3 Strong Buy Stocks to Buy For Less Than $10

Last week, the S&P 500 index marked a -0.65 decline, with the brunt of the losses attributable to mega-cap and large-cap stocks. This marked the second consecutive week where the benchmark index, the Dow, and the NASDAQ closed in the red. 

In tandem, November’s Consumption Expenditures Index (CPI) figures came in at 2.8%, ahead of the Fed’s 2% target — and rate futures trading is pointing at a 97% probability that the Fed’s next meeting will see no interest cuts.

Is the situation horrible? No — but it demonstrates there’s plenty of uncertainty and volatility in the air. In conditions such as these, you should adopt a posture that prioritizes two things: flexibility and restraint.

The easiest way to do that is to find stocks with solid fundamentals that aren’t trading for huge dollar amounts. This makes scaling into positions when an opportunity arises easier — at the same time, it also makes scaling out of positions that become unfavorable simpler.

Here’s the issue — there are hundreds and hundreds of stocks to look at. But you can immediately rule out a vast majority and focus on the minority worth paying attention to. You simply start by turning to our….

Under $10 Stock Strategy

Our in-house quant rating system uses 115 unique factors split across 7 categories to evaluate roughly 4,600 stocks every single day — and those insights from the core of our own unique metric, the Zen Rating.

Only the top 5% of stocks are given a Zen Rating of A, equivalent to a Strong Buy rating. And while that does narrow down the search quite a bit, you’re still left with somewhere in the ballpark of 230 stocks to evaluate on any given day.

That’s why you should narrow the search down even further — by taking a look at one of our exclusive Zen Strategies.

Each Zen Strategy is a carefully-constructed portfolio purpose-built to deliver outsized returns. Each consists of only 7 stocks — the very best of the best.

Today, we’ll be taking a look at one strategy that’s had a very promising start to the year. It has an all-time annual return of 34.47% and has already delivered a 4.67% return since January 1. This week, you’ll get to read all about 3 very interesting stocks from our Under $10 Stock Strategy.

Quick side note before we move on: Did you see last week's feature about stocks from our AI Strategy? Get 2 high-quality tickers here.

BGC Group (BGC)

We start off with BGC Group, a $ 4.18 billion financial services giant. Right now, BGC shares rank in the top 2% of the equities that we track, and rank 78th overall.

The thing that immediately jumps out at you is the stock’s valuation. BGC is trading at a P/E of 26.21x, and a PEG ratio of just 0.11x. It’s quite undervalued — especially relative to growth prospects. In terms of Value, it ranks in the top 12% of stocks — and when it comes to the Growth Component Grade rating, it ranks in the top 9%.

BGC Group’s balance sheet is also quite solid. Margins are expanding and debt is shrinking — with regard to the Financials Component Grade rating, our first pick ranks in the 89th percentile — equivalent to or better than 89% of stocks, or, in other words, in the top 11%.

Lastly, we have our Artificial Intelligence Component Grade rating. It uses a neural network trained on more than two decades of market data to identify likely outperformers. Here, BGC ranks in the top 5%.

Here’s the best part — we might soon see a positive catalyst. BGC has notched 9 quarters in a row of either meeting or exceeding earnings estimates — and the next report is due February 12.

So, what are the drawbacks? There’s a distinct lack of momentum — share prices have dropped by 7.09% in the past 365 days, and in all that time, there have been very few moves to the upside. In addition, the Capital Market industry, which BGC belongs to, has an Industry Rating of D — although it should be noted that BGC is the 2nd highest-rated stock in the industry.

IHS Holding (IHS)

Our second pick, with a $2.58 billion market cap, is IHS Holding, a key player in telecom infrastructure in Africa, Latin America, Europe, and the Middle East. IHS ranks in the top 2% of the stock that we track, and is currently rated 60th overall.

The stock’s biggest strength is the Artificial Intelligence rating — in this category, it ranks in the top 3%. Financials are another strong point — with IHS’ balance sheet placing it in the top 7% of stocks in terms of this Component Grade rating.

Unlike our previous pick, IHS has plenty of momentum — having seen a 105.07% increase in price over the past 365 days. When it comes to the Momentum Component Grade rating, IHS Holding shares rank in the top 15%.

Last, but certainly not least, we have Value — and with a P/E ratio of just 5.49x, you won’t be surprised to hear that IHS ranks in the top 9% here. That’s quite good news — especially in light of the fact that you can lock in an attractive discount ahead of the next earnings call, due March 17.

Now it’s time to move on to the cons. With so much of its business done internationally, IHS is vulnerable to macroeconomic & FX exposure, as emerging markets can be quite volatile. In addition, the stock ranks in the 68th percentile for Growth — not terribly by any means, but there’s certainly some room for improvement.

InnovAge Holding (INNV)

This is a senior care provider founded way back in 1989. INNV, like our previous picks, ranks in the top 2% of stocks on the whole — and currently ranks 61st overall. InnovAge is also the 4th highest-rated stock in the Medical Care Facility Industry, which has an Industry Rating of A.

This is another stock that our neural network is a fan of — INNV ranks in the top 13% for Artificial Intelligence. But it also happens to be a favorite of Wall Street’s — it ranks in the 97th percentile for Sentiment, and a staggering 42.69% of the insider trades tied to the stock in the past 12 months have been purchases. That’s quite the bullish stance on the part of management.

To round out INNV’s strengths, we have high scores in terms of two more Component Grade ratings. With an 11.69% surge in the past 3 months, it ranks in the top 7% for Momentum — and with revenues and return on assets expected to outperform industry averages, it also ranks in the top 1% for Growth.

The drawbacks? InnovAge ranks in the 48th percentile for Value — and as a low-profile $791.02 million market cap stock, liquidity, while average for a small cap, is on the lower end of the spectrum. With that being said, we might soon see a nice bump in price — the next earnings call is due February 03.

Interested In More Great Stock Picks?

The 3 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 7 top Buy the Dip stocks based on 115 different parameters that point to outperformance. 

See all Top 7 Under $10 Stocks here >

However, maybe careful position sizing isn’t a priority for you at this time. Perhaps you would like to see all 11 of our market beating strategies including Growth, Momentum, Technology, 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:

10 Minutes a Month to Beat the Market > 

What to Do Next?

• 77 Best Stocks NOW! >
• See All “A” Rated Stocks with +32.52% Average Annual Return >
• 2 New Stocks to Buy from Steve Reitmeister >

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