In a recent publication, we released an insightful list titled 10 Cheap Hot Stocks to Buy Right Now. This article takes a closer look at Eldorado Gold Corp. (NYSE:EGO) and examines its position in comparison to other affordable yet promising stocks in today's market.

Periods of high market volatility can often present unique buying opportunities for savvy investors. Such fluctuating market conditions may inadvertently undervalue fundamentally strong growth companies in the short term. This scenario allows selective long-term investors to acquire these stocks at a discount, positioning them to benefit when market stability returns and stock prices recover. During a recent segment on CNBCs Power Lunch, investment experts Jim Tierney from AB and Kathy Jones from Charles Schwab discussed effective strategies for long-term investors navigating these tumultuous times.

Kathy Jones emphasized the importance of disregarding the current market noise and adhering to fundamental investment principles amid uncertainty. She advised investors to maintain a diversified portfolio while being mindful of their personal risk tolerance and financial capacity. Jones articulated that the present environment is marked by considerable uncertainty and volatility, making it prudent for investors to consider a conservative, credit-quality-focused fixed income portfolio. Her recommendation is for long-term investors seeking income and capital preservation to concentrate on higher credit quality bonds with durations of approximately 5 to 7 years. This approach aims to balance earning a reasonable interest income while minimizing exposure to credit risk, interest rate fluctuations, and market volatility.

In light of the current market environment, Jim Tierney encouraged equity investors to be selective and discerning regarding the opportunities available. He expressed optimism that attractive investment opportunities still exist, even amidst challenging market conditions. Tierney further discussed the implications of the recent market rebound, questioning whether it should signal a time for investors to sell their holdings. He conveyed that for long-term investors, the prospect of acquiring stocks at slightly lower pricesespecially in a market that has seen approximately 90% growth over the past five yearscould present a more favorable entry point.

He also cautioned against the unrealistic expectation of earning annual returns of 20% consistently, highlighting the challenges inherent in achieving such high returns year after year. Instead, he pointed to the potential for companies poised for double-digit growth over the next five years to perform well, despite uncertainties related to tariffs. Tierney advised focusing on firms that produce locally in various countries, as this strategy could mitigate tariff-related risks. Moreover, he noted that companies possessing pricing power might actually benefit from the implementation of tariffs in some form.

Our Methodology

To compile our list of the top cheap stocks, we utilized the Finviz stock screener, focusing on stocks with a forward price-to-earnings ratio of under 15 as of April 16. We then selected the 10 hottest stocks that demonstrated the highest gains over the past month (more than 15%), were favored by elite hedge funds, and received positive analyst outlooks. The stocks are organized in ascending order based on the number of hedge funds holding stakes in them, as of the fourth quarter of 2024. Our hedge fund data was sourced from Insider Monkeys database, which meticulously tracks the movements of over 900 elite money managers.