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Buying Great Cheap Stocks Under $10 for December and Beyond
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Wall Street bulls held their ground at the Nasdaq’s 21-day moving average to start a week that includes earnings reports from Nvidia, Walmart, Target, and other tech and economic bellwethers.
The bulls appear in control of the stock market as they focus on earnings growth, and the likelihood of lower corporate taxes and less red tape during a second Trump term.
CNN’s Fear and Greed Index (a contrarian stock market indicator) is sitting at Neutral (50) down from Greed last week. Therefore, the market appears far from overheated heading into the final stretch of November and the last month of 2024.
Bullish investors who want to keep buying stocks might consider looking at some home run swings.
Today we explore how to find great cheap stocks trading for $10 a share or less that investors might want to buy heading into December.
On top of their cheap price tags, Wall Street analysts are high on all of these stocks and their improving earnings outlooks earn them strong Zacks Ranks.
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 90 highly-ranked names trading under $10 a share that made it through the screen today…
Is Surging Applied Digital a Must-Own, Cheap Artificial Intelligence Stock?
Applied Digital Corporation (APLD - Free Report) designs, builds, and operates what is calls “next-generation digital infrastructure designed for high-performance computing applications, cloud services, and data center hosting.” The company’s long-term vision is to transform into a platform capable of building and operating multiple HPC data centers.
Applied Digital crushed our Q1 FY25 earnings estimates in early October. The digital infrastructure solutions provider said it was “finalizing a lease agreement with a U.S.-based hyperscaler for our 100 MW facility currently under construction. This state-of-the-art, 369,000+ square-foot facility is specifically designed for HPC applications, including artificial intelligence. Furthermore, we are in the design phase for two additional buildings at this location, which will increase the total capacity to 400 MW.”
Image Source: Zacks Investment Research
Applied Digital’s upward earnings revisions help it earn a Zacks Rank #2 (Buy). APLD is projected to grow its revenue by 64% in FY25 and 42% next year. Wall Stret grew more bullish after reports spread late last week that AI powerhouse Nvidia (NVDA - Free Report) disclosed a new investment in Applied Digital. As of Sept. 30, Nvidia held a roughly 3% stake in APLD.
Applied Digital has improved its balance sheet on the back of “strategic investments from a group of institutional and accredited investors,” Nvidia, and “related companies.”
APLD stock has climbed 105% during the last 12 months. Yet it is still down around 65% from its November 2021 levels. Applied Digital stock surged on Tuesday attempting to break out to fresh 52-week highs.
APLD trades 38% below its average Zacks price target and six of the seven brokerage recommendations Zacks has are “Strong Buys.” Applied Digital is a cheap stock trading for under $10 a share that is worth buying for its AI-focused upside.
Get the rest of the stocks on this list and start looking for the newest companies that fit these criteria. It's easy to do. And it could help you find your next big winner. Start screening for these companies today with a free trial to the Research Wizard. You can do it.
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
Buying Great Cheap Stocks Under $10 for December and Beyond
Wall Street bulls held their ground at the Nasdaq’s 21-day moving average to start a week that includes earnings reports from Nvidia, Walmart, Target, and other tech and economic bellwethers.
See the Zacks Earnings Calendar to stay ahead of market-making news.
The bulls appear in control of the stock market as they focus on earnings growth, and the likelihood of lower corporate taxes and less red tape during a second Trump term.
CNN’s Fear and Greed Index (a contrarian stock market indicator) is sitting at Neutral (50) down from Greed last week. Therefore, the market appears far from overheated heading into the final stretch of November and the last month of 2024.
Bullish investors who want to keep buying stocks might consider looking at some home run swings.
Today we explore how to find great cheap stocks trading for $10 a share or less that investors might want to buy heading into December.
On top of their cheap price tags, Wall Street analysts are high on all of these stocks and their improving earnings outlooks earn them strong Zacks Ranks.
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 90 highly-ranked names trading under $10 a share that made it through the screen today…
Is Surging Applied Digital a Must-Own, Cheap Artificial Intelligence Stock?
Applied Digital Corporation (APLD - Free Report) designs, builds, and operates what is calls “next-generation digital infrastructure designed for high-performance computing applications, cloud services, and data center hosting.” The company’s long-term vision is to transform into a platform capable of building and operating multiple HPC data centers.
Applied Digital crushed our Q1 FY25 earnings estimates in early October. The digital infrastructure solutions provider said it was “finalizing a lease agreement with a U.S.-based hyperscaler for our 100 MW facility currently under construction. This state-of-the-art, 369,000+ square-foot facility is specifically designed for HPC applications, including artificial intelligence. Furthermore, we are in the design phase for two additional buildings at this location, which will increase the total capacity to 400 MW.”
Image Source: Zacks Investment Research
Applied Digital’s upward earnings revisions help it earn a Zacks Rank #2 (Buy). APLD is projected to grow its revenue by 64% in FY25 and 42% next year. Wall Stret grew more bullish after reports spread late last week that AI powerhouse Nvidia (NVDA - Free Report) disclosed a new investment in Applied Digital. As of Sept. 30, Nvidia held a roughly 3% stake in APLD.
Applied Digital has improved its balance sheet on the back of “strategic investments from a group of institutional and accredited investors,” Nvidia, and “related companies.”
APLD stock has climbed 105% during the last 12 months. Yet it is still down around 65% from its November 2021 levels. Applied Digital stock surged on Tuesday attempting to break out to fresh 52-week highs.
APLD trades 38% below its average Zacks price target and six of the seven brokerage recommendations Zacks has are “Strong Buys.” Applied Digital is a cheap stock trading for under $10 a share that is worth buying for its AI-focused upside.
Get the rest of the stocks on this list and start looking for the newest companies that fit these criteria. It's easy to do. And it could help you find your next big winner. Start screening for these companies today with a free trial to the Research Wizard. You can do it.
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