Last week, the S&P 500 ended fractionally lower for the second week in a row, while the Dow shed 1.6%, and the Nasdaq fared slightly better, eking out a modest gain
Investors had plenty to contend with. The Fed raised rates for the first time since 2023, Treasury yields moved higher, and oil prices remained volatile amid developments in the Middle East. With uncertainty still elevated, it’s hardly surprising that much of the market’s attention remains fixed on larger, more established names.
That can leave some interesting opportunities by the wayside.
Stocks trading for less than $10 are easy to overlook. In plenty of cases, that instinct is justified — but share price alone says very little about the quality of the underlying business.
That often-overlooked category of stocks does contain companies with strong fundamentals, improving earnings, and promising catalysts … The trouble, however, is in separating the wheat from the chaff.
Thankfully, there is a way to streamline that selection process … all you have to do is turn to …
Our in-house quant system takes a look at 4,600 stocks on a daily basis, and grades them on the basis of 115 metrics, split across 7 categories. That data is distilled into a simple, approachable metric — a stock’s Zen Rating.
Our highest 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.
Each strategy is a portfolio consisting of just 7 stocks, hand-picked to deliver market-beating returns. There are 11 portfolios in total — and today, we’re looking at one that has delivered a 58.63% return since the start of the year, compared to the S&P 500’s 11.55% gain in the same timeframe.
This week, the spotlight is on 3 interesting tickers from our Under $10 Stock Strategy.
Sono-Tek develops ultrasonic coating systems used in medical devices, electronics, and advanced manufacturing. SOTK currently ranks in the top 2% of all the stocks we track, giving it a Zen Rating of A, and it’s also the top-rated stock in the B-rated Scientific & Technical Instrument industry.
SOTK earns strong marks across several categories. It ranks in the top 14% of the stocks we track for Momentum, while Financials come in at the top 13%. Sentiment is even stronger at the top 11%, indicating strong smart money interest. The most impressive Component Grade is Value — there, Sono-Tek ranks in the top 9%.
The one weak spot in the fundamental profile is Safety — which isn’t strange for a $72 million market-cap company.
Sono-Tek has beaten estimates in the last 2 quarters, with EPS year-over-year (YoY) growth of 50% and 67%. In addition, the company recently received its largest-ever order for a single production line, worth more than $3.6 million.
What makes SOTK shares particularly appealing, however, is the fact that they have dipped by 12% in the past 3 months, providing a handy discount.
Precigen is a commercial-stage biotech company developing precision medicines. PGEN ranks in the top 2% of all the stocks we track, giving it a Zen Rating of A — and it’s the #4-ranked stock in the Biotech industry.
PGEN’s strongest scores are concentrated in some of the most important areas for a growth stock. It’s in the top 5% for Sentiment, while Momentum comes in at the top 4%. Growth is the real standout, however — Precigen ranks in the top 1% of everything we track in that category.
Just like our previous pick, Safety is the one area where Precigen shares get dinged — but the overall fundamental strength merits closer consideration if you’re comfortable with a potentially bumpy ride.
PGEN shares have rallied by more than 100% on the 1-year chart. However, there is plenty of cause for optimism as it relates to further gains. The company has beaten estimates for the last 3 quarters, and a top 2% rated analyst set a price target that implies an upside of more than 130% last month.
Alto Ingredients produces renewable fuels, specialty alcohols, and essential ingredients used across a wide range of consumer and commercial markets. ALTO currently ranks in the top 2% of everything we track, giving it a Zen Rating of A — on top of that, it’s the #3-ranked stock in the A-rated Specialty Chemical industry.
ALTO is also one of the more well-rounded stocks in the portfolio. It ranks in the top 21% for Growth, top 13% for Value, top 10% for Financials, and top 9% for Sentiment.
And even the weaker areas aren’t especially weak — Safety still comes in at the top 28%, while Momentum ranks in the top 43%. Artificial Intelligence is the only Component Grade that falls below average — and even in that case, by a hair.
What makes Alto Ingredients particularly attractive at the moment is recent price action. The stock has pulled back by 20% over the past 3 months, although it is still up more than 200% on the 1-year chart. That’s a significant discount — particularly on a stock that ranks so high on Growth, Value, and Sentiment.
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 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 we’ve featured here have caught your eye. Perhaps you would like to see all 11 of our market beating strategies including Buy the Dip, 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:
10 Minutes a Month to Beat the Market >
What to Do Next?
Want to get in touch? Email us at news@wallstreetzen.com.