5 Cheap “Diamond in the Rough” Stocks to Buy

Cheap stocks are few and far between.

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(Image credit: Getty Images)

Cheap stocks are few and far between. Goldman Sachs’ bear market indicator – which analyzes trends in unemployment, manufacturing, core inflation, the yield curve and stock valuations – is at its highest levels since the late 1960s and early 1970s. By some metrics, such as the price-to-sales ratio, U.S. stocks are at their most expensive levels in history, even more expensive than at the top of the 1990s tech bubble.

“It is particularly scary this time around,” says John Del Vecchio, co-manager of the AdvisorShares Ranger Equity Beat ETF (HDGE), “because we’re dealing with a historical bull market. This means that the coming bear market – and there will be a bear market again – is likely to overshoot to the downside too. There’s a lot of excess to work off.”

Disclaimer

Data is as of Dec. 5, 2018. Dividend yields are calculated by annualizing the most recent quarterly payout and dividing by the share price.

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Charles Lewis Sizemore, CFA
Contributing Writer, Kiplinger.com

Charles Lewis Sizemore, CFA is the Chief Investment Officer of Sizemore Capital Management LLC, a registered investment advisor based in Dallas, Texas, where he specializes in dividend-focused portfolios and in building alternative allocations with minimal correlation to the stock market.