Buying low-priced stocks with explosive potential is any investor’s dream — but it’s not easy. Many stocks trade under $10 in the market, yet not all are quality picks. Some deserve to trade at low prices, while some are in temporary slumps that might improve over time. However, to get impressive returns, you must look for relatively unknown stocks showing signs of growth and ride that elevator up to your first million.
Today, I’ll show you how I maximize my investment returns by picking the best stocks under $10 that have the potential to make investors millions. To get this list, I used the following criteria below:
- Buy ratings from analysts
- Trading below $10
- Positive YOY revenue growth in the previous fiscal year
- Positive YTD performance
I then sorted my list from highest to lowest YTD price performance to ensure that I only focus on stocks that are market performers. Let’s start the list with the top one.
Paysign (PAYS)
One of the top providers of prepaid card programs, Paysign (NASDAQ:PAYS) is a fintech company specializing in prepaid card products and payment solutions utilized by corporate, government and consumer clients.
The company’s solutions allow organizations to increase adherence rates, reduce administrative costs and disburse payments and payment benefits. It aims to reinforce its payment processing capabilities further. To assist, the company hired Sandy Ortins, AAP, APRP, NCP, who will serve as an executive on its electronic fund transfer team.
Paysign’s FY 2023 financials did not disappoint. Total revenue grew 24% YOY to $47.3 million, while adjusted EBITDA increased by 21%. Even more impressive is the net income growth that came in at a whopping 528% increase.
“We are extremely pleased with our performance as we continue to grow revenue and net income and adjust EBITDA,” says CEO Mark Newcomer. Analysts seem pleased as well, rating PAYS stock a “strong buy.” It’s trading close to $4 and is already up an impressive 61.42% YTD, so those willing to bet on stocks under $10 can get in on the action.
LENSAR (LNSR)
Known as the leader in refraction cataract surgery, LENSAR (NASDAQ:LNSR) is a medical device company that specializes in femtosecond laser systems used in cataract and corneal astigmatism treatment. The company has two main flagship products:
- ALLY Adaptive Cataract Treatment System (ALLY System) helps surgeons perform laser-assisted cataract procedures.
- LENSAR Laser System is a treatment platform that helps surgeons perform precise cataract procedures through 3D Augmented Reality.
LENSAR’s FY 2023 results reported revenue up 19%, with ALLY system sales constituting the bulk of the growth. This good news is further supported by 77% of revenue from recurring business activities and sources. While the company is still operating at a net loss, the bottom line has improved from a loss of $1.96 to a loss of $1.31 per share. CEO and President Nick Curtis says:
“With continued strong growth in mind, we are working toward securing additional regulatory approvals outside the U.S. and intend to launch in select international markets subject to receiving regulatory clearances, which we expect in 2024 while continuing to expand the ALLY installed base in the U.S.”
This vote of confidence contributed to BTIG’s “strong buy” recommendation for LNSR. Yet, it’s only up 11.39% YTD, making it one of the more attractive stocks under $10 today.
Cadiz (CDZI)
Utility companies mostly have the reputation of slow growers, or income stocks. It’s rare to see companies like Cadiz (NASDAQ:CDZI), which specializes in water solutions, have a growth spurt.
The company has been getting positive news with its definitive agreement with the Santa Margarita Water District to provide water supply to the City of Hesperia. The $5.2 million contract was awarded to its water filtration subsidiary, ATEC Water Systems, for a treatment project in Oregon.
In 2023, Cadiz reported $2 million in revenue, up from $1.5 million in FY 2022. Net loss per common share also shrank from 60 cents to 56 cents per share in the same year.
It makes sense why B. Riley Security rates CDZI stock as a strong buy right now. The stock is up 6.21% YTD, with perhaps more growth to come.
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Read More: Penny Stocks — How to Profit Without Getting Scammed
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.
On the date of publication, the responsible editor did not have (either directly or indirectly) any positions in the securities mentioned in this article.
