Bargain-priced stocks may seem hard to find at times, especially when investors fear too many stocks are overpriced. A way to consider buying a cheap stock is to look at its growth potential and projected earnings.
Some stocks might report declining sales in the past few years, but they are set for big gains ahead, depending on the sector or industry they are in. In the meantime, they become undervalued. There are also companies that go unnoticed for one reason or another, and now is the time to buy these stocks for potential profits.
There are plenty of cheap stocks out there with great rewards for the future. Here are the top seven bargain-priced stocks for 2017:
- Advanced Semiconductor (ASX) — Sales are expected to rise 6.7 percent in 2017, according to Forbes, which named it one of the cheap dividend-growth stocks to pick for the year at a 5.0-percent yield.
- Fidelity National Financial (FNF) — The quarterly dividend has increased 13 percent on average each year during the past three years and revenues are climbing with a 5.2 year-over-year rate.
- New Senior Investment Group, Inc. (SNR) — The REIT operates independent and assisted-living facilities with more than 150 properties in 37 states, according to InvestorPlace.
- Ashford Hospitality Trust, Inc. (AHT) — The underpriced REIT promises value with its high-class, full-service hotels. Revenues continue to improve and the stock has a 6.2-percent yield, InvestorPlace notes.
- CVS Health (CVS) — The stock has dropped more than 30 percent since 2015, but that is part of the reason it makes a good buy, according to Todd Ahlsten, manager of Parnassus Core Equity. Sales continue to increase and CVS remains a leading retail pharmacy, he tells Time.
- Sabesp (SBS) — Also known as Companhia de Saneamento Basico do Estado de Sao Paulo, Sabesp provides water and wastewater services in Brazil. The stock is available at a cheap price and is expected to have solid growth in 2017, according to the Motley Fool.
- InterDigital (NASDAQ: IDCC) — The designer and developer of advanced technologies has outperformed the market during a 10-year period, the Motley Fool reports. Its growth potential makes it a value-priced stock.
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