Here is a couple of CHEAP (priced below $50) stocks that might be worth your attention this week. This short list was compiled with help of various sources of data, including Buy recommendations from several renowned stock data providers and analytical services. This is why I’m calling the approach a consensus strategy. The stocks I’m going to present you below are generally believed to outperform the stock market in the coming months, they have a consensus recommendation of Buy, their fundamentals are scored considerably better than most stocks and their average target price by stock analysts is above current market valuation.
In order to consider buying the stock’s shares, the following criteria need to be satisfied:
- TheStreet score: A+, A or A- (Strong Buys)
- Yahoo Finance recommendation: at least mixed Buy/Hold
- MarketBeat recommendation: at least mixed Buy/Hold
- Yahoo Finance target price: min. 5% higher than current price
- Piotroski F-Score: min. 4
- Moody’s Daily Credit Risk: 1 to 6
- InvestorsObserver Overall Score: min. 50
- Descriptions of those criteria are provided at the end of this post.
- The criteria used here are less restrictive than those I’m using in general, without requirement taht the stock price is below $50. This is because cheap stocks tend to have weaker fundamentals and, typically, are less favored by stock experts