Is NIO Inc. (NIO) the Best Low Priced Stock to Invest in For the Long Term?

Bob Karr

Fri, May 9, 2025, 1:38 AM 5 min read

We precocious published a database of 10 Best Low Priced Stocks to Invest successful For the Long Term. In this article, we are going to instrumentality a look astatine wherever NIO Inc. (NYSE:NIO) stands against different champion debased priced stocks to put successful for the agelong term.

As per AllianceBernstein, tariffs and commercialized wars person impacted investors of late. While immoderate plus classes were spared, the US small-cap stocks person been hard hit. Over the past 6 months, the Russell 2000 Index has witnessed a diminution of implicit ~10%. That being said, the concern steadfast opines that equity markets proceed to amusement signs of broadening, which tin enactment successful favour of small-caps implicit time. The small-caps person underperformed successful portion since they are perceived arsenic being much economically delicate arsenic compared to their larger-company counterparts.

The existent circumstances are unique, says AllianceBernstein. Trade tensions tin person a much important interaction connected the broader US economy, but robust companies tin inactive spot net growth. The small-cap investors tin besides instrumentality a suspiration of alleviation from the broadening market. The concern steadfast highlighted that, implicit the erstwhile 30 years, small-cap show remained peculiarly robust implicit the past 2 cycles of unwinding large-cap maturation concentration, i.e., erstwhile markets commencement to broaden.

The 10 largest stocks accounted for implicit fractional the marketplace capitalization of the Russell 1000 Growth Index by 2024 end, exhibiting a grounds precocious successful the marketplace concentration. Despite the inclination reflecting the signs of unwinding, the attraction remains overmuch higher arsenic compared to the erstwhile peaks. As per AllianceBernstein, small-caps are well-placed to payment from the declining marketplace concentration.

READ ALSO: 7 Best Stocks to Buy For Long-Term and 8 Cheap Jim Cramer Stocks to Invest In.

AllianceBernstein opines that, portion broadening markets person resulted successful improved small-cap returns, timing the crook tin beryllium a hard task. Typically, economical recoveries person fueled specified transitions. In a bid to capitalize connected the broadening marketplace with an uncertain beginning, the steadfast believes that the champion attack is to stress higher-quality companies. High-quality stocks thin to spot reduced drawdowns erstwhile determination is simply a contraction successful the economy, and much upside erstwhile it sees expansion.

The steadfast besides opines that small-cap stocks commercialized astatine highly depressed valuations arsenic compared to the larger companies, based connected P/E ratios. Notably, the geopolitical tensions and macroeconomic worries person impacted the tiny companies. Without considering the institution fundamentals, the investors person discounted imaginable hazards for specified companies. Investing successful firms exhibiting resilient concern models tin payment on the roadworthy to recovery.