How to Choose Best Stocks Under $10 with a Huge Potential
The goal of all stocks investments is to achieve growth and that means finding stocks with the highest potential. There is nothing wrong to gravitate toward the headline-grabbing famous giants, but there’s an unfortunate truism in the markets, based on iron rules of mathematics. Interestingly, the larger a company gets, the less likely it is to show big returns. And this brings people to small-cap stocks. Such stocks may offer the best combination of high potential for growth as well as low cost of entry.
The first company is PowerFleet. Its revenue in Q1 was consistent with the previous quarter and included an improvement in earnings. At the top line, the company’s reported revenue of $29 million was only 1.3% off of Q4’s result. The 9-cent earnings per share (EPS) loss reported was a 25% improvement from the 12-cent loss in the previous quarter. Year-on-year, EPS rose by 40%.
This month, PowerFleet scored two main contracts. The company announced a 4-year contract with Israel police for the implantation of fleet management and driver solution system. The contract also includes an option for a 4-year renewal. PowerFleet also announced a smaller deal with Alabama-based White Oak Transportation. As part of the deal, PowerFleer will supply tracking services for the trucking company’s fleet of 850 vehicles.
Small-cap stocks and investors
There are many interesting small-cap stocks, and investors can choose from a wide variety of stocks. For example, AXT is a material science company that inhabits the supply chain for the semiconductor industry. It develops and manufactures high-performance rare-metal substrate wafers. AXT holds an important niche in the chip industry, and its revenue and earnings have been reflecting that.
In the first quarter of 2021, the company’s revenue reached $31.4 million. EPS hit 8 cents, from the 1-cent loss reported in the year-ago quarter.
The company also announced its first deliveries of 9-inch diameter gallium arsenide substrates to the main customer.
The Wall Street reviews on its stock break down 3 to 1 in favor of Buys versus Holds. As of May 16, shares in AXT are selling for $8.95 each.
Another company worth investing in is CECO Environmental. The company develops, provides, and installs air quality and fluid handling systems.
According to the company’s most recent financial release, for 2021, the top line came in at $71.9 million. The EPS dropped from 10 cents per share one year ago to 3 cents in the current report. In some positive news, CECO Environmental reported a year-over-year increase in bookings from $75.7 million to $92.1 million.
