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11 Best Cheap Stocks To Buy For Long Term

In this piece, we will take a look at the 11 best cheap stocks to buy now for the long term. If you want to skip our coverage of the latest stock market news and stock valuation, then take a look at 5 Best Cheap Stocks To Buy For Long Term.

The stock market has been in a constant state of flux over the past 18 months. The outbreak of the coronavirus pandemic and the Russian invasion of Ukraine kicked off a devastating inflationary cycle that spurred central banks all over the world to rapidly hike interest rates. Naturally, this increased the cost of capital and led money to flow away from the stock market into other markets. At the same time, investors chose to focus on energy stocks in 2022, which led to high growth technology companies such as Meta Platforms, Inc. (NASDAQ:META) tanking.

This trend reversed in 2023, which marked the dawn of the artificial intelligence (A.I.) era for both stock market investors and the technology industry. This caused triple digit percentage share price growths for a variety of technology companies, with the standout being NVIDIA Corporation (NASDAQ:NVDA) whose shares have gained 240% year to date.

Now, with 2023 coming to a close, it appears as if the market is ready to enter a new era. Throughout most of this year, investors have fretted about the Federal Reserve’s interest rate hikes, as they were uncertain when the central bank would stop the increases and about the timelines of potential cuts. On this front, November has proven to be a crucial month since inflation on the consumer and industrial ends has started to exhibit a downward trend. This has translated into optimism for markets, with the Dow Jones Industrial Average (DJIA) rising and bond yields falling. The DJIA, considered to be a broader representation of the U.S. economy, has gained 7% during October’s last week and November’s first three weeks. Similarly, the tech heavy NASDAQ Composite is up by 9% during the same time period, with the S&P 500 up by nearly 10%. However, some investors are unconvinced, since they are worried that the full effect of the Fed’s interest rate is yet to make its way through the economy. When it does, they believe it will cause economic output to drop and have a similar effect on the stock market.

Shifting gears to focus on stock valuations, one of the most popular approaches is calculating the price to earnings ratio. This ratio measures the premium that the market is paying over a firm’s profits. The higher this value, the more expensive a stock is since the premium paid is significantly higher than the money that the firm brings in its offers. A P/E ratio is calculated either through a firm’s current earnings or its forecasted earnings, and the ratio is also an easy way to weed out companies that are profitable.

While the P/E ratio is a valuation measure, the future trend of a stock price can also be determined through forecasting its share price. This process involves evaluating a company’s current business operations and using a set of assumptions to project its future cash flows. This provides a fair value share price estimate that can be relied on to make bets today with the hope that the stock will reach this value in the future to yield a profit. Investing in firms that are cheaper than what their intrinsic value might suggest is called value investing. A simple approach on the surface, it has produced billionaires in the finance and hedge fund industry with towering figures such as Warren Buffett of Berkshire Hathaway and Seth Klarman of Baupost Group having relied on it to become some of the richest people in the world. We’ve taken a look at some of their best long term stocks to buy as well. For instance, our coverage of 12 Best Long-Term Stocks To Buy According To Warren Buffett revealed that the top three stocks in this list are Visa Inc. (NYSE:V), Mastercard Incorporated (NYSE:MA), and Apple Inc. (NASDAQ:AAPL), while some value stocks that Seth Klarman loves are Gray Television, Inc. (NYSE:GTN), Herbalife Ltd. (NYSE:HLF), and Jazz Pharmaceuticals plc (NASDAQ:JAZZ).

With this backdrop, let’s take a look at some best cheap stocks to buy now. The top three stocks in this list are Southwestern Energy Company (NYSE:SWN), First Citizens BancShares, Inc. (NASDAQ:FCNCA), and Hertz Global Holdings, Inc. (NASDAQ:HTZ).

Our Methodology

To compile our list of the best cheap stocks to buy, we first made a list of all stocks with a market capitalization greater than $300 million that are rated Buy or better by analysts. Then, the 40 with the lowest price to forward earnings ratio were selected. They were ranked by the number of hedge funds that had invested in them during Q3 2023 courtesy of Insider Monkey’s 910 hedge fund database and the top cheap best stocks to buy are as follows.

Best Cheap Stocks To Buy Now For Long Term

11. Community Health Systems, Inc. (NYSE:CYH)

Latest Price To Earnings Ratio: 9.17

Number of Hedge Fund Investors In Q3 2023: 20

Community Health Systems, Inc. (NYSE:CYH) is an American hospital operator with nearly twenty thousand beds in its portfolio. Its shares are rated Buy on average average and analysts have set an average share price target of $4.59.

By Q3 2023 end, 20 out of 910 hedge funds profiled by Insider Monkey were the firm’s investors. Community Health Systems, Inc. (NYSE:CYH)’s largest hedge fund stakeholder is Kamran Moghtaderi’s Eversept Partners courtesy of its $20.7 million investment.

Along with First Citizens BancShares, Inc. (NASDAQ:FCNCA), Southwestern Energy Company (NYSE:SWN), and Hertz Global Holdings, Inc. (NASDAQ:HTZ), Community Health Systems, Inc. (NYSE:CYH) is a highly rated cheap stock.

10. Teekay Tankers Ltd. (NYSE:TNK)

Latest Price To Earnings Ratio: 4.82

Number of Hedge Fund Investors In Q3 2023: 20

Teekay Tankers Ltd. (NYSE:TNK) is a Bermuda based oil transportation company that owns and operates tankers. Its shares are rated Strong Buy on average and analysts have set an average share price target of $63.83 for a $12 share price upside. Amidst dropping profits, the firm sought to satiate investors in November 2023 as it declared a 25 cent dividend.

During September 2023, 20 out of the 910 hedge funds part of Insider Monkey’s database had held a stake in Teekay Tankers Ltd. (NYSE:TNK). Out of these, the firm’s biggest shareholder was Israel Englander’s Millennium Management as it owned 640,821 shares that were worth $26.6 million.

9. International Seaways, Inc. (NYSE:INSW)

Latest Price To Earnings Ratio: 4.86

Number of Hedge Fund Investors In Q3 2023: 25

International Seaways, Inc. (NYSE:INSW) is an American crude oil company that transports the products through its tankers. The firm’s third quarter results saw its profit drop as employee and vessel expenses made their impact on the income statement.

As of Q3 2023 end, 25 out of the 910 hedge funds profiled by Insider Monkey had held a stake in the company. International Seaways, Inc. (NYSE:INSW)’s largest hedge fund investor is Jeremy Hosking’s Hosking Partners as it owns a $43.4 million stake.

8. Stellantis N.V. (NYSE:STLA)

Latest Price To Earnings Ratio: 3.45

Number of Hedge Fund Investors In Q3 2023: 27

Stellantis N.V. (NYSE:STLA) is one of the biggest car manufacturing companies in the world, known for its different brands such as Chrysler, Dodge, and Fiat. While the firm’s manufacturing plants are calmer now after it entered into a deal with union workers, a 10,000 electric SUV recall in November 2023 kept the firm on its feet.

Insider Monkey dug through 910 hedge funds for their shareholdings during this year’s September quarter to discover that 27 had bought and owned Stellantis N.V. (NYSE:STLA)’s shares. Peter Rathjens, Bruce Clarke, and John Campbell’s Arrowstreet Capital is the firm’s biggest shareholder among these since it owns $855 million worth of shares.

7. Vital Energy, Inc. (NYSE:VTLE)

Latest Price To Earnings Ratio: 2.93

Number of Hedge Fund Investors In Q3 2023: 30

Vital Energy, Inc. (NYSE:VTLE) invests in oil and gas exploration and production properties. It is headquartered in Houston, Texas. Like other oil companies, it is also busy expanding its presence in the Permian Basin, and it signed $1.1 billion worth of agreements for this purpose in September 2023.

During the same month, 30 hedge funds among the 910 profiled by Insider Monkey were the firm’s shareholders. Vital Energy, Inc. (NYSE:VTLE)’s largest hedge fund investor is Sameer Sethna’s Aventail Capital Group due to its $60.1 million stake.

6. PBF Energy Inc. (NYSE:PBF)

Latest Price To Earnings Ratio: 9.05

Number of Hedge Fund Investors In Q3 2023: 35

PBF Energy Inc. (NYSE:PBF) is an oil refiner headquartered in Parsippany, New Jersey. The firm was busy tidying up its balance sheet during the third quarter, as it reduced its debt by $170 million and bought back $590 million of shares.

Insider Monkey’s September quarter of 2023 survey covering 910 hedge funds revealed that 35 had held a stake in the company. PBF Energy Inc. (NYSE:PBF)’s biggest shareholder in our database is Peter Rathjens, Bruce Clarke, and John Campbell’s Arrowstreet Capital since it owns 3.3 million shares that are worth $180.8 million.

Southwestern Energy Company (NYSE:SWN), PBF Energy Inc. (NYSE:PBF), First Citizens BancShares, Inc. (NASDAQ:FCNCA), and Hertz Global Holdings, Inc. (NASDAQ:HTZ) are some top rated cheap stocks.

Click here to continue reading and check out 5 Best Cheap Stocks To Buy Now For Long Term.

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Disclosure: None. 11 Best Cheap Stocks To Buy Now For Long Term is originally published on Insider Monkey.

AI, Tariffs, Nuclear Power: One Undervalued Stock Connects ALL the Dots (Before It Explodes!)

Artificial intelligence is the greatest investment opportunity of our lifetime. The time to invest in groundbreaking AI is now, and this stock is a steal!

AI is eating the world—and the machines behind it are ravenous.

Each ChatGPT query, each model update, each robotic breakthrough consumes massive amounts of energy. In fact, AI is already pushing global power grids to the brink.

Wall Street is pouring hundreds of billions into artificial intelligence—training smarter chatbots, automating industries, and building the digital future. But there’s one urgent question few are asking:

Where will all of that energy come from?

AI is the most electricity-hungry technology ever invented. Each data center powering large language models like ChatGPT consumes as much energy as a small city. And it’s about to get worse.

Even Sam Altman, the founder of OpenAI, issued a stark warning:

“The future of AI depends on an energy breakthrough.”

Elon Musk was even more blunt:

“AI will run out of electricity by next year.”

As the world chases faster, smarter machines, a hidden crisis is emerging behind the scenes. Power grids are strained. Electricity prices are rising. Utilities are scrambling to expand capacity.

And that’s where the real opportunity lies…

One little-known company—almost entirely overlooked by most AI investors—could be the ultimate backdoor play. It’s not a chipmaker. It’s not a cloud platform. But it might be the most important AI stock in the US owns critical energy infrastructure assets positioned to feed the coming AI energy spike.

As demand from AI data centers explodes, this company is gearing up to profit from the most valuable commodity in the digital age: electricity.

The “Toll Booth” Operator of the AI Energy Boom

  • It owns critical nuclear energy infrastructure assets, positioning it at the heart of America’s next-generation power strategy.
  • It’s one of the only global companies capable of executing large-scale, complex EPC (engineering, procurement, and construction) projects across oil, gas, renewable fuels, and industrial infrastructure.
  • It plays a pivotal role in U.S. LNG exportation—a sector about to explode under President Trump’s renewed “America First” energy doctrine.

Trump has made it clear: Europe and U.S. allies must buy American LNG.

And our company sits in the toll booth—collecting fees on every drop exported.

But that’s not all…

As Trump’s proposed tariffs push American manufacturers to bring their operations back home, this company will be first in line to rebuild, retrofit, and reengineer those facilities.

AI. Energy. Tariffs. Onshoring. This One Company Ties It All Together.

While the world is distracted by flashy AI tickers, a few smart investors are quietly scooping up shares of the one company powering it all from behind the scenes.

AI needs energy. Energy needs infrastructure.

And infrastructure needs a builder with experience, scale, and execution.

This company has its finger in every pie—and Wall Street is just starting to notice.

Wall Street is noticing this company also because it is quietly riding all of these tailwinds—without the sky-high valuation.

While most energy and utility firms are buried under mountains of debt and coughing up hefty interest payments just to appease bondholders…

This company is completely debt-free.

In fact, it’s sitting on a war chest of cash—equal to nearly one-third of its entire market cap.

It also owns a huge equity stake in another red-hot AI play, giving investors indirect exposure to multiple AI growth engines without paying a premium.

And here’s what the smart money has started whispering…

The Hedge Fund Secret That’s Starting to Leak Out

This stock is so off-the-radar, so absurdly undervalued, that some of the most secretive hedge fund managers in the world have begun pitching it at closed-door investment summits.

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Why? Because excluding cash and investments, this company is trading at less than 7 times earnings.

And that’s for a business tied to:

  • The AI infrastructure supercycle
  • The onshoring boom driven by Trump-era tariffs
  • A surge in U.S. LNG exports
  • And a unique footprint in nuclear energy—the future of clean, reliable power

You simply won’t find another AI and energy stock this cheap… with this much upside.

This isn’t a hype stock. It’s not riding on hope.

It’s delivering real cash flows, owns critical infrastructure, and holds stakes in other major growth stories.

This is your chance to get in before the rockets take off!

Disruption is the New Name of the Game: Let’s face it, complacency breeds stagnation.

AI is the ultimate disruptor, and it’s shaking the foundations of traditional industries.

The companies that embrace AI will thrive, while the dinosaurs clinging to outdated methods will be left in the dust.

As an investor, you want to be on the side of the winners, and AI is the winning ticket.

The Talent Pool is Overflowing: The world’s brightest minds are flocking to AI.

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A New Dawn is Coming to U.S. Stocks

I work for one of the largest independent financial publishers in the world – representing over 1 million people in 148 countries.

We’re independently funding today’s broadcast to address something on the mind of every investor in America right now…

Should I put my money in Artificial Intelligence?

Here to answer that for us… and give away his No. 1 free AI recommendation… is 50-year Wall Street titan, Marc Chaikin.

Marc’s been a trader, stockbroker, and analyst. He was the head of the options department at a major brokerage firm and is a sought-after expert for CNBC, Fox Business, Barron’s, and Yahoo! Finance…

But what Marc’s most known for is his award-winning stock-rating system. Which determines whether a stock could shoot sky-high in the next three to six months… or come crashing down.

That’s why Marc’s work appears in every Bloomberg and Reuters terminal on the planet…

And is still used by hundreds of banks, hedge funds, and brokerages to track the billions of dollars flowing in and out of stocks each day.

He’s used this system to survive nine bear markets… create three new indices for the Nasdaq… and even predict the brutal bear market of 2022, 90 days in advance.

Click to continue reading…