This Day On The Street
Continue to site
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

5 Stocks Under $10

By James Brumley

NEW YORK ( TheStreet) -- There's a balance between performance and stability when it comes to stock prices. Equities priced under $5 per share can offer huge percentage returns, but are generally volatile ( Read 4 Speculative Stocks That Could Pay Off Big-Time ). Stocks priced more than $10 are generally more predictable, but offer a muted upside. In between $5 and $10 though, stocks offer the best of both worlds. Here are five sub-$10 stocks to consider today.


1. Boise (BZ): Paper and forestry stocks have been one of the market's recent-but-quiet big winners, and Boise has been blazing the trail every step of the way. Shares are up about +46% in the past 12 months, while the forestry indices are up about +28% in the same period. The overall market, by comparison, has only gained about +14% in the same timeframe.

While such outperformance has often been followed by matching underperformance in the past year and a half, for paper stocks -- and Boise in particular -- a continued uptrend may be more than merited.

Skyrocketing materials costs through 2007 nearly brought the paper and corrugated box industry to its knees. For better or worse, the recession that began at the end of that year solved the problem. Though materials costs were up on a year-over-year basis for Boise last quarter, they're still well under 2007's stunning levels, despite the mild economic rebound since then. The result? Boise just posted record-breaking third-quarter operating income of $0.44 per share, and the sustainable balance between materials costs and paper demand remains intact.

2. Aircastle (AYR - Get Report): While it may feel too late to tap into the revival of the airline industry, it's not. The back door is still open, via Aircastle.

The company arranges sales and leases of commercial jet aircraft, which was admittedly a lousy business to be in through 2009 while air passenger traffic was declining. In 2010, a light appeared at the end of the tunnel. Though bottom lines haven't actually rebounded yet, but they're expected to in 2011 on a year-over-year as well as on a sequential basis.

Besides, with a trailing as well as a projected price-to-earnings ratio (P/E) just above 8.0, it's not like value is a question mark with Aircastle.

3. American Axle & Manufacturing (AXL - Get Report): The initial reaction to last quarter's earnings for American Axle & Manufacturing wasn't a kind one. Despite topping analyst estimates of $0.39 by actually bringing home $0.52 per share, the company dropped from a high of $10.15 to an ultimate low of $8.84 thanks to a "disappointing" full-year revenue forecast in the $2.2 billion to $2.3 billion range.
1 of 2

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
SYM TRADE IT LAST %CHG
EXM $0.00 0.00%
BZ $0.00 0.00%
AYR $20.79 0.92%
AXL $20.20 -0.49%
CLS $12.20 -0.12%

Markets

Chart of I:DJI
DOW 16,528.03 -114.98 -0.69%
S&P 500 1,972.18 -16.69 -0.84%
NASDAQ 4,776.5080 -51.8170 -1.07%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs