How to Find Cheap Stocks

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Post on 15-Apr-2017



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How to Find Cheap Stocks

How to Find Cheap StocksBy Low interest rates have helped drive stock prices to astronomic levels. And now the surprise election of Trump has occasioned a rally. Before We ContinueClick the links below to get yourFREE training materials.

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Get 12 Free Japanese Candlestick VideosIncludes training for all 12 major candlestick signals. The problem for investors and traders is how to find cheap stocks that still have a chance to run up. Fox Businesssuggests a couple ofstocks that are cheap. With the major indexes near all-time highs and with valuations well above the historical average, cheap stocks are like needles in a haystack. Finding compelling value is much harder today than it was a few years ago, and the post-election rally hasnt helped. There are still some cheap stocks available, although they come with trade-offs that help explain their beaten-down valuations. General Motors (NYSE: GM) and Bed Bath & Beyond (NASDAQ: BBBY) are both undeniably cheap, but the details are important for investors considering buying shares of these companies. GM is selling at just six times projected 2017 earnings. However its US earnings may be peaking after years of growth. Another issue is the fight that Trump is picking with China. GM does a lot of business in China and a trade war would be a disaster for the US automaker. Bed Bath & Beyond has been hurt by e-commerce competition. It sells at a P/E ratio of 10 but needs to enter the e-commerce world to make up for lost foot traffic. Both of these companies look like great deals but may have problems. How do you find cheap stocks with more upside potential? Energy Stocks Oil prices have been in a funk for a long time and eventually will recover, at least to degree. That will bring up stock prices. How to find cheap stocks in the energy sector is not hard but which ones are set to recover? Investor Placehas threeenergy stocks to buy. With oil prices stabilizing and OPEC apparently agreeing to production cuts (for now), it suggests that some of the beaten-down energy stocks on the market may be stocks to buy at this point in time. Their suggestions are Transocean (RIG), National-Oilwell Varco, Inc. (NOV) and Anadarko Petroleum Corporation (APC). Transocean operates offshore drilling platforms. National-Oilwell Varco is a diversified oil services company. And Anadarko Petroleum is diversified across exploration and production and across the world. All three are set to gain at higher oil prices and the more they are diversified the safer bets they are. Are All Stocks Cheap? Forbessays that even as the Dow closes on 20,000stocks are still cheap. After seven years of a central bank manufactured and managed recovery, which could only produce a dangerous stall-speed level of growth the handoff from monetary driven growth policies to fiscal and structural driven growth policies are finally coming. We now have a government in the U.S. that has the will and mandate to pick up the baton from the central banks and inject pro-growth medicine into what has been a patient on seven years of life-support. This argument is that lower taxes and cash injection into the economy are a better way to drive growth than central bank inspired low interest rates. The market certainly thinks that growth is on the way. But earnings need to go up to support longer term growth in stock prices.