Best Cheap Stocks For 2019

Biotech stocks sometimes have a stigma of being highly speculative and highly risky. But several large biotech stocks generate impressive cash flow and have promising growth prospects. And they’re not all priced for perfection, either.

We asked three Motley Fool contributors to weigh in on which biotech stocks they like. Here’s why they chose Celgene (NASDAQ:CELG), Exelixis (NASDAQ:EXEL), and Gilead Sciences (NASDAQ:GILD) as their top picks to buy right now.

Image source: Getty Images.

Too cheap to ignore

Brian Feroldi (Celgene): Would you believe that a publicly traded company exists today that is expected to grow its profits by 19% annually over the next five years and yet only trades for eight times forward earnings? Believe it or not, but that’s exactly what’s happening with biotech giant Celgene today.

Best Cheap Stocks For 2019: Wendy’s/Arby’s Group Inc.(WEN)

Advisors’ Opinion:

  • [By Logan Wallace]

    BTIG Research started coverage on shares of Wendys (NASDAQ:WEN) in a research note issued to investors on Tuesday morning, Marketbeat Ratings reports. The brokerage issued a buy rating and a $20.00 price objective on the restaurant operator’s stock.

  • [By Matt Hogan]

    Growth within the industry is a bit lumpy, with limited-service restaurants, such as Wendys Co (NASDAQ: WEN) and Chipotle Mexican Grill, Inc (NYSE: CMG), growing at 5.3 percent in 2017 as compared to 3.5 percent for casual dining establishments according to the National Restaurant Industry.

  • [By Joseph Griffin]

    BidaskClub lowered shares of Wendys (NASDAQ:WEN) from a hold rating to a sell rating in a report issued on Thursday.

    WEN has been the topic of a number of other research reports. Bank of America lifted their price objective on shares of Wendys from $18.00 to $19.00 and gave the company a neutral rating in a research note on Friday, August 17th. Morgan Stanley lifted their price objective on shares of Wendys from $19.00 to $20.00 and gave the company an equal weight rating in a research note on Friday, August 17th. SunTrust Banks reiterated a buy rating and set a $22.00 price objective on shares of Wendys in a research note on Friday, August 17th. Zacks Investment Research lowered shares of Wendys from a buy rating to a hold rating in a research note on Monday, August 6th. Finally, Mizuho set a $21.00 price objective on shares of Wendys and gave the company a buy rating in a research note on Thursday, August 16th. One equities research analyst has rated the stock with a sell rating, nine have assigned a hold rating and ten have given a buy rating to the stock. The stock presently has a consensus rating of Hold and an average target price of $18.74.

  • [By Jeremy Bowman]

    The chart below shows how McDonald’s compares with some of its closest peers based on its valuation and expected growth rate.

    Company P/E Ratio 2-Year Expected EPS Growth Rate
    McDonald’s (NYSE:MCD) 26.2 23.6%
    Starbucks (NASDAQ:SBUX) 26.2 27.3%
    Wendy’s (NASDAQ:WEN) 21.8 58.1%
    Restaurant Brands International (NYSE:QSR) 21.4 41.9%
    Yum! Brands (NYSE:YUM) 23.2 29.7%

    Data source: Yahoo! Finance. EPS = earnings per share.

Best Cheap Stocks For 2019: USG Corporation(USG)

Advisors’ Opinion:

  • [By Ethan Ryder]

    USG Co. (NYSE:USG) – Equities research analysts at SunTrust Banks reduced their Q3 2018 earnings per share estimates for shares of USG in a report issued on Monday, July 9th. SunTrust Banks analyst K. Hughes now forecasts that the construction company will post earnings of $0.57 per share for the quarter, down from their previous estimate of $0.61. SunTrust Banks currently has a “Hold” rating and a $44.00 price target on the stock. SunTrust Banks also issued estimates for USG’s FY2018 earnings at $2.05 EPS, Q3 2019 earnings at $0.71 EPS and FY2019 earnings at $2.53 EPS.

  • [By Ethan Ryder]

    Get a free copy of the Zacks research report on USG (USG)

    For more information about research offerings from Zacks Investment Research, visit Zacks.com

  • [By Dan Caplinger]

    Warren Buffett likes to hold his stock positions for the long run, and his experience with USG (NYSE:USG) has been typical of his other long-term investments. The Oracle of Omaha started buying shares of the manufacturer of Sheetrock drywall and other building materials back in 2000, accumulating a sizable stake that has ballooned to more than 30% of the company. USG ended up going through bankruptcy in order to get a handle on its asbestos liability claims, but thanks largely to Buffett’s involvement, the building materials company not only survived bankruptcy but also saw share prices soar briefly on hopes that USG would once again fully participate in the then-strong housing boom.

  • [By Stephan Byrd]

    ValuEngine upgraded shares of USG (NYSE:USG) from a buy rating to a strong-buy rating in a report published on Tuesday.

    A number of other research analysts have also recently weighed in on the stock. Credit Suisse Group upgraded shares of USG from an underperform rating to a neutral rating and dropped their target price for the company from $35.00 to $24.00 in a research note on Friday, April 27th. Jefferies Group reiterated a hold rating and issued a $40.00 target price on shares of USG in a research note on Monday, April 23rd. SunTrust Banks boosted their target price on shares of USG from $42.00 to $44.00 and gave the company a hold rating in a research note on Tuesday, April 17th. Buckingham Research boosted their target price on shares of USG from $34.00 to $42.00 and gave the company a neutral rating in a research note on Monday, April 16th. Finally, Nomura boosted their target price on shares of USG from $39.00 to $44.00 and gave the company a neutral rating in a research note on Tuesday, March 27th. Two investment analysts have rated the stock with a sell rating, ten have issued a hold rating, four have assigned a buy rating and one has given a strong buy rating to the stock. The stock currently has a consensus rating of Hold and an average price target of $39.00.

Best Cheap Stocks For 2019: Express-1 Expedited Solutions Inc.(XPO)

Advisors’ Opinion:

  • [By Max Byerly]

    Royal London Asset Management Ltd. bought a new position in XPO Logistics Inc (NYSE:XPO) in the second quarter, according to the company in its most recent 13F filing with the SEC. The fund bought 50,059 shares of the transportation company’s stock, valued at approximately $5,017,000.

  • [By Steve Symington, Travis Hoium, and Neha Chamaria]

    We asked three top Motley Fool investors exactly that. Read on to learn why they think iQiyi (NASDAQ:IQ), XPO Logistics (NYSE:XPO), and Enphase (NASDAQ:ENPH) fit the bill.

  • [By ]

    XPO Logistics (XPO) : “This stock just won’t come down. “

    Over on Real Money, Cramer talks about how to trade the highly unlikely deal between Sprint (S) and T-Mobile (TMUS) . Get more of his insights with a free trial subscription to Real Money.

  • [By Neha Chamaria, Jason Hall, and Dan Caplinger]

    So, when we asked three of our Motley Fool contributors to each name a stock that has doubled and still has room to grow, they picked lululemon athletica (NASDAQ:LULU), LGI Homes Inc (NASDAQ:LGIH), and XPO Logistics (NYSE:XPO). Here’s why.

  • [By Matthew Frankel, Neha Chamaria, and Matthew DiLallo]

    While there’s no way to know for sure which stocks will become the next Amazon, three of our contributors think BofI Holding (NASDAQ:BOFI), XPO Logistics (NYSE:XPO), and iQiyi (NASDAQ:IQ) have pretty good chances.

  • [By Logan Wallace]

    XPO Logistics (NYSE:XPO)‘s stock had its “buy” rating reissued by research analysts at Bank of America in a research note issued on Friday. They presently have a $105.00 target price on the transportation company’s stock. Bank of America’s price objective would indicate a potential upside of 4.86% from the stock’s previous close.

Best Cheap Stocks For 2019: Compass Minerals Intl Inc(CMP)

Advisors’ Opinion:

  • [By Reuben Gregg Brewer]

    Compass Minerals International, Inc. (NYSE:CMP) is often listed as a miner, but the salt and fertilizer it produces are a bit different than what most investors think of when they hear the word “miner.” That makes Compass something of an odd duck and results in it being off of most investors’ radar screens. A tough 2017 is another net negative. That’s a shame, since it currently sports a yield of more than 4.4%, and the business outlook is improving. Here’s what investors are missing out on with this high-yield stock.

  • [By Jordan Wathen, Matthew Frankel, CFP, and Dan Caplinger]

    Here, three Fool.com contributors share why they believe Compass Minerals (NYSE:CMP), Chubb (NYSE:CB), and Realty Income (NYSE:O) exhibit the kind of traits found in many of Buffett’s best investments.

  • [By Stephan Byrd]

    Compcoin (CURRENCY:CMP) traded flat against the US dollar during the 24-hour period ending at 11:00 AM E.T. on October 13th. During the last seven days, Compcoin has traded up 12.6% against the US dollar. One Compcoin coin can currently be purchased for approximately $12.20 or 0.00130307 BTC on cryptocurrency exchanges. Compcoin has a total market cap of $0.00 and approximately $0.00 worth of Compcoin was traded on exchanges in the last 24 hours.

  • [By Joseph Griffin]

    Rhumbline Advisers boosted its stake in Compass Minerals International, Inc. (NYSE:CMP) by 1.6% in the second quarter, according to the company in its most recent 13F filing with the Securities & Exchange Commission. The firm owned 61,295 shares of the basic materials company’s stock after acquiring an additional 991 shares during the quarter. Rhumbline Advisers owned about 0.18% of Compass Minerals International worth $4,030,000 at the end of the most recent reporting period.

  • [By Ethan Ryder]

    Compass Minerals International (NYSE:CMP) was downgraded by investment analysts at ValuEngine from a “hold” rating to a “sell” rating in a research note issued to investors on Monday.

Best Cheap Stocks For 2019: UnitedHealth Group Incorporated(UNH)

Advisors’ Opinion:

  • [By Ethan Ryder]

    Here are some of the news stories that may have effected Accern Sentiment Analysis’s rankings:

    Get UnitedHealth Group alerts:

    Medical Software Rallies As Health Care’s Tech Conversion Accelerates (investors.com) What Are UnitedHealth’s Key Sources of Revenue? (trefis.com) Humana (HUM) and Monida Ink Deal, Enhances In-Network Access (finance.yahoo.com) Is UnitedHealth Group (UNH) Outperforming Other Medical Stocks This Year? (finance.yahoo.com) UnitedHealth Group (UNH) Price Target Increased to $285.00 by Analysts at BMO Capital Markets (americanbankingnews.com)

    A number of equities research analysts have issued reports on the stock. BMO Capital Markets increased their price objective on shares of UnitedHealth Group from $275.00 to $285.00 and gave the company a “buy” rating in a report on Thursday. Zacks Investment Research raised shares of UnitedHealth Group from a “hold” rating to a “buy” rating and set a $278.00 price objective for the company in a report on Wednesday, May 23rd. Sanford C. Bernstein set a $275.00 price objective on shares of UnitedHealth Group and gave the company a “buy” rating in a report on Wednesday, April 18th. Piper Jaffray Companies reaffirmed a “buy” rating and set a $270.00 price objective on shares of UnitedHealth Group in a report on Wednesday, April 18th. Finally, Credit Suisse Group increased their price objective on shares of UnitedHealth Group from $260.00 to $270.00 and gave the company an “outperform” rating in a report on Wednesday, April 18th. Twenty-seven research analysts have rated the stock with a buy rating, The stock currently has a consensus rating of “Buy” and a consensus price target of $257.58.

  • [By Paul Ausick]

    UnitedHealth Group Inc. (NYSE: UNH) traded up 1.89% at $232.95. The stock’s 52-week range is $156.09 to $235.00, a new 52-week high set this afternoon. Volume was nearly double the daily average of around 2.9 million shares. The company’s fourth-quarter earnings and forecast for 2018 were better than expected.

  • [By Joseph Griffin]

    Private Advisor Group LLC lifted its stake in UnitedHealth Group Inc (NYSE:UNH) by 115.5% during the 2nd quarter, according to its most recent disclosure with the SEC. The institutional investor owned 26,953 shares of the healthcare conglomerate’s stock after buying an additional 14,448 shares during the quarter. Private Advisor Group LLC’s holdings in UnitedHealth Group were worth $6,663,000 at the end of the most recent reporting period.

  • [By Joseph Griffin]

    Swiss National Bank increased its stake in shares of UnitedHealth Group Inc (NYSE:UNH) by 2.7% in the 2nd quarter, according to the company in its most recent filing with the Securities & Exchange Commission. The fund owned 3,579,488 shares of the healthcare conglomerate’s stock after purchasing an additional 92,600 shares during the period. UnitedHealth Group accounts for approximately 1.0% of Swiss National Bank’s investment portfolio, making the stock its 10th biggest position. Swiss National Bank owned approximately 0.37% of UnitedHealth Group worth $878,192,000 at the end of the most recent reporting period.

  • [By Shane Hupp]

    TRADEMARK VIOLATION WARNING: “Investors Buy UnitedHealth Group (UNH) on Weakness” was first posted by Ticker Report and is the property of of Ticker Report. If you are viewing this article on another site, it was illegally stolen and reposted in violation of United States & international trademark and copyright laws. The original version of this article can be accessed at www.tickerreport.com/banking-finance/4119196/investors-buy-unitedhealth-group-unh-on-weakness.html.

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