Whenever there’s drama among the cultural or political elite, folks love to go on television and play the “blame game.”
But I’ll let you in on a secret: At the end of the day, the culprit is almost always the same…
Emotions are what’s driving that behavior. And emotions are what drive our own behavior as well.
That’s true today, and it was true in 100,000 B.C.
Imagine you and your hunter-gatherer tribe are out and about… moving to a place with more freshwater.
On your way, you see three dozen terrified members of a neighboring tribe running for their lives. It’s a human stampede.
Your instincts will tell you to run like the wind. Your instincts will say there’s a good reason three dozen people are running for their lives. It doesn’t matter if you can’t see a saber-toothed tiger or a rival tribe with spears… you just know it’s time to run.
This stimulus — survival — is the core reason why humans find comfort in crowds. It’s how we survived in the wild and became the dominant species on Earth. To this day, we know having your own crowd — family, friends, and coworkers — leads to longer, better lives.
However, the desire to be part of a crowd can kill your stock portfolio.
The human brain is a marvelous tool for creating art, music, language, and engineering feats, but it’s a terrible tool for investing.
In this report, first I’ll share why you shouldn’t blindly follow the crowd.
And then I’ll show you how going out on your own can lead you to the top 10 stocks under $10 right now…
The Problem With Crowd-Seeking
Many of you are probably fans of momentum investing. I am, too. You always want to capitalize on a trend, and trends are made up of people.
But while following the crowd can result in great momentum plays… you don’t want to do so blindly.
The crowd-seeking I’m talking about — following the herd, thinking later — is responsible for a lot of failed investments. It often means you won’t pick up on shifts in a trend. Thus, you’ll get your timing all wrong. You’ll often end up buying near the highs and selling near the lows.
With “crowd-seeking bias”, even the best investing ideas can become a losing proposition.
The flip side is to be a contrarian — buy the dip and sell the highs.
As we’ve established, though, it goes against our instincts. That’s why everyone isn’t Warren Buffett.
But you can get his level of returns (or better) by checking your emotions at the door — and sticking with a pattern that works.
The premise is simple.
Go Bargain-Hunting
There’s an easy way to resist our tendency for crowd-seeking, and it’s to look for stocks that have become bargains. And I don’t just mean “cheap”…
I mean a good value.
Look for companies that are still growing like crazy — in terms of sales, operating margins, and especially earnings. Whenever such a stock sells off… then that’s a great opportunity.
Those fundamental factors are exactly what I’ve designed my system to detect.
When it comes to finding market-beating stocks on Wall Street, there are two critical characteristics at the center of my stock analysis system.
The first is strong fundamentals. By fundamentals, I mean sales growth, earnings growth and the like. Growing companies are businesses that are healthy and thriving. They have smart leaders who know how to run and manage a smart business. If a company is struggling to sell its products or is spending more than it makes, it’s not a company that you want to own for growth.
The second characteristic I look for in any great stock is strong buying pressure. Think of this as “following the money”. The more money that floods into a stock, the more upward momentum a stock has.
And there’s no doubt about it, we all like stocks that rise!
Using those metrics, I’ve uncovered the top 10 stocks under $10 that are screaming buys right now.
Let’s jump right in…
Under $10 Stock No. 1
Diana Shipping Inc. (DSX) operates a fleet of 36 dry bulk vessels that can haul 4.6 million dead-weight tons. The company primarily ships commodities like iron ore, coal and grain on shipping routes around the globe. And based on the company’s recent results, demand has been remained strong for its shipping capabilities.
For the fourth quarter of 2021, Diana Shipping announced earnings of $0.48 per share and revenue of $68.85 million, up from an earnings per share loss of $0.10 and revenue of $42.66 million in the fourth quarter of 2020. The consensus estimate called for earnings of $0.21 per share on $60.5 million in revenue, so Diana Shipping posted a whopping 128.6% earnings surprise and a 13.8% revenue surprise.
For its fiscal year 2021, Diana Shipping achieved earnings of $0.61 per share and revenue of $214.2 million. That compares to an EPS loss of $1.62 and revenue of $169.73 million in 2020.
These results also crushed analysts’ estimates for earnings of $0.32 per share and revenue of $186.31 million.
At the time of this writing, DSX’s 52-week high was $6.36 and its 52-week low was $2.79.
Under $10 Stock No. 2
Over the past decade, Everspin Technologies Inc. (MRAM) has become the global leader in developing and shipping (magnetoresistive random access memory (MRAM or magnet RAM) and spin-transfer torque MRAM (STT-MRAM) for markets and applications that require integrity and security, low latency data persistence.
The company’s portfolio includes more than 600 active patents and applications, and it has more than 120 million MRAM and STT-MRAM products deployed around the world.
A few of the industries that rely on Everspin’s products include automotive, cloud storage, data centers, energy, industrial and transportation.
Everspin’s Toggle MRAM product lines are particularly interesting, as they enable critical applications with higher density demand. This includes data storage and logging in Internet of Things (IoT) devices and 5G networks. Everspin Technologies notes that MRAM is often the top universal memory choice in these applications, as it provides quick code execution and persistent data storage.
Another interesting tidbit about Everspin: The company’s MRAM solutions are also set to be designed into Lucid Air luxury electric vehicles (EVs). Everspin expects the inclusion in Lucid’s EVs to “deliver new benchmarks in range, efficiency and power in electric vehicles”.
For the fourth quarter 2021, Everspin reported earnings of $3.7 million, or $0.19 per share, and revenue of $18.2 million, which compared to an earnings loss of $1.6 million, or an $0.08 per share loss, and revenue of $9.98 million in the same quarter a year ago. The consensus estimate called for earnings of $0.12 per share on $16.55 million in revenue.
Looking ahead, Everspin Technologies expects first-quarter revenue to be between $13.2 million and $14.2 million. In regard to earnings, the company anticipates supply constraints to impact results, so it expects between an earnings per share loss of $0.03 and $0.00 per share. That compares to earnings of $0.01 per share and revenue of $10.4 million in the first quarter of 2021.
At the time of this writing, MRAM’s 52-week high was $14.36 and its 52-week low was $4.78.
Under $10 Stock No. 3
Safe Bulkers Inc. (SB) is a global provider of dry bulk transportation services. Through worldwide shipping routes, the company transports bulk cargoes that include coal, grain and iron ore. Safe Bulkers’ current fleet is composed of 48 dry bulk vessels, including Panamax class vessels, Kamarmax vessels, post-Panamax classic vessels and Capesize class vessels. Each of these vessels has an average carrying capacity of 3.94 million deadweight tons (dwt).
Safe Bulkers posted in-line earnings results for its fourth quarter and fiscal year 2021. Fourth-quarter earnings soared 875% year-over-year to $0.39 per share, up from $0.04 per share in the same quarter a year ago. The company also reported fourth-quarter revenue of $92.4 million, or 77% year-over-year earnings growth.
Safe Bulkers achieved full-year earnings of $1.26 per share and revenue of $329 million, compared to an earnings loss of $0.24 per share and revenue of $198.2 million in 2020.
At the time of this writing, SB’s 52-week high was $5.44 and its 52-week low was $2.12.
Under $10 Stock No. 4
Traditional skin cancer treatments usually involve surgery, with major incisions damaging healthy skin cells, creating scars and causing lengthy recovery times.
Sensus Healthcare Inc. (SRTS) is doing its part to improve the lives of those afflicted with skin cancer and other dermatological skin conditions. The medical devices company specializes in noninvasive to minimally invasive treatments for oncological and non-oncological conditions.
For oncological conditions, Sensus Healthcare provides SRT-100 Vision, which uses the company’s proprietary low-energy Photon Radiotherapy, or superficial radiation therapy (SRT), to treat non-melanoma skin cancers and keloids. Low-dose SRT can destroy basal and squamous cell cancers and nonmalignant tumors without surgery and scarring.
The company’s Sculptura robotic radiation oncology system offers radiation therapy and brachytherapy for patients undergoing cancer treatment during surgery. It provides targeted therapy at the surgical or tumor site for fast, safe and efficient treatments.
Sensus’ products are primarily used by dermatologists, plastic surgeons and radiation oncologists. All the company’s SRT systems have received U.S. regulatory approval, and Canada, China, the European Union, Israel, Mexico and Russia have approved its SRT-100.
During the fourth quarter 2021, Sensus Healthcare shipped 35 systems, which was a new record for the company. Total fourth-quarter revenue surged 156% year-over-year to $13.0 million, up from $5.1 million in the same quarter a year ago. Earnings soared 433% year-over-year to $0.32 per share, compared to $0.06 per share in the fourth quarter of 2020. Analysts were expecting earnings of $0.16 per share, so Sensus posted a 100% earnings surprise.
Looking forward to the first quarter in fiscal year 2022, earnings estimates have more than tripled in the past two months. The current consensus estimates call for earnings of $0.03 per share, which is up from an earnings per share of $0.07 in the first quarter of 2021. First-quarter revenue is forecast to rise 118.6% year-over-year to $6.71 million.
At the time of this writing, SRTS’ 52-week high was $11.36 and its 52-week low was $3.08.
Under $10 Stock No. 5
Founded back in 1980, United Microelectronics Corp. (UMC) played a key role in establishing the semiconductor industry in Taiwan. It was the nation’s first company to provide foundry services and the very first semiconductor company to be listed on the Taiwan Stock Exchange.
United Microelectronics is most well-known for its foundry business. The company develops and manufactures integrated circuits (ICs), with a specific focus on logic and specialty technologies. As a result, every corner of the electronics industry uses its wafers. It has 12 fabrication facilities throughout Asia and manufactures more than 750,000 eight-inch wafers monthly.
Thanks to continuing strong demand for semiconductors, UMC exceeded analysts’ expectations for its fourth quarter in fiscal year 2021. The company noted that the bulk of demand was from “megatrends” like 5G, Internet of Things (IoT) and automotive. In the fourth quarter, chip shipments rose 1.7% quarter-over-quarter to 2.55 million eight-inch equivalents.
Fourth-quarter revenue increased 30.5% year-over-year to NT$59.1 billion, up from NT$45.3 billion in the same quarter a year ago.
In U.S. dollar terms, UMC achieved total fourth-quarter revenue of $2.14 billion, which topped estimates for $2.08 billion. Fourth-quarter earnings per American depositary share (ADS) came in at $0.24, up from $0.17 per ADS in the fourth quarter of 2020. That also beat estimates for $0.21 per ADS.
At the time of this writing, UMC’s 52-week high was $12.68 and its 52-week low was $7.90.
Under $10 Stock No. 6
Based in Mexico, Vista Oil & Gas ADR (VIST) operates in the biggest oil and gas shale area outside of North America: Vaca Muerta in Argentina. At the end of 2021, the company had 40 new wells in Vaca Muerta, and it boasts that these wells are some of the best-producing in the region. Vista Oil & Gas plans to develop up to 850 locations over more than 180,000 acres in the Vaca Muerta.
Vista Oil also has operations in the Macuspana Basin in Mexico, with a 100% operating interest in the contract for block CS-01.
During 2021, Vista Oil’s shale production totaled 23,353 barrels of oil equivalent per day. Total production was 38,845 barrels of oil equivalent per day. Oil production accounted for 78% of the total, with 30,359 barrels of oil per day produced. The company also had total proved reserves of 181.6 million barrels of oil equivalent per day, which represented a 42% year-over-year increase.
Vista Oil & Gas also reported 2021 full-year revenue of $652.2 million, or 138% annual revenue growth. Full-year adjusted earnings surged to $0.89 per share, compared to an earnings per share loss of $1.32 in 2020. The company also reported fourth-quarter earnings of $0.40 per share, up from a loss of $0.25 per share in the fourth quarter of 2020. Analysts were expecting fourth-quarter earnings of $0.20 per share, so VIST crushed estimates by 100%.
Thanks to the stunning fourth-quarter and full-year report, the analyst community has increased first-quarter 2022 estimates by 52%. First-quarter earnings are now expected to soar 660% year-over-year to $0.38 per share, up from $0.05 per share in the same quarter a year ago.
Positive analyst revisions typically precede future earnings surprises.
At the time of this writing, VIST’s 52-week high was $9.07 and its 52-week low was $2.51.
Under $10 Stock No. 7
Wipro Limited (WIT) provides information technology services by utilizing analytics, robotics, cognitive computing, emerging technologies, the cloud and hyper-automation. The company operates primarily through three businesses, including IT Services, IT Products and India State Run Enterprise Solutions.
In 2021, Wipro invested $1 billion to expand its FullStride Cloud Services business. This business focuses primarily on helping its customers accelerate their cloud adoption. Wipro noted that this business has grown exponentially in recent years, and the company now employs more than 79,000 cloud professionals and more than 100,000 cloud-certified folks, which enables Wipro to better serve its cloud customers and attract new customers.
For its third quarter in fiscal year 2022, Wipro reported revenue of $2.7 billion and earnings per share of $0.07, which represented 29.6% year-over-year revenue growth and 4.2% year-over-year earnings growth. The analyst community was expecting earnings of $0.08 per share on $2.68 billion in revenue.
While the earnings fell short of expectations, Wipro noted that it was the fifth-straight quarter of strong revenue growth, as well as solid order bookings. The company added seven brand-new customers with more than $100 million revenue in the past 12 months. Wipro anticipates that it will build off this momentum going forward.
For the fourth quarter in fiscal year 2022, Wipro expects revenue between $2.69 billion and $2.75 billion. That translates to 20.6% to 23.4% year-over-year revenue growth.
At the time of this writing, WIT’s 52-week high was $9.96 and its 52-week low was $6.09.
Under $10 Stock No. 8
Willamette Valley Vineyards, Inc. (WVVI) produces wine from the grapes of its five vineyards in Oregon. It makes premium, super-premium and ultra-premium varietals of pinot noir — its best-selling wine last year — chardonnay, pinot grigio, pinot blanc and sauvignon blanc.
The Willamette Valley is Oregon’s leading wine region, and the top grape varietal in the region is used primarily for pinot noir. It’s not too surprising then that Willamette Valley Vineyards’ goal is to become the premier producer of pinot noir in the Pacific Northwest. The winery was named “One of America’s Great Pino Noir Producers” by Wine Enthusiast, so I’d say it’s on the right track to achieve this goal.
I personally have a beautiful wine cellar in my Reno, Nevada, home, and it includes pinot noirs from the Willamette Valley region. My Florida home also has a 500-bottle wine closet, and it is also loaded with pinot noirs from the Willamette Valley. It stands to say that the Willamette Valley Vineyards pinot noir is one of my favorites — and based on the company’s recent results, I’m not the only one who has a taste for the company’s wines.
In fact, sales held up well throughout the pandemic, with revenue overcoming a decline in hospitality-related orders to grow 10.4% in 2020. Direct-to-consumer retail sales increased 12.6%, buoyed by online sales and increased promotions like a brand ambassador program.
During the third quarter in fiscal year 2021, Willamette Valley Vineyards achieved total sales of $7.64 million, up 10.5% from $6.92 million in the same quarter a year ago. The sales increase was due in part to direct sales through distributors, as well as an overall jump in direct sales.
Third-quarter 2021 earnings, however, slipped 85.1% year-over-year to $95,129, or $0.02 per share, which is down from $640,347, or $0.13 per share, in the same quarter a year ago. Company management noted that the disappointing third-quarter results were due in part to 2020 vintages selling at a higher cost, as well as expenses related to the openings of three new tasting-room restaurants.
Analysts anticipate these factors, in addition to a lack of truck drivers for distributors and supply cost increases, to hinder Willamette Valley Vineyards results in the near term.
It’s clear that Willamette Valley Vineyards has been negatively impacted by soaring inflation and the supply-chain bottlenecks that have plagued most U.S. industries this year. But I’m confident that WVVI shares will bounce back, as the company is still experiencing strong demand for its wines… and that will add to its top and bottom lines.
At the time of this writing, WVVI’s 52-week high was $17.43 and its 52-week low was $8.53.
Under $10 Stock No. 9
Founded in 1985, Houston-based VAALCO Energy, Inc. (EGY) acquires, develops and produces crude oil. The company’s main location is in Gabon and Equatorial Guinea in West Africa.
The company boasts 12 producing wells with a processing capacity of 30,000 barrels of oil per day. In 2021, VAALCO increased reserves 250% compared to 2020.
During the fourth quarter of 2021, the company reported a net income of $34.4 million, or$0.58 per diluted share, and $81.8 million, $1.37 per diluted share, in net income for full-year 2021. VAALCO reported no debt and a strong cash balance of $48.7 million as of Dec. 31, 2021. Total crude-oil sales surged 348% year-over-year to $56.4 million.
The rising demand for oil combined with rising oil prices position VAALCO to continue to grow and prosper. In fact, management noted that that the company has seen early success in its 2021-2022 drilling campaign. The company intends to continue to grow production in a strong pricing environment.
At the time of this writing, EGY’s 52-week high was $7.41 and its 52-week low was $2.06.
Under $10 Stock No. 10
Jerash Holdings Inc. (JRSH) manufactures and exports custom sports and outerwear for 19 global brands, including New Balance, American Eagle and North Face (to name a few).
Most recently, the company announced it will start manufacturing clothing for Timberland. The initial order is to produce four fleece styles of outerwear — about 200,000 pieces annually.
The company boasts six factories and four warehouses. Jerash employs approximately 5,500 people worldwide and produces about 33,000 garments a day and more than 12 million annually.
The plan for growth is to use the company’s current infrastructure to explore new global markets. With strategic acquisitions Jerash will be able to diversify its product range, gain new customers, increase exports and raise revenue.
In February 2022, Jerash released its third quarter for fiscal year 2022 earnings. For the third quarter, the company reported earnings of $0.13 per share. Analysts were expecting earnings of $0.10 per share, so the company posted a 30% earnings surprise. Revenue increased 78.2% year-over-year to a record $36.8 million. Revenue was also up $16.15 million from the same period last year.
CEO Sam Choi attributes the company’s success to its loyal, dedicated and highly skilled workforce. This includes about 500 new employees from Jerash’s recent acquisition of MK Garments.
At the time of this writing, JRSH’s 52-week high was $9.20 and its 52-week low was $5.75.
Let the Bargain Hunt Begin
This report is just the beginning…
Now that you’re a Market360 member, I’ll continue to share with you tips and tricks navigating the markets.
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Regards,
Louis Navellier
