7 Good And Cheap Stocks To Buy Now
Investing in individual stocks can be a challenge – but when done correctly,
a rewarding one.
The truth is — if you really want to become a better investor, then you need
to be looking at where the smart money is heading.
You need to understand what is truly driving the markets and how you can
take advantage of these moves as – and before – they hit the mainstream.
That’s how long-term wealth can be found.
In fact, we’ve uncovered seven stocks that should have a place in your
portfolio immediately.
They offer a mix of growth – at a reasonable price – as well as value for a
good upside opportunity with limited downside risk.
Good and Cheap Stock No. 1 – SoundHound AI (SOUN)
While the AI space is dominated by many big-tech companies, a few smaller
companies exist that play to some interesting niche parts of the AI market.
Artificial intelligence (AI) spending across hardware, software, and services
totaled about $200 billion last year, according to Grand View Research. But
that figure is expected to soar 820% to exceed $1.8 trillion by 2030.
For smaller companies like SoundHound AI (SOUN), even a billion of that AI
growth could mean big returns for shareholders. SoundHound AI works on
voice recognition technology. That can allow for high-quality, conversational
experiences for customers.
Conversational voice assistants are a logical next step for many businesses,
which may still operate from human conversations or text queries.
SoundHound’s products use machine-learning software to determine how to
handle queries and arbitrate responses, allowing users to get answer from
the right domain in real time. The end result is a more natural conversation,
as well as other sound-related tools like identifying music.
Best of all, SoundHound is on a growth spree, and this early-stage AI
startup will be rolling in the profits as it builds up its customer and
partnership base.
Good and Cheap Stock No. 2 – NuScale Power (SMR)
Nuclear energy is coming back in a big way. The rise of AI means a big jump
in demand for electricity.
Nuclear power offers large, steady baseload energy that can be used to
power today’s AI tools, which can use 10 to 30 times as much power as
operating a search engine.
And investors are looking for ways to play that trend as old nuclear power
plants reopen and new, next-generation nuclear reactors come online.
That’s where a company like NuScale power comes into play. NuScale is
creating small modular reactors (SMRs).
These are essentially nuclear power plants that are small enough to be
moved around on a truck.
Best of all, these reactors can be assembled in tandem to create the
requisite baseload power needed.
This new generation of nuclear power reactors uses cleaner-burning fuel,
leading to less waste than in older designs. It’s clear that NuScale has a
bright future ahead.
Shares have already been soaring higher, but given strong electricity
demand in the years ahead, this small-cap, early-stage play still has far
more room to run and benefit investors today.
Good and Cheap Stock No. 3 – Lithium Americas (LAC)
Of course, we can’t have an electric vehicle boom without lithium.
Every EV needs about eight kilograms of lithium, according to the U.S.
Department of Energy.
The International Energy Agency has even warned that, “The supply of
critical minerals crucial for technologies such as wind turbines and electric
vehicles will have to be ramped up over the next decades if the planet’s
climate targets are to be met.”
Lithium prices have dropped as EV sales slowed in the past few years. New
mining operations have slowed. Ironically, that’s set the stage up for
lithium’s next move higher.
But with major auto companies, like General Motors pre-paying for supply
through the end of the decade, it’s no surprise that lithium prices are
quickly trending higher.
One way to trade that is with Lithium Americas (LAC).
The company is currently working on its Caucharí-Olaroz mine, which
reportedly holds 40,000 tonnes per annum of lithium. It’s also working on
Thacker Pass, which could hold up to 80,000 tonnes per annum of lithium,
and is considered to be the biggest lithium deposit in the U.S.
Chances are LAC will become one of the biggest players in the lithium
space in the years ahead, and an investment now could be a simple way to
play the growth of EVs without having to pick a specific automaker.
Good and Cheap Stock No. 4 – Ulta Beauty (ULTA)
Retailer Ulta Beauty may have a stock trading at a high share price, but
shares certainly look undervalued. That may be why Warren Buffett’s
Berkshire Hathaway (BRK-B) has been a buyer.
Ulta Beauty has a strong customer base, a loyalty program with over 43
million members to encourage repeat visits, and has managed to fend off
competition from the likes of Amazon (AMZN) and Sephora stores in
locations such as department store Kohl’s (KSS).
Ulta’s footprint in the retail cosmetics landscape also leaves them well
positioned to be the store of choice for a new cosmetics brand to launch a
new line.
Ulta also managed to navigate the pandemic era well, slowing down new
store openings and reducing borrowing needs and expenses. Unlike many
other retailers, Ulta largely managed to scale up to a national platform with
little debt.
Given Ulta’s industry position, strong financial health, and large customer
base, shares certainly meet the criteria of good and cheap at today’s levels.
Good and Cheap Stock No. 5 — Lululemon Athletica
Another strong brand that looks good and cheap right now is athletic
apparel designer Lululemon Athletica.
Consumers who like a brand tend to develop brand loyalty, meaning that a
buyer of Lululemon will likely continue to do so. In turn, that can mean
higher prices can be charged, leading to higher profitability.
Meanwhile, the Lululemon story is still in its growth phase, thanks to a
strong push into international markets, particularly China.
In the meantime, the company’s financials are in an impeccable position,
with no long-term debt. Many consumer brands can get into trouble taking
on debt to expand, only to run into shifting market sentiment.
Between a strong brand, a debt-free company, high margins, and
international growth opportunities, Lululemon looks like a good and cheap
stock for investors now.
Good and Cheap Stock No. 6 – Celsius Holdings (CELH)
Energy drinks and supplements are a big business, and one that continues
to grow. Celsius was originally built around a fitness drink designed to
increase energy and help burn fat, and has now expanded into other health
and energy-related products and beverages.
Celsius has been popular with consumers, as shares have managed to see
annual returns of over 20% over the past decade. And that’s without
touching the international market, which could more than double the
consumer base of Celsius drinkers.
In an industry with a low barrier to entry, the Celsius brand provides a
competitive advantage that new players would have a hard time beating
without a significant investment.
And over the past few years, Celsius products have greatly increased in
shelf space at stores, indicating a brand on the rise.
With a strong growth trend behind it and an increasing user base, Celsius
shares should continue to deliver big returns for investors.
Good and Cheap Stock No. 7 – Nike (NKE)
One of the world’s greatest brands, Nike now stands as a good and cheap
play today.
Shares are at a historically cheap valuation after years of
underperformance. But the company brought in a new CEO in late 2024,
who worked at the company for 32 years before retiring in 2020.
That longevity of working at Nike could be key towards getting the company
back to its core focus and energizing customers around Nike products once
again.
Customers used to be raving fans, excited about the company’s newest
apparel and footwear offerings, and a new CEO who saw the rise of Nike
could bring back that dream.
In the meantime, the company’s fundamentals remain sound. Nike products
still carry strong brand premium on the market, which means big profits
for the manufacturer.
Carrying a gross profit margin of over 40% on every shirt or shoe it sells is
something most retails would dream of. For Nike, it’s just another day.
Currently, Nike generates about two-thirds of its sales from footwear. That
makes them a leader in the space, and represents a big moat for the
company over competitors.
Nike won’t stay out of favor with the market forever. As Nike finds the
winning combination again, today’s shareholders will be rewarded for
picking up shares of this good and cheap stock.