Buying cheap stocks isn’t the secret path to wealth in the stock market. If that was all that investors had to worry about, it would be incredibly easy to make money.
Therefore, investors need balance when it comes to buying cheap stocks. The valuation is important. But having a good idea of what’s happening in the world and what could happen with the business over the next five years or so is important as well.
These four stocks are cheap because investors aren’t optimistic about these businesses from here. But I believe they’re not giving them enough credit. Here, I’ll highlight just one thing that could go right with each company, providing a potential boost to the business. If business results improve, then these four stocks are simply too cheap to ignore.
This post originally appeared at The Motley Fool.