The challenge with buying extremely cheap stocks right now is that a lot of them are not producing what we would call promising financial results. There's a reason they're cheap.
So, what we're going to look at today are four "cheaper" stocks that also have had worthwhile performance, or the financial potential to create one.
Ollie's Bargain Outlet
You might not necessarily consider Ollie's Bargain Outlet (OLLI 2.12%), a notch up from dollar-store stocks, to be super cheap. It trades at over 40 times earnings. That said, given the valuation of many stocks in today's market, I don't think this is necessarily out of the wheelhouse. We need stocks that can deliver, and many cheaper stocks simply are not doing that right now.
Ollie's has had decent growth over the last three years and had a 13.4% increase in total revenue for the quarter ended May 3. The bargain-outlet chain expects full fiscal-year comparable-store sales to increase 1.4% to 2.2%, with gross margins of 40%.
While that might not be the most exciting expectation, I like Ollie's for where it is positioned within retail. A discount model stands better odds of maintaining growth even in the tougher overall economy we might be facing given the impact of tariffs and consumer spending.
Campbell's
The Campbell's Company (CPB -0.69%) might not be the most exciting consumer goods stock, but its slow and steady approach, combined with its strong dividend and valuation, make it a worthwhile choice. The stock is down over 20% year to date, and I think the pullback provides a long-term opening.
People aren't eating out as much and are turning to low-cost ways to eat at home. Campbell's fits that need. This will almost certainly hold value for consumers if the tariff war continues, and prices on everyday items go up.
The stock trades at 21 times trailing earnings, and I'm all about the 4.7% dividend. The one challenge facing the company right now is getting consumers more interested in its snack brands.
The snacks side of the business is what's putting pressure on full-year guidance, which is expected to include relatively flat organic net sales. For example, in the third fiscal quarter, the meals and beverages segment saw an increase of 15% (in part due to the benefits of an acquisition), while the snacks segment saw a decline of 8%.
If the company can right the ship on snacks, there's potential upside here heading into fiscal 2026. My main thesis here is to ignore the short-term pain and focus on the dividend and long-term potential of the company. Campbell's has been around a long time, and this year's pullback could be an advantage for individuals with a long-term mindset.
Image source: Getty Images.
Pinterest (PINS 1.35%) has taken its good, sweet time finding consistent profitability, but things took a turn in 2024 when the company finished the year with $1.86 billion in net income, and it continued the positive story through the first half of 2025. First-quarter net revenue increased 16%, while previous net losses shifted to net income of nearly $9 million.
The second quarter was even better, with net revenue increasing 17% year over year to just over $998 million, and net income grew 336% to $38.75 million. Yes, there's still a long way to go for Pinterest, but I like where it's heading relative to its price. A trailing price-to-earnings ratio (P/E) of 12.3 and a seemingly clear path of growth for the future make this stock worth a look.
It is the cheapest stock on this list, and given its strong free cash flow and guidance that calls for another 15% to 17% gain year over year in revenue for the third quarter, Pinterest seems like a nice sleeper pick right now.
Vita Coco
Within beverage stocks, Vita Coco (COCO -0.19%) isn't the best-known name -- yet. It sells coconut water and associated products. With full fiscal 2025 analyst estimates calling for $1.08 per share, the stock is theoretically trading at a forward P/E ratio of 33.9 times earnings.
For a company with such robust top-line growth, I don't consider this expensive for the stock, especially since expectations are for accelerated earnings potential in fiscal 2026 and 2027. For 2025, the company provided guidance for net sales of $565 million to $580 million. Conservatively, that would be year-over-year growth of 9.4%; and liberally, it would represent 12.4% growth.
I really like the trends for this company. Coconut water might seem like a niche business, but Vita Coco is doing very well with it. In the second quarter alone, net sales increased 17%. Net income came in at $23 million versus $19 million the year before. Overall, this success is evident in the stock, which has gained 162% over the last five years, handily beating the S&P 500.
If the company maintains its current growth trends, I think Vita Coco is well priced for the prudent investor to get involved.
Again, these stocks might not all seem like the cheapest, but you have to think about the comparison to much higher-priced companies. It's not always the best to consider a stock with a multiple of 6 as a great pick if it isn't making much money.
To me, these stocks trading in the lower double digits are the better picks for most investors. Earnings growth, stability, and dividends are what I focused on in making these picks.
