It’s the start of a new year, and what better time to consider adding to your investment portfolio? After the holiday shopping season, big purchases may not be in the cards, though. So I’ve put together a list of stocks to buy that come in under $10 a share.
One of the advantages of stocks in this price range is the potential for significant growth. It’s easier for favorable conditions to move the needle in a meaningful way for many of these companies than with a mega-cap stock.
I have options here in a wide range of sectors, including technology, shipping and clothing retail:
- Destination XL (NASDAQ:DXLG)
- Entravision Communications (NYSE:EVC)
- Information Services Group, Inc. (NASDAQ:III)
- Nokia (NYSE:NOK)
- Prospect Capital (NASDAQ:PSEC)
- Safe Bulkers (NYSE:SB)
- Senseonics (NYSEAMERICAN:SENS)
Want another big reason to consider adding one or more of these stocks to buy under $10 to your investment portfolio? Each of these scores highly in my Portfolio Grader.
Stocks to Buy: Destination XL (DXLG)
Destination XL — or DXL — is the country’s largest retailer of men’s “big and tall” clothing. Like many clothing retailers, DXL got clobbered in 2020 when the pandemic delivered a double blow. Stores were closed during lockdowns, while the shift to working from home cut demand for formal clothes.
However, DXL’s management team worked quickly to minimize the damage. Orders were cancelled, administrative costs were slashed, and leases renegotiated. The company already had a solid online presence. As a result, DXL rode through the pandemic and has been well positioned to take advantage of a retail resurgence that saw consumers open their wallets last summer. Clothing was one of the categories that saw the largest spending increases.
In November, DXL reported third-quarter earnings that showed the momentum was still in effect. Sales for the quarter were not just up 42.6% year-over-year, they were also up 14% from the pre-pandemic Q3 2019. DXL’s finances were also looking good. The company’s CEO noted: “With our strong balance sheet, we believe we are well positioned to pursue an aggressive growth strategy. At the end of the third quarter, we were debt-free and had cash on hand of $6.9 million.”
After 2 years of decline, DXLG stock kicked into growth mode in 2021. Over the past 12 months it has posted a gain of over 1,900%.
At the time of publication, DXLG earned an “A” Total Grade in Portfolio Grader.
Entravision Communications (EVC)
Entravision is a multifaceted media and marketing company with a focus on the U.S. Hispanic market. Entravision offers a wide range of marketing services, including digital, TV and radio. The company also operates 54 TV stations and 47 radio stations across the top 50 Hispanic markets in the country. Entravision increasingly operates globally, with acquisitions contributing to a marketing presence on five continents.
EVC stock currently trades at $6.22 a share. It’s on this list of stocks to buy because the company is in growth mode, with a series of acquisitions expanding its global presence. At the same time, its core market is also rapidly expanding. The most recent U.S. Census data shows Hispanics are driving U.S. population growth, accounting for 51.1% of the country’s total growth in 2020.
EVC stock has been in growth mode as well, delivering a return of 101% over the past 12 months. Demographics are going to keep that momentum going.
The current Portfolio Grader Total Grade rating for EVC stock is “A.”
Stocks to Buy: Information Services Group (III)
Connecticut-based Information Service Group describes itself as a global technology research and advisory firm. It has been in the perfect position to benefit from the pandemic, specifically in the transformation to hybrid workplaces and the shift to online access for services. That transformation is showing no signs of slowing down, making this a compelling stock to buy.
As ISG’s CEO pointed out in the company’s record-setting third quarter earnings report:
“Enterprises of all types are accelerating their technology investments coming out of the pandemic. We are seeing a strong shift to cloud-based platforms and all things digital as our clients address the requirements of remote working, engaging with customers, improving resiliency and enhancing the quality of business overall.”
III stock has been in growth mode as the company reaps the reward of the strong demand for its services. Over the past 12 months, shares are up 80%.
Plug III stock into Portfolio Grader and you’ll find it earns a stellar “A” Total Grade.
There aren’t a whole lot of well-known tech stocks that would make it onto a list of stocks to buy under $10, but Nokia is one of them.
The Finnish telecommunication tech giant was a huge player in the global market two decades ago. However, Nokia saw its profile — and stock price — plummet as it bumbled the smartphone transition. The company has clawed its way into a comeback scenario, thanks largely to its patent portfolio and strong performance in Nokia’s 5G networking solutions. Demand for its 5G equipment helped drive NOK stock to over 50% growth in 2021.
As I wrote a few weeks ago, Nokia is well-positioned for ongoing growth thanks to its pursuit of the 5G+ market. This is an expected boom in industrial adoption of 5G-related technology, including sensors, robotics and automation. NOK stock is currently sitting at $6.12, making it a tempting buy as a tech stock that’s on a resurgence path.
At the time of publication, NOK stock earned an “A” Total Grade in Portfolio Grader.
Stocks to Buy: Prospect Capital (PSEC)
Business development company (BDC) Prospect Capital invests in U.S. middle market opportunities. At the moment, that means $6.5 billion in assets and over 375 investments funded, with more than $3.5 billion in dividends declared.
Notably, Prospect offers an optional dividend reinvestment plan. The company reported that for its fiscal year ended June 30, 2021, shareholders who participated in that plan saw a total return of over 85%. Over the past 12 months, PSEC stock has delivered 56% growth for investors. At their current $8.76 price, Prospect Capital shares slip under the $10 limit for this list of stocks to buy for January, but they may not remain so affordable for long.
At the time of publication, PSEC stocks Total Grade rating in Portfolio Grader was an “A.”
Safe Bulkers (SB)
One of the big stories of the past two years has been the disruption of the global supply chain. The demand for cargo ships has also escalated, especially in 2021 as output and demand for many products both increased. Headlines last year featured ports unable to keep up with the surge, with container ships lining up to unload.
Current conditions have been nothing but good news for bulk shipping companies. Greece’s Safe Bulkers offers a great opportunity to get in on the shipping demand action. The company operates a fleet consisting of 12 Panamax, seven Kamsamax, 15 Post-Panamax, and five Capesize bulk cargo ships.
Global demand for those vessels is reflected in the company’s earnings. In its third quarter of 2021, Safe Bulkers reported net revenue of $92.5 million. That’s up 79% YoY. SB stock has also posted impressive gains, up 104% over the past 12 months.
SB stock currently earns an “A” Total Grade rating in Portfolio Grader.
Stocks to Buy: Senseonics (SENS)
Senseonics spent much of 2020 as a penny stock. However, it began to see big gains in 2021. The game-changer for the company has been its Eversense continuous glucose monitoring system (CGM).
The market for CGMs is huge. According to CDC numbers, in 2020 there were 34.2 million diabetics in the U.S. alone, with another 88 million Americans who were pre-diabetic. Use of a CGM eliminates constant pin pricks needed to take blood for measuring glucose levels to manage the insulin dosing that controls diabetes. Senseonics’ Eversense has the advantage of being the world’s first long-term implantable CGM. Instead of being replaced every week or two, the Eversense sensor can remain in place for three months or more.
As I wrote last July, the Eversense advantage has been a game-changer for Senseonics and it spells long-term growth for SENS stock. There has been some meme stock activity associated with SENS, but that was more prevalent early in 2021. At this point, SENS stock has delivered a 205% gain over the past 12 months. At its current $2.62 it’s still well under the $10 ceiling for this list of stocks to buy for January.
The current Portfolio Grader Total Grade rating for SENS stock is “A.”
On the date of publication, Louis Navellier had a long position in III, PSEC and SB. Louis Navellier did not have (either directly or indirectly) any other positions in the securities mentioned in this article. InvestorPlace Research Staff member primarily responsible for this article did not hold (either directly or indirectly) any positions in the securities mentioned in this article.
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