27 Cheap Stocks That Could Make You Rich

When seeking investment opportunities, low-priced stocks can capture your interest due to their potential for substantial growth. Here, we present a list of 27 such stocks along with some key considerations to guide your decision-making process.

The Stocks: A Glimpse into Potential Growth

Here is a snapshot of 27 low-priced stocks that have shown promise for growth, along with their YTD percentage change, sector, and current price:

1. Accel Entertainment (ACEL): YTD +28.38%, Sector: Consumer Cyclical — Gambling, Price: $9.54
2. Ares Capital (ARCC): YTD +3.22%, Sector: Asset Management, Price: $19.08
3. Ally (ALLY): YTD +15.44%, Sector: Financial — Credit Services, Price: $27.64
4. Berry Corp. (BRY): YTD -9.77%, Sector: Oil and Gas Exploration and Production, Price: $6.71
5. Bluegreen Vacations Holding Corp. (BVH): YTD +33.61%, Sector: Resorts and Casinos, Price: $32.03
6. Carriage Services Inc. (CSV): YTD -1.47%, Sector: Consumer Cyclical — Personal Services, Price: $26.12
7. CompoSecure Inc. (CMPO): YTD +42.77%, Sector: Metal Fabrication, Price: $6.78
8. Eagle Point Credit Company (ECC): YTD +4.10%, Sector: Financial — Closed-End Fund — Debt, Price: $10.17
9. Energy Transfer (ET): YTD +8.59%, Sector: Oil and Gas Midstream, Price: $12.89
10. Forestar Group Inc. (FOR): YTD +36.63%, Sector: Real Estate — Development, Price: $20.50
11. Genco Shipping & Trading Limited (GNK): YTD -9.67%, Sector: Marine Shipping, Price: $13.79

1. General Motors (GM): YTD +4.44%, Sector: Auto Manufacturers, Price: $34.13
2. The Hackett Group Inc. (HCKT): YTD -1.91%, Sector: Information Technology Services, Price: $19.51
3. HireQuest Inc. (HQI): YTD +60.72%, Sector: Industrials — Staffing and Employment Services, Price: $24.13
4. Host Hotels & Resorts Inc. (HST): YTD +9.75%, Sector: Real Estate — REIT — Hotel and Motel, Price: $17.41
5. Information Services Group Inc. (III): YTD +12.61%, Sector: Technology — Information Technology Services, Price: $5.15
6. Lincoln Educational Services Corp. (LINC): YTD +16.06%, Sector: Education and Training Services, Price: $6.70
7. The Lovesac Co. (LOVE): YTD +11.49%, Sector: Consumer Cyclical — Furnishings, Fixtures and Appliances, Price: $22.86
8. MasterCraft Boat Holdings Inc. (MCFT): YTD +11.08%, Sector: Recreational Vehicles, Price: $26.95
9. Modine Manufacturing Co. (MOD): YTD +53.63%, Sector: Auto Parts, Price: $29.68
10. NMI Holdings Inc. (NMIH): YTD +25.22%, Sector: Insurance, Price: $25.36
11. Playa Hotels & Resorts N.V. (PLYA): YTD +45.87%, Sector: Resorts and Casinos, Price: $9.37
12. Radian Group Inc. (RDN): YTD +37.99%, Sector: Financial — Insurance — Specialty, Price: $25.72
13. Riley Exploration Permian Inc. (REPX): YTD +23.00%, Sector: Oil and Gas E&P, Price: $33.98
14. Schneider National Inc. (SNDR): YTD +13.12%, Sector: Real Estate — REIT — Mortgage, Price: $26.04
15. Tri Pointe Homes Inc. (TPH): YTD +73.96%, Sector: Residential Construction, Price: $30.91
16. Vector Group (VGR): YTD +5.65%, Sector: Tobacco, Price: $12.21

Please note that the data is accurate as of June 5, 2023.

Factors Influencing Returns

When considering investing in low-priced stocks, several factors can impact potential returns. Here are key factors to bear in mind:

Price-Earnings Ratio (P/E Ratio)

The P/E ratio is obtained by dividing a company's stock price by its net earnings. Generally, higher P/E ratios indicate expensive stocks, while lower ratios suggest more affordable options.

Price-to-Book Value

Book value represents a company's net worth, calculated as assets minus liabilities. Stocks trading below book value might be considered attractive as they potentially offer a bargain relative to the company's assets.

Cash Flow

Assessing various cash flow metrics such as net cash flows, cash from operations, and free cash flow can provide insights into a company's value. Companies with low prices relative to cash flow measures could be seen as more cost-effective investments.

Earnings Reports

Staying informed about a company's earnings reports is crucial. Positive earnings trends might indicate a company's potential for growth and profitability.

In conclusion, the world of low-priced stocks offers a spectrum of opportunities for investors seeking growth potential. By understanding key metrics such as P/E ratio, price-to-book value, and cash flow, investors can make informed decisions that align with their investment goals and risk tolerance. Remember, investing carries inherent risks, so thorough research and consideration are paramount in making sound investment choices.