Friday, February 23, 2024
Stocks To Buy

7 Strong Stocks to Buy for Under $15

Stocks to buy for under $15 might not seem that attractive but investors should look closer

In 2024, it doesn’t seem like $15 goes very far. That’s especially obvious when one takes a trip to the grocery store or simply tries to buy a meal.  While you can easily burn through $15 that will never be seen again it is also possible to make investments for $15 that have the potential to appreciate. There are plenty of good stocks to buy under $15.

What’s more, stocks trading at that level have passed the $10 threshold that separates penny stocks from those that represent more established firms. Let’s take a look at some equities that can be purchased for $15 and are quite strong overall.

Ford (F)

Investors are highly curious about the future of Ford (NYSE:F) and its stock as the company balances the transition toward a more electric future. Investors who were bearish about Ford’s heavy investment into electric vehicles (EVs) have been somewhat vindicated. However, from a fundamental perspective, Ford is actually doing better than most of Wall Street had expected.

That’s the takeaway from the company’s most recent earnings release which came out recently. Ford CEO Jim Farley notes that the company is facing increasing pricing pressure for its EVs. He essentially intimated that the prices of EVs will have to fall near to prices for hybrid vehicles in order to be competitive. Meanwhile, the company forecasted increasing losses from its EV unit.

Yet, Ford is actually doing well. The earnings report showed that the firm beat sales and profit expectations. That’s a very strong signal that Ford can navigate the EV transition without harming it’s fundamental business too much. 

Vale (VALE)

Vale (NYSE:VALE) is one of the strongest choices for investors who seek a mining stock. It yields substantial income through a dividend while also having share price appreciation potential. Let’s look at what the numbers say and then we’ll get into some of the other metrics that make Vale a seemingly good choice.

Vale shares Trade for $13.50 as I write this while having an average consensus target price of $17.79. The high target price ranges to $20 indicating that shares can easily provide strong returns.

Investors must also consider that Vale comes with a dividend yielding 8.7% presently. It is a fair weather dividend and the company routinely cuts or increases it depending on the state of the business at that time. In fact, it was last cut in 2022. It isn’t perfect but as an investment in VALE shares clearly has the potential to produce substantial returns with a horizon of a year or less.

CNH Industrial (CNHI)

CNH Industrial (NYSE:CNHI) is primarily an agricultural equipment firm; however, the company also reports substantial revenues from its construction business segment as well. That mix is one of the things that makes it interesting in light of Caterpillar’s (NYSE:CAT) recent strong results.

Caterpillar is a bellwether for the construction industry overall. It recently produced blowout earnings that suggest buyers are very willing to absorb higher prices. So, the fact that Caterpillar’s volumes were lower mattered much less.

This relates to CNH Industrial in that the company relies on construction equipment for roughly 20% of its revenues. The brunt of sales are attributable to its agricultural division primarily through large tractors. 

CNHI shares benefit from relative underpricing. The stock has a P/E ratio that is better than 83% of its competitors. The company also has a long history of creating value as measured by WACC vs. ROIC. Returns on its investments outpace the cost of the capital required for that investment over a long period of time. That’s a strong signal that the company is generally well run.

Antero Midstream (AM)

Antero Midstream (NYSE:AM) is a Midstream oil stock and a firm that generally pursues growth in an industry that is facing a neutral outlook in 2024. The energy sector is notoriously difficult to predict. So, should things change quickly, Antero Midstream may be able to capitalize as a growth oriented company.

It’s worth noting that the situation in the Middle East is becoming increasingly fractious. That clearly has all the potential to upset the balance of the energy industry. In turn, AM stock very well may rise.

While Antero Midstream itself is known to pursue growth – which is more risky – the company is currently looking to attract more conservative investors. On Jan. 11 the company made an upsized $600 million offering of senior notes. Senior notes, as their name implies, give priority to holders when trouble arises. The other thing to note about Antero Midstream is it’s generally attractive to income investors. AM shares include a dividend yielding 7.5% at present. 

Gogo (GOGO)

Gogo (NASDAQ:GOGO) is the world’s largest provider of broadband connectivity services for the aviation sector. The company provided broadband air to ground connectivity to more than 7,100 business aircraft for its latest release.

These days most people choose to remain connected to Wi-Fi even while they travel in the air. That is especially true for the business flyers that Gogo serves. There’s good news on that front: Gogo recently inked a deal with NetJets that will allow it to upgrade its entire fleet to Gogo’s AVANCE platform for the next 10 years. The press release noted that the deal covered NetJet’s U.S. owners but that it also extends to European owners as well.

The company also prevailed in an ongoing legal battle in which a competitor sought to prevent the company from selling its 5G solution. GOGO shares currently trade for under $10 but come with a consensus target price of $17.50

Energy Fuels (UUUU)

The reason that investors are increasingly interested in Energy Fuels (NYSEAMERICAN:UUUU) stock is nuclear energy. Governments and investors are realizing that nuclear energy is a clean, high potential resource overall. In an increasingly charged geopolitical landscape, countries seek to control rare earth elements. Uranium is one of the most important such elements particularly for its use in the production of nuclear energy.

Buyers are also seeking to diversify away from Russian production for various reasons. That makes Energy Fuels importantly positioned as a leading U.S. producer of uranium and rare earth elements.

The company controls more licensed uranium production than any other U.S. firm. Further, Energy Fuels also owns the only operable conventional uranium mill in the United States. Given that uranium prices are currently high, it’s easy to see why Energy Fuels stock is well regarded. The company is looking to expand its supply chain and recently entered into a memorandum of understanding with Australian firm Astron.

Polestar (PSNY)

First of all, Polestar (NASDAQ:PSNY) trades for well below $15. The stock currently can be purchased for $1.80. The EV spin-off company named after Volvo’s performance segment has not done well in its short life. In fact, there are real risks to investing in Polestar overall. Polestar has a high chance of bankruptcy in the next 2 years based on signs of ‘distress’ in its Altman Z-Score

It’s fair to argue that Polestar is a prime example of everything that has gone wrong with EV stocks.  At the same time, price projections clearly show that PSNY shares can easily double or more. Investors willing to bet and view its future optimistically will be rewarded. 

One reason to believe that Polestar’s future does indeed remain bright is that it has a particularly high adoption in Europe. Remember, its vehicles share many similarities with Volvo vehicles which sell well on the continent. Furthermore, European EV adoption rates are higher than those in the United States.

On the date of publication, Alex Sirois did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.

Alex Sirois is a freelance contributor to InvestorPlace whose personal stock investing style is focused on long-term, buy-and-hold, wealth-building stock picks. Having worked in several industries from e-commerce to translation to education and utilizing his MBA from George Washington University, he brings a diverse set of skills through which he filters his writing.

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