This is one of the most popular groups of stocks for investors to explore. That is because there is such great excitement in a low priced stock discarded by others, that suddenly has a dramatic rise in price.
However, the path to higher prices is a rocky one. Most of these stocks got to such a lowly price by displaying fundamental weakness which led to a significant drop in shares.
Or put it this way, almost all IPOs for stocks is greater than $10. So the only way to get under $10 is to “stink up the joint”.
So in putting this list together I wanted to have a good amount of checks and balances that improved the odds of future outperformance. The starting point was that they all had a POWR Rating of A (Strong Buy).
This dramatically narrowed down the list to just 38 stocks. Next I wanted to see the average target price from Wall Street analysts. If not at least 20% higher, then no reason to get excited.
This last step eliminated 26 of the stocks for not having enough upside potential to fair value. In fact, 11 of them actually had target prices lower than the current price.
So when you boil it all down we have a list of 12 stocks under $10 with the positive fundamental and momentum attributes found in the POWR Ratings. Plus you have at least 20% upside potential to fair value. (And one has 96% upside to their target price).
Check them all out below:
|Company||Ticker||Market Cap ($mil)||Price||Target Price||Upside %|
|Pretium Res Inc||PVG||$1,810||$9.82||$14.40||46.64%|
|Mvc Capital Inc||MVC||$165||$9.30||$12.00||29.03%|
Also here are links to 2 other popular destinations to make the best use of the POWR Ratings:
Reitmeister Total Return portfolio. This is where Steve Reitmeister employs his 40 years of investment experience to hand select the best POWR Ratings stocks.
Telefonica SA (TEF - Get Rating) shares were trading at $8.28 per share on Thursday morning, up $0.02 (+0.24%). Year-to-date, Telefonica SA (TEF - Get Rating) has declined -0.06%, versus a 18.82% rise in the benchmark S&P 500 index during the same period.
This article is brought to you courtesy of StockNews.com.
More Resources for the Stocks in this Article
|Ticker||POWR Rating||Industry Rank||Rank in Industry|
|TEF||Get Rating||Get Rating||Get Rating|
|MBT||Get Rating||Get Rating||Get Rating|
|NG||Get Rating||Get Rating||Get Rating|
|SAND||Get Rating||Get Rating||Get Rating|
|VEON||Get Rating||Get Rating||Get Rating|