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Finding Top Cheap Stocks Under $10 to Buy in September
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Sellers stepped up to start September, pushing the Nasdaq below its 50-day and 21-day moving averages. Investors are growing more nervous about the slowing U.S. economy, with signs of weakness across consumer spending and manufacturing popping up over the last several sessions.
There could be more near-term selling and volatility as Wall Street waits for the Fed to officially start cutting rates when its two-day FOMC meeting ends on September 18. The presidential election cycle adds to the unknowns.
Yet, the bullish support of interest rate cuts and growing tech-driven earnings should help drive the market forward. Therefore, any significant near-term selling represents a healthy recalibration and an opportunity for investors to buy their favorite stocks at discounts.
The last several years have also highlighted why investors should do their best to stay constantly exposed to the stock market. Investors who want to keep buying stocks in September 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 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 50 highly-ranked names trading under $10 a share that made it through the screen today…
Why SoFi Technologies is a Cheap "Strong Buy" Stock
SoFi Technologies (SOFI - Free Report) attempts to be a one-stop shop for consumer finances. SoFi’s offerings include banking, personal loans, credit cards, investing, insurance, and beyond. SoFi remains firmly in its growth phase, growing its members by 41% YoY in Q2 to close with 8.8 million. On top of that, SoFi posted its third straight quarter of GAAP profitability.
SoFi is projected to grow its revenue by 19% in 2024 and another 14% next year to reach $2.81 billion vs. $2.07 billion in FY23.
Wall Street will also love to see SoFi swing from an adjusted loss of -$0.36 a share last year to +$0.09 a share in 2024 and then surge 182% higher next year. SoFi’s upward earnings revisions help it land a Zacks Rank #1 (Strong Buy) right now.
Image Source: Zacks Investment Research
SoFi stock has climbed 34% during the past two years. Despite the bounce back, SoFi trades 70% below its 2021 records and 25% below its 52-week highs. SoFi is trading above its 21-day, 50-day, and 200-day moving averages, and at a 50% discount to the Zacks Tech sector at 3.2X forward 12-month sales.
SoFi’s impressive long-term earnings growth outlook also helps the stock trade at a 47% discount to Tech, with a PEG ratio of 0.8.
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
Finding Top Cheap Stocks Under $10 to Buy in September
Sellers stepped up to start September, pushing the Nasdaq below its 50-day and 21-day moving averages. Investors are growing more nervous about the slowing U.S. economy, with signs of weakness across consumer spending and manufacturing popping up over the last several sessions.
There could be more near-term selling and volatility as Wall Street waits for the Fed to officially start cutting rates when its two-day FOMC meeting ends on September 18. The presidential election cycle adds to the unknowns.
Yet, the bullish support of interest rate cuts and growing tech-driven earnings should help drive the market forward. Therefore, any significant near-term selling represents a healthy recalibration and an opportunity for investors to buy their favorite stocks at discounts.
The last several years have also highlighted why investors should do their best to stay constantly exposed to the stock market. Investors who want to keep buying stocks in September 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 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 50 highly-ranked names trading under $10 a share that made it through the screen today…
Why SoFi Technologies is a Cheap "Strong Buy" Stock
SoFi Technologies (SOFI - Free Report) attempts to be a one-stop shop for consumer finances. SoFi’s offerings include banking, personal loans, credit cards, investing, insurance, and beyond. SoFi remains firmly in its growth phase, growing its members by 41% YoY in Q2 to close with 8.8 million. On top of that, SoFi posted its third straight quarter of GAAP profitability.
SoFi is projected to grow its revenue by 19% in 2024 and another 14% next year to reach $2.81 billion vs. $2.07 billion in FY23.
Wall Street will also love to see SoFi swing from an adjusted loss of -$0.36 a share last year to +$0.09 a share in 2024 and then surge 182% higher next year. SoFi’s upward earnings revisions help it land a Zacks Rank #1 (Strong Buy) right now.
Image Source: Zacks Investment Research
SoFi stock has climbed 34% during the past two years. Despite the bounce back, SoFi trades 70% below its 2021 records and 25% below its 52-week highs. SoFi is trading above its 21-day, 50-day, and 200-day moving averages, and at a 50% discount to the Zacks Tech sector at 3.2X forward 12-month sales.
SoFi’s impressive long-term earnings growth outlook also helps the stock trade at a 47% discount to Tech, with a PEG ratio of 0.8.
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