5 Best Cheap Stocks to Buy in Apr 2024

What are the best cheap stocks to buy right now?

Sound like something you’ve asked Google before? You’re not alone.

It can be tricky to find the best cheap stocks to buy now out of the thousands of options available if you don’t have the right tools.  

The good news is we’ve got you covered with 5 of the best cheap stocks to buy now based on a proven set of fundamental metrics and due diligence checks.

Methodology for Finding the Best Cheap Stocks

To find the best cheap stocks to buy in April 2024, I used one of WallStreetZen’s preset stock screeners, Best Undervalued Stocks to Buy Now.

It incorporates a minimum Zen Score of 50 and a valuation score of 80 based on factors such as Benjamin Graham’s valuation formula, Discounted Cash Flow (DCF) valuation, and various price ratios, such as price-to-earnings and price-to-book.

Note: Our Zen Score is based on a set of 38 due diligence and fundamental checks that are proven to uncover high-quality stocks that are primed for growth.

Let’s dive in…

What are the Best Cheap Stocks to Buy Now?

Here are some of the potential best cheap stocks to buy now.

1. Clearfield Inc. (NASDAQ: CLFD)

• Current price (2/1/2024): $26.12
• Analyst consensus: BUY 
• Average 1-year forecast: $44.00

About the company: Clearfield, Inc. (NASDAQ: CLFD) manufactures and distributes passive connectivity products. Their fiber management and enclosure platform consolidates, distributes, and protects fiber through inside plant facilities, outside plant facilities, the home, and to the drop-off points in between.

Why it’s on the list: 

• CLFD passed 17/33 due diligence checks for a Zen Score of 55, well above the industry standard of 31. (What’s a Zen Score? Find out here.)
• The stock may be undervalued. According to our automated due diligence checks, CLFD ($25.19) is undervalued by 32.86% relative to our estimate of its Fair Value price of $37.52 based on Discounted Cash Flow (DCF) modeling. It’s also undervalued by 32.86% relative to our estimate of its Fair Value price of $37.52 based on Discounted Cash Flow (DCF) modeling.
• Financials are also strong. CLFD’s Earnings (EBIT) of $42.49M can safely cover interest payments on company debt ($22.77M), and CLFD’s operating cash flow ($20.01M) is sufficient to service the company’s debt ($22.77M)
• In terms of forecast, only 3 analysts we track are issuing ratings on CLFD, but they’re generally positive. CLFD has a Buy consensus wish an average 1-year forecast of $44.00

2. Dime Community Bancshares Inc. (NASDAQ: DCOM) 

• Current price (2/1/2024): $21.83
• Analyst consensus: BUY 
• Average 1-year forecast: $30.00 

About the company: Dime Community Bancshares, Inc. (NASDAQ: DCOM) provides various commercial banking and financial services. It accepts time, savings, and demand deposits from businesses, consumers, and local municipalities. The company also provides loans for both individuals and commercial clients.

Why it’s on the list: 

• DCOM passed 17/38 of our due diligence checks for a Zen Score of 49, which is higher than the industry average of 38. (What’s a Zen Score? Find out here.)
• The stock may be undervalued. According to our automated due diligence checks, DCOM ($24.76) is undervalued by 32.12% relative to our estimate of its Fair Value price of $36.48 based on Discounted Cash Flow (DCF) modeling. DCOM ($24.76) is also significantly undervalued by 32.12% relative to our estimate of its Fair Value price of $36.48 based on Discounted Cash Flow (DCF) modeling. (Find out more here.)
• Forecasts are positive. For instance, Steve Moss of Raymond James (top 6% of the analysts we track) has issued a Buy rating on DCOM with a price target of $30. 
• DCOM’s dividends are strong at 4.04%, and have not dropped by more than 10% in the past 10 years. 

3. Hirequest Inc. (NASDAQ: HQI) 

• Current price (2/1/2024): $13.12
• Analyst consensus: STRONG BUY 
• Average 1-year forecast: $24.00 

About the company: HireQuest, Inc. (NASDAQ: HQI) provides temporary staffing solutions in the United States. The company provides temporary staffing services, including skilled and semi-skilled labor and industrial personnel, clerical and administrative personnel, and construction personnel. As of December 31, 2021, the company had a network of approximately 216 franchisee-owned offices in 36 states and the District of Columbia.

Why it’s on the list: 

• HQI passed 16/38 due diligence checks for a Zen Score of 37, higher than the industry average of 45. (What’s a Zen Score? Find out here.)
• The stock may be undervalued. According to our automated due diligence checks, HQI ($13.66) is undervalued by 25.43% relative to our estimate of its Fair Value price of $18.32 based on Discounted Cash Flow (DCF) modelling. It’s also significantly undervalued by 25.43% relative to our estimate of its Fair Value price of $18.32 based on Discounted Cash Flow (DCF) modelling. 

Of the 2 analysts we track issuing ratings on HQI, they’re both bullish: a Strong Buy and a Buy. (See the forecasts here.)

4. Kimball Electronics Inc. (NASDAQ: KE) 

• Current price (2/1/2024): $24.46
• Analyst consensus: STRONG BUY 
• Average 1-year forecast: $37.00 

About the company: Kimball Electronics, Inc. (NASDAQ: KE) provides contract electronics manufacturing services and diversified manufacturing services to customers in the automotive, medical, industrial, and public safety end markets. The company’s manufacturing services include design services and support, supply chain services and support, rapid prototyping, and product introduction support services, as well as product design, and process validation and qualification services. 

Why it’s on the list: 

• KE passed 16/33 due diligence checks for a Zen Score of 51, nearly double the industry average of 29. (What’s a Zen Score? Find out here.)
• The stock may be a good value based on its earnings relative to its share price (10.86x), compared to the US market average (34.44x), as well as based on its earnings relative to its share price (10.86x), compared to the US Electrical Equipment & Parts industry average (32.19x). 
• Financials look good, too. KE’s profit margin has increased (+0.5%) in the last year from (2.6%) to (3.1%), and KE’s cash and short-term investments ($56.58M) can cover KE’s cash burn for the next year ($7.14M), after accounting for decreasing cash burn (130.87%). 
• KE’s revenues are forecast to grow slower (-2.3% per year) than the US Electrical Equipment & Parts industry average (13.04%). That said, KE’s earnings growth is accelerating – its growth over the last year (50.66%) is above its 5-year compound annual rate (35.04%) KE’s earnings have grown faster (35.04% per year) than the US Electrical Equipment & Parts industry average (29.4%)
• It’s received three Strong Buy ratings from analysts we track in the past 6 months. (See analyst forecasts here.)

5. Opera Ltd. (NASDAQ: OPRA) 

• Current price (2/1/2024): $10.87
• Analyst consensus: STRONG BUY 
• Average 1-year forecast: $16.50 

About the company: Opera Limited (NASDAQ: OPRA) provides mobile and PC web browsers. It operates in two segments, Browser and News, and Other. The company offers mobile browser products, such as Opera Mini, Opera for Android and iOS, Opera GX Mobile, and Opera Touch; PC browsers, including Opera for Computers and Opera GX; and Opera News, an AI-powered personalized news discovery and aggregation service. 

Why it’s on the list: 

• OPRA passed 20/38 due diligence checks for a Zen Score of 55, more than double the industry average of 26. (What’s a Zen Score? Find out here.)
• The stock may be undervalued. According to our automated due diligence checks, OPRA ($11.21) is undervalued by 43.47% relative to our estimate of its Fair Value price of $19.83 based on Discounted Cash Flow (DCF) modelling. It’s also significantly undervalued by 43.47% relative to our estimate of its Fair Value price of $19.83 based on Discounted Cash Flow (DCF) modelling.
• Financials look good too. OPRA’s profit margin has increased (+56.1%) in the last year from (-38.5%) to (17.6%), and OPRA’s short-term assets ($354.88M) exceed its short-term liabilities ($75.61M)
• Dividends look great — at 7.14%, they are in the top 25% of all US-listed companies. But beware: OPRA earnings ($66.77M) are insufficient to cover OPRA’s dividend payouts (166.7%). This can be a warning sign of potential dividend cuts.

What Makes a Stock Cheap?

What makes a stock cheap depends on your perspective and investment strategy.

Some investors may consider stocks under $30 (or any other number) cheap.

On the other hand, value investors would consider undervalued stocks cheap because they’re trading at a price under their intrinsic value — like the stocks on this list. But it depends on your chosen valuation metric.

Summary: Cheap Best Stocks to Buy Now

In this list, we covered 5 of the best stocks to buy now cheap based on key valuation metrics, such as Discounted Cash Flow and price-to-earnings.

But, while these are potentially good investment candidates, they must be part of a balanced portfolio.

Make sure you understand the risks you take with small and micro-cap stocks as they tend to be much more volatile than larger companies.

For that reason, their performance is less predictable, so it’s wise to spread your bets rather than concentrate them on just a few companies.  

And always remember, stocks can stay undervalued for a long time so you need an investment horizon of at least a few years. But that’s not to say that one of these stocks couldn’t surge tomorrow — anything can happen and understanding that is key!

Try out our screener to discover more of the best cheap stocks to buy right now.

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