In a recent article, we highlighted a list of the 10 Cheap Hot Stocks to Buy Right Now, and today we delve deeper into the performance of Nexxen International Ltd. (NASDAQ:NEXN) in comparison to other affordable investment options. This analysis comes at a time when market volatility has captured the attention of investors worldwide.

Periods characterized by high market fluctuations often make cheap stocks particularly attractive. This is primarily because sharp price swings can lead to the undervaluation of fundamentally strong companies in the short term. For selective long-term investors, this presents an opportunity to purchase these stocks at discounted prices, positioning them favorably for when stability returns and prices rebound.

On April 17, prominent financial experts Jim Tierney from AB and Kathy Jones from Charles Schwab appeared on CNBCs Power Lunch. During the discussion, they provided insights into how long-term investors should navigate the current market landscape. Kathy Jones urged investors to disregard the prevailing noise in the market and emphasized adhering to fundamental investment principles, particularly in times of uncertainty. She highlighted the importance of maintaining a diversified portfolio while considering individual risk tolerance and capacity.

Jones pointed out that the current environment is marked by significant uncertainty and volatility, which makes a conservative approach imperative. She recommended a credit-quality-focused fixed income portfolio, suggesting that long-term investors seeking income, capital preservation, and diversification from equities should concentrate on higher-quality bonds with a duration of approximately 5 to 7 years. This duration, she argued, strikes a balance, allowing investors to earn a fair amount of interest income while minimizing exposure to credit risk, volatility, and interest rate fluctuations.

In light of the ongoing market uncertainties, Jim Tierney encouraged equity investors to remain selective when identifying available opportunities. He asserts that despite the challenging environment, attractive investment prospects still exist. Tierney also addressed the question of whether the recent market rebound should incentivize investors to sell their holdings. He contended that for long-term investors, slightly lower prices in a market that has risen nearly 90% over the past five years could represent a better entry point for new investments.

Tierney cautioned against the unrealistic expectation of achieving annual gains of 20%, underscoring that such consistently high returns are not feasible in the long run. He also noted the potential for companies capable of double-digit growth over the next five years to perform well, even amidst tariff uncertainties. His advice was to focus on firms that manufacture locally across various countries, thereby avoiding tariff-related risks altogether. Notably, he believes that companies possessing pricing power would fare better should tariffs be implemented.

Our Methodology

To compile our list of the top cheap stocks, we first utilized the Finviz stock screener to narrow down our options to those with a forward P/E ratio under 15 as of April 16. From this selection, we chose the top 10 hot stocks that not only demonstrated the highest gains over the past monthover 15%but were also favored by elite hedge funds and had positive analyst ratings. The stocks are ranked in ascending order based on the number of hedge funds holding stakes in them as of the fourth quarter of 2024. The hedge fund data used for our analysis was sourced from Insider Monkeys database, which meticulously tracks the movements of over 900 elite money managers.