3 Best Low Price Shares to Buy Today
November 28 2022 - 6:41AM
Finscreener.org
Investors looking to buy cheap
stocks have a ton of opportunity, given the volatile macroeconomic
backdrop in 2022. Here we look at the three best low price shares
investors can buy today. Each of these companies is trading at an
attractive multiple and may stage a comeback to outpace the broader
markets in 2023.
Best low price share to buy #1: Oatly
The first stock on my list
is Oatly (NASDAQ:
OTLY), a Sweden-based oat
milk company. Oatly stock is priced at $1.67 per share, valuing the
company at a market cap of $987 million. Down 92% from all-time
highs, this low priced share has burnt massive investor wealth in
2022.
However, its sales rose 7% year
over year in Q3 to $183 million despite a strong U.S. dollar. But
due to supply chain disruptions and COVID-19-related lockdowns in
China, the company’s gross profit declined to just $4.9 million
from $44.8 million in the year-ago period. The oat milk brand ended
Q3 with a gross margin of a measly 2.7% dragging OTLY stock price
towards record lows this month.
Further, operating expenses for
Q3 stood at $100 million, indicating an operating loss of almost
$105 million. With $100 million in cash, Oatly will soon have to
raise additional capital and aim to enhance the bottom line to
regain investor confidence.
Analysts tracking OTLY stock
expect the company to increase its sales from $643 million in 2021
to almost $900 million in 2023. An acceleration in the top line
should enable Oatly to narrow its losses in the next 12 months,
driving its share price higher in the process.
Best low price share to buy #2: Dutch Bros.
The second best low price share
to buy is Dutch Bros (NYSE: BROS),
a coffee chain that competes with the likes of
Starbucks. Valued at a market cap of almost $6
billion, BROS stock is priced at $35.37 per share.
In Q3 of 2022, Dutch Bros
increased revenue by 53% year over year. In the last 12 months, its
sales have more than doubled compared to 2020, primarily on the
back of new store openings and aggressive expansion
plans.
The company entered new markets,
such as San Diego County, in Q3 after establishing a large presence
on the country’s West Coast. It opened close to 40 new outlets in
Q3, which is almost equivalent to the number of new store openings
in the whole of 2019.
Now, Dutch Bros maintained
itU+02019s on track to open 150 new stores next year, bringing its
total stores to 800, allowing the company to increase sales to
almost $1 billion in 2023, from $500 million in 2021.
Best low price share to buy #3: Coinbase
The final stock on my list
is Coinbase (NASDAQ:
COIN), the world’s
second-largest cryptocurrency
platform. Valued at a market cap of $11.7 billion, COIN stock is
priced at $45, which is 88% below all-time highs.
Coinbase is among the best low
price shares to buy right now due to its leadership position in a
highly disruptive space and a first-mover advantage. In case you
are bullish on the crypto space, investing in Coinbase can help you
derive outsized gains over the long term.
Yes, the current environment is
extremely tumultuous for crypto investors due to big-ticket
liquidations of companies such as FTX, Alameda Research, and 3AC,
among others. Alternatively, it allows you to buy a quality growth
stock at a much lower multiple right now.
Coinbase Global (NASDAQ:COIN)
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