13 New Cheap Stocks to Buy

In this article, we’ll take a look at 13 cheap new stocks to buy. To see more such companies, go directly to 5 New Cheap Stocks to Buy.

Global markets have been shaken by the market crash of 2022, whose reverberations are expected to affect businesses for several months to come. However, prudent investors always invest for the long term and a decrease in shares is perceived by them as an opportunity. While there is a consensus that the world will see a recession in 2023, leading analysts believe it will be a short one. For example, JPMorgan said in its 2023 Market Outlook Report that the global economy is expected to see a “substantial” improvement in inflation levels and a pause in rising rates. The report said that US stock returns will be driven by earnings, but will continue to see caps due to market volatility.

JPMorgan also said that the Federal Reserve is expected to conclude its rate hike spree in the first quarter of 2023. This will cause yields to stabilize and the volatility of interest rates to decrease.

JPMorgan’s report also said that the earnings outlook for US stocks will depend “on the evolution of economic growth.” If the economy manages to avoid a recession, JPMorgan expects that the growth of earnings to be steady compared to 2022. If, however, the economy enters a recession, the report said that “history suggests that the earnings could drop by 15% to 20%”.

JPMorgan isn’t alone in its bullish inflation-related calls. WisdomTree Investments, in a recent report, said that it believes that inflation in the United States has reached its “zenith” and will continue to decline in 2023. The firm, however, said that it will return inflation to the limit of 2% established by the Federal Remains. “can be elusive” because of the services sector.

The IPO space was hammered in 2022 due to the macroeconomic backdrop as companies chose not to enter the stormy waters. A Bloomberg report in December said that only $207 billion will be raised in 2022 from public listings, a whopping 68% drop compared to 2021. The report cited Edward Byun, co-head of capital markets of Asia ex-Japan at Goldman Sachs Group Inc. ., which thinks that “stability” around inflation and visibility on the trajectory for the increase of interest rates is necessary for the activity in the IPO markets to return.

Photo by Ruben Sukatendel on Unsplash

Our methodology

For this article, we used stock screeners to first list the growth stocks that went public in the last two years. From these we selected the stocks that lost at least 10% in value in the last six months from January 22. The result was a long list of stocks. To find good stocks whose valuations seem depressed compared to their current value, we selected 13 of these stocks that have long-term growth catalysts and attractive valuations. These stocks look good when analyzed based on their long-term earnings in light of their strong growth catalysts. Many of these new stocks are also popular along the 920 elite hedge funds tracked by Insider Monkey. To justify our statement of “economy”, in addition to the decrease in the price of these shares, we also discussed their growth catalysts and the positive analyst ratings that indicate that these companies could do very well in the months and the years to come.

The list is ranked in descending order of stock prices.

New Cheap Stocks to buy

13. Acrivon Therapeutics, Inc. (NASDAQ:ACRV)

Price: $12.42

Price decline in the last six months: 15%

Number of Hedge Fund Holders: N/A

Founded in 2018, Acrivon Therapeutics, Inc. (NASDAQ: ACRV) is a Massachusetts-based biotechnology company working on oncology products. Acrivon Therapeutics, Inc. (NASDAQ: ACRV) went public in November 2022. Acrivon Therapeutics, Inc. (NASDAQ: ACRV ) ended its first session up about 33% after its $94 million IPO. Acrivon Therapeutics, Inc. (NASDAQ: ACRV ) lead drug candidate is ACR-368. Acrivon Therapeutics, Inc. (NASDAQ: ACRV) is making efforts to advance the drug into Phase 2 testing for the treatment of bladder, endometrial and ovarian tumors and HPV+ tumors. Acrivon Therapeutics, Inc. (NASDAQ: ACRV ) also claims to have developed a diagnostic solution called OncoSignature to help identify which patients will benefit from the drug.

The website of Acrivon Therapeutics, Inc. (NASDAQ: ACRV ) says its pipeline is focused on an advanced asset targeting DNA Damage Response (DDR) and cell cycle regulation with proven and durable single-agent clinical activity in the solid tumors.

12. Samsara Inc. (NYSE:IOT)

Price: $12.01

Price decline in the last six months: 10%

Number of Hedge Fund Holders: 23

Samsara Inc. (NYSE: IOT) is an IoT company that offers fleet management solutions. Last month, the shares of Samsara Inc. (NYSE: IOT ) jumped more than 20% after the company crushed estimates for Q3 and gave a forecast for the year 2022 that exceeded analysts’ estimates. RBC said in a note to investors that Samsara Inc. (NYSE: IOT ) managed to beat estimates despite a challenging macro environment.

Samsara Inc. (NYSE: IOT) was published in December 2021.

At the end of the third quarter, 23 hedge funds tracked by Insider Monkey said they had stakes in Samsara Inc. (NYSE: IOT ), compared with 17 funds in the previous quarter.

11. Udemy, Inc. (NASDAQ:UDMY)

Price: $11.01

Price decline in the last six months: 12%

Number of Hedge Fund Holders: 12

The online education and course company Udemy, Inc. (NASDAQ: UDMY) was released in 2021. It is one of the best new stocks to buy as it has strong growth prospects. In December, Cantor Fitzgerald named Udemy, Inc. (NASDAQ: UDMY) one of its top picks for 2023. The company believes that Udemy, Inc. (NASDAQ: UDMY ) is largely discounted when compared to the general software sector. Cantor analyst Brett Knoblauch believes that Udemy, Inc. (NASDAQ: UDMY ) is trading at 1.1 times enterprise value to sales, which represents a 77% discount to the broader software sector. Cantor Fitzgerald also said that Udemy, Inc. (NASDAQ: UDMY ) is “flush with cash” at about $500 million and debt-free.

At the end of the third quarter, 12 hedge funds tracked by Insider Monkey said they had stakes in Udemy, Inc. (NASDAQ: UDMY). The total value of these stakes was $85 million.

10. Marketa, Inc. (NASDAQ:MQ)

Price: $6.59

Price decline in the last six months: 27%

Number of Hedge Fund Holders: 33

Marqeta, Inc. (NASDAQ: MQ) is a fintech company operating in the card and payment solutions space. While Marqeta, Inc. (NASDAQ: MQ ) took a beating last year, analysts believe that Marqeta, Inc. (NASDAQ: MQ ) could turn the corner in the coming months and years. In the third quarter, Marqeta, Inc. (NASDAQ: MQ ) posted revenue growth of 46%. Marqeta, Inc.’s revenue growth. (NASDAQ: MQ) was due to strong TPV (total transaction volume), which was up 54% from $27.6 billion to $42.5 billion.

Marqeta, Inc. (NASDAQ: MQ) went public in the summer of 2021, but the stock has gained decent popularity among smart money. Of the 920 elite hedge funds tracked by Insider Monkey, 33 happened in Marqeta, Inc. (NASDAQ: MQ). The total value of these stakes was $658 million.

9. Amprius Technologies, Inc. (NYSE:AMpx)

Price: $6.15

Price decline in the last six months: 36%

Number of Hedge Fund Holders: 10

Amprius Technologies, Inc. (NYSE: AMPX) went public last year and operates in the battery market. Amprius Technologies, Inc. (NYSE: AMPX) manufactures silicon anodes for high energy density lithium-ion batteries. Amprius Technologies, Inc. (NYSE: AMPX) has a first-mover advantage in the silicon battery market and analysts believe Amprius Technologies, Inc. (NYSE: AMPX) reduces the threat of thermal leakage in battery products. Amprius Technologies, Inc. (NYSE: AMPX ) also plans to launch a Gigafactory in the United States in 2023.

Hedge funds were soon in the pile on Amprius Technologies, Inc. (NYSE: AMPX). A total of 10 hedge funds reported holdings in Amprius Technologies, Inc. (NYSE: AMPX) at the end of the third quarter. The total value of these stakes was $1.1 million.

8. Atlis Motor Vehicles, Inc. (NASDAQ:AMV)

Price: $5.91

Price decline in the last six months: 94%

Number of Hedge Fund Holders: N/A

Atlis Motor Vehicles, Inc. (NASDAQ: AMV ) based in Arizona, is No. 8 on our list of good new stocks to buy. Atlis Motor Vehicles, Inc. (NASDAQ: AMV ) operates in the lucrative EV industry. Atlis Motor Vehicles, Inc. (NASDAQ: AMV) manufactures EVs and charging infrastructure. It is famous for its power cells and battery packs and its AMV XT pickup trucks. At the beginning of January, the shares of Atlis Motor Vehicles, Inc. (NASDAQ:AMV) surged 200% to hit new all-time highs of $2.26. Atlis Motor Vehicles, Inc. (NASDAQ: AMV) announced that it had reached a sales milestone of receiving preliminary and firm orders for a battery capacity of two gigawatt-hours. Atlis Motor Vehicles, Inc. (NASDAQ: AMV) aims to achieve profitability and relies on a subscription model in the EV space.

7. Weave Communications, Inc. (NYSE:WEAV)

Price: $5.32

Price decline over the last twelve months: 44%

Number of Hedge Fund Holders: 4

Weave Communications, Inc. (NYSE: WEAV) is a Utah-based company that offers a communications platform for small businesses. The platform allows companies to automate their calls, messages, appointment systems and much more to increase efficiency and results. Weave Communications, Inc. (NYSE: WEAV) went public in November 2021. Weave Communications, Inc. (NYSE: WEAV ) operates in a high-growth but competitive market. For the third quarter, Weave Communications, Inc. (NYSE:WEAV) reported its adjusted EPS came in at -$0.10, beating estimates by $0.04. Revenue in the quarter rose 20% to a total of $36.2 million, beating estimates by $0.81 million. Weave Communications, Inc. (NYSE: WEAV ) reported that its Dollar Based Net Retention Rate (NRR) was 101% as of September 30, 2022.

At the end of the third quarter, 4 hedge funds stated they have stakes in Weave Communications, Inc. (NYSE: WEAV). The total value of these stakes was more than $100 million.

6. Thorne HealthTech, Inc. (NASDAQ:THRN)

Price: $3.69

Price decline in the last six months: 21%

Number of Hedge Fund Holders: 3

Thorne HealthTech, Inc. (NASDAQ: THRN), based in New York, offers health and wellness products and services related to sleep, stress and weight management. Thorne HealthTech, Inc. (NASDAQ: THRN) sells its products through the direct-to-consumer channel as well as on e-commerce platforms including Amazon. Thorne HealthTech, Inc. (NASDAQ: THRN ) is operating in a high-growth environment as more and more people begin to invest in health and wellness products. According to a research reportthe global market for dietary supplements alone is expected to reach $271 billion by 2028.

A total of 3 hedge funds tracked by Insider Monkey had stakes in Thorne HealthTech, Inc. (NASDAQ: THRN) at the end of the third quarter, compared to 5 funds in the previous quarter.

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Disclosure: None. 13 New Cheap Stocks to Buy is originally published on Insider Monkey.