Best Cheap Stocks To Buy For Investors In 2014 , Best Cheap Stocks For Today’s Market
Thu, Jun 27, 2013
Are there any best cheap stocks right now still worth buying?
The seemingly never-ending stock market rally has not left many stocks behind.
Every sector from biotech to manufacturing to technology has done extremely well in the last few years.
There are only a few investment sectors which have underperformed. And many of them, led by gold and commodities, still carry a lot more risk than they offer in potential rewards.
So finding best cheap stocks to buy in 2014 is a lot different than in 2009. But it’s not impossible.
In fact, one of our top contrarian ways to Best Cheap Stocks To Invest in cheaply is still paying off exceptionally well. And if historical patterns hold true, it could make one company one of the best cheap stocks to buy right now.
You Should Buy Wall Street Says “Sell”
One of the things investors never learn is that you do not have to buy great companies to be a successful investor.
You do NOT have to buy great stocks.
There are good times and bad times to buy all financial assets. Stocks are no different in this respect from gold, real estate, or vintage wine.
The best time to buy best cheap stocks to buy for 2014 an individual stock is when it is out of favor.
Stocks fall out of favor for a number of reasons. The company could miss earnings expectations a couple of times in a row. It could get hit by a one-time event like a fire at its main plant. The industry it’s in might just not have fundamentals for strong growth.
Or in the case of the best cheap stocks to now we’ll look at today the company may have a relatively substandard product that only sells well during boom times for the industry and the market leader can’t keep up.
The Stock Is Advanced Micro Devices (NYSE:AMD).
AMD is a company that makes computer chips. Its main business since it started it went public in 1983 is making chips for PCs like Intel (NASDAQ:INTC).
AMD has a volatile history. The company has been a consistent #2 to Intel. And has no hope of competing on the same level.
But that hasn’t necessarily made AMD a bad investment. Yes, the stock has gone nowhere in the past five years, but could have made contrarian investors a fortune. It all depends on when investors would have bought it.
With the ongoing decline in PC sales, AMD hasn’t been in good position.
Things have gotten so bad for AMD analysts have turned against it once again.
Goldman’s analyst noted in the sell recommendation of AMD report:
As has been the case with many of the other rallies in AMD, which have all faded, ultimately, the numbers do not justify the move in the stock, in our view. We believe this will again be the case as we expect continued disappointing results in the PC segment to mitigate the impact of increased revenue from gaming.
Although there are a lot of fundamental reasons to not like AMD, – and they’re well articulated by Goldman’s analyst – there are some very important reasons to like AMD.
The main reasons is no one all Wall Street likes it.
The average rating among Wall Street analysts is a “hold.” That’s pretty low considering the 95% of all analyst ratings are “hold” or “buy.”
The average target price of those analysts is $3.13 per share. That’s 20% below AMD’s current price.
And the recent downgrade by Goldman is the sixth downgrade of AMD in the last year. As we know, when Wall Street says “sell,” it’s usually the best time to buy.
This is why AMD will probably be one of the safe and best cheap to buystocks to right now of 2014.
Great Expectations and Great Disappointments
In the end, investing safely means picking Contrarian Investments when they’re cheap and out of favor.
The only way to invest safely and earn exceptional and consistent returns is to buy what no one else is willing to buy.
Remember, great expectations inevitably lead to great disappointments. On the other side, low expectations lead to great and profitable surprises.
Given the poor sentiment surrounding AMD, it’s tough to imagine expectations getting any worse.
That’s a good sign for investors looking the Best Cheap Stocks To Buy Today.
The Group of Big Investors in United States.
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