Cheapest shares to invest in 2024: a comprehensive guide

Cheapest shares for 2024: discover affordable stock investment options

The pursuit of finding valuable yet affordable investment opportunities in the ever-changing landscape of the stock market remains a key focus for investors. This ongoing search is driven by the desire to uncover stocks that not only fit within a reasonable budget but also hold the promise of significant growth and returns.

Our updated guide focuses on the cheapest shares to invest in for 2024 for both experienced investors and newcomers. In this article, we identify promising low-cost stocks with significant growth potential.

What are cheap stocks?

Cheap stocks are shares of companies that are priced lower than the average price of stocks in the market. In other words, they are stocks that trade at a lower price per share compared to their peers. However, it's important to note that the price of a stock alone does not determine its value or potential for growth.

A stock's value is influenced by many factors, including the company's financial performance, market conditions, industry trends, and more. Therefore, investors should conduct thorough research and analysis before investing in any stock, whether it's cheap or expensive.

7 cheap growth stocks to consider in 2024

There are some stocks that don't cost much but have a lot of potential to grow. Below seven of these stocks are listed. They come from different industries like technology, real estate, and finance. Let's take a closer look at each one and see why they might be good choices for your investment portfolio this year.

• Key products and research: Zymeworks is known for its research and development in oncology, with several products in various stages of clinical trials. Their lead product candidates typically target various forms of cancer and are designed to address unmet medical needs in the oncology field.
• Market performance: As with many biopharmaceutical companies, Zymeworks' stock performance is likely influenced by the progress and results of its clinical trials, partnerships, and potential FDA approvals. The biotech sector, in general, can be volatile, with stock prices reacting significantly to news about drug development progress or regulatory decisions.

P/E ratio as of January 2024 (TTM): 3.69

• Business model and strategy: IIPR's business model involves purchasing and leasing back properties to medical cannabis operators under long-term, net-lease agreements. This model provides the company with stable rental income while allowing cannabis operators to free up capital.
• Market performance: As a REIT, IIPR's performance is often evaluated based on its dividend yield, rental income stability, and growth potential in the cannabis industry. The stock's performance can be influenced by factors such as changes in cannabis legislation, the growth of the medical cannabis market, and general real estate market conditions.

P/E ratio as of January 2024 (TTM): 17.4

• Business model and services: Shift4 Payments' business model revolves around offering end-to-end payment solutions that include payment processing, point-of-sale (POS) systems, and related software applications. Their services are known for streamlining payment processing while ensuring security and compliance.
• Market performance: Shift4 Payments' stock performance is influenced by factors such as the growth of digital payments, the adoption of their services across various industries, and the overall health of the e-commerce and retail sectors. As a fintech company, they are also impacted by technological advancements and competitive dynamics in the payment processing industry.

P/E ratio as of January 2024 (TTM): 36.9

• Business model and services: Mr. Cooper Group's business model encompasses a wide range of mortgage services. This includes mortgage origination (helping customers finance homes), mortgage servicing (managing mortgage accounts), and real estate services (assisting in the sale and purchase of homes). The company aims to provide a customer-centric approach to mortgage servicing and lending.
• Market performance: The performance of Mr. Cooper Group's stock is closely tied to the health of the real estate market, interest rate trends, and the overall economic climate. Factors such as changes in mortgage rates, housing market dynamics, and regulatory changes in the housing finance sector can significantly impact the company's performance.

P/E ratio as of January 2024 (TTM): 9.41

• Business model and services: Comtech's business model provides sophisticated communication solutions to a diverse client base, including government, military, and commercial customers. Their services and products range from satellite ground station technologies to emergency response communication systems and secure wireless communications.
• Market performance: The performance of Comtech's stock is influenced by various factors, including government spending on defense and communications, advancements in satellite and communication technology, and the company's ability to secure new contracts and maintain existing ones.

P/E ratio as of January 2024 (TTM): -6.34

• Business model and services: Bancolombia's business model is centered around providing comprehensive banking solutions to individuals, businesses, and corporations. The bank focuses on expanding its customer base, enhancing digital banking services, and maintaining a strong presence in key Latin American markets.
• Market performance: As a major bank in Latin America, Bancolombia's performance is closely linked to the economic conditions in Colombia and its other markets. Factors such as interest rate changes, economic growth, and regional stability can significantly impact the bank's performance.

P/E ratio as of December 2023 (TTM): 5.21

• Business model and services: Cinemark's business model revolves around providing a premium movie-going experience. This includes state-of-the-art projection and sound technology, comfortable seating, and a wide range of concessions. The company also generates revenue through advertising and promotional events.
• Market performance: Cinemark's performance is closely tied to the film industry, including box office revenues and the success of major film releases. The company's stock can be influenced by trends in consumer entertainment preferences, the competitive landscape of the movie theater industry, and broader economic factors that affect discretionary consumer spending.

P/E ratio as of December 29, 2023, is 25.13

These are seven options for cheap growth stocks in 2024. Each one offers a unique chance to invest in a growing company at a reasonable price. Keep in mind, that investing always has risks, but choosing wisely from these options could lead to rewarding outcomes. Stay informed and consider these stocks as you plan your investment strategy for the year

Investing in cheap stocks can be a strategic way to grow your wealth. However, it's important to approach this with informed research and an understanding of the associated risks. Stay updated, seek advice from financial experts, and take the first step towards a prosperous financial future.

Also recommended: What is CFD trading?

Steps: how to invest in cheap stocks

Here are some general steps to consider when investing in cheap stocks:

Conclusion

Investing in the stock market can be a wise way to grow your wealth, and finding the cheapest shares to invest in can be a smart strategy. However, it's important to remember that investing always involves risk. So, take the time to research, consult with a financial advisor, and start investing in your financial future today.

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