April’s Bargain Bin Beauties: 3 Cheap Stocks With Massive Potential

Stocks to buy

With inflation over the last two years diminishing the dollar’s buying power, investors must focus on value more than ever. Some stocks, despite offering a piece of a high-performing company, are simply out of reach for the average retail investor.

Moreover, the bull market could be cooling as ambiguous signals from the Federal Reserve regarding rate cuts. As such, the purchasing environment has brought several cheaper stocks to buy.

A cheap investment may sound implausible — as low-cost stocks provide larger portions of shares for a better price. This allows investors who buy at the right time to establish more significant ownership in a particular company over time.

Cheap stocks also tend to be undervalued, generating more potential upside for investors. Depending on the number of shares and the company’s market capitalization, the value of a stock only represents an entry price. Investors can then use its annual returns to determine the time it would take to double in value.

Accel Entertainment (ACEL)

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As gambling becomes increasingly more popular across the United States, Accel Entertainment (NYSE:ACEL) gains new potential customers every year. For its main product line, the company specializes in three types of gaming terminals: slots, amusement machines and redemption terminals. However, unlike other gaming terminal providers, ACEL focuses on authorized non-casino locations, such as gas stations, bars and restaurants.

This enables Accel to grow rapidly within a niche market where its customers derive extra revenue from its machines. Moreover, because its business model excludes casinos, the company can focus on volume manufacturing rather than custom orders. With this approach, Accel’s fourth quarter financials for 2023 saw revenue increase to $297 million by 6.83% year over year.

The company’s quarterly net income surged to $15.99 million by 19.26% year-over-year, representing stable profitability. With governmental attitudes towards gambling continuing to soften, ACEL’s opportunities to expand will only continue to grow in the coming years.

AvidXchange Holdings (AVDX)

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A company not often mentioned in the AI automation market, AvidXChange Holdings (NASDAQ:AVDX) provides a critical product for small businesses. For all companies, invoicing is the lifeblood of operations, as it brings in much-needed cash to keep the lights on. But invoicing itself can be a drain on resources, as it either requires the business owner’s precious time or an employee to handle the work.

That’s where AVDX comes in, with its proprietary accounts payable automation solutions. For both small and large businesses, this software frees up owners’ time and provides relief from accounts payable expenses. The company also automates several facets of the supply chain process, such as purchase orders, bill pay and business analytics.

With 1.2 million customers and counting, the company has successfully gained momentum in its growth stages. Though it has not consistently turned a profit, its 82% income growth year-over-year signals profitability could come soon. 

ThredUp (TDUP)

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Having seen some price corrections since its debut, ThredUp (NASDAQ:TDUP) currently holds an attractive price considering its market potential. Yet, it’s not just pricing that makes TDUP one of the highest potential cheap stocks to buy. That’s because ThredUp specializes in the recently blooming secondhand clothing industry. 

The thrift clothing market is projected to grow to $350 billion by 2028 as consumers become far more financially conscious. ThredUp’s edge is in its breadth of offerings and enticing consumers to consider buying secondhand clothes as a first choice. It achieves this by cutting down on the shipping times that make many other online clothing release websites less attractive. 

Furthermore, by offering secondhand designer brands, ThredUP makes luxury clothing accessible to more consumers for a lower price. As such, this approach could spur word-of-mouth recognition spreading about the site, increasing its value among cheap stocks to buy.

On the date of publication, Viktor Zarev did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.

Viktor Zarev is a scientist, researcher, and writer specializing in explaining the complex world of technology stocks through dedication to accuracy and understanding.

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