7 Best Cheap Stocks Under $5

Again U.S. News Invested has their recommendations for stocks for the low income investor. This is certainly information that won't hurt any portfolio.  Hope everyone survived this scorcher of a weekend.  But chin up, much better weather coming Tuesday.  

AUGUST 5, 2022 Invested Advice, rankings and stock market news for investors.

Good morning, investors. Stocks end mixed, and Coinbase partners with BlackRock. Highlights of today's newsletter include our market insights plus these new articles: 7 Best Cheap Stocks to Buy Now Under $5 9 Short Squeeze Stocks That Could Take Off in August TODAY'S FEATURED STOCK STORY 7 Best Cheap Stocks to Buy Now Under $5 The stock market has started to recover from its slump in the first half of the year. As a result, there aren't quite as many cheap stocks as there were a few months ago. Still, there are plenty of bargains out there for people willing to look beyond the most well-known companies. As is usually the case, investors should use extra caution with stocks trading below the $5 mark. Firms often end up there due to disappointing operating results, or from having unproven or struggling business models. Regardless, there are companies that make for worthwhile investments below the $5 threshold. Here are seven such cheap stocks to buy now under $5: Vaalco Energy Inc. (ticker: EGY). Vaalco is a Houston-based oil and gas exploration company. Historically, its operations have focused on opportunities in Africa, and in particular an offshore basin in the nation of Gabon. In July, the company announced plans to merge with TransGlobe Energy Corp. (TGA). The combined firm will be a broad-based African oil producer with nearly 20,000 barrels of oil-equivalent production per day on a net revenue basis. The merger should allow the combined company to save a lot of redundant costs while improving its operating scale. Vaalco's shares slipped back below the $5 mark recently with the drop in energy stocks along with some traders selling off the company on the merger news. Shares are now selling at less than three times estimated forward earnings. Even assigning a significant discount due to oil price volatility and geopolitical risk, the stock, which closed at $4.82 on Aug. 3, seems too cheap. Cementos Pacasmayo SAA (CPAC). Cementos Pacasmayo is Peru's largest cement company, with 4.9 million tons of annual production capacity. While cement may seem like a commodity business, it tends to have a competitive moat on a geographic basis. Due to its heaviness, transport costs are prohibitive for shipping cement any great distance. This gives a company like Cementos Pacasmayo something akin to a local monopoly. The company's profitability revved up in 2021 as the Peruvian economy rebounded from COVID-19. Shares are currently trading for around 12 times earnings. And earnings may be set for more growth. Peru's economy is heavily based on exports of gold, silver, copper and other commodities that should prosper in an inflationary environment. This, in turn, should create more direct demand for cement at industrial facilities, along with a stronger Peruvian economy in general. Shares closed at $4.85 on Aug. 3. Click here to continue reading. 7 best cheap stocks to buy now under $5: Vaalco Energy Inc. (EGY) Cementos Pacasmayo SAA (CPAC) Banco Bilbao Vizcaya Argentaria SA (BBVA) Matterport Inc. (MTTR) Rigetti Computing Inc. (RGTI) UWM Holdings Corp. (UWMC) YPF SA (YPF)