Over the past couple of months, value stocks has outperformed growth stocks and with everything going on in the market, it wouldn’t be surprising if value stocks continue outperforming growth over the next couple of months.
So many factors are at play in this market, among them are the fear of inflation (aka the rising interest rate), the global chip shortage, and the growing optimism around the reopening of the economy, this is indeed a market like no other.
And most of these key factors driving this market are seemingly favoring value stocks with technology and renewable energy stocks amongst the biggest losers. Moreover, the broader market is hitting all-time highs after all-time highs, and there are rightly founded fears of a possible market crash.
All things consider, if you want to play in this market, you got to hold some value names, however the market continues to play out, value names will most certainly give your portfolio a great deal of protection, especially for penny stock traders.
If you are interested in value penny stocks, here are 5 value stocks under $10 and $5 to consider:
1. Waitr Holding (NASDAQ: WTRH)
Waitr Holdings Inc., together with its subsidiaries, operates an online ordering technology platform in the United States. It is Waitr and Bite Squad mobile applications (the platforms) that provide delivery, carryout, and dine-in options, connecting restaurants, drivers, and diners.
The WAITR restaurant platform connects restaurants and guests. Guests scroll restaurant menus, customize an order, modify any item, add people to a group order, split the check, choose delivery or carryout, and with the push of a button, have an order in their hands.
WAITR has transformed the way restaurants reach people and the way people choose restaurants. The WAITR delivery team & on-demand delivery platform differentiates itself from the pack by being built by hospitality professionals for hospitality professionals.
Over half a million orders have been handed to happy people by smiling WAITRs, and as of December 31, 2020, the company had approximately 20,000 restaurants, in 700 cities, on the platforms.
The company was founded in 2013 and is headquartered in Lafayette, Louisiana.
2. Telefonica S.A. (NYSE: TEF)
Telefonica, S.A., together with its subsidiaries, provides telecommunications services in Europe and Latin America. The company’s mobile and related services and products comprise mobile voice, value-added, mobile data, Internet, wholesale, corporate, roaming, fixed wireless, trunking, and paging services.
Its fixed telecommunication services include PSTN lines; ISDN accesses; public telephone services; local, domestic, and international long-distance and fixed-to-mobile communications; corporate communications; supplementary value-added services; video telephony; intelligent network; and telephony information services.
The company also leases and sells handset equipment; and provides Internet and broadband multimedia services comprising Internet service provider, portal and network, retail and wholesale broadband access, narrowband switched access, high-speed Internet through fibre to the home, and voice over Internet protocol services.
In addition, it offers leased lines; virtual private network; fibre optics; hosting and application; outsourcing and consultancy; desktop; and system integration and professional services.
Further, the company offers wholesale services for telecommunication operators, including domestic interconnection; international wholesale; leased lines for other operators; and local loop leasing under the unbundled local loop regulation framework, as well as bitstream services, wholesale line rental accesses, and leased ducts for other operators’ fiber deployment.
Additionally, it provides video/TV services; smart connectivity and services, and consumer IoT products; financial and other payment, security, cloud computing, advertising, big data, and digital telco experience services; virtual assistants; digital home platforms; and Movistar Home devices. The company serves 337 million customers.
Telefonica, S.A. was founded in 1924 and is headquartered in Madrid, Spain.
3. Nokia Corp. (NYSE: NOK)
Nokia (NYSE: NOK) is a major player in the global 5G infrastructure space, and it’s stock currently trades under $5.
The company engages in the provision of network infrastructure, technology, and software services. It has secured 145 commercial 5G deals and its 5G Infrastructure technology is currently being deployed live by 55 Network Operators worldwide.
Nokia is expected to benefit from the trade tension between the US and China, as many countries have banned the use of network equipment from Huawei, a Chinese Telecommunication powerhouse and the leader in the 5G infrastructure market.
However, the company is yet to realize this potential, failing so far to serious capitalize on the non-participation of Huawei in the 5g infrastructure market and has even lost 5G contract bids to the likes of Samsung.
Nonetheless, its recent quarterly report offers long-term promise. Having recently won a five year deal to supply network equipment to T-Mobile, a major US Network Operator.
Sentiment around the NOK stock is not favourable at the moment, and this is largely because of the CEO’s uninspiring 2021 guidance. “We expect 2021 to be challenging, a year of transition, with meaningful headwinds due to market share loss and price erosion in North America,” said Pekka Lundmark, Nokia’s CEO.
However, the CEO also noted that the company will be forced to sacrifice short term margins in 2021 to make more 5G Research and Development investments while maintaining market share. And this will help the company long-term, as they could potentially have superior 5g network infrastructure tech.
At less than $5, the company is a cheap long-term 5G play that could pay off massively.
4. Nomura Holdings Inc (NYSE: NMR)
Nomura Holdings, Inc. provides various financial services to individuals, corporations, financial institutions, governments, and governmental agencies worldwide. It operates through three segments: Retail, Asset Management, and Wholesale.
- The Retail segment offers various financial products and investment services for individuals and corporations. As of March 31, 2020, this segment operated a network of 128 branches.
- The Asset Management segment engages in the development and management of investment trusts; and provision of investment advisory services for pension funds and other institutional clients.
- The Wholesale segment is involved in the research, sale, trading, agency execution, and market-making of fixed income and equity-related products.
It also engages in underwriting various securities and other financial instruments, such as various classes of shares, convertible and exchangeable securities, investment grade and high yield debts, sovereign and emerging market debts, structured securities, and other securities; arranging private placements, as well as other capital raising activities; and the provision of financial advisory services on business transactions comprising mergers and acquisitions, divestitures, spin-offs, capital structuring, corporate defense activities, leveraged buyouts, and risk solutions.
In addition, this segment offers various financial instruments. The company was formerly known as The Nomura Securities Co., Ltd. and changed its name to Nomura Holdings, Inc. in October 2001. Nomura Holdings, Inc. was founded in 1925 and is headquartered in Tokyo, Japan.
5. ASE Technology Holding Co Ltd (NYSE: ASX)
ASE Technology Holding Co., Ltd. (NYSE: ASX) is one of the companies that are set to benefit from the global shortage of chips and 5G in 2021, and it currently trades under $10. As expeceted, the shortage of chips is going to increase demand for chip makers products, especially in the US and EU.
The company provides a range of semiconductors packaging and testing, and electronic manufacturing services in the United States, Taiwan, Asia, Europe, and internationally.
Moreover, the company’s wide range of semiconductor packages are used in 5G Network towers and 5G electronic devices. And as such it is one of the companies expected to benefit from the 5G boom.
Its P/E ratio is under 30 and it has a stock price that’s under 10, all of which makes it a relatively cheap 5G semiconductor penny stock.
I’m a Technology Stock Analyst, with focus on companies developing cutting-edge techs. Keeping track of cutting-edge techs, companies and stocks is what I do almost everyday. And I love it. Whether it’s artificial intelligence, 5g, or autonomous vehicles; I’m all in.