7 Cheap Stocks to Buy in a Pricey Market

After a bull market that’s now the longest on record, you might think that nothing is cheap anymore.

Various assorted american change piling up in jar
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After a bull market that’s now the longest on record, you might think that nothing is cheap anymore. How one precisely defines “cheap” can vary from person to person. But for many, cheap stocks are simply those with solid fundamentals that have either been overlooked by the market or excessively knocked down by bad news.

The one game you don’t want to play is buying stocks just because they have fallen in price. While some may truly be great bargains, others fall for good reason. That reason can be anything from failing business models and weak management to overwhelming legal issues, changing tastes and obsolete technology.

To separate the wheat from the chaff, we’ve asked a group of investment managers and market experts which stocks are in the “good bargain” category, which means they’re down in price but still fundamentally sound and growing.

Here are seven of their favorite cheap stocks to buy. Most of the names are familiar, which will provide an additional level of comfort. However, they all share a common thread of being down but far from out.

Data is as of Sept. 9. Dividend yields are calculated by annualizing the most recent monthly payout and dividing by the share price.

Michael Kahn
Contributing Writer, Kiplinger.com
Michael Kahn, CMT (Chartered Market Technician) has been writing about the markets since 1986. He is the author of three books on technical analysis published in five languages. His specialty: jargon-free analysis accessible to everyone. He has contributed to many leading financial media including Barron's Online, MarketWatch and Nightly Business Report and was the Chief Technical Analyst for BridgeNews.