When you’re a beginner to investing, you’ll usually be told to invest in bigger, safe companies such as Apple, Amazon, Disney, and Netflix. While those are all great stocks to invest in, there are also some great lesser-known stocks that you can be looking into.
The stocks we’ll go over include:
- Zynga (NASDAQ:ZNGA)
- Franks International (NYSE:FI)
- Petrobras (NYSE:PBR)
- Clean Energy Fuels (NASDAQ:CLNE)
- Trivago (NASDAQ:TRVG)
- Ambev (NYSE:ABEV)
These stocks are all lower than $15, but as usual, we encourage you to do your own research and risk assessment when investing in a new company. With that being said, let’s dive in.
Zynga is a mobile and social media-based video game manufacturer that found its popularity in 2018, and then after being in a funk for a bit, surged again in 2020 when the lockdowns across the globe occurred.
However, right now, Zynga is in a bit of a sideways consolidation pattern. As the world reopens, less people are gaming and more are socializing with friends and family which is causing some to pull out of Zynga stock. However, this has driven the price of the stock down.
Plus, with concerns rising over the delta variant, we may be headed for another round of restrictions (sigh). And even if not, colder months are coming, and we don’t know about you but there’s nothing quite more relaxing than spending a couple hours on a cold day playing a video game.
All in all, Zynga has demonstrated incredible growth in the past year. The company’s top-line sales have been up 68% year-over-year, and we think this is a great stock to watch. The share price is currently at $10.35 USD.
Franks International (FI)
Franks International is a global oil services company providing “a broad and comprehensive range of highly engineered tubular running services, tubular fabrication, drilling technologies, and specialty well construction and well intervention solutions.”
Although FI is currently in a bit of a downward trend, this could be due to the shift toward renewable energy infrastructures. And although going fully green is on many companies and governments’ radar right now, it’s surely not going to happen overnight. Energy diversity is a more likely outcome right now, since it would be very difficult to make a quick switch to a fully renewable world right away.
The stock is currently at 2.66 USD and is something to look into.
Petrobras is a state-owned Brazilian corporation in the petroleum industry, and is officially known as Petróleo Brasileiro.
Oil firms have generally been great cheap stocks to buy during the first half of the year, however the bigger companies have already had a big boost and so the optimism has already been priced in. Investors have overall found safety in big, established names. However, Petrobras may be a bit more risky because of its exposure to the rocky Latin American economy.
Nonetheless, oil is still very much a relevant part of our economy, and Petrobras has benefitted largely during the pandemic, so it’s definitely something to look into. The stock is currently sitting at 6.67 CAD.
Clean Energy Fuels (CLNE)
You didn’t think we were going to leave out talking about sustainable energy brands, did you? Clean Energy Fuels specializes in renewable natural gas (i.e. transportation fuel created from natural waste), providing implications for the current transportation model.
Although there is some environmental impact with renewable natural gas (RNG), it still has a lower impact than fossil fuels. Companies like Clean Energy Fuels are likely to grow substantially in the next few years due to the demand for clean energy. RNG is intriguing because it can convert emissions from landfills to practical energy.
RNG may be a good transitional solution for the transportation industry, because moving to fully zero emissions will likely not happen for a while. With all that being said though, CLNE stock is still pretty risky, and the less-than-impressive financial performance from the company lately has led some to avoid this stock. However, we think it’s worth looking into. CLNE is currently priced at 9.76 CAD.
Trivago is an internet tech firm that focuses on services and products in the hotel, lodging, and metasearch fields. TRVG stock showed growth in 2019 just before the pandemic, which was obviously not great for the company.
The reopening of the world should be good for Trivago, and this has proven true in the first quarter of 2021. However with Covid-19 variants ramping up, Trivago may be in for another roller coaster. Still, it’s possible that variants may not be as bad as people are predicting, so this stock is definitely one to watch. The current price of a TRVG share is only 3.72 CAD.
Ambev is a Brazilian brewing company under the Anheusar Busch brand and has been up over 27% during the pandemic. Spectators are hoping that this will be a new trend for Ambev rather than the losses that have occurred over the past month for the company. A lot may depend on how the pandemic plays out from here.
Ambev would likely be very successful if the pandemic gets under control in North America, due to an increase in travel to Central and South America resulting in higher alcoholic beverage sales in those areas.
However, many countries that Ambev is popular in have been Covid-19 hotspots, so you should do your own risk assessment before buying this stock. The price of a share is currently at 4.15 CAD.
Cheap Stocks Conclusion:
And there you have it! 6 cheap, low-key stocks to keep on your radar as a millennial. Whether or not you want to wait to see how the pandemic rolls out with the new variants before you buy any of these is up to you. Nonetheless, it’s great to diversify your portfolio and invest in more low-key, lesser known stocks. A good rule of thumb especially when you’re starting out is to follow the 80/20 rule: 80% of your portfolio is invested in “boring” or safe stocks like Apple and Amazon, and 20% is invested in exciting, more unpredictable stocks like the ones previously mentioned.
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