In this article, we’ll take a look at 13 cheap new stocks to buy.To see more such companies, please visit directly 5 cheap new stocks to buy.
Global markets will be rattled by the 2022 market crash, and the repercussions are expected to affect equities over the coming months. However, cautious investors always invest for the long term and see a stock market decline as an opportunity. While there is consensus that the world will plunge into recession in his 2023, leading analysts believe it will be a short-term one. For example, JP Morgan said in its 2023 market outlook report that the global economy expects inflation to improve “significantly” and rate hikes to pause. Returns in U.S. stocks are driven by earnings, but remain capped by market volatility, according to the report.
JP Morgan also said the Federal Reserve is expected to complete the rate hike in the first quarter of 2023. This stabilizes yields and reduces interest rate volatility.
The JPMorgan report also said earnings prospects for U.S. stocks depended on “how economic growth unfolds.” If the economy manages to avoid a recession, JP Morgan expects earnings growth to remain flat compared to 2022. However, if the economy slips into recession, the report says, “history suggests earnings could fall by as much as 15% to 20%.”
JP Morgan isn’t the only one to be optimistic about inflation. WisdomTree Investments said in its latest report that it believes U.S. inflation has reached a “peak” and will continue to decline in 2023. Because of the service sector, it “could remain elusive.”
The macroeconomic backdrop has seen the IPO space swamped in 2022 as companies chose not to enter the stormy seas. According to a Bloomberg report in December, only $207 billion in funding will be raised from listings in 2022, a whopping 68% drop compared to 2021. The report quotes Edward Vine, co-head of Asia ex-Japan equity capital markets at Goldman Sachs Group. We believe that inflation “stabilization” and visibility into the trajectory of rising interest rates are necessary for activity in the IPO market to recover.
Photo by Ruben Sukatendel on Unsplash
our methodology
In this article, we used a stock screener to first list growth stocks that have gone public in the last two years. From these stocks, we selected stocks that had lost at least 10% in value over the past 6 months as of January 22nd. As a result, a long list of stocks was created. We selected 13 stocks with long-term growth catalysts and attractive valuations to find undervalued stocks that appear undervalued relative to their true value. These stocks look cheap when analyzed based on long-term earnings in the light of strong growth catalysts. Many of these new stocks are also popular among the 920 elite hedge funds tracked by Insider Monkey. To justify our claim of being “cheap,” I’d like to point out that, in addition to falling share prices for these stocks, there’s a catalyst for growth and the potential for these companies to do very well in the coming months and years. We also discussed the positive analyst assessments that indicate there is.
The list is ranked in descending order of stock price.
cheap new stocks to buy
13. Acrivon Therapeutics (NASDAQ:ACRV)
Price: $12.42
Price drop over the last 6 months: 15%
Number of Hedge Fund Holders: None
Founded in 2018, Acrivon Therapeutics, Inc. (NASDAQ:ACRV) is a Massachusetts-based biotechnology company focused on oncology products. Acrivon Therapeutics, Inc. (NASDAQ: ACRV) went public in his November 2022. Acrivon Therapeutics, Inc. (NASDAQ: ACRV) closed the first session at about 33% after his $94 million IPO. Acrivon Therapeutics, Inc. (NASDAQ:ACRV)’s lead drug candidate is ACR-368. Acrivon Therapeutics, Inc. (NASDAQ:ACRV) is working to advance this drug into Phase 2 trials for the treatment of bladder, endometrial, ovarian and HPV+ tumors. Acrivon Therapeutics, Inc. (NASDAQ:ACRV) also claims to have developed a diagnostic solution called OncoSignature to help identify which patients will benefit from the drug.
According to Acrivon Therapeutics, Inc.’s (NASDAQ:ACRV) website, the company’s pipeline is focused on advanced assets targeting DNA damage response (DDR) and cell cycle regulation, with long-lasting efficacy in solid tumors. proven single-agent clinical activity.
12. Samsara (NYSE:IoT)
Price: $12.01
Price drop over the last 6 months: 10%
Number of hedge fund holders: 23
Samsara Inc. (NYSE:IOT) is an IoT company that provides solutions for fleet management. Last month, Samsara Inc. (NYSE:IOT) stock surged more than 20% after the company shattered third-quarter estimates and released its full-year 2022 forecast, which beats analyst estimates. RBC said in an investor memo that Samsara Inc. (NYSE:IOT) was able to beat expectations despite a challenging macro environment.
“Although the macro remains uneven, management emphasized rapid value and meaningful ROI as key drivers of lasting results,” RBC added.
Samsara Inc. (NYSE:IOT) went public in December 2021.
As of the end of the third quarter, 23 hedge funds tracked by Insider Monkey reported holding shares in Samsara Inc. (NYSE:IOT), compared with 17 funds last quarter.
11. Udemy, Inc. (NASDAQ:UDMY)
Price: $11.01
Price drop over last 6 months: 12%
Number of hedge fund holders: 12
Udemy, Inc. (NASDAQ:UDMY), an online education and courses company, will go public in 2021. This makes him one of the cheapest new stocks to buy as it has strong growth prospects. Kantor Fitzgerald named Udemy, Inc. (NASDAQ:UDMY) as one of his top picks for 2023 in December. The company believes Udemy, Inc. (NASDAQ:UDMY) is heavily discounted compared to the software sector as a whole. Cantor analyst Brett Knoblauch believes Udemy, Inc. (NASDAQ:UDMY) is trading at 1.1 times his company’s sales. This equates to his 77% discount to the broader software sector. Cantor Fitzgerald also said Udemy, Inc. (NASDAQ:UDMY) is “cash tight” with about $500 million and no debt.
As of the end of the third quarter, 12 hedge funds tracked by Insider Monkey reported having stakes in Udemy, Inc. (NASDAQ:UDMY). The total amount of these bets he made was $85 million.
Ten. Marketa (NASDAQ:MQ)
Price: $6.59
Price drop over last 6 months: 27%
Hedge fund holders: 33
Marqeta, Inc. (NASDAQ:MQ) is a fintech company operating in the card and payment solutions space. Marqeta, Inc. (NASDAQ:MQ) took a hit last year, but analysts believe Marqeta, Inc. (NASDAQ:MQ) could get out of trouble in the coming months or years. I’m here. In the third quarter, Marqeta, Inc. (NASDAQ:MQ) posted his 46% earnings growth. Marqeta, Inc.’s (NASDAQ:MQ) revenue growth was driven by strong TPV (Total Throughput), which increased 54% from $27.6 billion to $42.5 billion.
Marqeta, Inc. (NASDAQ:MQ) went public in the summer of 2021, and the stock has gained considerable popularity among smart money. Of the 920 elite hedge funds tracked by Insider Monkey, 33 had stakes in Marqeta, Inc. (NASDAQ:MQ). The total amount of those bets he made was $658 million.
9. Amprius Technologies, Inc. (NYSE:AMPX)
Price: $6.15
Price drop over the last 6 months: 36%
Hedge fund holders: 10
Amprius Technologies, Inc. (NYSE:AMPX) went public last year and operates in the battery market. Amprius Technologies, Inc. (NYSE:AMPX) manufactures silicon anodes for high energy density lithium-ion batteries. Amprius Technologies, Inc. (NYSE:AMPX) has a first-mover advantage in the silicon battery market, and an analyst believes that his Amprius Technologies, Inc. (NYSE:AMPX) technology poses the threat of thermal runaway in battery products. I believe it will reduce Amprius Technologies, Inc. (NYSE:AMPX) also plans to launch a Gigafactory in the United States in 2023.
The hedge fund quickly invested in Amprius Technologies, Inc. (NYSE:AMPX). A total of 10 hedge funds were reported to have stakes in his Amprius Technologies, Inc. (NYSE:AMPX) as of the end of the third quarter. The total amount of these bets was $1.1 million.
8. Atlis Motor Vehicles, Inc. (NASDAQ:AMV)
Price: $5.91
Price drop over the last 6 months: 94%
Number of Hedge Fund Holders: None
Arizona-based Atlis Motor Vehicles, Inc. (NASDAQ:AMV) ranks eighth on the list of cheap new stocks to buy. We operate in the high EV industry. Atlis Motor Vehicles, Inc. (NASDAQ:AMV) manufactures EVs and charging infrastructure. Known for energy cells and battery packs, AMV XT pickup trucks. In early January, Atlis Motor Vehicles, Inc. (NASDAQ:AMV) stock surged 200% to his all-time high of $2.26. Atlis Motor Vehicles, Inc. (NASDAQ:AMV) announced that it has reached a sales milestone of receiving pre-orders and firm orders equivalent to 2 gigawatt hours of battery capacity. Atlis Motor Vehicles, Inc. (NASDAQ:AMV) is aiming for profitability and hopes for a subscription model in the EV space.
7. Weave Communications (NYSE:Weave)
Price: $5.32
Price drop over last 12 months: 44%
Number of hedge fund holders: 4
Weave Communications, Inc. (NYSE:WEAV) is a Utah-based company that provides communications platforms for small businesses. The platform allows businesses to automate calls, messages, booking systems and more to improve efficiency and results. Weave Communications, Inc. (NYSE: WEAV) will go public in November 2021. Weave Communications, Inc. (NYSE: WEAV) reported adjusted EPS of -0.10 in the third quarter, beating estimates by $0.04. Revenue for the quarter was $36.2 million, up 20%, $810,000 above expectations. Weave Communications, Inc. (NYSE:WEAV) said it had a dollar-based net retention rate (NRR) of 101% as of September 30, 2022.
As of the end of the third quarter, four hedge funds were reported to have stakes in Weave Communications, Inc. (NYSE:WEAV). These bets totaled him over $100 million.
6. Thorne HealthTech, Inc. (NASDAQ:THRN)
Price: $3.69
Price drop over last 6 months: 21%
Number of hedge fund holders: 3
New York-based Thorne HealthTech, Inc. (NASDAQ:THRN) provides health and wellness products and services related to sleep, stress and weight management. Thorne HealthTech, Inc. (NASDAQ:THRN) sells its products through direct-to-consumer channels as well as e-commerce platforms such as Amazon. Thorne HealthTech, Inc. (NASDAQ:THRN) operates in a high-growth environment as more and more people start investing in health and wellness products. According to a research report, the global nutritional supplement market alone is expected to reach $271 billion by 2028.
A total of three hedge funds tracked by Insider Monkey had stakes in Thorne HealthTech, Inc. (NASDAQ:THRN) at the end of the third quarter, compared to five funds last quarter.
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Disclosure: None. 13 cheap new stocks to buy was first published on Insider Monkey.
