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The S&P 500 and the Nasdaq are trading below their 50-day moving averages for the first time in 2024. Yet the bulls are still in control since a larger pullback was due following the strong run off the market’s October 2023 lows.
Wall Street will likely have to hold its ground soon or risk a wider downturn to the 200-day. Thankfully, the Nasdaq and the S&P 500 have already cooled off significantly from heavily overbought RSI levels in late 2023 and early 2024 to below neutral.
On top of that, any meaningful pullback will likely set up attractive buying opportunities for those with long-term horizons.
Investors who want to keep buying stocks in April might want to consider adding exposure to cheap stocks that trade for $10 a share or less.
Along with the cheap price tags, the stocks we learn how to search for earn strong Zacks Ranks, driven by improving earnings outlooks. On top of that, Wall Street is high on all of these stocks.
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 is one stock out of the nearly 70 highly-ranked stocks trading under $10 a share that made it through the screen today…
High Tide stands out in the highly competitive marijuana retail segment because it is a discount club retailer. The value-focused side of marijuana is somewhat untapped and underserved, with higher legal prices creating a huge deterrent when attempting to attract people who smoked marijuana before it was legalized in Canada (and the U.S.).
High Tide is thriving in Canada and it has deals that will help it enter markets such as Germany once full-scale legalization occurs.
Zacks estimates call for High Tide’s revenue to climb 7% in FY24 and 17% in FY25 to hit roughly $452 million. This outlook comes on top of over 30% revenue growth in 2023.
Image Source: Zacks Investment Research
HITI is projected to trim its adjusted loss from -$0.09 a share to breakeven ($0.00) in FY24 and soar to +0.14 per share next year. High Tide’s earnings revisions have soared to help it land a Zacks Rank #1 (Strong Buy) right now.
HITI stock has climbed by 67% in the last year and 32% in the past month as Wall Street grows excited about the possibility of Washington taking meaningful action on cannabis reform.
Despite the run, High Trade trades 100% below its average Zacks price target. HITI is trading at 0.4X forward 12-month sales vs. its Medical – Products industry’s 5.2X. On top of that, three out of the four brokerage recommendations Zacks has are “Strong Buys” alongside one “Buy.”
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.
Image: Bigstock
How to Find Cheap Stocks Under $10 to Buy Now
The S&P 500 and the Nasdaq are trading below their 50-day moving averages for the first time in 2024. Yet the bulls are still in control since a larger pullback was due following the strong run off the market’s October 2023 lows.
Wall Street will likely have to hold its ground soon or risk a wider downturn to the 200-day. Thankfully, the Nasdaq and the S&P 500 have already cooled off significantly from heavily overbought RSI levels in late 2023 and early 2024 to below neutral.
On top of that, any meaningful pullback will likely set up attractive buying opportunities for those with long-term horizons.
Investors who want to keep buying stocks in April might want to consider adding exposure to cheap stocks that trade for $10 a share or less.
Along with the cheap price tags, the stocks we learn how to search for earn strong Zacks Ranks, driven by improving earnings outlooks. On top of that, Wall Street is high on all of these stocks.
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 is one stock out of the nearly 70 highly-ranked stocks trading under $10 a share that made it through the screen today…
High Tide ((HITI - Free Report) )
High Tide stands out in the highly competitive marijuana retail segment because it is a discount club retailer. The value-focused side of marijuana is somewhat untapped and underserved, with higher legal prices creating a huge deterrent when attempting to attract people who smoked marijuana before it was legalized in Canada (and the U.S.).
High Tide is thriving in Canada and it has deals that will help it enter markets such as Germany once full-scale legalization occurs.
Zacks estimates call for High Tide’s revenue to climb 7% in FY24 and 17% in FY25 to hit roughly $452 million. This outlook comes on top of over 30% revenue growth in 2023.
Image Source: Zacks Investment Research
HITI is projected to trim its adjusted loss from -$0.09 a share to breakeven ($0.00) in FY24 and soar to +0.14 per share next year. High Tide’s earnings revisions have soared to help it land a Zacks Rank #1 (Strong Buy) right now.
HITI stock has climbed by 67% in the last year and 32% in the past month as Wall Street grows excited about the possibility of Washington taking meaningful action on cannabis reform.
Despite the run, High Trade trades 100% below its average Zacks price target. HITI is trading at 0.4X forward 12-month sales vs. its Medical – Products industry’s 5.2X. On top of that, three out of the four brokerage recommendations Zacks has are “Strong Buys” alongside one “Buy.”
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: www.zacks.com/performance_disclosure