12 Cheap NASDAQ Stocks To Buy
In this piece, we will take a look at the 12 cheap NASDAQ stocks to buy. To skip our overview of one of the world's largest stock exchanges and some recent financial news, read 5 Cheap NASDAQ Stocks To Buy.
Stocks markets have been taking a hammering over the past couple of years amid a flurry of negative events, including Russian's invasion of Ukraine, rising inflation, a surge in interest rates, among other factors. However, a surge in market and industry hype surrounding artificial intelligence proved to be a boon for big technology companies in 2023. Since all of these are traded on the NASDAQ exchange, the H1 2023 technology stock surge led to the NASDAQ 100 appreciating by 40% during the time period, for its best performance in history.
However, as investors were left scratching their heads and booking their gains after the strong performance, the second half of the year saw stock market and economic turbulence return. This was primarily in the form of multiple economic reports that provided a diverging set of indicators about the Federal Reserve's future interest rate decision making. The American economy continued to grow during the second and first quarters of 2023, and while during normal times this would be a beneficial stock market development, 2023 saw investors worry that it provided the central bank with more leeway to hike interest rates. At the same time, while inflation started to slow down, the labor market continued to remain robust.
The latest inflation report released November 14 boosted investor' hopes that the Fed might be done with its rate-hike spree. All eyes right now are on the Fed's December huddle, and more than 90.2% of investors part of the financial services firm CME Group Inc. (NASDAQ:CME)'s Fed Watch tool believe that interest rates will be kept at current levels.
Therefore, it appears that as we exit 2023, the stock market is looking to end a rough year on a positive note. Analysts at Bank of America charted the growth in valuations of the Technology Select Sector SPDR Fund (NYSE:XLK), a $47.3 billion fund that tracks the performance of the S&P500 index's technology sector, with the broader S&P500 index to show that the fund has gained 47% since the release of ChatGPT. This significantly outpaces the S&P500's 18% gain during the same time period to mirror the peak of the dot-com bubble and the bull market of the 1960s.
Based on these factors, it appears that now would be the right time to get into the NASDAQ. This is particularly true since a tight economy often depresses stocks and reduces their valuations even though they might be fundamentally unwarranted. Consequently, we took a look at some cheap NASDAQ stocks to buy and the top picks are AMC Networks Inc. (NASDAQ:AMCX), CommScope Holding Company, Inc. (NASDAQ:COMM), and Brighthouse Financial, Inc. (NASDAQ:BHF).
Image by Sergei Tokmakov Terms.Law from Pixabay
Our Methodology
To compile our list of cheap NASDAQ stocks to buy, we first compiled a list of 40 companies with market capitalization greater than $300 million and low price to forward earnings ratios. Then, they were ranked by the P/E ratios and the top cheap NASDAQ stocks to buy are as follows.
Cheap NASDAQ Stocks To Buy
12. American Airlines Group Inc. (NASDAQ:AAL)
Forward Price To Earnings Ratio: 4.06
Number of Hedge Fund Investors In Q2 2023: 35
American Airlines Group Inc. (NASDAQ:AAL) is one of the largest airlines in the world with more than nine hundred aircraft in its portfolio. These days it is aiming to boost its revenue from the frequent flier program, and the firm intends to target under served routes within the U.S. as a strategy.
After digging through 910 hedge funds for their second quarter of 2023 investments, Insider Monkey discovered that 35 had held a stake in American Airlines Group Inc. (NASDAQ:AAL). Jim Simons' Renaissance Technologies owns the largest stake among these, which is worth $306 million.
Just like CommScope Holding Company, Inc. (NASDAQ:COMM), AMC Networks Inc. (NASDAQ:AMCX), and Brighthouse Financial, Inc. (NASDAQ:BHF), American Airlines Group Inc. (NASDAQ:AAL) is a cheap NASDAQ stock to buy.
11. Consensus Cloud Solutions, Inc. (NASDAQ:CCSI)
Forward Price To Earnings Ratio: 3.83
Number of Hedge Fund Investors In Q2 2023: 11
Consensus Cloud Solutions, Inc. (NASDAQ:CCSI) is an American software company that serves the needs of business customers. Like other cloud technology providers, it is also focusing on AI and the firm announced a new platform in August 2023 to automate patient data collection from fax messages.
During June 2023, 11 out of the 910 hedge funds polled by Insider Monkey were the firm's investors. Consensus Cloud Solutions, Inc. (NASDAQ:CCSI)'s biggest hedge fund shareholder is Jeffrey Gates' Gates Capital Management as it owns 1.7 million shares that are worth $54.8 million.
10. AGNC Investment Corp. (NASDAQ:AGNC)
Forward Price To Earnings Ratio: 3.77
Number of Hedge Fund Investors In Q2 2023: 18
AGNC Investment Corp. (NASDAQ:AGNC) is a real estate investment trust that invests in residential properties. The firm's third quarter results saw its economic return for the quarter stand at -10.1% on the back of a drop in book value per share.
For their second quarter of 2023 investments, 18 among the 910 hedge funds tracked by Insider Monkey had held AGNC Investment Corp. (NASDAQ:AGNC)'s shares. Ken Griffin's Citadel Investment Group owns the largest stake among these as it owns a $34.7 million stake.
9. United Airlines Holdings, Inc. (NASDAQ:UAL)
Forward Price To Earnings Ratio: 3.68
Number of Hedge Fund Investors In Q2 2023: 40
United Airlines Holdings, Inc. (NASDAQ:UAL) is an American airline with more than a hundred thousand employees. The firm has been capitalizing on the travel sector's post COVID recovery well as it has beaten analyst EPS estimates in all four of its latest quarters.
By the end of this year's second quarter, 40 hedge funds out of the 910 polled by Insider Monkey had invested in the company. United Airlines Holdings, Inc. (NASDAQ:UAL)'s biggest hedge fund shareholder is Ken Griffin's Citadel Investment Group courtesy of its $272 million investment that comes via 4.9 million shares.
8. Canadian Solar Inc. (NASDAQ:CSIQ)
Forward Price To Earnings Ratio: 3.57
Number of Hedge Fund Investors In Q2 2023: 16
Canadian Solar Inc. (NASDAQ:CSIQ) is an energy products provider that sells solar panels and other associated products. It is currently expanding its U.S. manufacturing footprint and plans to invest $800 million solar panel factory in Indiana for this purpose.
For their June quarter of 2023 shareholdings, 16 out of the 910 hedge funds part of Insider Monkey's research had bought and invested in Canadian Solar Inc. (NASDAQ:CSIQ). Ken Griffin's Citadel Investment Group owns the largest stake out of these, which is worth $56 million.
7. Qifu Technology, Inc. (NASDAQ:QFIN)
Forward Price To Earnings Ratio: 3.52
Number of Hedge Fund Investors In Q2 2023: 11
Qifu Technology, Inc. (NASDAQ:QFIN) is a Chinese financial services company that connects borrowers with lenders. It's the first stock on our list that is rated Strong Buy on average, and analysts have set an average share price target of $24.38.
Out of the 910 hedge funds part of Insider Monkey's second quarter of 2023 database, 11 had held a stake in the financial services company. Qifu Technology, Inc. (NASDAQ:QFIN)'s biggest hedge fund investor is Richard Li's OLP Capital as it owns $221 million worth of shares.
6. Collegium Pharmaceutical, Inc. (NASDAQ:COLL)
Forward Price To Earnings Ratio: 3.47
Number of Hedge Fund Investors In Q2 2023: 21
Collegium Pharmaceutical, Inc. (NASDAQ:COLL) is a small pharmaceutical company that develops drugs for severe pain that require opioid use. Its shares are also rated Strong Buy on average, and the firm's third quarter results saw it post an 8% annual growth and a strong $20 million net income growth over the year ago quarter's $0.5 million.
After sifting through 910 hedge fund portfolios for their Q2 2023 shareholdings, Insider Monkey discovered 21 Collegium Pharmaceutical, Inc. (NASDAQ:COLL) investors. David Rosen's Rubric Capital Management owns the largest stake among these which is worth $73.5 million.
AMC Networks Inc. (NASDAQ:AMCX), Collegium Pharmaceutical, Inc. (NASDAQ:COLL), CommScope Holding Company, Inc. (NASDAQ:COMM), and Brighthouse Financial, Inc. (NASDAQ:BHF) are some cheap NASDAQ stocks to buy.
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Disclosure: None. 12 Cheap NASDAQ Stocks To Buy is originally published on Insider Monkey.