Some of the greatest opportunities can be found in beaten down, ignored stocks trading under $10.
Especially those with solid long-term growth and strong fundamentals. Their low price makes a big percentage profit easy as investors and institutions pile in.
- Look at Advanced Micro Devices (AMD), for example. At one point, it was left for dead at $8 a share. It’s now up to $114.
- Ford Motors (F) was written off as a $5 stock. Three years later, it’s topped $13.
- Digital Turbine (APPS) ran from about $1.20 to $82 during the last tech rally.
While some may claim that sub-$10 stocks are “there for a reason” and “should be avoided at all costs,” that’s not necessarily bad advice. A $10 stock may be over or under-valued, depending on its growth potential and its industry cycle if it has one.
Instead, with a little digging, you may just uncover the next Advanced Micro Devices, Ford Motors, or Digital Turbine.