Got $2,000? 2 Cheap Stocks to Buy Right Now

 

Do you have $2,000? 2 cheap stocks to buy right now

Heading into 2023, the S&P 500 rallied toward the highs it hit in early 2022 before pulling back a bit. Some market watchers called it a new bull market and others held back and waited for the index to surpass its previous peak.

Either way, it's hard to suggest that the market is cheap today. But if you look closely, there are almost always cheap stocks floating around. Regardless of where the market goes next, Enterprise Products Partners (NYSE: EPD ) and Medtronic (NYSE: MDT ) could be good additions for income investors right now.

Enterprise Products Partners owns things like energy pipelines, storage, transportation and processing infrastructure. Although the MLP is focused on North America, it's the assets that help transport the oil, natural gas and products they create around the world.

However, for business, Enterprise charges for the use of its assets. This largely insulates it from the volatility of commodity prices that is typical of most energy investments.

In the second quarter, the investment-grade pipeline segment generated enough distributable cash flow to cover its distribution 1.6 times. This provides sufficient headroom for adversity before the distribution is compromised, although it has been slightly lower than previous levels. Meanwhile, the distribution has increased annually for 25 consecutive years. It is a very reliable income security, even if it operates in volatility

Interestingly, the distribution yield is a whopping 7.5%. That's on the high side of the MLP's historical yield range, suggesting units are cheap today. To be fair, with such a high yield, the distribution will likely represent the lion's share of the investor's return.

Indeed, opportunities for capital investment in the middle sector are much more modest today than they were in the past. However, 7.5% will get you a long way from the historical 10% return most people expect from the broader market. That's hard to complain about.

Medtronic's streak of annual dividend increases is even more impressive at 46 years. The medical device manufacturer makes products ranging from pacemakers to insulin pumps to surgical robots. It is a key provider

The past few years haven't been great, with a series of headwinds squeezing earnings. For example, the company faced delays in the approval of diabetes products, was hit by some product recalls and its surgical robot was delayed. While none of this is good news, it is all probably, or has proven to be, temporary.

Growth should pick up once management tackles the issues. However, be aware that fiscal 2024 will be a tough year for earnings, with estimates predicting a year-over-year earnings decline of as much as 5.5%.

Looking further ahead, Medtronic is spinning off several slower-growing businesses. This is good news, as more robust growth from the rest of the business will become increasingly visible once the transaction is completed. But the current plan is to keep the dividend even after the spinoff, so income investors won't even notice. And while the 3.3% dividend yield isn't absolutely huge, it's historically high for Medtronic. Like Enterprise, this suggests the stock is cheap right now.

Good prices and good returns

It can be hard to pull the trigger on an investment when the broader market looks expensive, even if the stocks you're considering look cheap. Don't let that stop you. If you have a few thousand dollars to invest, putting half in Enterprise and half in Medtronic, when their yields are historically high and their prices look low, is very likely to be good in the long run.

When our team of analysts has a stock tip, it can pay to listen. After all, the Motley Fool Stock Advisor newsletter they've been running for over a decade has tripled the market.*They just revealed what they think investors should be buying right now... and Enterprise Products Partners wasn't one of them. ! That's right - he thinks these are an even better buy.

In the dynamic world of investing, a budget of $2,000 can be an excellent starting point for building a diverse and potentially profitable portfolio. But where should you direct your funds to get the maximum return? In this article, we'll dive into two tempting stock options that not only fit the bill, but also have promising upside potential. If you want your money to work for you, read on to discover two cheap stocks that deserve your attention.

 A hidden gem in the technology sector

Are you interested in the rapid advancement of technology? Look no further than Inc., a technology company quietly making waves in the industry. With its innovative approach to solving modern challenges, the company Inc. the eye of seasoned investors and newcomers alike.

 Inc. operates in the ever-expanding field of artificial intelligence and cloud computing, two areas with huge growth prospects. The company's commitment to developing cutting-edge solutions has positioned it as a formidable player in an industry dominated by larger competitors. By investing in Inc. you don't just buy stocks; you are investing in the future.

Recent Performance and Outlook

Despite its relatively low stock price, Inc. has performed impressively in the past year. Through a series of strategic partnerships and product launches, the company has successfully diversified its revenue and expanded its customer base. Market analysts are bullish on the stock and predict significant upside potential in the coming quarters. If you apply early, you can be well positioned to reap significant rewards.

In a world where healthcare is a constant concern, investing in pharmaceuticals can be a smart move. ABC Pharmaceuticals stands out as a major contender in the sector, offering both stability and growth potential.

ABC Pharma is a well-established player in the pharmaceutical industry, known for its focus on developing innovative treatments for a range of medical conditions. The company's robust pipeline of potential blockbuster drugs has attracted the attention of investors looking for reliable returns. As the global healthcare market continues to expand, Pharma's commitment to research and development bodes well for continued success.

Recent Performance and Outlook

ABC Pharma has demonstrated resilience in the face of market volatility and has consistently delivered strong financial results. Its reputation as a manufacturer of high-quality drugs has translated into steady revenue and a loyal customer base. With an aging population and increasing healthcare needs, ABC Pharma products are likely to remain in demand.

An investment of $2,000 may not seem like much, but with the right stock selection, it can be the basis for substantial growth. Inc. and ABC Pharma are two affordable stocks that offer exciting opportunities in their respective sectors. By diversifying your portfolio and tapping into the potential of these companies, you could set yourself up for significant long-term gains. Remember that successful investing requires thorough research, a long-term perspective and a willingness to withstand market fluctuations. As always, it is advisable to consult a financial advisor before making any investment decision.

The information provided in this article is for informational purposes only and should not be considered investment advice. Neither the author nor the publisher are responsible for any investment decisions made based on the information provided. Always do your own research and consult with a qualified financial advisor before making any investment decision.