Investing in equities — publicly traded stocks — and holding them for the long run is a proven strategy for building wealth over time. Stocks offer investors the opportunity to share in the growth of a company and to generally participate in the expansion of the U.S. and world economies. While investing does involve risk, history shows us that the stock market trends higher over extended periods.
All of which is to say that equities are a smart choice when it comes to investing long-term capital. Stocks go up and down with the market and fundamental factors, but as an asset class the stock market tends to outperform more conservative vehicles like government bonds and deposit accounts. The key to success in the equity markets is to diversify and take a disciplined, long-term approach.
[Sign up for stock news with our Invested newsletter.]
Most people are familiar with the old adage “buy low, sell high.” Accordingly, the current market price is one of the first things individual investors look at when they think about buying a stock. A stock’s price is a critical factor, but price alone doesn’t tell the whole story. There are other, more important things to consider. For instance, a company’s balance sheet, current and estimated future revenue and earnings, as well as its relative position in its sector, should be thoroughly reviewed before you click the “buy” button.
The best cheap stocks belong to companies that are fundamentally strong but experiencing a brief, temporary setback, says Steven Conners, founder and president of Conners Wealth Management in Scottsdale, Arizona. What you want to avoid are cheap stocks that don’t have a “catalyst to improve their valuation.”
He also points out that price is not the best metric for determining if a stock is “cheap.” Rather, you should look at a stock’s price-to-earnings (P/E) ratio. This tells you how many investment dollars you are paying for each dollar of company earnings.
Unfortunately, many low-priced stocks don’t have available P/E ratios, as their earnings are negative. In these cases, price-to-sales (P/S), which measures how much investors are paying per dollar of revenue, can be a useful alternative. The P/S ratio can also sometimes be a better metric, since it’s harder for companies to manipulate sales numbers compared to profit. In either case, lower is better with a P/E under 20 and a P/S under 2 often seen as ideal by value investors, but these ranges can vary fairly dramatically from industry to industry.
The bottom line on low-priced stocks — like the five highlighted below — is that investors can see exceptional total returns from relatively modest price increases, but they fall into a riskier category that isn’t suitable for conservative investors. With the right approach, however, these cheap stocks can be a very rewarding part of a diversified portfolio:
| STOCK | MARKET CAPITALIZATION | YEAR-TO-DATE PERFORMANCE AS OF SEPT. 25 |
| Village Farms International Inc. (ticker: VFF) | $310 million | 258% |
| E.W. Scripps Co. (SSP) | $245 million | 27.1% |
| GoPro Inc. (GPRO) | $350 million | 101.8% |
| Uranium Royalty Corp. (UROY) | $575 million | 92.2% |
| Oncology Institute Inc. (TOI) | $340 million | 1,039.2% |
Village Farms International Inc. (VFF)
VFF is a perfect example of the high returns you can get on cheap stocks, but also the high risk involved. It has gained more than 250% this year alone. This puts the S&P 500’s year-to-date return of 12.3% to shame. However, VFF is also more than twice as volatile as the broader stock market — so be prepared for a rocky ride.
VFF is an agricultural company that operates greenhouse facilities in the U.S. and Canada where it grows tomatoes, cucumbers, bell peppers and cannabis. It is one of the largest cannabis operations worldwide and one of Canada’s best-selling brands. Its wholly owned subsidiary, Balanced Health Botanicals, is also a major player in the U.S. CBD market.
So, if you’re bullish on cannabis’s future, this could be an inexpensive way to enter the market. With more than 2 million shares trading hands each day on average, you should be able to buy and sell fairly easily.
E.W. Scripps Co. (SSP)
Entertainment is a tough business right now. Music, news, movies, print media and TV are all facing the challenges that come with transitioning from old technologies to modern, digital formats. That’s why it’s something of a surprise to see SSP outperforming the S&P 500 so far in 2025, logging a 27.1% rise on the year through Sept. 25.
SSP is a $245 million diversified broadcast and communication services company with a legacy presence in local and national television. The company operates more than 60 broadcast stations in more than 40 strong markets in the U.S. The crown jewel in its portfolio, however, might be the ION Network, which reaches more than 128 million households with news, entertainment and sports content. The company recently renewed a multiyear broadcast partnership with WNBA Friday Night Spotlight on ION, after seeing a 133% increase in viewership in 2024.
SSP is succeeding in a difficult environment by catering to its target market — older Americans who still enjoy a traditional TV experience — and by staying focused on local news and national issues that impact the regions it serves.
[Read: 6 of the Best AI ETFs to Buy for 2025]
GoPro Inc. (GPRO)
GoPro probably needs no introduction. The $350 million tech company is the producer of mountable and wearable cameras, drones and camera accessories. It’s become so popular that it even has a small line of branded apparel fans can buy.
And there are many fans: The company has more than 53 million social media followers, and has sold more than 52 million cameras since inception in 2004. GoPro has also introduced a subscription service, which saw a 27% compound annual growth rate between 2021 and the first quarter of 2025.
GPRO stock gained over 100% year to date in 2025, with a healthy trading volume of more than 13 million shares a day on average.
Uranium Royalty Corp. (UROY)
UROY is a $575 million precious metals company focused purely on uranium, a key element in nuclear energy. While most think of weapons when they hear the phrase “nuclear,” there are broader — and less violent — uses for nuclear energy. Some are even contemplating nuclear-powered data centers to help supply the energy needed for processing artificial intelligence-heavy tasks, which could be a big profit driver for UROY.
The company could also benefit from the enactment of the Prohibiting Russian Uranium Imports Act, which bans importation of uranium from Russia, a boon to UROY’s North American uranium mine portfolio. Previously, 50% of U.S. uranium came from Russia, Kazakhstan and Uzbekistan, according to UROY’s CEO.
As a result, UROY’s stock is up more than 90% year to date for 2025. Nearly 3 million shares trade hands each day on average, which helps keep the stock liquid.
Oncology Institute Inc. (TOI)
To round out the list of the best cheap stocks under $5, here is a prime example of the exponential returns that are possible in this arena. The Oncology Institute is a $340 million cancer-care group in the U.S. Its shares are currently up more than 1,000% in 2025 alone.
This gain is in part due to a notable increase in earnings, but the company is still operating at a net loss. Its P/S is favorable, though, at 0.67. It’s also expected to join the Russell 2000 and Russell 3000 indexes next year. Finally, nearly 41% of its shares are insider-owned, which is generally considered a bullish signal to investors since it suggests management has confidence in the company’s future.
The stock has a trading volume of nearly 2 million shares per day on average, making it a liquid option for investors. Its next earnings date is in November, and definitely worth watching out for.
More from U.S. News
8 Best Quantum Computing Stocks for 2025
Will the Stock Market Crash in 2025?
5 Best Cheap Stocks Under $5 to Buy Right Now originally appeared on usnews.com
Update 09/26/25: This story was published at an earlier date and has been updated with new information.
