We recently announced a list of 11 ridiculously cheap stock to invest in. In this article, we're going to look at where Helen of Troy Limited (Nasdaq: Hele) stands against ridiculously cheap stocks to invest in.
Just as we hunt for bargains in the commodity market–Compare relative prices, identify discounted products, and get the product most valuable for our money–Investing in the financial market is no different. In both investments, prices are important.
In a world of overcrowded stocks, the hidden pearl is noticed is what distinguishes an astute investor from an impulsive investor. One who realizes that the value is not just about what you buy rather it is more about what you pay, is the one that is likely to identify a stock that is ignored but full of value stock.
Let's first understand what cheap stock really suggests. There are two most common interpretations of such stock. First, stock can be considered as cheap stock if it has low share price. Second, more commonly undervalued stock is called cheap stock. Our analysis echoes with the second interpretation, that cheap stock is a stock that trades below its inherent value based on factors such as earnings, revenue or assets. So in the market, investors say it is “cheap” compared to its true potential, making it a compelling investment.
One such measure to see cheap stock is through the price-to-on-ears ratio. This is a measure used by investors to actually see how much they pay for every dollar of company earnings. Low P/E can identify undervalued stock compared to its competitors, historic average, and wider market average.
A report by Hoover Capital Management (HCM) analyzes the historical performance of value against Growth Stocks through France's Low Minus Factor (HML). The results of 97 years of data, between July 1926 and December 2023, strongly support value investment. The cumulative gains of value stocks exceeded growth stocks by an impressive 3,000%. That is, value investment has achieved gains 30 times higher on growth than investing in growth. It can be further reinforced through the research by economist Victoria Galsband, according to which cheap stocks performed better than growth stocks between 1975 and 2010 in each G7 country, including Canada, the US, Japan, and the main European countries.
Another report that analyzed the impact of additions or moving companies from the S&P index on their valuations showed that as movements related to stock undervaluation and vice versa, many companies extracted from the index performed better than the market. A study by research links highlighted that stocks taken out of the S&P between 1990 and 2022 were outperforming those added by more than 5% annually. This provides a compelling cause for our view that undervalued stocks, translated into cheap stocks, have more probability of increasing higher earnings.
We have compiled a list of 11 ridiculous cheap stocks through the Finviz Screener. In doing so, stocks with a ratio were selected below 5 prices-to-wins (P/E). These stocks cover a range of industries, from consumer products to exploring natural resources. These companies are then listed according to their P/E, from highest to lowest ratios.
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Is Helen of Troy Limited (Hele) the ridiculously cheap stock to invest?
A woman in a spa setting, using health and wellness products.
Forward P/E on April 17: 4.13
Helen of Troy Limited (NASDAQ: HELE) is a leading global consumer products company with a focus on creative solutions through very diverse and widely recognized brands. Headquartered in Hamilton, Bermuda, the company operates through the home and outdoor segments and beauty and well -being. Hele emphasizes product innovation, product quality, and competitive pricing.
The recent acquisition of Helen of Troy Limited (NASDAQ: HELE) from Olive & June, a high -end nail care brand, is what makes it a bull. This is a testament to the giant's diversification method, as the traditional offerings are restricted to haircuts and skin care. In the fourth quarter, the acquisition is forecast to contribute $ 17 to $ 19 million in revenue, with even further expected in the coming years. Noel Geoffroy, CEO, commented on:
“We see significant growth potential in Olive and June as the team continues to build on brand consumer strength and obsession and innovative commercial and product innovation as well as stimulating Helen's capabilities from Troy to help expand availability with greater distribution.”
Helen of Troy Limited (NASDAQ: HELE) is constantly investing in product innovation and marketing, two key pillars of any leading business strategy. This, along with better sales related to flu, distribution benefits, and gains from the acquisition, can help the company make positive revenue growth in the upcoming quarters.
Although the company is at high risk of tariffs, as it is heavily accessible from China, the impact can be delegated through cost savings under Pegasus project, volume leverage, synergy savings, and strategic pricing considerations in the long distance. Much of Helen of Troy Limited's success (NASDAQ: HEELE) lies in the cost reduction strategies in FY26, similar to those of FY25, under the Pegasus project initiative.
The one -year price target of $ 78.33 highlights a stunning 135% increase in stock price. With that said, Hele is ready for long and sustainable growth and is one of the best cheap stocks to invest in.
For the most part, the whole rank 6th On our list of ridiculously cheap stocks to invest in. While we recognize the potential of cheap stocks, our conviction lies in the belief that AI stocks are more promised for higher gains, and do so within a shorter time frame. There has been AI stock that has risen since the beginning of 2025, while popular AI stocks lose about 25%. If you are looking for AI stock that is more promising than Hele but trading at less than 5 times its earnings, check out our report for this Cheapest AI Stock.
