The S&P 500, Dow Jones Industrial Average and NASDAQ Composite all jumped to new highs this week. Markets are reacting to positive news on the U.S.-China trade front and better-than-expected corporate earnings. This bullish bias is helping cheap stocks climb higher.
The rally gives investors a good reason to add lower-priced stocks to their portfolio. These cheap stocks are currently trading below $10, but they could be heading higher. Experts believe these stocks will close out the year with a solid performance.
For more cheap stocks, check out our monthly ‘best under $5″ rankings here.
Latest stock market news
The stock market got off to a great start in November due to progress in the US-China trade talks. The countries reportedly agreed to roll back tariffs as part of a potential phase-one deal. A US trade official revealed yesterday that some tariffs could be removed if a deal is reached.
The figures for the US job data released earlier this month were also better than expected. The non-farm payroll (NFP) for October increased by 128,000, beating consensus estimates of 75,000 by over 50,000. The unemployment rate remains at a 50 year low, and the economy continues to expand steadily.
Late last month, the US Federal Reserve cut interest rates for the third time in 2019. Fed Chair, Jerome Powell, announced that the current rates would stay in place for the foreseeable future and predicted GDP growth to maintain at about 2%.
These developments contributed to the stock market performing excellently over the past few days.
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Best cheap stocks to buy now
The stock market has been on a tear since the start of November. If it continues, cheap stocks could also march higher. Here are the best cheap stocks you can buy now.
Cronos Group Inc. (CRON)
Cronos is one of the largest marijuana stocks. The company, similar to other cannabis companies, suffered through a massive sell-off this year. However, it is on a slow road to recovery. Cronos’s stock is currently trading at $7.93 but has gained over 1% at the pre-market to push its price to $8.02 per share.
The company is expected to reports its third-quarter earnings on November 12. In the last quarter, Cronos surpassed earnings expectations by 50%. If the results from the previous four quarters are anything to go by, the upcoming earnings could go in either direction. The company’s sales are expected to increase by 281%, while the adjusted earnings could remain flat.
TAT Technologies Ltd. (TATT)
TAT Technologies is an Isreali company that is listed on NASDAQ and the Tel Aviv Stock Exchange. The company provides environmental control products and services for the commercial and military aviation industries.
The stock is currently trading at $4.92 per share after rising by 0.2% during yesterday’s trading session. The stock experienced a tough October but has started to recover most of its losses. The increase in stock price could be because of Renaissance Technologies increasing its position in TAT shares.
Renaissance Technologies acquired 2,900 shares of T.A.T. Technologies Ltd late last month, boosting investors’ confidence in a stock that underperformed in October.
Endologix Inc. (ELGX)
Endologix has been one of the best-performing stocks since the start of the month. It is up by roughly 15% over the past week. It is currently trading at $2.88 per share after rising by 8.68% during yesterday’s trading session.
Endogolix’s embarked on a rally yesterday after the company reported a better than expected third-quarter earnings. The medical instruments supplier reported an earnings per share of $0.63 for Q3, which is higher than the $0.55 analysts’ consensus. The company’s revenue also surpassed analyst estimates. They reported an income of $35.78 million, which is higher than the expected $35.26 million.
Workhorse Group (WKHS)
Workhorse Group Incorporated is an Ohio-based manufacturing company that is currently focused on manufacturing electrically powered delivery and utility vehicles. The company has had a fantastic 2019, which reflects in its stock price.
The stock is currently trading at $3.13 despite losing 4.79% at the pre-market session. The company signed an intellectual property licensing agreement with Lordstown Motors Corp. the partnership will see the two companies work together to acquire the General Motor manufacturing facility in Lordstown, Ohio
More on The Best Cheap Stocks
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