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Find Strong Stocks Under $10 to Buy with this Screener
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The Dow jumped 550 points on Tuesday, while the S&P 500 popped 1.3% and the Nasdaq climbed 1%. This positivity came as Wall Street starts to process second quarter earnings results, which unofficially kicked off with Citigroup (C - Free Report) , JPMorgan Chase (JPM - Free Report) , and other big banks.
Stocks jumped despite the fact that places around the U.S. are rolling back their reopening plans amid spikes in coronavirus cases. This might mean that investors think the worst of the pandemic’s economic impact is likely over and have decided to focus on signs of an economic recovery. And let’s not forget that Wall Street could remain in don’t fight the Fed mode.
With this in mind, we screened for strong “cheap” stocks that are currently trading for under $10 a share…
Penny Stocks
One dollar or less used to be the common threshold for what we call “penny stocks.” Today, the SEC has expanded penny stocks to securities that trade for less than $5 a share. Many investors avoid these stocks because they are speculative in nature.
Meanwhile, penny stocks often trade infrequently and hold wide bid/ask spreads. These stocks also carry many other traits that, in many cases, cause excessive volatility. With that said, some penny stocks perform incredibly well, which helps them remain attractive.
Stocks Under $10
Moving on, let’s briefly discuss the next class of cheap stocks. Stocks that trade in the $5 to $10 range are generally less risky than their penny stock counterparts. Investors might be more likely to have heard of these companies or seen the tickers. They are, however, still inherently more speculative than many other higher-priced stocks.
Investors can obviously find winning stocks for under $10 if they are extremely selective. So today, we narrowed the list of thousands of these more speculative stocks down to a more manageable group of $10 and under stocks that might help boost your portfolio.
Screen Parameters
• Price less than or equal to $10
• Volume greater than or equal to 1,000,000
• Zacks Rank less than or equal to 2
(No Holds, Sells or Strong Sells.)
• Average Broker Rating less than or equal to 3.5
(Average Broker Rating of a Hold or Better.)
• # of Analysts in Rating greater than or equal to 2
(Minimum of at least two analysts covering the stock.)
• % Change F1 Earnings Estimate Revisions -- 12 Weeks greater than or equal to 0
(Preferably upward earnings estimate revisions, but definitely no downward revisions.)
Here are three stocks of the roughly 50 highly-ranked stocks trading under $10 a share that made it through today’s screen…
Zynga Inc.
LiveXLive Media, Inc.
Sorrento Therapeutics, Inc.
Overall, all of these stocks offer solid growth potential. Yet, it isn’t wise to pack your portfolio full of cheap, $10 or less stocks. Still, these stocks are certainly worth further investigation because grabbing a few of the top names from this list might bolster your returns. And let’s not forget that picking a few cheap stocks can also be quite fun.
Get the rest of the stocks on this list and start screening for the best stocks under $10 for yourself. And don't forget to backtest your strategy so you'll know how successful it's been before you put any of your money at risk.
Want more articles from this author? Scroll up to the top of this article and click the FOLLOW AUTHOR button to get an email each time a new article is published.
Disclosure: Officers, directors and/or employees of Zacks Investment Research may own or have sold short securities and/or hold long and/or short positions in options that are mentioned in this material. An affiliated investment advisory firm may own or have sold short securities and/or hold long and/or short positions in options that are mentioned in this material.
Now would you like to screen for the latest stocks from Zacks' most successful strategies? From 2017 through Q3 2019, while the market gained +39.6%, we saw results like these: Big Money Zacks +57.5%, Small-Cap Growth +43.1%,Technical Analysis & Fundamental Analysis +96.9%, New Highs +119.0%, and Filtered Zacks Rank 5 +158.9%.
You're invited to screen the latest stocks in seconds by trying Zacks' Research Wizard stock-picking program. Or use the Wizard to create your own market-beating strategies. No credit card needed, no cost or obligation.
Image: Bigstock
Find Strong Stocks Under $10 to Buy with this Screener
The Dow jumped 550 points on Tuesday, while the S&P 500 popped 1.3% and the Nasdaq climbed 1%. This positivity came as Wall Street starts to process second quarter earnings results, which unofficially kicked off with Citigroup (C - Free Report) , JPMorgan Chase (JPM - Free Report) , and other big banks.
Stocks jumped despite the fact that places around the U.S. are rolling back their reopening plans amid spikes in coronavirus cases. This might mean that investors think the worst of the pandemic’s economic impact is likely over and have decided to focus on signs of an economic recovery. And let’s not forget that Wall Street could remain in don’t fight the Fed mode.
With this in mind, we screened for strong “cheap” stocks that are currently trading for under $10 a share…
Penny Stocks
One dollar or less used to be the common threshold for what we call “penny stocks.” Today, the SEC has expanded penny stocks to securities that trade for less than $5 a share. Many investors avoid these stocks because they are speculative in nature.
Meanwhile, penny stocks often trade infrequently and hold wide bid/ask spreads. These stocks also carry many other traits that, in many cases, cause excessive volatility. With that said, some penny stocks perform incredibly well, which helps them remain attractive.
Stocks Under $10
Moving on, let’s briefly discuss the next class of cheap stocks. Stocks that trade in the $5 to $10 range are generally less risky than their penny stock counterparts. Investors might be more likely to have heard of these companies or seen the tickers. They are, however, still inherently more speculative than many other higher-priced stocks.
Investors can obviously find winning stocks for under $10 if they are extremely selective. So today, we narrowed the list of thousands of these more speculative stocks down to a more manageable group of $10 and under stocks that might help boost your portfolio.
Screen Parameters
• Price less than or equal to $10
• Volume greater than or equal to 1,000,000
• Zacks Rank less than or equal to 2
(No Holds, Sells or Strong Sells.)
• Average Broker Rating less than or equal to 3.5
(Average Broker Rating of a Hold or Better.)
• # of Analysts in Rating greater than or equal to 2
(Minimum of at least two analysts covering the stock.)
• % Change F1 Earnings Estimate Revisions -- 12 Weeks greater than or equal to 0
(Preferably upward earnings estimate revisions, but definitely no downward revisions.)
Here are three stocks of the roughly 50 highly-ranked stocks trading under $10 a share that made it through today’s screen…
Zynga Inc.
LiveXLive Media, Inc.
Sorrento Therapeutics, Inc.
Overall, all of these stocks offer solid growth potential. Yet, it isn’t wise to pack your portfolio full of cheap, $10 or less stocks. Still, these stocks are certainly worth further investigation because grabbing a few of the top names from this list might bolster your returns. And let’s not forget that picking a few cheap stocks can also be quite fun.
Get the rest of the stocks on this list and start screening for the best stocks under $10 for yourself. And don't forget to backtest your strategy so you'll know how successful it's been before you put any of your money at risk.
Click here to sign up for a free trial to the Research Wizard today.
Want more articles from this author? Scroll up to the top of this article and click the FOLLOW AUTHOR button to get an email each time a new article is published.
Disclosure: Officers, directors and/or employees of Zacks Investment Research may own or have sold short securities and/or hold long and/or short positions in options that are mentioned in this material. An affiliated investment advisory firm may own or have sold short securities and/or hold long and/or short positions in options that are mentioned in this material.
Disclosure: Performance information for Zacks’ portfolios and strategies are available at: https://www.zacks.com/performance/.
Today's Stocks from Zacks' Best Screens
Now would you like to screen for the latest stocks from Zacks' most successful strategies? From 2017 through Q3 2019, while the market gained +39.6%, we saw results like these: Big Money Zacks +57.5%, Small-Cap Growth +43.1%,Technical Analysis & Fundamental Analysis +96.9%, New Highs +119.0%, and Filtered Zacks Rank 5 +158.9%.
You're invited to screen the latest stocks in seconds by trying Zacks' Research Wizard stock-picking program. Or use the Wizard to create your own market-beating strategies. No credit card needed, no cost or obligation.
Try it for 2 weeks free >>