Stocks under 10 dollars appeal to many retail investing budgets. These low-priced stocks are within the means of most investors. A round, hundred-share lot of a 10-dollar stock costs $1,000. One hundred shares of Amazon (AMZN) costs over 200 grand, which is a big allocation for all but the largest portfolios.
The Best Stocks Under 10 Dollars
To help introduce you to the world of ten-dollar stocks, we’ve laid out our top 5 picks for the best stocks under ten dollars. These stocks are all based in the United States (Aurora Cannabis is based in Canada) and trade on either the NYSE or NASDAQ exchange.
TrustCo Bank Corp NY (NASD: TRST)
Not to be confused with CanniTrust Holdings (TRST.TO), a Canadian cannabis stock that trades on the Toronto Stock exchange; TrustCo Bank is a federal savings bank that provides both commercial and rental banking services. It also operates a real estate investment trust (REIT) that holds and manages mortgage assets. TrustCo has a presence in New York, Florida, Vermont, Massachusetts, and New Jersey.
With interest rates set to drop, it’s a tough environment for banks. However, early bank earnings show that consumer banking is outperforming larger investor banks. TrustCo could be in a position to capitalize on that trend.
With a price to book ratio under 2.0, TRST is a great value pick. It’s trading for less than 15 times forward earnings and pays a dividend that yields around 3.3%. The chart looks strong too, TRST recently broke above its key moving averages and it appears that a ‘golden cross’ could be imminent.
Zix Corporation (ZIXI)
Cybersecurity is a hot field, and Zix corp operates at the heart of the industry. This high-tech firm offers services like email encryption, data loss prevention (DLP), threat protection, and more. The company primarily works with domestic customers in finance, health care, insurance, and government.
Zix shareholders have had a great 2019, prices are up over 60% YTD. The company delivered a big win on FY Q1 earnings in May, reporting a 76% YoY jump in revenues that sent the stock skyrocketing over 30% after the report. The cybersecurity industry is predicted to continue growing, and Zix has grown its EPS by over 230% this year.
However, it’s not all good. The momentum that has powered the gains has also elevated share prices to higher premiums. ZIXI has a PE over 106, but forward PE is only 20.24. In addition, Zix is highly leveraged, which could be an issue, but it’s growing and generating enough cash to cover its net interest payments three times over.
ZIXI is a hot growth stock in a hot sector. As long as Zix continues to grow revenues there could be more upside in this stock.
Zynga Inc. (ZNGA)
Zynga develops and operates social gaming applications on various platforms. Its games are available on iOS, Android, Facebook, and other social media platforms. The company’s most popular titles include favorites like FarmVille, Mafia Wars, and Words with Friends.
This mobile video game developer is a fast grower in a sector that has stagnated as of late. Traditional video game heavyweights like Activision-Blizzard (ATVI) and Electronic Arts (EA) have struggled in 2019, while Zynga gained over 60% this year.
Zynga announces quarterly earnings on August 7 and the report will be key to the stock’s future. Consensus estimates are projecting net sales to increase by 54.56% from the same period a year ago, with earnings of $0.22 per share on revenues of $1.46 billion.
If Zynga delivers on these estimates, it would reflect YoY earnings growth of 175% and revenue growth of over 50%. Those are great numbers and a beat could be a significant catalyst for share prices.
Aurora Cannabis Inc. (ACB)
The market has cooled on cannabis stocks in the past couple of months, but the sentiment could swing back soon. These stocks are getting cheaper, and Aurora Cannabis is one of the few major players in the sector that is actually turning profits. Aurora produces and distributes medical-grade cannabis products. It’s a vertically integrated company that produces cannabis products from seed to sale.
Currently, the issue with Aurora is cash burn. The company is spending a lot of cash and some analysts are sounding the alarm. However, this stock could be a long-term winner if the cannabis sector heats up again. Cannabis stocks aren’t typically known as value picks, but ACB has a price to book ratio of around 2.0. Some value investors consider anything under 3.0 to be a steal, and ACB is an even bigger value when you consider the cannabis industry’s projected growth rates.
Watch this one for a bottom. The chart remains technically weak, so now might not be the best time for an entry. It’s currently holding onto support around $6.85, but if it breaks below that it could be a long way down. The cannabis sector has been weak lately, so make sure you time your entry and exits carefully if you want to play in this one.
Majesco provides cloud-based insurance software solutions in the United States and abroad. Its flagship products are CloudInsure, a data management platform; and Digital1st, a cloud-native digital engagement tool. The company helps clients facilitate a variety of insurance-related services, including billing, claims, underwriting, and other key functions.
Majesco’s P/E ratio is 55.4, not ridiculous for a high-growth stock like this. EPS this year is up 347.6%, and shares are trading for only 3 times sales. Over 70% of MJCO is owned by insiders, so management has a lot of skin in the game.
Share prices gained over 25% in July, so MJCO has momentum on its side. Earnings are coming up on August 6 and the report could provoke a strong reaction in this historically volatile stock, so proceed with caution.
Best Stocks Under 10 – Value Vs. Price
Thanks to low prices, these stocks are accessible to most investors. Don’t confuse low prices with low value, many stocks under 10 dollars have significant long-term potential. Oftentimes, it’s easy to find overlooked companies in stocks under 10 dollars.
In this context, value isn’t limited to traditional value-gauging metrics. For example, rapid revenue growth and price momentum can both be valuable traits for stocks under 5 dollars. Our list of the best 5-dollar stocks includes both value and growth stocks that could be worth watching.
How To Find Stocks Under 10 Dollars
There are hundreds of stocks that trade for under 10 dollars, and it’s easy to find additional opportunities by using a stock screener. Stock screeners help traders find stocks that meet certain criteria. It’s like a search engine for stocks.
Most brokers have stock screeners built into their platforms. However, Finviz offers a free stock screener that is good enough for most investors, and more advanced features are available with Finviz Elite. You can find the Finviz stock screener here.
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