3 Low-Cost Stocks That Can Make You Rich Even In 2020

These companies hold great potential and can generate huge returns. There were a series of ups and downs in 2020, and the associated uncertainty resulted in an unprecedented slippery period for the stock market. More variability is likely to be on the way towards the last quarter of the year, but there are still investment opportunities that, in theory, can help enrich you. Read on to take a look at three stocks that are traded in unique valuations and offer an enormous potential increase.  

Glu Mobile

Glu Mobile (NASDAQ: GLUU) is a company that produces, develops and publishes games for mobile devices, and its shares could potentially make a big profit. The company's stock price increased an average of 26% in the 2020 transaction, but its stocks fell nearly 30% from 52-week highs. A hard sell rocked stocks after the company announced its second-quarter results in August. The announced report came with disappointing news about the publisher's upcoming release updates, news that a project was postponed to next year, and sources were removed from a project in development, following test audience figures. The factors that trigger recent sales seem to be temporary setbacks. GLU had expected a 10% annual reserve increase in the current quarter, but the 79% increase recorded in the second quarter of the business represents a huge drop. However, it shows that the company's main franchises are engaging the players' releases should encourage the return to greater growth. The market value of Glu is about $ 1.3 billion. And is trading at about 21 times the expected earnings this year. The company has a strong financial statement to finance operations and pave the way for acquisitions soon, and only one new hit franchise launch can increase sales and earnings. The Glu stock is a low-cost acquisition, with the gaming industry ready for long-term growth and business underestimating some of the industry's strengths.  

Hanesbrands

  Hanesbrands (NYSE: HBI) shares demonstrated a strong performance this year thanks to the production axis of face masks, which they quickly put into production at the time of the coronavirus in Champion brand textile clothing. The company might not immediately come to mind when it comes to stocks that can enrich you, but the business is pretty solid and can bring big returns for shareholders, it has growth factors that should be appreciated. Hanesbrands managed to keep its revenue steady in the June quarter, despite the recession of retail operations and decreasing consumer confidence. Earnings per share actually increased by 12% in this period compared to this time of last year. The evolution of mask and protective clothing production during this period enabled the business to generate sales of $ 752 million for this segment. A 68% increase in online apparel sales helped it recoup some of the damage caused by retail sales. Hanesbrands stock increased roughly 4% in 2020's trading market despite unprecedented challenges, and has dropped roughly 37% over the past three years and now looks low-cost. Depressive valuation with potential long-term growth factor as Champion brand gives you great growth potential in this stock. Champion has become a hot name in athleisure fashion, and the continued popularity between Generation Y and Generation Z holds level and power. Hanesbrands stock trades approximately 11 times the expected earnings this year and has a 3.9% dividend yield.  

Eros STX Global

  Eros International, an Indian Entertainment-based company, merged with US-based STX Entertainment to form Eros STX Group (NYSE: ESGC) at the end of July. The company looks very clear and potential in streaming, which is the most important growth factor. This merger resulted in an improved content archive. This merger can only put the business in a better position if it produces films and television shows that appeal to a global audience. The stock fell nearly 36% in 2020 due to the challenges from the coronavirus pandemic and financial performance below expectations. Moreover, new share offers and loans to finance content production and technology development caused investors to worry and put pressure on the company's share price. Eros STX currently has a market value of about $ 380 million and is worth about 0.6 times the combined Eros and STX's average revenue of $ 600 million last year. It is also worth less than 0.4 times the $ 1 billion of sales the firm expects to produce in 2022. The company has an extensive catalogue of Hindi and regional languages (more than 12,000 at the end of the last quarter) that can help create subscription and video service for India and other regions. It is even now expanding its network and has recently partnered with companies such as Amazon, Sony and Dish Network. Eros STX needs to prove its potential to deliver new content that boosts subscriber and distribution growth. However, if the company's low-price-selling strategy and huge long-term growth potential in the publication continue in this way, it shows that the stock can bring great gains. Source: fool.com You might also be interested in:

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