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Here’s How to Find Great Cheap Stocks Under $10 to Buy in June – June 4, 2024

The stock market has cooled into late May and early June. The downturn appears to be a healthy recalibration after a bullish stretch, wrapped in an impressive YTD run and a big uptick from the market’s October 2023 lows.

The recent pullback likely offers more attractive buying opportunities for strong stocks. The past few years also show why investors are often best suited to maintain continued exposure to the market and capitalize on weakness.

Investors who want to continue buying stocks in June may want to consider adding exposure to cheap stocks trading at $10 per share or less.

Along with cheap price tags, the stocks we learn to look for earn strong Zacks Ranks, driven by improving earnings prospects. Plus, Wall Street is high on all of these stocks.

Penny stocks

One dollar or less used to be the common threshold for what we call penny stocks. Today, the SEC has expanded penny stocks to include securities trading for less than $5 per share. Many investors avoid these stocks because they are speculative in nature.

Meanwhile, penny stocks often trade erratically and have wide bid/ask spreads. These stocks also have many other characteristics that in many cases cause excessive volatility. That said, some penny stocks perform incredibly well, which keeps them attractive.

Stocks under $10

Let’s move on and briefly discuss the next class of cheap stocks. Stocks trading between $5 and $10 are generally less risky than their penny stock counterparts. It’s more likely that investors have heard of these companies or seen the tickers. However, they are still inherently more speculative than many other higher-priced stocks.

Investors can, of course, find winning stocks for under $10 if they are extremely selective. That’s why today we’ve whittled down the list of thousands of these more speculative stocks to a more manageable group of $10 and under that can help boost your portfolio.

Screen parameters

• Price less than or equal to $10

• Volume greater than or equal to 1,000,000

• Zacks Rank less than or equal to 2

(No hold, sell or strong sell.)

• Average Broker Rating less than or equal to 3.5

(Average broker rating of a hold or better.)

• Number of analysts with a rating greater than or equal to 2

(At least two analysts covering the shares.)

• % change F1 earnings estimate revisions — 12 weeks greater than or equal to 0

(Preferably upward revisions to earnings estimates, but certainly not downward revisions.)

Here is An stock almost empty 70 high-ranking names trading below $10 per share that broke through today…

Inter & Co. Inc. (INTR)

Inter & Co. is the holding company of Grupo Inter. Its core offering is the company’s comprehensive digital financial app, the Super App. The digital financial app from Inter & Co. includes full banking, investing, credit, insurance, cross-border solutions and more. The company boasts that its industry-leading financial Super App serves more than 32 million customers across the Americas, from Brazil and beyond.

The Inter & Co portfolio also includes a digital marketplace that brings together top retailers from Brazil and the US. The fintech company is part of a growing wave of digital finance companies shaking up the banking and financial services industries in countries like Brazil that have large economies with huge populations but can be held back by outdated traditional banks with cumbersome red tape.

INTR is expected to grow its revenue by 21% in 2024 and 17% in FY25 to $1.34 billion. In addition, Inter & Co. expected to increase adjusted earnings by 153% this year and add another 37% to earnings next year to reach $0.52 per share in FY25 versus $0.15 in 2023. INTR’s Overall Positive Earnings The overhaul activity allows it now earning a Zacks Rank #2 (Buy).

The shares of Inter & Co. are up 85% over the past year, doubling the highly ranked Zacks Technology Services sector. INTR has retreated from its recent highs and fallen below its 50-day moving average. The stock could pass its 200-day test in the near term.

The chart above shows that INTR stock has swung from heavily overbought RSI levels to almost oversold. Inter & Co. Despite its outperformance, it trades at a 63% discount to its sector. Inter & Co. also trades at a 16% discount to the one-year median.

Buy the rest of the stocks on this list and start screening for the best stocks under $10 yourself. And don’t forget to retest your strategy so you know how successful it has been before you put your money at risk.

Start screening these companies today with a free trial of the Research Wizard. You can do it.

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Disclosure: Officers, directors and/or employees of Zacks Investment Research may own or have sold short securities and/or hold long and/or short positions in options mentioned in this material. An affiliated investment advisory firm may own or have sold short securities and/or hold long and/or short positions in options mentioned in this material.

Disclosure: Performance information for Zacks’ portfolios and strategies is available at: www.zacks.com/performance_disclosure


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