Since 1957, the average growth in the S&P 500 has been between 8% and 11% depending on the source that you use. However, if you're an investor under the age of 50, you've cut your investing teeth during one of the longest bull runs in market history.
Fueled by record low interest rates, the S&P 500 delivered an average return of between 12% and 15% between 2012 and 2021. And as volatile as 2023 has been, the S&P 500 is up about 9% for the year.
The takeaway for investors is that if you're in the right stocks, it pays to buy and hold. However, if you missed out on stocks like Apple, Inc. (NASDAQ: AAPL), Amazon.com, Inc. (NASDAQ: AMZN) or more recently Nvidia Corporation (NASDAQ: NVDA) those shares may be too expensive for you to buy more than a single share.
A different option is to find “cheap" stocks that are potentially being undervalued by the market. This can allow you to turn a small investment of $1,000 or $2,000 into significant gains.
Here are seven stocks that are trading under $20 but have strong growth potential over the next 12 months.
Click the "Continue to Slide #1" button to view the first company.
