2 Stocks Under $10 to Buy Now

Last week was another volatile one for the market. Selling pressure returned toward the end of the week, leaving the major indexes in the red.

Periods like that tend to put a premium on selectivity. And while investors often gravitate toward familiar names when uncertainty picks up, plenty of opportunities can exist further down the price spectrum.

A low share price alone, however, doesn’t make a stock cheap. A $5 stock can be wildly overvalued, just as a $500 stock can trade at an attractive price relative to its fundamentals.

The challenge is finding low-priced stocks where the underlying business actually gives investors a reason to expect more.

Fortunately, there’s a way to make that distinction a lot easier…

Under $10 Stock Strategy

Our proprietary quant system takes a look at 4,600 stocks each day and evaluates them through the lens of 115 metrics, split across 7 categories. That data comes together to form a simple, straightforward metric — a stock’s Zen Rating.

The strongest grade, a Zen Rating of A, equivalent to a Strong Buy recommendation, is only given to the stocks that rank in the top 5% on overall fundamental strength. A bit of quick math tells us that 5% of 4,600 is 230 — and while that is a good start, that is still plenty of tickers to consider on any given day.

That’s not the end of it, however. You can speed things along by taking a look at one of our exclusive Zen Strategies.

This week, the spotlight is on a portfolio that has returned 54.86% since the start of the year, compared to just 7.56% for the S&P 500. We’re talking about our Under $10 Stock Strategy.

Without further ado, let’s take a closer look at 2 interesting tickers from the portfolio…

DMC Global (BOOM)

DMC Global operates a collection of industrial manufacturing businesses that span everything from commercial building systems and oilfield well-completion systems to specialized composite metals. At just $7.01 per share, BOOM currently ranks in the top 2% of all the stocks we track, giving it a Zen Rating of A — and it’s also the 2nd highest-rated stock Oil & Gas Equipment & Service industry.

The fundamental strength here spans a wide range, but even better, 3 Component Grades read as elite. Financials rank in the top 19%, followed by Safety at the top 12%. Growth comes in at the top 3%, Artificial Intelligence at the top 2%, and Sentiment is strongest of all at the top 1% of everything we track. Value and Momentum sit closer to the middle of the pack, but on the whole, that’s more than a fair tradeoff when contrasted with the strength in the profile.

The latest quarter saw revenue increase 14% year over year, while EPS blew expectations out of the water, coming in at $0.48 against an estimate of just $0.10. DMC also swung back into profitability, generating $9.7 million in attributable net income compared with a $3.1 million loss during the same period last year.

With both sales and adjusted EBITDA also coming in ahead of management’s own expectations, there’s plenty of meaningful evidence that the turnaround is gaining traction.

Kamada (KMDA)

Kamada is a biopharmaceutical company that develops, manufactures, and commercializes plasma-derived therapies, while also distributing a broader portfolio of pharmaceutical products. Shares currently trade at $7.23, while KMDA ranks in the top 2% of all the stocks we track, giving it a Zen Rating of A — and it’s also the 3rd highest-rated stock in the Pharmaceutical industry.

The Component Grades are particularly strong where valuation and expectations are concerned. Analysts expect earnings to grow by roughly 23% annually, helping put Growth in the top 15% of the stocks we track. A PEG ratio of just 0.91x helps Value rank in the top 7%, while Sentiment is strongest of all at the top 6%. The remaining grades sit closer to the middle of the market, leaving KMDA with a well-rounded profile and no glaring quantitative weakness.

Kamada recently expanded its biosimilar portfolio with the launch of two additional products, adding another source of revenue alongside its established plasma-derived therapies.

Management expects the expanding biosimilar business to become increasingly meaningful over the next several years. Kamada is targeting roughly $10 million in annual revenue from the portfolio by 2028, rising to around $20 million to $25 million by 2030. For a company with roughly $200 million in current annual revenue, that could develop into a meaningful growth driver.

Interested In More Great Stock Picks?

The 2 stocks highlighted above are just a fraction of what you get from our proven Under $10 Stock Strategy.

That’s because each day our system recalibrates — and Zen Strategies members get access to the top 7 Under $10 stocks based on 115 different parameters that point to outperformance.

See all Top 7 Under $10 Stocks here >

However, maybe none of the stocks you’ve seen here have caught your eye. Perhaps you would like to see all 11 of our market-beating strategies including Growth, Momentum, Value, and our coveted AI Factor model.

Each featuring the top 7 stocks.

Each featuring tremendous performance.

We spell it all out in this timely presentation below that lives up to its name:

77 Best Stocks Now! > 

What to Do Next?

• 77 Best Stocks NOW! >
• Options Trading with the Zen Ratings >
• 2 New Stocks to Buy from Steve Reitmeister >

Want to get in touch? Email us at news@wallstreetzen.com.