Posted in Cannabis Stocks

Have $500? 2 Absurdly Cheap Stocks Long-Term Investors Should Buy Right Now

 Posted by  Posted on May 31, 2021

a man sitting at a table: Have $500? 2 Absurdly Cheap Stocks Long-Term Investors Should Buy Right Now © Provided by The Motley Fool Have $500? 2 Absurdly Cheap Stocks Long-Term Investors Should Buy Right Now

There’s no shame in hunting for bargains when it comes to stocks. While a cheap per-share price in and of itself doesn’t necessarily indicate that a stock is a good investment, it also doesn’t mean it’s a bad one.

Here are two low-priced stocks that long-term investors should consider scooping up right now.

a man sitting at a table: male investor looking excitedly at computer screen and cheering for joy © Getty Images male investor looking excitedly at computer screen and cheering for joy

1. Jushi Holdings

Trading for less than $6 per share at the time of this writing, Jushi Holdings (OTC: JUSHF) is a small-cap company with serious long-term growth potential. The multistate cannabis operator owns a family of marijuana brands including Tasteology, Nira, and The Lab Concentrates. It also runs a chain of retail cannabis stores spread across Pennsylvania, Illinois, California, and Virginia.

2020 was an extremely profitable, high-growth year for Jushi Holdings. It recorded a nearly 700% spike in revenue, and its gross profits surged by a mouthwatering 760%.

Jushi Holdings reported a 30% increase in revenue during the first quarter of 2021. But the company’s lightning-fast growth isn’t hindering its ability to expand its cash position, as it closed the period with a robust $168 million in cash, cash equivalents, and short-term investments.

The company is also quickly expanding its national presence. In the month of April alone, Jushi Holdings closed its acquisition of a group of marijuana cultivation, manufacturing, and distribution facilities in Nevada and announced more pending deals that are scheduled to close later this year. In Ohio, its purchase of OhiGrow will make Jushi Holdings the owner of one of just 34 licensed cultivators in the state — a key medical marijuana market. And in Massachusetts, where cannabis is legal for both medical and recreational purposes, Jushi plans to acquire Nature’s Remedy, owner of a cultivation and manufacturing facility as well as two retail dispensaries.

As Jushi Holdings continues to grow its footprint in the coming years, its balance sheet and share price could also be considerably augmented. This is a great time to seize upon this premium pot stock’s cheap share price to capitalize on its long-term potential.

Gallery: 15 Small-Cap Companies With High Growth Potential (The Motley Fool)

a person standing in front of a building: When you invest your hard-earned money into the stock market, one of the most crucial factors to keep in mind before you buy any company is that particular investment’s ability to deliver consistent growth and sustain investor returns over the long term. There are many aspects to maintaining a long-term investing strategy, one of which is to commit to holding any stock you buy for three to five years at the very minimum.Many of the most successful long-term investors choose a diversified approach to buying stocks, and small-cap companies are one type of investment that can generate long-term portfolio growth. In fact, some of the most popular large-cap and mega-cap stocks that continue to deliver wealth-building investor returns qualified as small-cap companies just one or two decades ago. Generally speaking, small-cap stocks are companies with market capitalizations that fall in the $300 million to $2 billion range.It’s important to understand that not all small-cap stocks are created equal, nor do all companies that fit into this category have the catalysts and competitive advantages necessary to drive high growth.On that note, let’s take a look at 15 small-cap companies that do have high growth potential and could make investors richer over the next few decades.5 Winning Stocks Under $49We hear it over and over from investors, “I wish I had bought Amazon or Netflix when they were first recommended by the Motley Fool. I’d be sitting on a gold mine!” And it’s true. And while Amazon and Netflix have had a good run, we think these 5 other stocks are screaming buys. And you can buy them now for less than $49 a share! Simply click here to learn how to get your copy of “5 Growth Stocks Under $49” for FREE for a limited time only.

2. Pfizer

Pfizer (NYSE: PFE) skyrocketed to rock-star status during the pandemic when BNT162b2 — which it developed with its German partner, BioNTech — became the first COVID-19 vaccine to earn emergency use authorization from the U.S. Food and Drug Administration. Despite the massive success of BNT162b2, now being marketed as Comirnaty, not to mention a bulletproof portfolio of other lucrative products that have seen strong sales growth, Pfizer’s shares still trade at less than $40.

Pfizer’s coronavirus vaccine is already having a decisive impact on its balance sheet. The company expects to bring in about $26 billion in revenue from Comirnaty in 2021 alone, and it just announced on May 7 that it was filing with the FDA for full approval of the vaccine for use by people 16 and older.

During the first quarter of 2021, Pfizer reported astonishing revenue growth of 42% year over year. But it has plenty of other products beyond its coronavirus vaccine to rely on for future gains. Even when you factor BNT162b2 out of the picture, the company still reported excellent revenue growth of 8% from the prior-year period.

In addition to coronavirus vaccine sales, Pfizer’s robust top-line expansion during the first quarter was driven by consistent single- to double-digit percentage revenue increases across its core business segments. For example, sales in Pfizer’s oncology, internal medicine, and rare disease segments shot up 16%, 10%, and 25%, respectively. Among its top-selling drugs, anticoagulant Eliquis, heart failure medications Vyndaqel and Vyndamax, and rheumatoid arthritis medication Xeljanz recorded sales gains of 25%, 88%, and 18%, respectively. Management is now forecasting full-year revenues in the range of $70.5 billion to $72.5 billion.

Pfizer’s also an attractive option for dividend-seeking investors. The stock yields a healthy 4% at the time of this writing. Moreover, it trades at a mere 20 times trailing earnings. The combination of Pfizer’s affordable price tag and the appealing mixture of growth and value it offers investors makes this stock a no-brainer buy in any market environment.

SPONSORED:

10 stocks we like better than Jushi Holdings

When investing geniuses David and Tom Gardner have a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.*

David and Tom just revealed what they believe are the ten best stocks for investors to buy right now… and Jushi Holdings wasn’t one of them! That’s right — they think these 10 stocks are even better buys.

See the 10 stocks

 

*Stock Advisor returns as of May 11, 2021

 

Rachel Warren has no position in any of the stocks mentioned. The Motley Fool owns shares of and recommends Jushi Holdings. The Motley Fool has a disclosure policy.

Author: CSN