Buy cheap? Even in the stock market, buyers like to find a bargain. Defining a bargain, however, can be tricky. There’s a stigma that gets attached to low stock prices, based on the reality that most stocks don’t fall without a reason. And those reasons are usually rooted in some facet of poor company performance.
But not always, and that’s why finding stock bargains can be tricky. There are plenty of low-priced equities out there with sound fundamentals and solid future prospects, and these options make it possible for investors to ‘buy low and sell high.’ These are the stocks that Warren Buffett had in mind when he said, “Whether we’re talking about socks or stocks, I like buying quality merchandise when it is marked down.”
So let’s take his advice, and skim through the market for stocks that are just too cheap to ignore right now. Using TipRanks’ database, we identified two tickers that feature both low prices now – and powerful upside potential for the coming year. Not to mention each one gets a “Strong Buy” consensus rating from the analyst community. Let’s dive in and find out what’s driving that prospect.
Caleres, Inc. (CAL)
We’ll start our look with Caleres, a footwear company with a lineup of brands that includes, among others, the well-known Dr. Scholls name. Caleres has been in business since the last 19th century, and employing more than 9,200 people across 68 countries. The company markets its products through a network of nearly 1,000 retail stores and 13 e-commerce sites.
Caleres has been showing sound financial results to go along with its strong market position. In the last reported quarter, 3Q22, the company had record net sales of $798.3 million. Strong sales allowed the company to improve its inventory position, selling off some of the piled up merchandise; inventory levels in Q3 fell by 15.8% sequentially. The company’s adjusted EPS, while down 27% year-over-year, remained profitable at $1.15, and beat consensus estimates of $1.12.
For investors, all of this supported the company’s commitment to…