We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
How Investors Can Find Great Cheap Stocks Under $10 to Buy Now
Read MoreHide Full Article
The recent market retreat was halted on Monday, with the Nasdaq, the S&P 500, and the small-cap Russell 2000 all surging to start the week.
The bulls showed they are ready to fight as big tech earnings season heats up. Earnings reports are due out from Alphabet, Tesla, Texas Instruments, and others in the coming days.
There could certainly be more selling and volatility throughout earnings season, especially since big tech stocks have set the bar very high for themselves. Thankfully, the tailwinds that sent the market soaring in the first half remain in place.
Investors who want to keep buying stocks in July and beyond might 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 60 highly-ranked names trading under $10 a share that made it through the screen today…
Rolls-Royce (RYCEY - Free Report) ) shares have skyrocketed 400% over the last two years as the historic engine manufacturer revamps and streamlines its business to focus on profitability after a disappointing decade. Former oil industry executive CEO Tufan Erginbilgic took over in January 2023, aiming to quadruple Rolls-Royce's profits in the next five years and complete other key initiatives.
Rolls-Royce is a powerhouse of multiple critical industries with massive barriers to entry. Rolls-Royce is also attempting to be at the forefront of the next generation of nuclear energy technology as the world races to send nuclear energy into hyperdrive after decades of stagnation.
Rolls-Royce is projected to grow its revenue by 28% in 2024 and 7% in 2025, following 22% sales expansion last year and 8% in 2022.
Rolls-Royce is expected to boost its adjusted earnings by 24% in 2024 and another 25% in FY25. This growth comes on top of the firm’s 750% adjusted earnings expansion in 2023. Rolls-Royce’s upbeat EPS revisions help it land a Zacks Rank #2 (Buy).
Image Source: Zacks Investment Research
Rolls-Royce shares have climbed by 55% YTD as part of a 400% run during the past 24 months. Rolls-Royce outclimbed fellow nuclear energy standout Constellation Energy’s ((CEG - Free Report) ) 250% surge over the last two years
Despite the run, Rolls-Royce trades over 70% below its all-time highs and 34% below its average Zacks price target. Rolls-Royce has moved sideways over the last few months and it could be ready to break out again.
Rolls-Royce trades at 24.0X forward 12-month earnings, roughly matching its 10-year median and the Zacks Aerospace sector’s 21.2X despite its outperformance of +340% vs. -17% during the past three years. Plus, five of the six brokerage recommendations Zacks has are “Strong Buys.”
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
How Investors Can Find Great Cheap Stocks Under $10 to Buy Now
The recent market retreat was halted on Monday, with the Nasdaq, the S&P 500, and the small-cap Russell 2000 all surging to start the week.
The bulls showed they are ready to fight as big tech earnings season heats up. Earnings reports are due out from Alphabet, Tesla, Texas Instruments, and others in the coming days.
There could certainly be more selling and volatility throughout earnings season, especially since big tech stocks have set the bar very high for themselves. Thankfully, the tailwinds that sent the market soaring in the first half remain in place.
Investors who want to keep buying stocks in July and beyond might 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 60 highly-ranked names trading under $10 a share that made it through the screen today…
Rolls-Royce (RYCEY - Free Report) Stock
Rolls-Royce (RYCEY - Free Report) ) shares have skyrocketed 400% over the last two years as the historic engine manufacturer revamps and streamlines its business to focus on profitability after a disappointing decade. Former oil industry executive CEO Tufan Erginbilgic took over in January 2023, aiming to quadruple Rolls-Royce's profits in the next five years and complete other key initiatives.
Rolls-Royce is a powerhouse of multiple critical industries with massive barriers to entry. Rolls-Royce is also attempting to be at the forefront of the next generation of nuclear energy technology as the world races to send nuclear energy into hyperdrive after decades of stagnation.
Rolls-Royce is projected to grow its revenue by 28% in 2024 and 7% in 2025, following 22% sales expansion last year and 8% in 2022.
Rolls-Royce is expected to boost its adjusted earnings by 24% in 2024 and another 25% in FY25. This growth comes on top of the firm’s 750% adjusted earnings expansion in 2023. Rolls-Royce’s upbeat EPS revisions help it land a Zacks Rank #2 (Buy).
Image Source: Zacks Investment Research
Rolls-Royce shares have climbed by 55% YTD as part of a 400% run during the past 24 months. Rolls-Royce outclimbed fellow nuclear energy standout Constellation Energy’s ((CEG - Free Report) ) 250% surge over the last two years
Despite the run, Rolls-Royce trades over 70% below its all-time highs and 34% below its average Zacks price target. Rolls-Royce has moved sideways over the last few months and it could be ready to break out again.
Rolls-Royce trades at 24.0X forward 12-month earnings, roughly matching its 10-year median and the Zacks Aerospace sector’s 21.2X despite its outperformance of +340% vs. -17% during the past three years. Plus, five of the six brokerage recommendations Zacks has are “Strong Buys.”
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