On an enterprise value to earnings before interest, taxes, depreciation and amortization (EBITDA) basis, shares go for less than a five multiple. New Gold is slated to be highly profitable shares trade for around seven times 2022’s projected earnings. The company has mines in Canada and Mexico. Unlike Western Copper and Gold, New Gold is already a gold-producing mid-tier mining operation. With inflation on the prowl, however, demand may come roaring back for this sort of asset. There’s been a dip in copper and gold lately, hitting Western’s share price. Western’s shares surged from $1.20 to $2.80 last year as copper prices hit multiyear highs. As far as gold is concerned, Casino hosts more than 14 million ounces of measured and indicated reserve. The project consists of 41% copper and 38% gold, along with smaller amounts of molybdenum and silver. The company is progressing toward developing the mine and expects to give investors an updated feasibility study later this year. It also offers shareholders a strong balance sheet, as the company is debt-free.

The company counts Rio Tinto PLC ( RIO) among its strategic backers. Next among the best cheap stocks to buy under $5 is Western Copper and Gold, a Canadian mining firm focused on its Casino project in the Yukon province. That could change as Sundial’s new investments start to pay off. The market, however, is still unimpressed, leaving shares at just 55 cents today. Sundial’s new strategy seems reasonable and has a decent shot at success. The company is now reinvesting those funds into new businesses, such as retail cannabis and liquor stores, and a financial arm to lend money to other marijuana firms. This allowed the company to issue tons of stock, paying off all its debt and ending up with more than a billion dollars of excess cash. SNDL stock nearly went to zero, but it became a Reddit and social media favorite and surged in early 2021. The company originally started out trying to dominate the cannabis market there, but its efforts failed amid a brutally competitive playing field plagued by drastic amounts of excess inventory. Sundial Growers is a Canadian marijuana firm. Here are nine cheap stocks to buy for less than $5 per share, each of which has solid prospects. That said, there are some worthwhile prospects among inexpensive companies. But penny stocks tend to be risky and many operate low-quality businesses, so it’s necessary to use greater due diligence on the average low-priced stock.

As such, many traders gravitate to companies with much lower stock prices so they can buy large quantities of stock. ( GOOG, GOOGL) let their stock prices go up to the thousands, making it difficult for newer investors to buy any shares at all. This has changed in recent years, however. In the past, companies used to split their share prices frequently to keep their stocks affordable to the general public. These sub-$5 stocks could deliver big gains in 2022.

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