Finding cheap stocks is easy. But finding good cheap stocks? Not so. Making a penny stock investment will always come with a risk but what good thing doesn’t?
So here are 3 cheap stocks that could bring some potential to your portfolio.
Cheap Stocks: Avon Products (NYSE:AVP)
There was a time (about 15 years ago) when this cosmetic company was booming. Booming to the tune of $44 per share.
It’s easy to think that at $2 a share, Avon might be a lost cause. But it isn’t. AVP is expected to grow revenues over the next couple of years. Along with that, earnings are expected to soar to 22-cents-per-share in fiscal 2017 and then 36 cents in 2018.
So you may be disappointed if you expect this stock to climb over $20 anytime soon, but expecting a double-digit gain in the next few years is reasonable. Cheap stocks with longevity also bring with them regular clients and long-term expertise. This also helps Avon’s case.
Cheap Stocks: BlackRock Capital Investment (NASDAQ:BKCC)
Currently trading on the NASDAQ for $5.66, these cheap stocks are not to be confused with its multi-billion dollar parent investment management company BlackRock (NYSE:BLK).
No, BKCC is a much smaller development company that provides loans to small and mid-sized firms. Right now, these cheap stocks return more than 13% in annual yield based on an 18-cent quarterly payout.
The risks are there though; those dividends could be cut, and there’s the more obvious risk of shares declining if the companies BKCC lends to can’t return on their debt.
But based on current figures and the affiliation to brand Blackrock, this cheap stock is at the fore.
Cheap Stocks: AgroFresh Solutions (NASDAQ:AGFS)
If you believe in healthy foods, then this cheap stock is for you. AgroFresh Solutions Inc. is capitalizing on the increasing demand for healthier eating.
The company does one thing very well; it specializes in technologies to keep produce like apples and avocados fresh and attractive.
Certain fresh foods are no longer ‘seasonal’ as demand calls for them to be available daily—whether in season or not! And so this technology offers a solution to a market constantly demanding certain fresh foods.
Not just a smart idea, it’s also proving effective; AGFS posted 15% revenue growth in its latest earnings. At $5.65 per share, this is a cheap stock worth checking out.
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