Stocks valued at less than $10 per share can be risky investments because of their low prices. But these low-cost, A-rated stocks can also be a smart move for a savvy investor.
Stocks with a low price but a good grade in the Portfolio Grader have the potential for high returns. Because these stocks have a low price, even a small increase can result in substantial gains.
Stocks that have a low price can also be easily overlooked, both by institutional investors and retail traders.
So, if you can find a company that’s undervalued or overlooked, you have a better chance of profiting when the market eventually corrects.
I like the names on this list as a way to diversify your portfolio with A-rated stocks. While blue chips have a place in any portfolio, it’s best to mix up your holdings – and these names provide a good foil to the better-known names in your portfolio.
Just one word of caution, however: these A-rated stocks can be volatile. So when investing in these kinds of companies, you have to accept some added risk. But if you hit some winners, you also have the benefit of some potentially outsized rewards.
Let’s use the Portfolio Grader to look for the best A-rated stocks to buy now that are priced at less than $10.
Bitfarms (BITF)
Bitfarms (NASDAQ:BITF) is a Bitcoin (BTC-USD) mining company based in Canada.
It’s been enjoying greater revenues as the price of Bitcoin rose throughout 2023 and remains elevated in the first quarter of 2024, climbing to more than $61,000.
Bitfarms has 11 Bitcoin farms in production where it contributes its computational power in mining pools in exchange for payment in Bitcoin. The company generated 446 Bitcoin in December and another 357 in January.
The company, on average, generates 11.5 Bitcoins per day, which at today’s prices is a daily revenue of $700,000.
It often sells all the Bitcoin it generates in the course of a month, but holds a treasury of more than 800 Bitcoin that gives it a reserve valued at $49 million.
With the price of Bitcoin up 46% in 2024, BITF stock is an intriguing buy, valued at less than $3 today. The stock is up 200% in the last 12 months and gets an “A” rating in the Portfolio Grader.
Mama’s Creations (MAMA)
Mama’s Creations (NASDAQ:MAMA) is a deli solutions company. It makes easy-to-prepare meals that are ideal for people who don’t want to spend a lot of time cooking, but still want something tasty and good for them.
It operates various brands, including MamaMancini’s, Creative Salads and The Olive Branch. More than 8,400 stores across the country carry its products, and the company recently launched its first direct-to-consumer e-commerce platform.
It completed its acquisition of Chef Inspirational Foods, a maker of prepackaged natural foods, and says that the product line will help Mama’s Creations increase automation and improve margins.
Earnings for the third quarter included revenue of $28.7 million, up 11% from a year ago. Profits of $8.6 million and 5 cents per share were up from $6.6 million and 3 cents per share a year ago.
MAMA stock is up 167% in the last 12 months and gets an “A” rating in the Portfolio Grader.
Overseas Shipholding Group (OSG)
Overseas Shipholding Group (NYSE:OSG) operates a fleet of two 21 oil tankers and oil tug barges that distribute crude oil and petroleum products.
Its fleet includes Suezmax crude oil tankers in Alaska, articulated tug barges, and as well as shuttle and conventional medium-range tankers.
In January, Overseas Shipholding acknowledged that privately held Saltchuk Resources inquired about purchasing all outstanding shares for $6.25 cash. OSG stock was at $5.90 and it’s climbed about 20 cents since the announcement, so there is still some value to be had should the deal go through.
Saltchuk currently owns about 15 million shares of OSG stock, representing roughly a 21% stake in the company.
It previously announced an interest in buying OSG for $3 per share back in July 2021 but suspended discussions in the wake of the Covid-19 pandemic.
OSG stock is up 64% in the last 12 months and has an “A” rating in the Portfolio Grader.
OppFi (OPFI)
OppFi (NYSE:OPFI) is a fintech that operates a financial platform that connects community banks to customers who are looking for non-traditional loans.
Most loans are short term, ranging from $500 to $4,000. And as more Americans are getting deep in credit card debt (currently, the nation holds roughly $1.13 trillion in credit card debt), there will probably be an increased need for OppFi’s services as cash-strapped consumers look for a quick bailout to cover an unanticipated expense.
OppFi is scheduled to report fourth-quarter and full-year earnings on March 7. But in the third quarter, the company painted a rosy outlook, showing revenue increases of 7% in the third quarter and raising its outlook for the full year.
The company is expecting to show full-year revenue of $500 million to $520 million for its Affirm segment, which would be growth of more than 10% from last year. And it increased its expected earnings per share for the full year from a range of 34 cents to 41 cents to a range of 47 cents to 49 cents.
OPFI stock is up 67% in the last 12 months and gets an “A” rating in the Portfolio Grader.
Optex Systems (OPXS)
Optex Systems (NASDAQ:OPXS) is a Texas company that makes optical sightings systems and assemblies for the military and prime military contractors.
Its products include periscope assemblies for armored vehicles and tanks, eyepieces and lenses worn on an individual soldier’s helmet, and laser filter units attached to rifles and other weapons.
Its products are used in water and land military vehicles, including Abrams and Bradley fighting vehicles and light armored and security vehicles.
The company has a backlog of $45 million, an increase from $40.1 million a year ago. So, the orders keep coming in, providing a solid revenue stream.
OPXS recorded $6.96 million in revenue in the fourth quarter, up 72.5% from a year ago. Profits of $1.6 million were up 134.9%.
OPXS stock appears to have a bright future, particularly as the U.S. military gears up for increased global tensions in the Middle East and with major powers such as Russia and China. OPXS is up 112% in the last year and gets an “A” rating in the Portfolio Grader.
Uranium Energy (UEC)
Uranium Energy (NYSEAMERICAN:UEC) doesn’t trade on one of the major exchanges, but you can find it on the New York Stock Exchange’s small-cap index. But that doesn’t mean you should overlook it.
The company is a miner of uranium, used to fuel nuclear power plants and the nuclear reactors used to operate naval ships and submarines. The company controls one of the biggest uranium resources in the Western Hemisphere.
It has projects in Texas, Wyoming, New Mexico, Arizona, Canada and Paraguay. As the price of uranium climbed to $100 per pound, the company in January announced it would restart uranium production at its Christensen Ranch In-Situ Recovery operation in Wyoming, which is its largest uranium resource in the U.S.
UEC stock is up 80% in the last year and gets an “A” rating in the Portfolio Grader.
Data Storage Corp. (DTST)
Data Storage Corp. (NASDAQ:DTST) is a New York company that, as the name suggests, provides data storage services to companies.
The company offers cloud infrastructure services, disaster recovery, cybersecurity and data analytics.
The company’s services include managing software, hardware and cloud solutions to ensure its clients’ business continuity and the accessibility of its assets.
The company has huge growth windows in the fields of cloud computing, data analytics, disaster recovery and cybersecurity, all of which are expected to grow rapidly over the next decade.
Revenue in the third quarter was $5.96 million, p from $4.41 million a year ago. Income of $14,100 was a marked improvement from a loss of $223,000 a year ago.
DTST stock is up 133% in the last year and gets an “A” rating in the Portfolio Grader.
On the date of publication, Louis Navellier had a long position in MAMA and UEC. Louis Navellier did not have (either directly or indirectly) any other positions in the securities mentioned in this article.
The InvestorPlace Research Staff member primarily responsible for this article had a long position in BTC-USD. The staff member did not hold (either directly or indirectly) any other positions in the securities mentioned in this article.
