Find cheap stocks under $ 10 to buy in August

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Wall Street mostly ignored the technological benefits of the explosion last week. The reasons for the lukewarm response to Apple and countless others have focused on “peaks in revenue” and deceleration. Another explanation is simply that the market was not yet ready to soar, having hit new highs ahead of the heart of the second quarter earnings season, which included a rapid recovery from a decline in mid-July. .

There could be more sales in the near term, as Wall Street is reaping some benefits from big tech, although any pullback could be blamed on concerns about variants of the Delta coronavirus and issues with the economic downturn. But unless major restrictions or blockages return in the United States, the bullish case for the market remains in place despite the price hike.

The US economy surpassed pre-pandemic levels in the second quarter, with GDP up 6.5%. Meanwhile, consumer confidence hit its highest level in 17 months in July. On top of that, the S&P 500 earnings image and outlook continues to improve.

Additionally, investors should constantly be reminded that Wall Street will most likely be chasing stock returns for the foreseeable future, even when the Fed begins to raise rates to the lowest levels. History isn’t always a guide, but the 10-year US Treasury yield has been below 3% for most of the past decade.

So August seems like a good time to consider adding stocks. Today, we took a look at how to filter out top-ranked stocks that are trading below $ 10 a share …

Penny Stocks

One dollar or less was the common threshold for what we call “penny stocks”. Today, the SEC has extended 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 characteristics which in many cases cause excessive volatility. That said, there are some penny stocks that perform incredibly well, which helps them stay attractive.

Stocks under $ 10

Moving on, let’s briefly discuss the next cheap share class. 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 to have seen the tickers. However, they are still inherently more speculative than many other higher priced stocks.

Investors can obviously find winning stocks under $ 10 if they are extremely selective. So today we’ve narrowed down the list of thousands of these more speculative stocks to a more manageable group of $ 10 and less stocks that could help boost your portfolio.

Screen settings

• 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 hold, sell, or strong sell.)

• Average broker rating less than or equal to 3.5

(Average broker rating of one deduction or higher.)

• Number of analysts with a rating greater than or equal to 2

(Minimum of at least two analysts covering the stock.)

•% change in revisions of the F1 income estimate – 12 weeks greater than or equal to 0

(Preferably upward revisions to earnings estimates, but certainly not downward revisions.)

here is 3 almost 20 well-ranked stocks trading at less than $ 10 a share that hit the screen today …

Sirius XM Holdings Inc. SIRI

Chembio Diagnostics, Inc. CEMI

LexinFintech Holdings Ltd. LX

Overall, these three stocks offer strong growth potential. Still, it’s not wise to fill your portfolio with cheap stocks, $ 10 or less. Still, these stocks are certainly worth studying further, as grabbing a few of the top names on this list could boost your returns. And let’s not forget that picking a few cheap stocks can be a lot of fun too.

Get the rest of the stocks on this list and start researching the best stocks under $ 10 yourself. And don’t forget to backtest your strategy so you know how successful it has been before you put your money at risk.

Click here to sign up for a free trial of the Research Assistant today.

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Disclosure: Officers, directors and / or employees of Zacks Investment Research may own or have sold securities short and / or hold long and / or short positions in options mentioned in this document. An affiliated investment advisory firm may own or have sold securities short and / or hold long and / or short positions in options mentioned in this document.

Disclosure: Information on the performance of Zacks’ portfolios and strategies can be found at: https://www.zacks.com/performance/.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


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