7 Cheap Stocks for the Cash-Strapped Investor

The U.S. Federal Reserve’s commitment to ease liquidity in the stock market since March did too good a job. The S&P 500 traded at all-time highs in recent sessions. The tech-heavy Nasdaq Composite Index trades at new highs almost daily. There are, however, cheap stocks to buy from a standard price-to-earnings metric. When asked about what metric to use to find undervalued metrics, we turned to Clinical Professor of Finance David Kass at the University of Maryland’s Robert H. Smith School of Business. The professor said in an email to InvestorPlace, “I would focus on the PEG ratio, or P/E ratio divided by the projected growth rate of earnings per share. The lower the PEG ratio, the more attractive (or undervalued) a stock is.” James Angel, associate professor of finance at Georgetown University’s McDonough School of Business said: … potential bargains can be found in stocks with low institutional
Read More