You don’t need a fortune to invest in the stock market. Just $500 could set the foundation for massive returns if put behind a company built for long-term success…
If that’s something you are interested in, keep reading about these two dirt-cheap stocks worth considering right now.
1. Ford Motor
With share prices up 40% year to date, investors are paying attention to Ford’s electric transformation. Management expects electric vehicles (EVs) to represent 40% of its car sales by 2030, which means the automaker could become a viable competitor to the current EV market leader, Tesla.
Ford’s stock looks poised for continued strength because of its dirt-cheap valuation and competitive advantage in several popular automotive segments.
According to CEO Jim Farley, Ford’s EV strategy will focus on markets where it is already a dominant player, such as pickup trucks, sports cars, and transit vans. The company plans to spend over $30 billion to make this vision a reality. And it has already developed an electric version of its Mustang called the Mach E, along with an all-electric F-150 pickup truck and transit van expected to launch in the 2022 season.
Ford’s strong brands (for example, the F-150 is the best-selling pickup in the U.S.) could give it a competitive moat. The company is also entering brand-new EV markets through its mobility subsidiary, Spin, which launched its first custom-designed electric scooter, the S-100T, in June.
With a forward price-to-earnings (P/E) multiple of just 13, Ford stock is dirt cheap compared to Tesla, which trades for 164 times earnings. The discount is reasonable considering Ford’s modest growth rate (first-quarter revenue grew 6% to $36.2 billion). But the two companies could become more similar over time as Ford’s EV strategy takes shape, potentially accelerating growth. This trend could lead to an upward reevaluation of what Ford stock is worth.
2. Curiosity Stream
With a market cap of just $598 million, Curiosity Stream is tiny compared to streaming service rivals like Disney or Netflix, which are worth $326 billion and $235 billion, respectively. But the stock is an opportunity to get in on…
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