Nate is a serial entrepreneur, part-time investor, and founder of WallStreetZen. He holds a Juris Doctor (JD) degree from UAlberta Law - but don’t hold that against him. He’s passionate about building great software that delights users. He occasionally writes about himself in the 3rd person.
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.
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Methodology for Finding the Best Cheap Stocks
To find the best cheap stocks to buy in January 2025, we used a combination of tools on WallStreetZen:
- WallStreetZen’s preset stock screeners: Notably, the Best Undervalued Stocks to Buy Now screener. It incorporates a minimum Zen Score (see #2 below) 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.
- Zen Ratings: Our proprietary system that distills 115 factors that drive growth into an easy-to-read letter score. In addition to an overall score, you can see how each stock scores in different areas, including value, growth, momentum, and more. Stocks rated “A” through the Zen Ratings system have produced an average annual return of +32.52% since 2003.
- Strong Buy Ratings from Top Analysts. With WSZ’s Strong Buys from Top Analysts feature, you can zero in on ratings from ONLY top-rated analysts, and you have easy access to their track record and average win rate. In each entry, you can easily see the analyst’s track record, plus the “why” behind their rating.
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:
- Ceragon Networks (NASDAQ: CRNT)
- Ibex Ltd. (NASDAQ: IBEX)
- Imax Corp. (NYSE: IMAX)
- Marcus Corp. (NYSE: MCS)
- Ranger Energy Services (NYSE: RNGR)
Note: This article does not provide investment advice. The stocks listed should not be taken as recommendations. Your investments are solely your decisions.
1. Ceragon Networks (NASDAQ: CRNT)
Ceragon Networks Ltd. provides wireless backhaul and fronthaul solutions that enable cellular operators and other wireless service providers.
Zen Rating: A (Strong Buy)
Price: $4.55 at writing — see latest price here
Max 1-year forecast: $5.25 (+27.43%)
- CRNT earns the coveted Zen Rating of A (Strong Buy). Let’s look at some of the key factors that earned it such a high score…
- It may be a good value: In addition to its overall A Zen Rating, CRNT earns a Value rating of A based on factors including its PEG ratio, a metric that balances price-to-earnings with growth expectations. In theory, a company with a PEG ratio of 1 is perfectly valued, while a lower ratio may indicate that a company is undervalued. CRNT has a PEG ratio of 0.67, indicating a potential value.
- Analysts are bullish: CRNT has a Strong Buy consensus among the analysts we track, with top-rated analysts like Alex Henderson of Needham suggesting that the stock could see over 27% upside in the coming year. (See more analyst ratings here)
- Financially sound: CRNT earns a Financials rating of B on Zen Ratings, indicating a company in solid financial shape. A few highlights? Not only has CRNT’s profit margin increased in the past year, but its short-term assets exceed both its short- and long-term liabilities.
- High score for safety: Risk-averse investors will like that CRNT earns a Safety rating of A. It has demonstrated stock price stability, a high level of consistency of cash collections, and relatively few fluctuations in analyst predictions.
2. Ibex Ltd. (NASDAQ: IBEX)
IBEX Limited’s Customer Lifecycle Experience platform provides solutions that span the customer lifecycle.
Zen Rating: A (Strong Buy)
Price: $21.42 at writing — see latest price here
Max 1-year forecast: $26.00
- IBEX has an overall Zen Rating of A (Strong Buy) — let’s take a look at some of the individual components that play into this exemplary score.
- It may be an excellent value: IBEX boasts a Value rating of A. Its PEG ratio of 0.16 (remember, under 1 is an indication a stock may be undervalued) indicates that it could be extremely undervalued.
- Strong Financials: A good PEG ratio isn’t much if a company’s finances aren’t in order. Luckily, IBEX has a Financials rating of A. For example, the company’s Earnings (EBIT) of $42.26M can safely cover interest payments on company debt ($66.73M), and its short-term assets ($188.53M) exceed its short-term liabilities ($77.77M).
- Top-rated analysts like the stock: David Koning of Baird (a top 5% analyst) rates IBEX a Buy, with a 1-year price target of $26, which, if achieved, would represent a roughly 25% stock price increase. (See more ratings + forecasts here)
3. Imax Corp. (NYSE: IMAX)
Ever seen an IMAX movie? You have this company to thank. This cinematic solutions provider does more than you might think: It’s pivotal in planning theater design, creating specialized equipment, and more. With substantial leverage in the industry and a robust slate of upcoming movies, it’s on our radar for the foreseeable future.
Zen Rating: B (BUY) — see full analysis >
Recent Price: $24.70 — get current quote >
Max 1-year forecast: $30.00
Why we’re watching:
- Analyst support: Among the 9 analysts we track issuing ratings on IMAX, the stock enjoys a Strong Buy consensus.
- For example, Benchmark’s Mike Hickey recently raised their price target on IMAX 11.1% from $27 to $30.
- Factors contributing to Benchmark’s continued optimism on Imax’s future growth, according to Hickey, include a “robust” film slate, an increasing installation network, and substantial operational leverage.
- Great Zen Rating: Movies have been making a comeback post-pandemic, and IMAX’s above-average Zen Rating of B (Buy) reflects that. Digging deeper, you can see that among the 7 Component Grades that play into that overall rating, IMAX scores high for Safety, meaning it may be suited to more conservative investors. (See all 7 Zen Component Grades here >)
4. Marcus Corp. (NYSE: MCS)
Zen Rating: B (Buy)
Analyst/Firm: Mike Hickey / Benchmark
Price at writing: $20.52 — see latest price here
Price target: $25.00
Why we’re watching:
- It’s a STRONG BUY: Benchmark’s Mike Hickey raised their price target on Marcus (NYSE: MCS) by 13.6% from $22 to $25 on 11/25. The analyst maintained their Strong Buy rating on the stock. See more analyst ratings for MCS here.
- Hickey attributed their price target hike to takeaways from a recently concluded non-deal roadshow with Marcus’ executive team, highlighting a belief that the company’s theatrical segment will be a key growth area in coming years.
- MCS also boasts a Zen Rating score of B, with a particularly high rating for Growth. See the full score here.
5. Ranger Energy Services (NYSE: RNGR)
Ranger Energy Services Incorporated provides mobile rig wells, cased hole wireline services, and related services to the U.S. oil and gas industry.
Zen Rating: A (Strong Buy)
Price: $15.88 at writing — see latest price here
Why we’re watching:
- RNGR earns a Zen Rating of A (Strong Buy), with high scores for Financials, Growth, and Sentiment. Let’s take a closer look.
- Growth: RNGR earns a Growth rating of B, meaning it’s in the top 20% of stocks in terms of growth potential. Supporting this is growing revenue — RNGR’s revenue has grown faster (11.12% per year) than the US Oil & Gas Equipment & Services industry average (6.92%).
- Financials: RNGR also earns a Financials rating of B, indicating a stock in good financial health. Some highlights from our due diligence checks? RNGR’s operating cash flow ($89.50M) is sufficient to service the company’s debt ($32.70M); additionally, RNGR’s debt relative to shareholder equity (0.4) has decreased or remained constant compared to 5 years ago (0.93).
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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.
One of the hardest parts of stock market investing? Choosing the right stocks.
WallStreetZen offers one of the top stock-picking services out there.
To find these stock picks, I used one of WallStreetZen’s preset stock screeners, Best Undervalued Stocks to Buy Now. But it’s not the only tool the platform has to offer. Not by a long shot.
WallStreetZen’s Top Analysts is our most frequently visited page — here’s why:
Other stock-picking services constantly brag about their winning stock picks — but fail to mention when they’re wrong.
Instead of providing direct picks, we built a service that aggregates the research and recommendations from nearly 4,000 Wall Street analysts — then backtests their performance over multiple years.
Based on this research, analysts are ranked based on average return, frequency of ratings, and win rate — so you can rest assured you’re only following top performers.
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.
FAQ:
What are the best cheap stocks to buy right now?
At writing, the best cheap stocks to buy right now based on analyst ratings include CCL, ULBI, and VRNA.
Where to Invest $1,000 Right Now?
Did you know that stocks rated as "Buy" by the Top Analysts in WallStreetZen's database beat the S&P500 by 98.4% last year?
Our January report reveals the 3 "Strong Buy" stocks that market-beating analysts predict will outperform over the next year.
