Own part of a billion-dollar company for under $15.
As 2019 winds to a close, investors have plenty of data they can use to pick winners for the remainder of the year. Trends in asset classes and company financials -- as well as stock prices themselves -- can be extrapolated to predict outperformers. And for believers in fundamentals, a number of the following stocks look attractive on those terms as well. Nominally cheap stocks, let's say those trading for less than $15 a share, enjoy higher liquidity, which means narrower bid-ask spreads and confidence you'll be able to sell when necessary. What follows are seven of the best cheap stocks to buy for the rest of 2019.
Kinross Gold (ticker: KGC)
Despite advancing more than 50% year-to-date, shares of Canadian gold and silver miner Kinross Gold still trade near the $5 level, making KGC the cheapest stock to buy, on an absolute basis, on this list. Gold and silver prices have both been rising in 2019; slowing global growth coupled with falling interest rates and trade war uncertainty all helped precious metals rally -- as they often do when investors seek safe-haven investments en masse. Gold is up 20% year-to-date to roughly $1,530 per ounce, with silver prices advancing 13% year-to-date to the mid-$17 range. Kinross Gold is worth more than $6 billion, and shares trade for about 19 times forward earnings.
Easily the most valuable company on this list -- Wall Street pegs the value of the India-based information technology company at more than $47 billion -- it's nice to have such a solid company trading at such affordable per-share prices. The company offers a suite of consulting, tech and outsourcing services spanning a range of sectors, including financial services, retail, communication, energy and manufacturing. Revenue advanced 14% last quarter, and with $12 billion in annual revenue and solid net margins, Infosys can afford to pay a 2.2% dividend. So, as a relatively stable large-cap dividend stock trading for 22 times earnings (and $11 a share), INFY goes down as one of the best cheap stocks to buy for the rest of 2019.
Media powerhouse Tegna operates a combined total of roughly 50 TV and radio stations in more than 40 markets. Shares trade at surprisingly low multiples, with TGNA fetching a price-earnings ratio under 8 and a forward P/E below 7. Shares fetch these anemic multiples despite expected 20% revenue growth next fiscal year, to go along with solid expected earnings growth as well. Even after 30% gains in 2019, TGNA is one of the best cheap stocks to buy, especially after news broke in mid-August that Apollo Global Management (APO) had approached Tegna in hopes of acquiring it earlier this year. A share price in the mid-teens makes TGNA quite affordable.
The second-largest company on this list by valuation, worth over $9 billion, Vereit is the only real estate investment trust (REIT) among the best cheap stocks to buy for the rest of this year. The company owns a large, diversified portfolio of single-tenant real estate properties, and due to careful tenant selection and lease structuring, Vereit seeks to avoid a large degree of cash flow uncertainty. It recently bought three fulfillment centers that Amazon.com (AMZN) uses to fulfill online orders, giving it some nice exposure to the red-hot e-commerce space. As with most REITs, the allure is largely in the dividend for VER, and the stock -- which trade for less than $10 a share -- pays a 5.8% dividend. It trades for about 14 times forward adjusted funds from operations, the REIT equivalent of a forward P/E ratio.
Shares of this Santa Barbara, California-based wireless speaker company are fairly new to Wall Street, having gone public last summer. That wasn't the best time for a consumer tech company to IPO, as the latter half of the year was brutal for most tech-related stocks; as a result, shares are down roughly 35% year-over-year, but up about the same percentage on a year-to-date basis. The sleek smart speaker company is coming off a fourth straight quarter of record revenue growth, with the top-line jumping 25% year-over-year. SONO is on the verge of profitability, and if revenue keeps growing like this -- and margins keep marching higher -- this might not be considered a cheap stock for much longer.
Opera Limited (OPRA)
If you're hunting for overlooked stocks to buy, you're going to run across some businesses that may sound a little odd. Opera Limited is a Norwegian browser and app developer, whose namesake browser and Opera News app are widely used in emerging markets. With products for both mobile and PC, and a special focus on Android, analysts expect revenue growth above 60% this year, and about 30% growth next year. Although shares are on a massive run (up 135%) in 2019, OPRA stock is barely breakeven over the last year, and still represents a compelling opportunity trading at 21 times forward earnings.
Viavi Solutions (VIAV)
Last but not least among the best stocks to buy for the remainder of the year: Viavi Solutions, a networking equipment company based in San Jose, California. Worth more than $3 billion, VIAV is no slouch, and at a forward P/E of 18, it's not absurdly priced either. Demand for its network testing equipment has proven steady-to-growing over time; analysts see revenue growing a total of 10% between last fiscal year and next fiscal year. In a way, this company -- which is currently testing the 5G spectrum in Brazil ahead of that country's 2020 spectrum auctions -- could be considered one of the more conservative cheap stocks highlighted here.
Best cheap stocks to buy for the rest of 2019:
-- Kinross Gold (KGC)
-- Infosys (INFY)
-- Tegna (TGNA)
-- Vereit (VER)
-- Sonos (SONO)
-- Opera Limited (OPRA)
-- Viavi Solutions (VIAV)
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