In a recent article, we explored a list detailing the 10 Cheap Hot Stocks to Buy Right Now. Today, we will delve into the position of Contango Ore Inc. (NYSEAMERICAN:CTGO) in comparison with other hot stocks that are currently trading at attractive prices.

Periods marked by high market volatility can create unique opportunities for investors, particularly for those looking at cheaper stocks. The rationale behind this is that sudden and sharp price fluctuations can lead to the undervaluation of fundamentally sound growth companies in the short term. For discerning long-term investors, this situation presents a chance to purchase shares at a discount, thereby reaping the rewards when market stability returns and prices rebound.

On April 17, amidst the backdrop of these volatile market conditions, Jim Tierney from AB and Kathy Jones from Charles Schwab appeared on CNBC's Power Lunch. During their discussion, Jones emphasized the importance of ignoring the current market noise. She advised investors to adhere to fundamental investment principles, particularly during times of uncertainty. Jones highlighted the importance of diversification, reminding investors to align their strategies with their personal risk tolerance and financial capacity.

Joness perspective on the current market is one of significant uncertainty and volatility. In light of this, she suggested that a conservative investment strategy, particularly one focused on high-quality fixed-income securities, could be prudent. Specifically, she recommended targeting higher credit quality bonds with durations of approximately 5 to 7 years. This approach aims to strike a balance between generating adequate interest income while also minimizing exposure to credit risk, volatility, and interest rate fluctuations.

In a similar vein, Jim Tierney encouraged equity investors to remain selective and discerning about the investment opportunities available in today's market. He expressed optimism that appealing investment prospects still exist, despite the challenging economic landscape. When considering the recent rebound in the market, Tierney advised against knee-jerk reactions to sell. He posited that for long-term investors, slightly lower prices in a market that has appreciated nearly 90% over the past five years could represent an advantageous entry point.

Tierney also cautioned investors against harboring unrealistic expectations for annual gains, stressing that a consistent annual return of 20% is unlikely. He highlighted the promising potential of companies poised for double-digit growth over the next five years, even amidst tariff uncertainties. Tierney suggested that investors should focus on firms that manufacture locally in various countries, thereby mitigating tariff risks. Additionally, he noted that companies with pricing power might actually benefit from the implementation of tariffs in some form.

Our Methodology

To identify the top cheap stocks, we utilized the Finviz stock screener to compile a list of stocks boasting a forward P/E ratio under 15 as of April 16. We then narrowed down our selection to the 10 hot stocks that had recorded the highest gains over the previous month (greater than 15%) and were also highly favored among elite hedge funds, with bullish analyst recommendations. The stocks were ranked based on the number of hedge funds holding stakes in them as of Q4 2024. This hedge fund data was sourced from Insider Monkeys database, which meticulously tracks the investments of over 900 elite money managers.