In our recent publication, we introduced an enticing list titled "10 Cheap Hot Stocks to Buy Right Now." This article delves deeper into the position of Gold Fields Ltd. (NYSE:GFI) within this category of affordable yet promising stocks.

Periods marked by significant market volatility can transform inexpensive stocks into highly attractive investment opportunities. Such volatility often leads to abrupt price fluctuations, which can momentarily undervalue fundamentally robust growth companies. This presents a unique chance for selective long-term investors to acquire these stocks at discounted prices. When market stability returns and valuations recover, these investors stand to benefit substantially.

On April 17, financial experts Jim Tierney of AB and Kathy Jones from Charles Schwab appeared on CNBCs popular segment, Power Lunch, where they shared insights on navigating the current market landscape for long-term investors. Kathy Jones advised investors to tune out the excessive noise generated by the current market volatility. She stressed the importance of adhering to fundamental investment principles during such uncertain times. According to her, maintaining a diversified portfolio is crucial, as is being mindful of one's risk tolerance and capacity.

Jones characterized the current market environment as fraught with uncertainty and volatility. In light of this, she proposed that a conservative, credit-quality-focused fixed income portfolio is an appropriate strategy for investors seeking stability. She recommends that long-term investors aiming for income, capital preservation, and diversification away from equities should consider investing in higher credit quality bonds with a duration of about five to seven years. This duration, she argues, strikes a balance between earning a reasonable amount of interest income while simultaneously minimizing credit risk, volatility, and interest rate exposure.

Meanwhile, Jim Tierney encouraged equity investors to be discerning and selective in identifying current opportunities. Despite the challenges posed by the economic landscape, he expressed optimism that appealing investment prospects remain available. A critical topic addressed during the discussion was whether the recent market rebound should inspire investors to sell their holdings. Tierney contended that for long-term investors, the scenario of slightly lower prices amidst a market that has surged by approximately 90% over the past five years presents a favorable entry point for new investments.

He cautioned against the unrealistic expectation of achieving annual gains of 20%. Instead, he highlighted the potential for companies demonstrating double-digit growth over the next five years to perform favorably, even amidst the uncertainties surrounding tariffs. Tierney advised focusing on firms that maintain local manufacturing operations in various countries as a strategy to mitigate tariff risks. Interestingly, he mentioned that companies endowed with pricing power might actually benefit from the implementation of tariffs, as they would be better positioned to pass on costs to consumers.

Our Methodology

To curate our list of top cheap stocks, we utilized the Finviz stock screener to identify stocks with a forward P/E ratio below 15 as of April 16. From this initial pool, we selected the ten hot stocks that exhibited the highest gains over the past month (greater than 15%), gained popularity among elite hedge funds, and garnered positive attention from analysts. The stocks are meticulously ranked in ascending order based on the number of hedge funds holding stakes in them, reflecting data from Q4 2024. Our hedge fund insights were sourced from Insider Monkeys comprehensive database, which tracks the movements of over 900 elite money managers.