This Day On The Street
Continue to site right-arrow
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

5 Bargain Bin Stocks You Need to Buy

Stocks in this article: GLW CME TAP TX RDC

BALTIMORE ( Stockpickr) -- "Stocks are cheap!" Or at least that's the story that's getting tossed around Wall Street right now.

But even though that phrase has been picking up in popularity this month, it doesn't tell you a whole lot about what you should be doing as an investor. I mean, which stocks are cheap? And how cheap are they? Before you go off buying equities with both hands, let's get a better picture of the cheap stocks that are out there.

To do that, we're tearing the lid off of Wall Street's "bargain bin" today.

>>5 Stocks Poised to Pop on Earnings

In very broad strokes, stocks are looking cheap er in April. It's earnings season, and one of the big data points that I've been harping on has been the disconnect between investor sentiment and fundamental earnings numbers flowing out of earnings calls this month. So far, 125 stocks in the S&P 500 have reported their numbers to investors this quarter. Of those, around 82% have reported positive earnings surprise. That means that analysts are dramatically underestimating corporate profits right now.

In the last year, the picture is even clearer: corporate revenues for stocks in the S&P 500 have climbed 7.5%; profits have climbed 6.8%. But at the same time, the S&P's price has only inched 2.7% higher. So even if analysts were dead-on in their earnings projections, Mr. Market is still a lot cheaper than it was 12 months ago; and we know that those projections aren't even close.

Still, the idea that "the market is generally cheaper" doesn't do a whole lot for investors looking to buy bargains. That's why we're turning to the bargain bin. In our search, we're focusing in on stocks that currently trade at or under book value per share -- a number that (generally) means that a company costs less to buy than the value of the stuff it owns.

Typically, stocks trade under book value for good reasons. It could mean, for example, that a company has a major black cloud ready to disrupt its businesses, or that its liabilities are under-represented on its balance sheet. To combat that, we're focusing on larger bargains with consistent profitability, and assets that are primarily financed with equity rather than debt.

Without further ado, here's a look at five of the stocks from Wall Street's bargain bin.

1 of 6

Select the service that is right for you!

Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!


DOW 17,804.80 +26.65 0.15%
S&P 500 2,070.65 +9.42 0.46%
NASDAQ 4,765.38 +16.9840 0.36%

Brokerage Partners

Rates from

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs