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Find Cheap Stocks Under $10 to Buy with this Screener
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Tuesday’s downturn focused on vaccine rollout struggles in key European countries as lockdown measures continue to hamper a broader economic comeback. Wall Street also remains focused on the possible return of inflation in the U.S., as bond selling continues.
Despite some worries that Wall Street has gotten out too far ahead of the reopening trade globally, the U.S. economy is projected to grow by 6% this year and the corporate earnings picture for 2021 and beyond is impressive. Vaccine distribution is also moving along somewhat nicely in the U.S. and the hope is to have it available to every adult by May 1.
Let’s also remember that stocks have soared off their coronavirus lows from a year ago and selling and pullbacks are healthy parts of every market. The S&P 500 and the Dow both sit around 2% off the records they hit last week and the Nasdaq has recovered roughly half of its losses since it fell into a correction on March 8.
The longer-term bull case for the market remains in place. Therefore, we screened for strong stocks that are trading for under $10 a share that might be worth buying at the moment…
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 of the roughly 30 highly-ranked stocks trading under $10 a share that made it through the screen today…
Overall, all three 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 2016 through 2020, while the market gained 103.9%, we saw results like these: Filtered Zacks Rank5 +424.1%, New Highs +429.0%, Technical Analysis and Fundamental Analysis +477.8%, andValue Method 1 +580.0%.
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 Cheap Stocks Under $10 to Buy with this Screener
Tuesday’s downturn focused on vaccine rollout struggles in key European countries as lockdown measures continue to hamper a broader economic comeback. Wall Street also remains focused on the possible return of inflation in the U.S., as bond selling continues.
Despite some worries that Wall Street has gotten out too far ahead of the reopening trade globally, the U.S. economy is projected to grow by 6% this year and the corporate earnings picture for 2021 and beyond is impressive. Vaccine distribution is also moving along somewhat nicely in the U.S. and the hope is to have it available to every adult by May 1.
Let’s also remember that stocks have soared off their coronavirus lows from a year ago and selling and pullbacks are healthy parts of every market. The S&P 500 and the Dow both sit around 2% off the records they hit last week and the Nasdaq has recovered roughly half of its losses since it fell into a correction on March 8.
The longer-term bull case for the market remains in place. Therefore, we screened for strong stocks that are trading for under $10 a share that might be worth buying at the moment…
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 of the roughly 30 highly-ranked stocks trading under $10 a share that made it through the screen today…
Ribbon Communications Inc. (RBBN - Free Report)
Extreme Networks, Inc. (EXTR - Free Report)
ORBCOMM Inc.
Overall, all three 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 2016 through 2020, while the market gained 103.9%, we saw results like these: Filtered Zacks Rank5 +424.1%, New Highs +429.0%, Technical Analysis and Fundamental Analysis +477.8%, andValue Method 1 +580.0%.
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 >>