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Cheap Stocks: How to Find Them — and How to Decide If They’re Worth It
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Cheap Stocks: How to Find Them — and How to Decide If They’re Worth It
Cheap stocks could mean low-priced stocks, value stocks or penny stocks. Here are lists of all three, and how to find them yourself.
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Lead Writer
9 years of experience Expertise Stocks ETFs economic newsSam Taube writes about investing for NerdWallet. He has covered investing and financial news since earning his economics degree from the University of Maryland in 2016. Sam has previously written for Investopedia, Benzinga, Seeking Alpha, Wealth Daily and Investment U, and has worked as an editor for Investment U, Wealth Daily and Haven Investment Letter. He is based in Brooklyn, New York.
Sam Taube writes about investing for NerdWallet. He has covered investing and financial news since earning his economics degree from the University of Maryland in 2016. Sam has previously written for Investopedia, Benzinga, Seeking Alpha, Wealth Daily and Investment U, and has worked as an editor for Investment U, Wealth Daily and Haven Investment Letter. He is based in Brooklyn, New York. Published in Lead Writer + more + more
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Michael Randall, CFA, CFP®, EA is the Owner and Financial Planner at Oak Summit Wealth Management, a fee-only fiduciary firm based in San Diego, California. He brings more than a decade of experience helping clients with comprehensive financial planning across investments, taxes, and estate strategies. Michael earned his degree in economics from the University of California, Berkeley, where he also volunteers as an alumni ambassador. At NerdWallet, our content goes through a rigorous editorial review process. We have such confidence in our accurate and useful content that we let outside experts inspect our work. Certified Financial Planner® + more + more
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14 years of experience Expertise Small business finances investing bankingRobert Beaupre leads the SMB team at NerdWallet. He has covered financial topics as an editor for more than a decade. Before joining NerdWallet, he served as senior editorial manager of QuinStreet's insurance sites and managing editor of Insure.com. In addition, he served as an online media manager for the University of Nevada, Reno.
Robert Beaupre leads the SMB team at NerdWallet. He has covered financial topics as an editor for more than a decade. Before joining NerdWallet, he served as senior editorial manager of QuinStreet's insurance sites and managing editor of Insure.com. In addition, he served as an online media manager for the University of Nevada, Reno. Published in Head of Content, Small Business + more + moreThousands of people each month ask Google where to find "cheap stocks."
Thousands of people each month ask Google where to find "cheap stocks."As someone who's trying to answer that question in this article, here's the challenge: "cheap" isn't exactly a technical term in the investing world. In fact, I can think of three different definitions of a "cheap stock."
As someone who's trying to answer that question in this article, here's the challenge: "cheap" isn't exactly a technical term in the investing world. In fact, I can think of three different definitions of a "cheap stock."Low-priced shares from established companies (beginner-friendly)
Low-priced shares from established companies (beginner-friendly)Bargain stocks (value investing)
Bargain stocks (value investing)Small-cap stocks (higher risk)
Small-cap stocks (higher risk)Below, I'm looking at all three varieties of "cheap stock," the top performers in each category and their pros and cons.
Below, I'm looking at all three varieties of "cheap stock," the top performers in each category and their pros and cons.Established companies with cheap shares
Established companies with cheap sharesMaybe you're a beginner investor with only a few dollars to invest in stocks. In that case, you might be looking for stocks that have low share prices, but from companies that are still somewhat established. As we'll discuss below, this isn't the only way to get into the stock market with just a few dollars, or even the best way, but it's an option for those who want to try their hand at individual stock trading.
Maybe you're a beginner investor with only a few dollars to invest in stocks. In that case, you might be looking for stocks that have low share prices, but from companies that are still somewhat established. As we'll discuss below, this isn't the only way to get into the stock market with just a few dollars, or even the best way, but it's an option for those who want to try their hand at individual stock trading.The following list shows stocks listed in the S&P 500, Dow Jones Industrial Average (Dow), Nasdaq or Russell 2000 indexes that have mid-sized market caps of at least $2 billion (to exclude small, volatile companies) and whose shares are priced between $5 and $10. They are ranked by year-to-date performance — in other words, by which stocks have seen the biggest jumps in the last year.
The following list shows stocks listed in the S&P 500, Dow Jones Industrial Average (Dow), Nasdaq or Russell 2000 indexes that have mid-sized market caps of at least $2 billion (to exclude small, volatile companies) and whose shares are priced between $5 and $10. They are ranked by year-to-date performance — in other words, by which stocks have seen the biggest jumps in the last year.The best-performing cheap mid-cap stock from the past year is Navitas Semiconductor (NVTS), which is up 468.43%.
The best-performing cheap mid-cap stock from the past year is Navitas Semiconductor (NVTS), which is up 468.43%.
The best-performing cheap mid-cap stock from the past year is Navitas Semiconductor (NVTS), which is up 468.43%. The best-performing cheap mid-cap stock from the past year is Navitas Semiconductor (NVTS), which is up 468.43%.Ticker
Ticker TickerCompany
Company CompanyPerformance (Year)
Performance (Year) Performance (Year)NVTS
NVTSNavitas Semiconductor
Navitas Semiconductor468.43%
468.43%RIG
RIGTransocean Ltd
Transocean Ltd178.63%
178.63%IRBX
IRBXImmunityBio Inc.
ImmunityBio Inc.160.95%
160.95%LUMN
LUMNLumen Technologies
Lumen Technologies125.36%
125.36%NEOG
NEOGNeogen Corp.
Neogen Corp.77.78%
77.78%Source: Finviz. Stock data is current as of April 14, 2026, and is intended for informational purposes only.
Source: Finviz. Stock data is current as of April 14, 2026, and is intended for informational purposes only. Source: Finviz. Stock data is current as of April 14, 2026, and is intended for informational purposes only.But as I mentioned earlier, beginners who only have, say, $20 or $30 to invest need not limit themselves to low-priced stocks like these. Many (but not all) brokers we review offer fractional shares (that is, they allow investors to buy less than one full share of a company or ETF).
But as I mentioned earlier, beginners who only have, say, $20 or $30 to invest need not limit themselves to low-priced stocks like these. Many (but not all) brokers we review offer fractional shares (that is, they allow investors to buy less than one full share of a company or ETF).With a fractional share broker, you can build a more diversified portfolio — for example, an S&P 500 ETF and a bond ETF — with just a few dollars.
With a fractional share broker, you can build a more diversified portfolio — for example, an S&P 500 ETF and a bond ETF — with just a few dollars.A few of the popular brokers — Ally, Merrill Edge and TradeStation — do not offer fractional shares. If you invest through one of those brokers, and you're starting out with just a few bucks, then you may need to invest in low-priced stocks like the ones above. Or you'll need to switch brokers.
A few of the popular brokers — Ally, Merrill Edge and TradeStation — do not offer fractional shares. If you invest through one of those brokers, and you're starting out with just a few bucks, then you may need to invest in low-priced stocks like the ones above. Or you'll need to switch brokers.If you need to do that, our roundup of the best brokers for fractional shares is a good place to start.
If you need to do that, our roundup of the best brokers for fractional shares is a good place to start.Brokerage firms
Brokerage firms
Brokerage firmson Charles Schwab's website
on E*TRADE's website
on Vanguard's website
on Fidelity's website
Bargain stocks
Bargain stocks"Cheap stocks" could also mean "undervalued" stocks — that is, stocks whose share prices are low relative to their profitability, property values or dividends. Here's a list of some of the best bargain stocks in the S&P 500 index:
"Cheap stocks" could also mean "undervalued" stocks — that is, stocks whose share prices are low relative to their profitability, property values or dividends. Here's a list of some of the best bargain stocks in the S&P 500 index:Company name & symbol
Company name & symbol
Company name & symbol Company name & symbolPE ratio
PE ratio
PE ratio PE ratioDividend yield
Dividend yield
Dividend yield Dividend yieldEverest Group (EG)
Everest Group (EG)9.02
9.022.46%
2.46%Global Payments (GPN)
Global Payments (GPN)11.88
11.881.68%
1.68%Lennar Corp. (LEN)
Lennar Corp. (LEN)12.77
12.772.25%
2.25%Mosaic Co. (MOS)
Mosaic Co. (MOS)14.19
14.193.68%
3.68%Source: Finviz. Stock data is current as of April 14, 2026, and is intended for informational purposes only.
Source: Finviz. Stock data is current as of April 14, 2026, and is intended for informational purposes only. Source: Finviz. Stock data is current as of April 14, 2026, and is intended for informational purposes only.Buying and holding undervalued stocks is a time-tested investing strategy. It's how many investing titans, such as Warren Buffett, made their fortunes. But it takes patience.
Buying and holding undervalued stocks is a time-tested investing strategy. It's how many investing titans, such as Warren Buffett, made their fortunes. But it takes patience.To learn more about the valuation metrics we used to assemble this list — or how to find bargain stocks yourself — check out our page on undervalued stocks.
To learn more about the valuation metrics we used to assemble this list — or how to find bargain stocks yourself — check out our page on undervalued stocks .Micro-cap stocks
Micro-cap stocksWe talked above about established companies with low-priced shares. But another variety of "cheap stocks" (in the literal sense of low-priced shares) is micro-cap stocks, also known as "penny stocks."
We talked above about established companies with low-priced shares. But another variety of "cheap stocks" (in the literal sense of low-priced shares) is micro-cap stocks, also known as "penny stocks."These companies don't just have cheap shares, they have small market capitalizations (hence "micro-cap.") The companies themselves are not well-established and often aren't worth very much, which can make their share prices vulnerable to big swings.
These companies don't just have cheap shares, they have small market capitalizations (hence "micro-cap.") The companies themselves are not well-established and often aren't worth very much, which can make their share prices vulnerable to big swings.Here's a list of some of the best-performing micro-cap stocks over the last month:
Here's a list of some of the best-performing micro-cap stocks over the last month:Ticker
Ticker
Ticker TickerCompany
Company
Company CompanyPerformance (Month)
Performance (Month)
Performance (Month) Performance (Month)ARAI
ARAIArrive AI
Arrive AI73.68%
73.68%CHGG
CHGGChegg Inc
Chegg Inc69.95%
69.95%PDSB
PDSBPDS Biotechnology
PDS Biotechnology67.99%
67.99%HURA
HURATuHURA Biosciences Inc
TuHURA Biosciences Inc65.79%
65.79%CURV
CURVTorrid Holdings
Torrid Holdings64.00%
64.00%Source: Finviz. Stock data is current as of April 14, 2026, and is intended for informational purposes only.
Source: Finviz. Stock data is current as of April 14, 2026, and is intended for informational purposes only. Source: Finviz. Stock data is current as of April 14, 2026, and is intended for informational purposes only.It's worth noting that micro-cap stocks are extremely risky — they're better thought of as speculative gambles rather than long-term investments. See our penny stocks article to learn more about the risks.
It's worth noting that micro-cap stocks are extremely risky — they're better thought of as speculative gambles rather than long-term investments. See our penny stocks article to learn more about the risks.If you do want to gamble on penny stocks, you'll need a brokerage account that allows it; some brokers restrict access to penny stocks due to their general sketchiness.
If you do want to gamble on penny stocks, you'll need a brokerage account that allows it; some brokers restrict access to penny stocks due to their general sketchiness.If you understand the risks, and you still want to try your hand at penny stock trading, our roundup of the best brokers for penny stocks can be a good place to find the right tools for the job.
If you understand the risks, and you still want to try your hand at penny stock trading, our roundup of the best brokers for penny stocks can be a good place to find the right tools for the job.How to find cheap stocks
How to find cheap stocksInvesting in individual stocks requires a lot of work, and finding candidates is just the start. You’ll also need to:
Investing in individual stocks requires a lot of work, and finding candidates is just the start. You’ll also need to:Understand the various types of stocks.
Understand the various types of stocks .Investigate the company and its management.
Investigate the company and its management.Research the industry.
Research the industry.Evaluate the financials, such as the balance sheet and income statement.
Evaluate the financials, such as the balance sheet and income statement.Follow the company’s quarterly reports.
Follow the company’s quarterly reports.That’s just the minimum that you need to do. So if this isn’t how you want to spend your evenings and weekends, consider buying an index fund instead. Index funds invest in lots of companies at once, making it so you don't have to know the exact details of every company.
That’s just the minimum that you need to do. So if this isn’t how you want to spend your evenings and weekends, consider buying an index fund instead. Index funds invest in lots of companies at once, making it so you don't have to know the exact details of every company.However, if you want to make trading cheap stocks a hobby, you'll probably want to get acquainted with a stock screener. Check out our overview of free stock screeners to learn more.
However, if you want to make trading cheap stocks a hobby, you'll probably want to get acquainted with a stock screener. Check out our overview of free stock screeners to learn more. Neither the author nor editor held positions in the aforementioned investments at the time of publication. Neither the author nor editor held positions in the aforementioned investments at the time of publication. Neither the author nor editor held positions in the aforementioned investments at the time of publication. About the author Sam Taube Sam Taube Sam Taube writes about investing for NerdWallet. He has covered investing and financial news since earning his economics degree in 2016. See full bio.Helpful resources
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