5 Insanely Cheap Stocks To Buy Now

Most so-called “cheap” stocks deserve to be cheap. The business is fading, the growth is gone, and that low price is the market telling you to stay away.

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But every so often a genuinely good company ends up in the bargain bin anyway. The price falls, or Wall Street looks the other way, and for a while you can buy real quality at a discount. The trick is telling those apart from the junk.

So today we are walking you through 5 stocks that look insanely cheap right now… and unlike most cheap stocks, actually deserve a spot on your watchlist. All of them earn an A in our proprietary quant ratings system and have real near-term catalysts and trends in their favor. And remember, this is not personalized investment advice. Always always do your own due diligence.

1. Expedia

We will start with Expedia (EXPE). Before you say "that's not insanely cheap!" … We're not talking about stocks under $5 or $10 when we say cheap. We're talking about stocks that look cheap from a value standpoint.

Expedia is one of the largest online travel companies on the planet, and it went through exactly the kind of fear-driven selloff we're talking about in late January. When investors got spooked that AI chatbots might bypass travel sites altogether, they dumped the whole online travel group, and Expedia got caught in the wave.

Here is what the fear missed. The business never stopped performing.

Expedia has beaten estimates quarter after quarter, going back years. And the growth is real, not just cost-cutting. In its most recent quarter, earnings came in far above the year-ago level.

And Wall Street sees earnings compounding better than 30% a year going forward. That is a business firing on all cylinders while the stock trades like it is in trouble.

And it is cheap. Our favorite quick gauge here is the PEG ratio, which just measures the price you pay against how fast the company grows. Under 1.5 is undervalued, 1 is a bargain, and Expedia sits at 0.72, which just screams undervalued.

Wall Street is circling back, too, landing on a consensus Buy recommendation. The most recent coverage from analysts points to double-digit upside.

Now here is where our own data comes in. Our quant rating system reviews 115 different factors on every stock and boils it down to one letter grade, A through F. Expedia earns an overall Zen Rating of A, which is a Strong Buy recommendation, and it's in the top 2% of the more than 4,600 stocks we track.

Under that headline grade sit 7 component grades, and the strong ones build from good to great. Its Artificial Intelligence grade comes in at the top 23%. Sentiment lands in the top 15%, with Growth right there beside it in the top 15%. Then Value jumps up to the top 4%, and Financials caps it off in the top 2%. Where it is softer is Safety, which is middle of the pack, and Momentum, which is the one genuine laggard here. The read is simple: a rock-solid, fast-growing travel leader the market oversold on a fear the numbers never confirmed.

The one real risk is that the AI worry is not pure fiction. Over the long haul, how people book trips could shift, so expect some jumpiness. But for now this is a dominant, profitable company on sale, and that puts it squarely on the watchlist.

Now, the next one is a stock the market has all but left for dead.

2. OpenText

That is OpenText (OTEX). OpenText is a big enterprise software company that helps giant organizations manage, secure, and make sense of mountains of data. And there is a fresh chapter starting here. A new CEO stepped in this year and is repositioning the whole company around enterprise AI, including a push to run its data platform on Amazon's new sovereign cloud in Europe.

The company is a steady earner that has been quietly topping estimates, and it turns those profits into something you can hold onto.

While you wait for the market to notice the AI pivot, OpenText pays you. It throws off a dividend yielding about 4.7%, and it has grown that payout for 10 straight years without a cut, at a payout ratio of just over half its earnings. So there is room to keep raising it.

And the price has not caught up to any of it. OpenText trades at a PEG of just 0.52. Remember, under 1 is the absolute bargain zone, and this is half of that.

On the analyst side, OpenText has 4 analysts covering it, and the consensus sits at a Hold recommendation. But here is what that Hold is hiding. As of this writing, their average price target implies upside of nearly 28%.

Now to our data. OpenText earns an overall Zen Rating of A, a Strong Buy recommendation, in the top 4% of all the stocks we track.

Walk the strong grades and they build beautifully. Sentiment comes in at the top 22%. Growth at the top 13%. Safety at the top 10%. That Artificial Intelligence grade jumps to the top 2%. And Value tops out in the top 1%. Financials sit as a C, but a healthy one, a bit above average. The only real soft spot is Momentum, down near the bottom, and honestly that IS the story here. The market is not moving into this stock yet, which is exactly why it is still this cheap. So the pattern is a top-value, AI-flagged quality business that pays you to be early.

Quick word on that AI grade, since people misread it. It does not mean OpenText is an AI company. Our AI factor is a pattern signal that flags stocks whose behavior looks like past winners, and a top 2% score there carries weight.

For a patient investor collecting a growing dividend while the turnaround plays out, that is a compelling one to watch. Let's keep the party moving.

The next name is the smallest and most off-the-radar stock on this whole list.

But first a quick heads up … if you like timely stock picks like this, then the best thing you can do is sign up for our next Live training session this coming Monday. The focus is on timely market insight plus our top picks.

It's totally free, but you do need to sign up. Do that now to join us this coming Monday at 7pm ET. Just go to wallstreetzen.com/live.

3. Regional Management

Regional Management (RM). This is a consumer finance company that makes installment loans to everyday borrowers who do not always have easy access to a big bank. Boring on the surface. The numbers are anything but.

Here is the operating leverage that caught our eye. Over the past year, revenue grew right around 10%, but earnings grew over 50%. When a company turns modest top-line growth into earnings growing 5 times faster, that is a business getting more profitable on every dollar it brings in. And it has been topping estimates by wide margins the last couple of quarters.

For all that, the stock trades at a PEG of 0.55. That is deep value territory.

And it pays you a dividend of around 3% that it has grown 6 years running. The best part is a payout ratio under a quarter of earnings, so that dividend is rock solid with plenty of room to grow.

Our system likes the whole picture. Regional Management earns an overall Zen Rating of A, a Strong Buy recommendation, in the top 4% of all stocks. And the strength is spread evenly. Sentiment comes in at the top 13%. Safety at the top 10%. Then its Artificial Intelligence grade and Financials both land at the top 8%. And Value rounds it out in the top 5%. The two C grades are Momentum, which is about average, and Growth, which sits just below. So the pattern is a cheap, safe, well-rounded compounder the market has simply forgotten.

The catch is the nature of the business. This is consumer lending, so a weaker economy and rising loan defaults would pressure it, and it is worth keeping an eye on that. Still, a profitable lender this cheap, paying a growing dividend, is hard to walk past.

Alright. This next one is where the quality really steps up.

4. Jazz Pharmaceuticals

Jazz Pharmaceuticals (JAZZ). Jazz is a specialty drug maker with an established franchise in sleep disorders and a fast-growing arm in cancer treatment. That oncology push is the catalyst. Its newer cancer therapy is expanding into more uses, and that is the engine analysts think drives the next leg higher.

The financials underneath are the appeal. Revenue is growing steadily, and after a noisy year on the bottom line, earnings are inflecting back up hard as the newer drugs scale. Add the pipeline, and you have a company whose best growth may still be ahead.

Now the disconnect. Despite that growth, the stock trades at a fraction of what a DCF model says it is worth. That is a discounted cash flow model, a standard way of estimating a fair price, and by that measure Jazz looks deeply undervalued.

Wall Street is genuinely pounding the table here. Jazz carries a consensus Strong Buy recommendation. Better still, several of the most bullish analysts on it rank near the very top of everyone we track for stock-picking. When the best in the business line up like that, it is worth leaning in.

And our data loves it. Jazz earns an overall Zen Rating of A, a Strong Buy recommendation, landing in the top 1% of every stock we track. This is one of the highest-rated names in our entire system. Watch how the strong grades build. Safety comes in at the top 22%. Sentiment at the top 16%. Momentum at the top 14%. Financials at the top 9%. Value up in the top 4%. And it saves the best for last with a Growth grade in the top 1%. The lone middling grade is its AI factor, which is about average, and no real knock. Put it together, and you get rare, top-tier quality, with elite growth you are not overpaying for, that the market is somehow mispricing.

The honest catch is that this is still a drug company, so a clinical setback or new competition can bite. We'd size it with that in mind. But a top 1% rated company trading well below fair value is exactly the quality-on-sale setup this whole roundup is about.

Before we get to the last stock, one quick thing. If you want to stay one step ahead of the market, join the Live training every Monday at 7pm Eastern. That is when we share the updated market outlook and trading plan to outperform, plus the Trade of the Week based on our proven Zen Ratings quant model.

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Okay; it won't come as a surprise to say our last stock is another elite, A-rated name. But this one is the most overlooked of them all.

5. Nature's Sunshine

Picture a profitable, growing company that our system rates in the top 1% of all 4,600-plus stocks we track… trading at roughly half of what a DCF model estimates it is worth… followed by a grand total of 2 analysts. That company is Nature's Sunshine (NATR).

Nature's Sunshine sells nutritional and wellness products in more than 40 countries. The story most investors have missed is a digital transformation. This old-school direct-seller has pushed hard into modern online and social commerce, and it is showing up in the results.

The company has been crushing Wall Street's estimates for several quarters running, by wide margins.

And the growth is flowing to the bottom line. This past year, mid-single-digit sales growth translated into earnings that more than doubled. That is the market underestimating a business quarter after quarter.

Only 2 analysts follow this stock, and both rate it a Strong Buy. As of this writing, their price targets imply serious upside potential from here, to the tune of over 60% upside potential.

Coverage that thin is not a knock. It is the opportunity, because it means the crowd has not found this one yet.

And our data backs the whole thing up. Nature's Sunshine earns an overall Zen Rating of A, a Strong Buy recommendation, in the top 1% of all stocks. The strong grades cluster right near the ceiling. Financials come in at the top 16%. Sentiment at the top 4%. Value at the top 3%. And its Artificial Intelligence grade at the top 3% as well. Growth and Safety both land as C grades that are a bit above average, and Momentum is the one soft spot, still asleep while the fundamentals run ahead. So the pattern is deep value plus institutional-grade sentiment on a stock nobody is watching, which is about as clean an early-discovery setup as you will find.

The thing to respect here is size. This is a small company, with a market cap of just around $360 million, so shares can be jumpy. Size the position accordingly. But if you are hunting a genuinely undiscovered bargain, this is the one.

What Now? 

So there is the smart way to hunt for cheap stocks. Five companies that look inexpensive… and unlike most cheap names, have the fundamentals to back it up. A travel leader oversold on fear, a software business paying you to wait, a tiny lender the market forgot, an elite drug maker on sale, and a wellness company hiding in plain sight.

And remember, the Zen Ratings are updated every day. You can pull a free rating on over 4,600 stocks yourself just by typing in a ticker at wallstreetzen.com, so be sure to bookmark the site.

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