Being based in Mexico lowers many costs related to labor and overhead. However, shares are going for less than 8 times forward earnings, which is a bargain. Investors expect the company’s earnings to lose significant momentum, and that’s probably going to prove true. Like so many other companies tied to the housing sector and the economy, Cemex shares have plunged over the past year. ![]() Cemex operates in more than 50 countries and garners the vast majority of its sales from the U.S. 5 producer of cement, and also churns out other related products such as concrete and aggregates. ![]() 6, are trading for about 12 times forward earnings and offer a greater than 7% dividend yield.Ĭemex is a Mexico-based building materials company. Telefonica shares, which closed at $3.94 on Sept. However, phone service is still a vital good, and it’s unlikely that a significant number of consumers will stop paying, even during a recession. It also helps diversify the company away from the European market, which is viewed as stagnant and facing severe macroeconomic headwinds. Those latter markets are particularly exciting thanks to favorable demographics and the upturn in economic activity in Latin America as of late. However, it is also a large player in continental Europe, Brazil and Spanish-speaking South America. It is based in Spain and generates roughly 30% of its business there. Telefonica is a multinational telecommunications company. However, UWM’s franchise should be worth more than $3.51 per share once sentiment starts to improve. It’s understandable why investors are nervous about any company related to the housing market given current economic conditions. Analysts are forecasting 40 cents of earnings per share this year, which still leaves shares at a hardly excessive 9 times earnings. As things stand today, UWM earned 66 cents per share in 2021, which puts the stock at just about 6 times last year’s earnings. However, housing is a cycle and will turn back up in due time. Thirty-year mortgage rates have topped 6% in many areas, and home prices are turning downward in various regional markets. The worries around the housing market are certainly valid. The slowing housing market and the collapse of the SPAC boom have combined to make UWMC stock a terrible performer over the past year. UWM is one of the country’s largest mortgage brokers. On top of that, Mizuho is trading at just 7 times forward earnings while offering a 5.8% dividend yield. The slump in the value of the Japanese yen also makes shares more attractive for American investors. The surge in inflation around the world may finally force Japan into a higher-interest-rate environment, which would be a welcome development for Mizuho. This could all be about to change, however. Japan’s central bank has set interest rates at or near zero for many years, leaving the banks to earn meager profit margins. However, Japan has faced numerous recessions and deflationary stagnation since the early 1990s. In theory, this should be an enviable position, holding substantial market share in one of the world’s richest and most technologically advanced economies. Mizuho is one of the three largest banking franchises in Japan. In addition, the upcoming World Cup should serve as a catalyst to get bar and restaurant spending patterns back up toward pre-pandemic levels in South American countries. Ambev shares are trading for less than 20 times forward earnings. For another, Ambev maintains a strong balance sheet with minimal long-term liabilities, giving it far more financial flexibility than its corporate parent. ![]() For one, craft beer hasn’t taken nearly the same toll on market share in Latin America as it has in more wealthy economies. However, Ambev doesn’t have those same problems. A lot of investors have a negative view of the parent company due to its large debt load and slow growth. Ambev primarily sells Anheuser-Busch Inbev beers in Brazil, Argentina and other South American countries. Here are nine such cheap stocks to buy now for less than $5.Īmbev is the Latin American operating division of global beer powerhouse Anheuser-Busch Inbev SA ( BUD). Regardless, there are numerous companies that make for worthwhile investments below the $5 threshold. Firms often end up there due to disappointing operating results or from having unproven or struggling business models. ![]() Investors should use extra caution with stocks trading below the $5 mark. For investors willing to go off the beaten path, there are a lot of intriguing bargains on offer within the cheap-stock universe. The stock market is sliding once again, and a lot of companies have fallen below the $5 per share mark in recent weeks. These stocks under $5 could be poised for sizable gains.īargain hunters have an opportune moment heading into this fall. Business & Finance Click to expand menu.
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