Investors looking to buy cheap stocks have a ton of opportunity, given the volatile macroeconomic backdrop in 2022. Here we look at the three best low price shares investors can buy today. Each of these companies is trading at an attractive multiple and may stage a comeback to outpace the broader markets in 2023.
Best low price share to buy #1: Oatly
The first stock on my list is Oatly (NASDAQ: OTLY), a Sweden-based oat milk company. Oatly stock is priced at $1.67 per share, valuing the company at a market cap of $987 million. Down 92% from all-time highs, this low priced share has burnt massive investor wealth in 2022.
However, its sales rose 7% year over year in Q3 to $183 million despite a strong U.S. dollar. But due to supply chain disruptions and COVID-19-related lockdowns in China, the company’s gross profit declined to just $4.9 million from $44.8 million in the year-ago period. The oat milk brand ended Q3 with a gross margin of a measly 2.7% dragging OTLY stock price towards record lows this month.
Further, operating expenses for Q3 stood at $100 million, indicating an operating loss of almost $105 million. With $100 million in cash, Oatly will soon have to raise additional capital and aim to enhance the bottom line to regain investor confidence.
Analysts tracking OTLY stock expect the company to increase its sales from $643 million in 2021 to almost $900 million in 2023. An acceleration in the top line should enable Oatly to narrow its losses in the next 12 months, driving its share price higher in the process.
Best low price share to buy #2: Dutch Bros.
The second best low price share to buy is Dutch Bros (NYSE: BROS), a coffee chain that competes with the likes of Starbucks. Valued at a market cap of almost $6 billion, BROS stock is priced at $35.37 per share.
In Q3 of 2022, Dutch Bros increased revenue by 53% year over year. In the last 12 months, its sales have more than doubled compared to 2020, primarily on the back of new store openings and aggressive expansion plans.
The company entered new markets, such as San Diego County, in Q3 after establishing a large presence on the country’s West Coast. It opened close to 40 new outlets in Q3, which is almost equivalent to the number of new store openings in the whole of 2019.
Now, Dutch Bros maintained it's on track to open 150 new stores next year, bringing its total stores to 800, allowing the company to increase sales to almost $1 billion in 2023, from $500 million in 2021.
Best low price share to buy #3: Coinbase
The final stock on my list is Coinbase (NASDAQ: COIN), the world’s second-largest cryptocurrency platform. Valued at a market cap of $11.7 billion, COIN stock is priced at $45, which is 88% below all-time highs.
Coinbase is among the best low price shares to buy right now due to its leadership position in a highly disruptive space and a first-mover advantage. In case you are bullish on the crypto space, investing in Coinbase can help you derive outsized gains over the long term.
Yes, the current environment is extremely tumultuous for crypto investors due to big-ticket liquidations of companies such as FTX, Alameda Research, and 3AC, among others. Alternatively, it allows you to buy a quality growth stock at a much lower multiple right now.