Low-priced stocks are an investor's delight: they’re cheap, so you can buy more of them. And at such low prices, they may have a lot more room to grow over the years. (Related Don't Let Stock Prices Fool You)
But how to find low-priced stocks which are a value investment? In this article, Investopedia provides a list of the top 10 stocks under $10. All stocks are in diverse sectors. Along with the basics about the company’s business, we will include current prices, market cap valuations, earnings per share, and beta values (a measure of how volatile the security is in relation to the market). A few companies have negative or zero EPS values, which is very common for growth companies. All the selected companies have a minimum market cap of over 300 million dollars and high average daily trading volume, ensuring sufficient market valuation and liquidity. This list does not include penny stocks.
Investors like low-priced stocks because they cost less and offer the possibility of high returns over time. But do not confuse cheap stocks with undervalued stocks. Investors should practice due diligence before deciding on investing or trading in any securities. (Related Cheap Stocks Can Be Deceiving)
But how to find low-priced stocks which are a value investment? In this article, Investopedia provides a list of the top 10 stocks under $10. All stocks are in diverse sectors. Along with the basics about the company’s business, we will include current prices, market cap valuations, earnings per share, and beta values (a measure of how volatile the security is in relation to the market). A few companies have negative or zero EPS values, which is very common for growth companies. All the selected companies have a minimum market cap of over 300 million dollars and high average daily trading volume, ensuring sufficient market valuation and liquidity. This list does not include penny stocks.
- AK Steel Holding Corp (AKS): A manufacturer of multiple steel products, NYSE-listed AK Steel operates 10 steel plants in the states of Indiana, Kentucky, Ohio and Pennsylvania. Its product line includes a diversified product set of coated, flat-rolled, cold-rolled, and hot-rolled carbon steel, stainless steel and electrical steel products. It also has a coke-producing plant in West Virginia. It operates steel product trading through AK Coal Resources, Inc., a subsidiary company. Currently trading at $5.67 per share, it has a market cap of $1.01 billion, an earning per share of -1.83, and a beta of 2.26.
- Rite Aid Corp (RAD): NYSE-listed Rite Aid Corp operates a retail chain of drugstores in the United States, comprised of more than 4,500 stores across 31 states. Its saleable product range include prescription drugs, over-the-counter medicines, health and beauty products, food items, greeting cards, and convenience products. It also offers various services like photo processing, medical testing, physical examinations, vaccination, and immunization. It supports online and call-based shopping. Currently trading at price of $8.29 per share, it has a market cap of $8.2 billion, an earning per share of 2.08, and a beta of 1.63.
- Regions Financial Corp (RF): NYSE-listed Regions is a financial holding company which has three segments: 1) business services, 2) consumer services, and 3) wealth management. It provides financial series spanning across retail, commercial, and mortgage banking; wealth and asset management; insurance; brokerage; and other specialty financing. It has more than 1600 branches across multiple states in the United States. It also operates Regions Bank, which is a commercial bank, and owns Regions Insurance group as a wholly owned subsidiary. Currently trading at price of $9.98 per share, Regions has a market cap of $13.38 billion, earnings per share of 0.73, and a beta of 2.07.
- CNH Industrial NV (CNHI): NYSE-listed CNH is a Holland-based firm and manufacturer of vehicles and heavy machinery equipment. It operates through four main segments. The agricultural equipment segment constitutes agricultural equipment with known brands like Steyr, New Holland, and Case IH. The construction equipment segment produces construction-related equipment, like bulldozers, under the brands of New Holland Construction and Case Construction Equipment. The trucks and commercial vehicles segment manufactures commercial vehicles like trucks, buses, and special vehicles under the brand Iveco, Iveco Bus, and Heuliez Bus. The Powertrain segment has transmission systems, engines, and power generation through the FPT Industrial brand. Currently trading at price of $8.89 per share, it has a market cap of $12.05 billion, earnings per share of 0.02, and a beta of 2.05.
- Eldorado Gold Corp (EGO): NYSE-listed EGO is a mining company focusing on gold, iron ore and silver-lead-zinc mines. It has gold mines in Turkey, China, Greece, Romania, and Brazil. Iron ore and silver-lead-zinc mines are in Brazil. Currently trading at price of $5.13 per share, it has a market cap of $3.68 billion, earnings per share of 0.09, and a beta of 0.46.
- Kosmos Energy (KOS): NYSE-listed Kosmos Energy is a holding company whose subsidiaries operate in oil and gas exploration and production business. It has global operations across multiple countries in Africa, Europe, and South America. It has a strong asset base which includes production development projects, exploration licenses, and other properties. Currently trading at price of $9.31 per share, it has a market cap of $3.61 billion, earnings per share of 0.31 and a beta of 1.79.
- Great Lakes Dredge & Dock Corp (GLDD): NASDAQ-listed GLDD primarily provides dredging services in the east coast, west coast, and Gulf coasts of the United States. It also does some international work. The company has two main segments--dredging services, and environmental and remediation services. The dredging business involves replenishment or preservation of navigability of waterways and the protection of shorelines through the removal or replenishment of soil, sand, or rock. The environmental and remediation segment provides soil, water, and sediment environmental remediation for the municipal and private party markets. Currently trading at price of $5.85 per share, it has a market cap of $353.35 million, an earnings per share of 0.24, and a beta of 1.2.
- Siliconware Precision Industries (SPIL): NASDAQ-listed SPIL has a unique business line—it is into semiconductor packaging and testing services. It has multiple segments: a packaging services segment for semiconductor circuits, a bumping services segment offering wafer bumping, and testing services involving testing across 8- and 12-inch wafer-sort testing, final testing, and system level testing. It also has other business lines like flash memory cards. Business operations are spread across Taiwan and North America. Currently trading at price of $8.12 per share, it has a market cap of $5.05 billion, earnings per share of 0.62, and a beta of 1.25.
- BlackRock Capital Investment Corporation (BKCC): NASDAQ-listed BKCC is a private equity firm which provides customized financing solutions to mid-size companies having annual revenues in the range of $50 million to $1 billion. BKCC is externally-managed, non-diversified closed-end management investment firm. Currently trading at price of $9.5 per share, it has a market cap of $710 million, earnings per share of of 1.70, and a beta of 0.97.
- Northwest Biotherapeutics, Inc. (NWBO): NASDAQ-listed NWBO operates as a development stage biotechnology firm. The company is developing vaccines for cancer and immunotherapy products for cancer treatment. NWBO has developed DCVax technology which it claims to be applicable to most cancers. Currently trading at price of $8.12 per share, it has a market cap of $624 million, earnings per share of -2.11, and a beta of 2.86.
Investors like low-priced stocks because they cost less and offer the possibility of high returns over time. But do not confuse cheap stocks with undervalued stocks. Investors should practice due diligence before deciding on investing or trading in any securities. (Related Cheap Stocks Can Be Deceiving)
Disclaimer: At the time of writing, the author was not holding any positions in any of the mentioned stocks.
Read more: Top 10 Stocks Under $10 Dollars In 2015 | Investopedia http://www.investopedia.com/articles/active-trading/052015/top-10-stocks-under-10-dollars-2015.asp#ixzz4aj9qYBZg
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