There’s no better way of following the “buy low, sell high” mantra than looking for stocks to buy under $10. Traders like these kinds of companies because they offer quick profits. Investors, meanwhile, find these stocks attractive due to their low valuations and high potential returns should the prices rise above their current levels. Those with more resources can acquire a significant number of shares of these low-priced stocks, driving prices higher and making them potential buys to day traders and short-term investors.
Cheap stocks recommended by analysts are even better propositions, as this means that the companies have attractive business models, valuations and future prospects for growth. And while buy recommendations should not automatically be taken as buy signals, in my experience, they make it easier for investors and traders to filter the markets for stocks to buy on the dip.
But how do you know if a stock has reached the bottom? We can use the 14-day RSI to look at currently oversold stocks, whether they’re about to break out or are still trading within that territory. Low RSI levels usually indicate that a stock has gone down too fast and may be ready to bounce back up to reach new highs.
Now, let’s look at some stocks to buy under $10.
Broadwind (BWEN)
Broadwind (NASDAQ:BWEN) provides renewable equipment and services for clean technology and other specialized applications. They cater to the energy, infrastructure and mining sectors, equipping them with advanced products like gearing and gearboxes, precision fabrications and supply chain solutions.
Broadwind had a great start to the year as the company reported EPS of 7 cents, 275% more than the analysts’ consensus of -4 cents per share. Revenue also grew 16.8%, at $48.87 million. BWEN is trading in a descending channel but came out of its 14-day RSI’s oversold condition on Aug. 2. Additionally, the company recently reported its Q2 2023 earnings. EPS came in at 7 cents, which blew away analyst consensus estimates by 75%. Altogether, this makes BWEN a buy-rated stock worth watching.
Stagwell (STGW)
Stagwell (NASDAQ:STGW) is an advertising and marketing company specializing in digital transformation, consumer insights and communications strategy. They offer various services, including business-to-business marketing, creative media consulting, investor relations, online fundraising and more.
Stagwell’s Q2 2023 report came in with an EPS of 12 cents which was higher year-over-year. While some metrics in its performance didn’t meet analyst expectations, the company is still a strong growth prospect for investors. Its Stagwell Marketing Cloud grew by 29% and garnered $75 million in net new business in Q2. That said, STGW dipped into oversold territory, according to the 14-day RSI, but immediately bounced back up. Price-wise, the stock is currently treading its short-term support level and has yet to drop below it. This could mean that prices have leveled out, making it an attractive prospect as one of the best stocks to buy under $10.
Playtika Holdings Corp. (PLTK)
Playtika Holding Corp. (NASDAQ:PLTK) is a mobile games developer offering live game operations services. Playtika manages 15 mobile games, including House of Fun, World Series of Poker, Pirate Kings and more. The company distributes the game through platforms like Facebook, Google Play store, iOS App Store and others.
Playtika recently announced its partnership with Aarki to develop an AI-based user acquisition solution for the World Series of Poker. This partnership aims to combine Aarki’s custom bidding models and dynamic creative optimization in an attempt to increase its user base, provide high engagement and lifetime value to boost revenue. Playtika also entered a definitive agreement with Azerion (AMS:AZRN) to acquire their game library published under Youda Games for an initial €81.3 million, with a performance-based earnout that could potentially bring the total consideration to €150 million.
On the date of publication, Rick Orford did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.