Insider Monkey

10 Cheap Rising Stocks to Buy

Fahad Saleem
Updated 7 min read

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In this article, we will take a look at the 10 cheap rising stocks to buy. To see more such companies, go directly to 5 Cheap Rising Stocks to Buy.

Investing in stocks when they are trading cheap as compared to their true valuations is perhaps one of the simplest and straightforward ways to make money. But it’s easier said than done, especially when the markets are going through turmoil amid rising inflation, banking crisis and the Federal Reserve’s policy of rate hikes. Still, wise investors insist on buying cheap and undervalued stocks for the long term. In October 2022, Jeremy Siegel, Professor of Finance at the Wharton School of the University of Pennsylvania in Philadelphia, Pennsylvania, said that stocks were “marvelous” for long term. Siegel, who is optimistic about the stock market, said at the time that the fear of interest rate hikes and global macroeconomic challenges were keeping investors at bay when it comes to investing in the stock market. While he acknowledged that in the short term investing in stocks could be “rocky,” the analyst said he wouldn’t be surprised if the stocks would be 20%-30% higher in the future. Siegel remains bullish on the stock market in 2023. In his latest commentary, the professor said that had the banking crisis occurred later, it would have led to much higher interest rates. Siegel believes the “silver lining” in all of the current market chaos is that the banking crisis could cause the Federal Reserve to slow or pause interest rate hikes.

"I enter the second quarter with a cautious outlook. I would like to see the Fed recognize the cumulative impact of its tightening and that inflationary pressures are no longer a primary concern. I would go with a pause at the next Fed meeting, but we still have six weeks to go. We will be getting CPI data, employment data, and a lot more anecdotal data on lending and borrowing impacts to gauge the Fed’s likely course," Siegel wrote.

There’s one thing common between the top investors and hedge fund managers in the world: they always invest in solid businesses that are fundamentally strong and have a lifecycle that equates to an eternity. One such successful investor is Leon Cooperman. Cooper recently gave an interview to Forbes and explained why he is skeptical of investing in stocks trading at outlandish valuations.

I always have been value oriented. I was a disciple of Warren Buffett, Benjamin Graham and David Dodd, and I like to get more for my money than I pay. I’ve observed that technology is a double-edged sword. Somebody’s innovation is another’s obsolescence, so I’ve never understood paying high multiples for businesses when they could have a short run life. Look at Meta as a perfect example. TikTok seems to be taking their market away from them and their stock has collapsed. When you pay a very high multiple, it seems that you have to have confidence in a high level of earnings growth for a protracted period of time. The product cycle is getting shorter and the competition more intense, so that’s not a game I feel comfortable playing.

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