Top 5 Cheapest Stocks To Invest In Right Now

The S&P 500 (SNPINDEX: ^GSPC  ) has soared in the past four years, leading many to fear that the index is long overdue for a major correction. In times of trouble, value investors often look to stocks that trade at low valuations compared with their peers to provide a margin of safety from a potential downturn.

Yet judging stocks on a single valuation metric can lead to misleading conclusions that can prove costly. Today, let's take a look at some of the least expensive stocks in the S&P on a price-to-book value basis, with an eye toward understanding why book value might not be the best way to judge whether these stocks are truly cheap.

The cheapest stocks in the S&P
On a book-value basis, financial stocks have had low book values for a long time. Genworth Financial (NYSE: GNW  ) trades at just one-third of book value, while plenty of other insurance companies and banks offer price-to-book ratios of between 0.5 and 0.75. Yet during the financial crisis, investors learned just how inaccurate book values were. Massive writedowns of toxic assets proved necessary to reflect the actual value of those assets, and as a result, price-to-book ratios temporarily soared even as stock prices plunged.

Top 5 Cheapest Stocks To Invest In Right Now: Capita Grp(CPI.L)

Capita PLC provides business process outsourcing and professional services in the United Kingdom and Ireland. The company operates in five divisions: Life and Pensions Services; Integrated Services; Insurance and Investor Services; Professional Services; and ICT, Health, and Business Services. The Life and Pensions Services division provides life and pensions outsourced administration services comprising open and closed books of individual life and pensions policies and occupational pension schemes. The Integrated Services division offers central government contracts, property consultancy, contact centers, and portfolio of human resources (HR) services consisting of resourcing business, integrated HR solutions, HR and payroll administration, learning and development, and outplacement services. The Insurance and Investor Services division provides financial services to corporate and consumer markets, which include share registration, fund administration and insurance policy and claims administration, financial advisory and treasury services, insurance services for motor, and household and pet insurance products, as well as trust administration and fiduciary services across a range of tax jurisdictions. The Professional Services division offers children services; outsourced administration services; strategic advice and interim support services; and information and communications technology (ICT), and software solutions and support. The ICT, Health, and Business Services division provides health, business travel administration, hotel booking, meetings management, conferences, and consulting services. It also offers radio network services, communication systems to the emergency services and to central and local governments, and customer services management to clients related to customer contact administration and fulfillment activities. The company was founded in 1984 and is headquartered in London, the United Kingdom.

Top 5 Cheapest Stocks To Invest In Right Now: LoopNet Inc.(LOOP)

LoopNet, Inc. owns and operates an online marketplace for commercial real estate in the United States. The company?s online marketplace, LoopNet.com enables commercial real estate agents working on behalf of property owners and landlords to list properties for sale or for lease, and submit detailed information on property listings, including descriptions, financial and tenant information, photographs, and property characteristics to find a buyer or tenant. As of December 31, 2011, the LoopNet online marketplace contained approximately 820,391 listings. It also operates BizBuySell and BizQuest online marketplaces that enable business owners, sellers, and brokers to list and search for operating businesses for sale; LoopLink, an online real estate marketing and database services suite that enables commercial real estate firms to showcase their available properties on the LoopNet marketplace and brokerage firm?s own Website using the company?s hosted search software. In ad dition, the company provides Property Comps, a database to review precedent sales data to inform commercial real estate valuation analysis based on asset type, asking and sale price, sale date, property address, and size; and Property Facts that aggregates data from the LoopNet marketplace, LoopNet research, independent data providers, public records, and LoopNet members to deliver data on properties. Further, it offers advertising and lead generation; operates LandsofAmerica and LandAndFarm online marketplaces for rural land for sale; and offers REApplications that provides an integrated suite of commercial brokerage automation software. The company was formerly known as Loop Ventures, Inc. and changed its name to LoopNet, Inc. in November 1998. LoopNet, Inc. was incorporated in 1997 and is headquartered in San Francisco, California.

Best Growth Companies To Own For 2014: ProPhase Labs Inc.(PRPH)

ProPhase Labs, Inc. engages in the research, development, manufacture, distribution, marketing, and sale of over-the-counter (OTC) cold remedy and consumer products, natural base health products, and other supplements and cosmeceuticals in the United States. Its OTC offerings include Cold-EEZE, a zinc gluconate glycine product to reduce the duration and severity of the common cold symptoms; Kids-EEZE soft chews to treat chest congestion, cough/cold, or allergies; and Organix Complete cough/cold drops for coughs and sore throats due to the common cold. The company sells its consumer health products through national wholesalers and distributors, as well as independent and chain food, drug and mass merchandise stores, and pharmacies. ProPhase Labs, Inc. has a joint venture with Phusion Laboratories, LLC for the development and commercialization of non-prescription remedies using patented TPM technology. It also manufactures private label lozenges for retail customers; and man ufactures, markets, and distributes a range of homeopathic and health products. The company was formerly known as The Quigley Corporation and changed its name to ProPhase Labs, Inc. in May 2010. ProPhase Labs, Inc. was founded in 1989 and is headquartered in Doylestown, Pennsylvania.

Top 5 Cheapest Stocks To Invest In Right Now: ALLIED NEVADA GOLD CORP. (ANV.TO)

Allied Nevada Gold Corp., together with its subsidiaries, engages in the evaluation, acquisition, exploration, and advancement of gold exploration and development projects. It principally operates the Hycroft Mine, an open pit heap leach gold and silver mine covering approximately 61,389 acres of mineral rights located in the west of Winnemucca, Nevada. The company is also involved in the exploration and development of various exploration properties, including Hasbrouck, Mountain View, Three Hills, Wildcat, Maverick Springs, and Pony Creek/Elliot Dome projects. In addition, the company holds exploration rights to approximately 100 other exploration properties in Nevada. Allied Nevada Gold Corp. was incorporated in 2006 and is headquartered in Reno, Nevada.

Top 5 Cheapest Stocks To Invest In Right Now: United Natural Foods Inc.(UNFI)

United Natural Foods, Inc., together with its subsidiaries, distributes natural, organic, and specialty foods, as well as non-food products in the United States. It carries approximately 60,000 products, consisting of national brand, regional brand, private label, and master distribution products in 6 product categories: grocery and general merchandise, produce, perishables and frozen foods, nutritional supplements, bulk and food service products, and personal care items. The company serves approximately 17,000 customer locations primarily located across the United States, which include independently owned natural products retailers, supernatural chains, conventional supermarkets, and food service centers. Its other distribution channels include international mass market chains and buying clubs. The company also owns and operates natural products retail stores. As of August 1, 2009, it had 13 natural products retail stores located primarily in Florida. In addition, the com pany engages in the international importing, roasting, packaging, and distribution of nuts, seeds, dried fruits, and snack items. It sells these items in bulk in its own packaged snack lines, EXPRESSnacks, Woodfield Farms, and Woodstock Farms, as well as through private label packaging arrangements. The company was founded in 1978 and is headquartered in Providence, Rhode Island.

Advisors' Opinion:

• [By Sam Collins]

  Annie's fate is intertwined with that of United Natural Foods, the largest distributor of natural, organic and specialty foods in the U.S. and Canada. Approximately 25% of Annie's revenues are generated from United Natural Foods. Without UNFI's 28 distribution centers across the U.S. and Canada shipping to more than 23,000 customer locations, Annie's wouldn't have grown nearly as fast as it has. United Natural Foods is also the primary wholesale natural grocery distributor to Whole Foods until at least 2020. Whole Foods accounts for 36% of UNFI's annual revenues; this is a trio that will succeed together. Unfortunately, as a result, every time Whole Foods gets a cold, so too does UNFI. For this reason it's expanding its customer base with a focus on conventional supermarket customers. In 2011 it began to supply Safeway (NYSE:SFY) with natural, organic and specialty foods, but the distribution of natural and organic products isn't easy. It's an incredibly fragmented industry with lots of regional and local competition. In fiscal 2012, however, UNFI has generated over $5.2 billion, and in 2013 I see UNFI grabbing increased market share through additional sales to existing customers as well as the acquisition of a regional competitor or two. The healthy eating movement isn't going away.