Own part of a billion-dollar company for under $15.
As 2019 winds to a close, investors have plenty of data they can use to pick winners for the remainder of the year. Trends in asset classes and company financials -- as well as stock prices themselves -- can be extrapolated to predict outperformers. And for believers in fundamentals, a number of the following stocks look attractive on those terms as well. Nominally cheap stocks, let's say those trading for less than $15 a share, enjoy higher liquidity, which means narrower bid-ask spreads and confidence you'll be able to sell when necessary. What follows are seven of the best cheap stocks to buy for the rest of 2019.
Kinross Gold (KGC)
Despite advancing more than 50% year-to-date, shares of Canadian gold and silver miner Kinross Gold still trade near the $5 level, making KGC the cheapest stock to buy, on an absolute basis, on this list. Gold and silver prices have both been rising in 2019; slowing global growth coupled with falling interest rates and trade war uncertainty all helped precious metals rally -- as they often do when investors seek safe-haven investments en masse. Gold is up 20% year-to-date to roughly $1,530 per ounce, with silver prices advancing 13% year-to-date to the mid-$17 range. Kinross Gold is worth more than $6 billion, and shares trade for about 19 times forward earnings.
Infosys (INFY)
Easily the most valuable company on this list -- Wall Street pegs the value of the India-based information technology company at more than $47 billion -- it's nice to have such a solid company trading at such affordable per-share prices. The company offers a suite of consulting, tech and outsourcing services spanning a range of sectors, including financial services, retail, communication, energy and manufacturing. Revenue advanced 14% last quarter, and with $12 billion in annual revenue and solid net margins, Infosys can afford to pay a 2.2% dividend. So, as a relatively stable large-cap dividend stock trading for 22 times earnings (and $11 a share), INFY goes down as one of the best cheap stocks to buy for the rest of 2019.
Tegna (TGNA)
Media powerhouse Tegna operates a combined total of roughly 50 TV and radio stations in more than 40 markets. Shares trade at surprisingly low multiples, with TGNA fetching a price-earnings ratio under 8 and a forward P/E below 7. Shares fetch these anemic multiples despite expected 20% revenue growth next fiscal year, to go along with solid expected earnings growth as well. Even after 30% gains in 2019, TGNA is one of the best cheap stocks to buy, especially after news broke in mid-August that Apollo Global Management (APO) had approached Tegna in hopes of acquiring it earlier this year. A share price in the mid-teens makes TGNA quite affordable.
Vereit (VER)
The second-largest company on this list by valuation, worth over $9 billion, Vereit is the only real estate investment trust (REIT) among the best cheap stocks to buy for the rest of this year. The company owns a large, diversified portfolio of single-tenant real estate properties, and due to careful tenant selection and lease structuring, Vereit seeks to avoid a large degree of cash flow uncertainty. It recently bought three fulfillment centers that Amazon.com (AMZN) uses to fulfill online orders, giving it some nice exposure to the red-hot e-commerce space. As with most REITs, the allure is largely in the dividend for VER, and the stock -- which trade for less than $10 a share -- pays a 5.8% dividend. It trades for about 14 times forward adjusted funds from operations, the REIT equivalent of a forward P/E ratio.
Sonos (SONO)
Shares of this Santa Barbara, California-based wireless speaker company are fairly new to Wall Street, having gone public last summer. That wasn't the best time for a consumer tech company to IPO, as the latter half of the year was brutal for most tech-related stocks; as a result, shares are down roughly 35% year-over-year, but up about the same percentage on a year-to-date basis. The sleek smart speaker company is coming off a fourth straight quarter of record revenue growth, with the top-line jumping 25% year-over-year. SONO is on the verge of profitability, and if revenue keeps growing like this -- and margins keep marching higher -- this might not be considered a cheap stock for much longer.
Opera Limited (OPRA)
If you're hunting for overlooked stocks to buy, you're going to run across some businesses that may sound a little odd. Opera Limited is a Norwegian browser and app developer, whose namesake browser and Opera News app are widely used in emerging markets. With products for both mobile and PC, and a special focus on Android, analysts expect revenue growth above 60% this year, and about 30% growth next year. Although shares are on a massive run (up 135%) in 2019, OPRA stock is barely breakeven over the last year, and still represents a compelling opportunity trading at 21 times forward earnings.
Viavi Solutions (VIAV)
Last but not least among the best stocks to buy for the remainder of the year: Viavi Solutions, a networking equipment company based in San Jose, California. Worth more than $3 billion, VIAV is no slouch, and at a forward P/E of 18, it's not absurdly priced either. Demand for its network testing equipment has proven steady-to-growing over time; analysts see revenue growing a total of 10% between last fiscal year and next fiscal year. In a way, this company -- which is currently testing the 5G spectrum in Brazil ahead of that country's 2020 spectrum auctions -- could be considered one of the more conservative cheap stocks highlighted here.
