All year, the stock market has continued to soar to fresh record highs. As a result, valuations are stretched to the upside as the market refuses to fall. For those of you who like to buy under-valued stocks, here are three cheap stocks that are about to breakout. There are many ways to define “cheap” on Wall Street, so for the purposes of this article, I’m using the standard price-to-earnings (P/E) ratio.
BlackBerry Limited: P/E Ratio (TTM) 10.60
BlackBerry is making a huge comeback and is trading just below its 52-week high.The company offers a very secure mobile platform and has been able to attract government, big corporation, and just about anyone who is serious about securing their data. These customers are turning back to BlackBerry for their mobile needs and that bodes well for their bottom line. Additionally, the company is also making a big push into other industries such as autonomous driving and continues to offer innovative solutions for the market.
Here is a brief company profile courtesy of Thomson Reuters: BlackBerry Limited (BlackBerry), incorporated on July 3, 1984, provides mobile communications solutions. The Company is engaged in the sale of smartphones and enterprise software and services. The Company’s products and services include Enterprise Solutions and Services, Devices, BlackBerry Technology Solutions and Messaging. Its subsidiaries include BlackBerry Corporation, BlackBerry UK Limited, BlackBerry Singapore Pte. Limited, Good Technology Corporation and QNX Software Systems Limited (QNX).
Brad Lamensdorf, Portfolio Manager for the SQZZ ETF, told me, “No debt and 2 billion in cash, will allow the new CEO John Chen to turn Blackberry into a security software powerhouse. It is our top position at 5%.”
Corning Incorporated: P/E Ratio (TTM) 13.52
Corning is another under-valued stock that is trading just below its 52-week high. The company is a big player in glass for just about everything in today’s world. The “screen” you are reading this on, was probably made by Corning.
Here is a brief company profile courtesy of Thomson Reuters: Corning Incorporated (Corning), incorporated on December 24, 1936, is engaged in manufacturing specialty glass and ceramics. The Company’s segments include Display Technologies, Optical Communications, Environmental Technologies, Specialty Materials, Life Sciences and All Other. The Company provides glass for notebook computers, flat panel desktop monitors, liquid crystal display (LCD) televisions, and other information display applications; carrier network and enterprise network products for the telecommunications industry; ceramic substrates for gasoline and diesel engines in automotive and heavy duty vehicle markets; laboratory products for the scientific community and specialized polymer products for biotechnology applications; optical materials for the semiconductor industry and the scientific community, and other technologies. As of December 31, 2016, the Company had manufactured products at 98 plants in 17 countries.
Goldman Sachs: P/E Ratio (TTM) 13.04
Goldman Sachs is a leader in the financial services world and, along with its peers, is well positioned as we head into 2018. The global economy is expanding, every time the Fed raises rates, that directly benefits financials, and, the company does well from strong financial markets. It is healthy to see the stock trade just below its record high.
Here is a brief company profile courtesy of Thomson Reuters: The Goldman Sachs Group, Inc., is an investment banking, securities and investment management company that provides a range of financial services to corporations, financial institutions, governments and individuals. The Company operates in four business segments: Investment Banking, Institutional Client Services, Investing & Lending, and Investment Management. As of December 2016, it had offices in over 30 countries.
These are just a few of the under-valued stocks that showed up on my radar this week. Even with the market trading at/near record highs, it is encouraging to see cheap stocks that are poised to breakout.