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
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

5 Stocks Under $10

While the actual numbers may have been shy of estimates, valuations here are also teetering on being ridiculous. American Axle shares are priced at a mere 8 times earnings on a trailing basis in the last four quarters, and even if earnings shrink per current EPS estimates of $1.35 for 2011 (which isn't likely), the stock's still priced at about seven times forward-looking forecasts. The market seems to have caught its mistake though; the stock has bounced back to $9.96.

Bottom line: this stock has far more upside potential packed into its future.


4. Celestica (CLS): A stock that rallies on good news makes sense. A stock that rebounds despite bad news may not make much sense, but in many regards it speaks volumes more about how investors view the company.

After the electronics manufacturer announced last week it would likely be posting income under analysts' estimates of $0.25 per share for the current quarter, shares fell from $8.84 to a low of $7.96 -- for half of a day. Now it's even higher than where it started that journey.

So the company countered the bad news with a rebound catalyst? No. It's just that Celestica is (1) still consistently growing earnings on a year-over-year basis, and (2) is still bargain-priced at less than 10 times 2011's anticipated earnings.

5. Excel Maritime Carriers (EXM): Finally, there's a difference between "based in Greece" and "dependent on the Greek economy." Excel Maritime Carriers is only guilty of the former, but the stock has taken several lumps in the past few months, suggesting investors are assuming the latter.

That's not to say the company escaped the global recession unscathed -- Excel Maritime did indeed dip into the red throughout most of 2009. In the last three quarters though, operating profits have not only improved, they've been positive, and the company appears to be coming out of the storm. In fact, the company topped last quarter's EPS estimate of $0.10 with a per-share profit of $0.11.

While one -- or even three -- solid quarters don't mean everything, the plausibly forecasted (2011) P/E of 8.8 goes a long way toward that end.

Action to Take: Investors don't have to choose strictly between stability and performance. The narrow band of stocks priced between $5 and $10 offer a very rewarding balance of both.

This article originally appeared on StreetAuthority. To read more articles from James Brumleyon StreetAuthority, you can visit this link.

Disclosure: At the time of publication, James Brumley owned no positions in the stocks mentioned.

RELATED STORIES:


Become a fan of TheStreet on Facebook.

This article originally appeared on StreetAuthority, founded in 2001 by industry veterans Lou Betancourt and Paul Tracy. StreetAuthority is a financial research and publishing company with offices in Austin, Texas and Gaithersburg, Maryland. The company aims to help individual investors earn above-average profits by providing a source of independent and unbiased investing ideas.
2 of 2

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

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
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

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

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, 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
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

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

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
DOW 16,880.36 -31.75 -0.19%
S&P 500 1,970.07 +0.12 0.01%
NASDAQ 4,462.9020 +20.2040 0.45%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs