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The Nasdaq and the S&P 500 fell on Tuesday morning. The selling appeared unavoidable after the Nasdaq hit new highs late last week for the first time since the final months of 2021.
The bulls remain firmly in control and comparisons to the Dot-com bubble don’t seem to hold up to scrutiny.
There could be more near-term selling to wipe away the excess foam off the top of the market. Investors should watch how the Nasdaq interacts with its 21-day and 50-day moving averages in the coming days and weeks since Wall Street appears poised to buy up any sizeable pullback.
With that in mind, investors who want to keep buying stocks in March 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.
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 roughly 50 highly-ranked names trading under $10 a share that made it through the screen today…
Alight is a leading cloud-based human capital technology and services provider. The tech firm offers solutions “from hire to retire, and beyond,” spanning retirement benefits, payroll, health benefits, and more. Alight works with 4,300 organizations on five continents. ALIT grew its 2023 revenue by 9% to $3.41 billion to help boost its adjusted earnings by 24%.
Image Source: Zacks Investment Research
Zacks estimates call for the company to increase its sales by 5% this year and 8% next year, with its EPS projected to surge by 4% and 17%, respectively. Alight has topped our EPS estimates by an average of 13% in the trailing four quarters, and its positive earnings revisions help it land a Zacks Rank #2 (Buy) right now.
Alight stock has surged 21% in the last six months and it trades between its 21-day and 50-day moving averages. ALIT still trades 34% below its average Zacks price target and eight of the nine brokerage recommendations Zacks has are “Strong Buys.” ALIT trades at a 35% discount to the Zacks tech sector at 17.3X forward earnings.
ADMA Biologics is an end-to-end commercial biopharmaceutical firm. ADMA Biologics makes, markets, and develops specialty plasma-derived products for the prevention and treatment of infectious diseases in the immune compromised and other patients at risk for infection.
The company currently has three FDA-licensed approved products and its sales are projected to climb 30% in 2024 and 16% in FY25 to nearly $400 million. ADMA Biologics is projected to jump from flat earnings of $0.00 to $0.30 in FY24 and then surge 66% higher next year to $0.50 a share.
Image Source: Zacks Investment Research
ADMA Biologics shares have soared 245% in the last two years to blow away its sector and the S&P 500. This run includes a 50% surge during the past three months. Even with the huge run, ADMA trades 40% below its average Zacks price target.
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
Finding Cheap Stocks Under $10 to Buy in March
The Nasdaq and the S&P 500 fell on Tuesday morning. The selling appeared unavoidable after the Nasdaq hit new highs late last week for the first time since the final months of 2021.
The bulls remain firmly in control and comparisons to the Dot-com bubble don’t seem to hold up to scrutiny.
There could be more near-term selling to wipe away the excess foam off the top of the market. Investors should watch how the Nasdaq interacts with its 21-day and 50-day moving averages in the coming days and weeks since Wall Street appears poised to buy up any sizeable pullback.
With that in mind, investors who want to keep buying stocks in March 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.
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 roughly 50 highly-ranked names trading under $10 a share that made it through the screen today…
Alight, Inc. ((ALIT - Free Report) )
Alight is a leading cloud-based human capital technology and services provider. The tech firm offers solutions “from hire to retire, and beyond,” spanning retirement benefits, payroll, health benefits, and more. Alight works with 4,300 organizations on five continents. ALIT grew its 2023 revenue by 9% to $3.41 billion to help boost its adjusted earnings by 24%.
Image Source: Zacks Investment Research
Zacks estimates call for the company to increase its sales by 5% this year and 8% next year, with its EPS projected to surge by 4% and 17%, respectively. Alight has topped our EPS estimates by an average of 13% in the trailing four quarters, and its positive earnings revisions help it land a Zacks Rank #2 (Buy) right now.
Alight stock has surged 21% in the last six months and it trades between its 21-day and 50-day moving averages. ALIT still trades 34% below its average Zacks price target and eight of the nine brokerage recommendations Zacks has are “Strong Buys.” ALIT trades at a 35% discount to the Zacks tech sector at 17.3X forward earnings.
ADMA Biologics ((ADMA - Free Report) )
ADMA Biologics is an end-to-end commercial biopharmaceutical firm. ADMA Biologics makes, markets, and develops specialty plasma-derived products for the prevention and treatment of infectious diseases in the immune compromised and other patients at risk for infection.
The company currently has three FDA-licensed approved products and its sales are projected to climb 30% in 2024 and 16% in FY25 to nearly $400 million. ADMA Biologics is projected to jump from flat earnings of $0.00 to $0.30 in FY24 and then surge 66% higher next year to $0.50 a share.
Image Source: Zacks Investment Research
ADMA Biologics shares have soared 245% in the last two years to blow away its sector and the S&P 500. This run includes a 50% surge during the past three months. Even with the huge run, ADMA trades 40% below its average Zacks price target.
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