Best Cheap Stocks to Buy Now: Top Picks for Budget-Friendly Investing
Written by
Daria Uhlig
Edited by
Joe Evans
Commitment to Our Readers
GOBankingRates' editorial team is committed to bringing you unbiased reviews and information. We use data-driven methodologies to evaluate financial products and services - our reviews and ratings are not influenced by advertisers. You can read more about our editorial guidelines and our products and services review methodology.
20 Years
Helping You Live Richer
Reviewed
by Experts
Trusted by
Millions of Readers
Looking for affordable stocks that could deliver big returns? You’re not alone. Many investors want to know the best cheap stocks to buy now — stocks that won’t break the bank but still offer strong growth potential.
Whether you’re a beginner dipping your toes into investing or a savvy investor seeking undervalued gems, this guide breaks down budget-friendly stocks that could be worth your attention in 2025.
Best Cheap Stocks to Buy Now
Here are some of the best cheap stocks to watch or invest in now, with a mix of different sectors and strategies:
| Stock | Ticker | Market Cap | Dividend Yield | Recent Performance | Key Strength |
|---|---|---|---|---|---|
| Ford Motor Company | F | ~$45 Billion | ~5% | Up 8% YTD | Strong brand, EV transition |
| SoFi Technologies | SOFI | ~$7 Billion | N/A | Up 15% YTD | Fintech disruptor, growing user base |
| Alibaba Group | BABA | ~$200 Billion | N/A | Up 12% YTD | Undervalued Chinese e-commerce giant |
| Verizon Communications | VZ | ~$160 Billion | ~6.5% | Flat YTD | High dividend, steady cash flow |
| Plug Power | PLUG | ~$2 Billion | N/A | Down 30% YTD | Speculative hydrogen energy play |
| Sirius XM Holdings | SIRI | ~$15 Billion | ~2.5% | Down 5% YTD | Stable cash flow from satellite radio |
These stocks are considered “cheap” based on their price per share, relative valuation metrics or recent market performance.
However, keep in mind that cheap doesn’t always mean good value — so let’s dig deeper.
Why Invest in Cheap Stocks?
Buying cheap stocks can be a smart way to diversify your portfolio without spending too much upfront.
Here’s why they appeal to many investors:
- Affordability: You can buy more shares with less capital.
- Potential Upside: Undervalued stocks can experience a rebound, offering growth opportunities.
- Diversification: Spreading your bets across sectors and industries.
But remember, “cheap” can sometimes signal risk — especially for companies with shaky fundamentals.
Cheap Stocks vs. Other Investments
Not sure if cheap stocks are the right move for you? Let’s compare:
| Investment Type | Risk Level | Growth Potential | Dividends |
|---|---|---|---|
| Cheap Stocks | Medium-High | High | Varies |
| Dividend Stocks | Low-Medium | Moderate | High |
| Blue-Chip Stocks | Low | Moderate | Consistent |
| ETFs | Low-Medium | Varies | Varies |
Cheap stocks offer higher upside, but they often come with more volatility (higher than the average 10 to 20% volatility) than blue-chip stocks or ETFs.
Key Risks of Investing in Cheap Stocks
Before you dive in, it’s important to understand the risks:
- Volatility: Prices can swing dramatically.
- Unproven Businesses: Some companies are in the early stages or struggling.
- Market Trends: Economic downturns can hit cheap stocks harder.
To manage risk, consider pairing cheap stocks with more stable investments.
Trends Shaping Cheap Stock Investing in 2025
- AI and Tech Growth: Many affordable stocks are in emerging industries like AI, fintech and clean energy.
- Consumer Spending Shifts: Companies that adapt to changing consumer habits could benefit.
- Interest Rate Environment: A stable or falling interest rate landscape may boost market sentiment.
Staying informed on these trends can help you pick better cheap stocks.
How to Buy Cheap Stocks
It’s easy to get started:
- Choose a Brokerage: Popular platforms include Fidelity, Charles Schwab and Robinhood.
- Search by Ticker Symbol: Example: F for Ford, SOFI for SoFi.
- Review Stock Data: Check market cap, performance, dividend yield and recent news.
- Decide How Much to Invest: Start small — many platforms allow fractional shares.
- Monitor Your Investments: Keep an eye on news and earnings reports.
Final Take to GO: Best Cheap Stocks to Buy Now
Investing in the best cheap stocks to buy now can be a great way to build your portfolio on a budget — if you’re smart about it.
Look for companies with strong fundamentals, solid growth potential and a clear path forward.
Want to learn more? Check out our guides on how to buy stocks, beginner investing tips and the best dividend stocks for 2025.
FAQs About the Best Cheap Stock to Buy Now
Many people wonder about which picks are the best cheap stocks to buy now and hold for later. Here are some answers to some frequently asked questions:- What are the best cheap stocks to buy now?
- Some popular picks in 2025 include Ford (F) for its EV growth, SoFi (SOFI) as a fintech innovator and Verizon (VZ) for its solid dividend yield.
- Are cheap stocks safe?
- Not always. While some cheap stocks bounce back, others may struggle. Always do your research and consider the risks.
- Can I make money with cheap stocks?
- Yes -- if you pick wisely and stay patient. Many successful investors build wealth by holding undervalued stocks that grow over time.
- How much should I invest in cheap stocks?
- Start small. It’s smart to limit cheap stocks to a portion of your portfolio, balancing them with more stable investments like blue-chip stocks or ETFs.
Daria Uhlig and Melanie Grafil contributed to the reporting for this article.
Data is accurate as of May 28, 2025, and is subject to change.
Editorial Note: This content is not provided by any entity covered in this article. Any opinions, analyses, reviews, ratings or recommendations expressed in this article are those of the author alone and have not been reviewed, approved or otherwise endorsed by any entity named in this article.
Our in-house research team and on-site financial experts work together to create content that’s accurate, impartial, and up to date. We fact-check every single statistic, quote and fact using trusted primary resources to make sure the information we provide is correct. You can learn more about GOBankingRates’ processes and standards in our editorial policy.
- S&P Down Jones Indices "Natural Selection: Tactics and Strategy with Equity Sectors"
- FINRA "Asset Allocation and Diversification"
- Crestmont Reseearch "Volatility In Perspective"
- Markets.com "Stock index analysis: How Rising Interest Rates Are Influencing the S&P 500"
