of it like buying quality stocks at a discount. Done right, you can earn a fat discount on stocks with sound fundamentals and strong prospects.

But picking the right stock to buy is tough: How do you decide which ones are poised to bounce back?īuying the dip is not a simple trading strategy and should be approached cautiously. When markets swoon and stock prices drop across the board, smart traders know there are deals to be had.
