Investors are always on the hunt for cheap stocks. If there’s any chance that you buy in low but sell high, then you’ve hit the jackpot of investing.
We’ve seen it happen many times. In 2016, Advanced Micro Devices (NASDAQ:AMD) was selling for under $2 per share. Now it’s closer to $20 per share. In 2011, Bank of America (NYSE:BAC) was trading for approximately $5. If you held onto those cheap stocks, then they’d be worth over $30 today.
So here are two cheap stocks that could bode well if you are patient.
Cheap Stocks: AKS Steel (NYSE:AKS)
Right now, steel stocks like AKS are volatile. We have the global trade war to thank for that. Frequent changes in tariffs have meant an unstable environment for investors. Uncertainty equals volatility, and this is understandable.
But this is a stock to hold. The trade war should sort itself out (hopefully sooner rather than later), and once the US economy as a whole is doing well (which it is), then steel stocks should continue to thrive. So at just over $4 a share, the juice could be worth the squeeze.
The US economy is thriving, and steel stocks should reap those benefits. But fear is there of course; if the trade war means cutbacks in steel consumption from car makers for example, then these stocks could suffer.
Cheap Stocks: Chesapeake Energy Corporation (NYSE:CHK)
Earlier this year, Chesapeake Energy sold assets in the Utica shale for $2 billion. Shares reacted favorably on the news.
The company has a $4 billion market cap, so that deal was no small venture. The sale is expected to further improve operations and lower costs by over $400 million. Chesapeake Energy is also at the fore of energy prices rising, so the company looks well aligned for further growth.
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