Sowing More Growth

Wild Oats also rates well in our Alpha Factor, which gauges the potential of a stock to make a large move upward on good news. Any upside to operating margins, earnings per share, or store growth over the coming months could cause some analysts to upgrade Wild Oats. In turn, this would likely cause traders to run to buy back the 12% of the company's shares currently being sold short.

Readers need to keep in mind that turnaround stories require a lot of patience and constant monitoring of the company's progress. There have been many potential turnarounds this past year in the Under $10 universe, like Charter Communications(CHTR Quote), which once seemed on track but then never followed through to gain any momentum. As it stands now, we like Wild Oats' chances of growing its profit over the coming quarters, and believe the stock will move higher accordingly.

P.S. Remember, stocks priced under $10 have the potential to move quickly. So, you might want to get our current recommendations now with a free trial to TheStreet.com Stocks Under $10.