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How to Find Cheap, Highly-Ranked Stocks Under $10 to Buy for March
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The great start to 2023 appeared to be on the verge of starting to unravel at the end of last week after the Fed’s preferred inflation gauge came in hotter than projected. But the bulls proved they were ready to fight during the final two trading days of February.
The Nasdaq bounced right back above its key 200-day moving average on Monday, after it popped 0.6%. The tech-heavy index was up by 0.50% through mid-afternoon trading on Tuesday as the bulls showcase that they are ready to claw back control of the market and fight to keep pushing stocks higher.
Despite lingering inflation and other unknows, the first two months of 2023 have been largely positive for stocks. Let’s also remember the Nasdaq is still down roughly 28% from its peaks. And Wall Street is always forward looking.
Taking this all into account, investors might want to continue buying stocks. Today we used one of our Zacks screens to show investors how to find highly-ranked Zacks stocks, which means they have improving earnings outlooks, that are trading for under $10 per share to consider buying for March and beyond.
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 two stocks out of the nearly 70 highly-ranked names trading under $10 a share that made it through the screen today…
Palantir Technologies is a data-analytics software company that went public in the fall of 2020. The firm boasts that it builds ‘category-leading software that empowers organizations to create and govern artificial intelligence — across public and private networks.” Palantir’s solutions are designed to work within and across almost any industry and sector, and PLTR has tons of various U.S. government contracts.
Palantir topped our Q4 earnings and revenue estimates on February 13 and provided upbeat guidance as it works to trim costs. PLTR’s positive earnings revisions activity helps it land a Zacks Rank #2 (Buy) right now. The data-analytics firm’s revenue climbed 24% in 2022, with it now projected to boost its sales by 16% in FY23 and another 20% in FY24 to hit $2.6 billion.
Better yet, Palantir’s adjusted earnings are projected to surge 233% from $0.06 per share to $0.20 in FY23 and then pop again in FY24. Palantir shares have popped 23% YTD. Even with the bounce, PLTR shares trade far below their early 2021 highs of around $35 per share. And its average Zacks price target offers 16% upside to its current $7.89 a share levels.
SoFi Technologies is a financial-technology company that was founded in 2011. SoFi is part of the vanguard of tech firms that aims to become the future of all things personal finance. SoFi attempts to be a one-stop shop for consumer finances, offering banking, personal loans, credit cards, investing, insurance, and beyond.
SoFi added roughly 480,000 new members during Q4 to bring its total members to 5.2 million, up 51% YoY. The fourth quarter of FY22 almost marked its second highest quarter of new member adds. SoFi topped our adjusted earnings estimates once again in late January and provided strong guidance as it races toward positive earnings.
Zacks estimates call for SoFi to trim its adjusted loss from -$0.40 to -$0.21 in FY23 and then climb all the way to +0.03 in 2024. The company’s revenue is projected to climb by 25% this year to hit $1.97 billion and then an additional 23% to $2.43 billion in FY24. Sofi’s upward earnings revisions help it land a Zacks Rank #2 (Buy) right now.
Sofi stock has soared 44% in 2023 as investors jump into beaten-down growth stocks. Still, Sofi stock is down 65% in the past two years. At around $6.66 per share, SoFi trades 30% below its average Zacks price target. And seven of the 11 brokerage recommendations Zacks has are “Strong Buys,” alongside four “Holds.”
Both 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.
Image: Bigstock
How to Find Cheap, Highly-Ranked Stocks Under $10 to Buy for March
The great start to 2023 appeared to be on the verge of starting to unravel at the end of last week after the Fed’s preferred inflation gauge came in hotter than projected. But the bulls proved they were ready to fight during the final two trading days of February.
The Nasdaq bounced right back above its key 200-day moving average on Monday, after it popped 0.6%. The tech-heavy index was up by 0.50% through mid-afternoon trading on Tuesday as the bulls showcase that they are ready to claw back control of the market and fight to keep pushing stocks higher.
Despite lingering inflation and other unknows, the first two months of 2023 have been largely positive for stocks. Let’s also remember the Nasdaq is still down roughly 28% from its peaks. And Wall Street is always forward looking.
Taking this all into account, investors might want to continue buying stocks. Today we used one of our Zacks screens to show investors how to find highly-ranked Zacks stocks, which means they have improving earnings outlooks, that are trading for under $10 per share to consider buying for March and beyond.
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 two stocks out of the nearly 70 highly-ranked names trading under $10 a share that made it through the screen today…
Palantir Technologies ((PLTR - Free Report) )
Palantir Technologies is a data-analytics software company that went public in the fall of 2020. The firm boasts that it builds ‘category-leading software that empowers organizations to create and govern artificial intelligence — across public and private networks.” Palantir’s solutions are designed to work within and across almost any industry and sector, and PLTR has tons of various U.S. government contracts.
Palantir topped our Q4 earnings and revenue estimates on February 13 and provided upbeat guidance as it works to trim costs. PLTR’s positive earnings revisions activity helps it land a Zacks Rank #2 (Buy) right now. The data-analytics firm’s revenue climbed 24% in 2022, with it now projected to boost its sales by 16% in FY23 and another 20% in FY24 to hit $2.6 billion.
Better yet, Palantir’s adjusted earnings are projected to surge 233% from $0.06 per share to $0.20 in FY23 and then pop again in FY24. Palantir shares have popped 23% YTD. Even with the bounce, PLTR shares trade far below their early 2021 highs of around $35 per share. And its average Zacks price target offers 16% upside to its current $7.89 a share levels.
SoFi Technologies ((SOFI - Free Report) )
SoFi Technologies is a financial-technology company that was founded in 2011. SoFi is part of the vanguard of tech firms that aims to become the future of all things personal finance. SoFi attempts to be a one-stop shop for consumer finances, offering banking, personal loans, credit cards, investing, insurance, and beyond.
SoFi added roughly 480,000 new members during Q4 to bring its total members to 5.2 million, up 51% YoY. The fourth quarter of FY22 almost marked its second highest quarter of new member adds. SoFi topped our adjusted earnings estimates once again in late January and provided strong guidance as it races toward positive earnings.
Zacks estimates call for SoFi to trim its adjusted loss from -$0.40 to -$0.21 in FY23 and then climb all the way to +0.03 in 2024. The company’s revenue is projected to climb by 25% this year to hit $1.97 billion and then an additional 23% to $2.43 billion in FY24. Sofi’s upward earnings revisions help it land a Zacks Rank #2 (Buy) right now.
Sofi stock has soared 44% in 2023 as investors jump into beaten-down growth stocks. Still, Sofi stock is down 65% in the past two years. At around $6.66 per share, SoFi trades 30% below its average Zacks price target. And seven of the 11 brokerage recommendations Zacks has are “Strong Buys,” alongside four “Holds.”
Both 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/.