Find Highly-Ranked Cheap Stocks Under $10 with this Screener

Benjamin Rains
·5 min read

Quarterly earnings season is in full swing, as the big names in tech start to roll out their Q3 results. Despite lingering coronavirus setbacks within industries such as travel and hospitality, the economy continues to head in the right direction and the early third-quarter results help highlight this fact (also read: Early Q3 Results Show Earnings Recovery in Place).

Meanwhile, Wall Street awaits what’s next on the stimulus front, as it weighs the likely outcomes from the election that is only two weeks away. These unknowns are cause for near-term concern, but investors who are looking six months or a year out don’t need to be as worried about timing the market. And even with all of the worries, the S&P 500 is up 5% in the last month and 7% in 2020.

Therefore, some investors might want to be on the hunt for stocks, especially when we remember that the Fed has decided to keep its interest rate pinned near zero. So today we screened for highly-ranked “cheap” stocks trading for under $10 a share…

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 three stocks of the nearly 40 highly-ranked stocks trading under $10 a share that made it through today’s screen…

Range Resources Corporation (RRC)

Ford Motor Company (F)

Gerdau S.A. (GGB)

Overall, all three of these 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.

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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/.

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Range Resources Corporation (RRC) : Free Stock Analysis Report
 
Gerdau S.A. (GGB) : Free Stock Analysis Report
 
Ford Motor Company (F) : Free Stock Analysis Report
 
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