There are plenty of cheap stocks under $25 investors can choose from. Of course, plenty of companies with lower share prices are inherently risky, and I’m not talking about just penny stocks.
Companies that have been beaten down by the market, or have lower share prices, can often see outsized volatility due to increased options activity. Near-term price swings can entice some investors to simply stick with blue-chip names for more consistent growth.
That’s where I focus most of my attention generally.
However, there are some cheap stocks under $25 to consider buying in this current environment.
In this article, I’m going to highlight three companies that have decent value, income and growth picks in this group. While risks certainly exist with these three picks, those with a higher risk tolerance may want to give these stocks a look.
AT&T (T)
AT&T (NYSE:T) recently rose over 5% amid a market downturn, driven by a strong quarter with unexpected net phone subscriber growth. Despite underperformance in the past decade, T stock gained more than 10% year-to-date.
With trailing price-earnings ratio around 11-times and a 5.85% dividend yield AT&T is among the blue-chip dividend stocks many investors continue to focus on.
This recent surge came after the company surpassed analyst expectations with 419,000 new postpaid subscribers.
Despite customer churn at 0.7%, AT&T reported diluted EPS of $0.49 on $29.8 billion revenue, missing estimates. However, the company maintained its EPS guidance at $2.15 to $2.25.
The Federal Communications Commission reported Monday on a February AT&T outage, lasting over 12 hours and blocking 92 million voice calls due to a network configuration error.
AT&T also revealed an April data breach compromised call and text records from nearly all its cellular customers.
While risks exist with this stock due to its relative underperformance from a capital appreciation standpoint, AT&T remains a top dividend stock worth considering for those seeking a reliable long-term income stream.
Barrick Gold (GOLD)
Investors are increasingly drawn to gold, given the recent run the precious metal has been on recently.
That said, certain large-cap miners such as Barrick Gold (NYSE:GOLD) have lagged the move in gold. Gold futures recently hit a record $2,462, driven by U.S. election uncertainty and central bank buying. After a recent dip, prices rose again to $2,402 post-Biden’s re-election withdrawal.
Gold continuing to trade above $2,400 per ounce boosts miner profits. Citi (NYSE:C) analysts predict gold may hit $3,000 in six to 18 months, making Barrick Gold an attractive way to play this surge.
Despite flat performance this year, Barrick’s anticipated cash flow growth and 2.26% dividend yield suggest a breakout. With revenue growth remaining strong, GOLD stock looks poised for continued appreciation moving forward.
Moreover, the company’s Q2 production was quite impressive. There company reported production of 956,000 ounces gold and 42,000 tons of copper.
Production is expected to increase throughout 2024, with Q2 gold averaging $2,338 per ounce and copper $4.42 per pound. Improvements at Turquoise Ridge, Porgera, Tongon, North Mara and Kibali boosted output.
Archer Aviation (ACHR)
Archer Aviation (NYSE:ACHR) shares have fallen 58% since inception due to poor performance, high interest rates and shifting investor focus.
Initially driven by the eVTOL hype and a $1.5 trillion market prediction by Morgan Stanley (NYSE:MS), Archer went public via SPAC in 2021.
In spite of the decline, Archer benefits from significant backing by United Airlines (NASDAQ:UAL) and Stellantis (NYSE:STLA), which invested $55 million in July, and had already contributed $39 million this year and $100 million in 2023.
The company also rebounded sharply from June lows but remains down 29% year-to-date. ACHR is considered a good buy, with expectations to double by year-end. Archer is set to commercialize its eVTOL by 2025 and plans expansion into the UAE, India and Korea, positioning itself for significant growth.
Archer Aviation has high potential but also significant risk. Investors may prefer to wait until the company achieves more milestones before buying shares.
On the date of publication, Chris MacDonald did not hold (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.
On the date of publication, the responsible editor did not have (either directly or indirectly) any positions in the securities mentioned in this article.