3 Dirt-Cheap Value Stocks Under $10

Everyone loves a bargain.  If you’re someone who appreciates the power of a discount, then you’ll love these value stocks under $10.  We find that these small-caps have been ignored, and are trading at ridiculously low prices compared to what the companies are already worth.  A price to book below one, a debt/equity of 0.01, or a PE below 5 are simply too good to pass up. 

It’s unfortunate that these companies have been overlooked by investors in the market.  Turn their loss into your gain.  Value stocks have a strong tendency to eventually be recognized and properly valuated by investors in the long run.

You may not experience the pace of profits that a short term growth investor does.  However, your ride will most likely be less bumpy in comparison to the volatility that growth stocks invite.  Your investment will probably have a lot more security in a stock with value than in one with growth.  We picked these 3 stocks based on their underlying value, as well as promising earnings statistics which suggest that there are potential profits to be had in the short run.

Amira Nature Foods Ltd - (ANFI - Snapshot Report)

Amira Nature is engaged in producing and selling Indian specialty basmati rice.  It sells rice under its flagship brand, Amira.  It also sells other third party rice brands.  Amira Nature Foods currently holds a Zacks Rank #1 (Strong Buy).  The company has a PE of 4.87.  This coupled along with its outstanding PEG of 0.27 really gives an understanding of its impressive value.  It is trading at a massive discount, especially when you consider the fact that this company has a Style Score of “A” in both value and growth. 

The company has a debt/equity of 0.01.  This shows that this is an extremely strong company in terms of being able to handle debt.  It becomes even easier to handle debt with liquidity, and Amira has plenty of it, especially with a current cash flow growth of 30.59%.  Amira Foods has beaten on our earnings consensus in 3 of the last 4 quarters, not to mention by an average of 29.1% each quarter.  Amira reports its earnings on 6/15/15.

Ashford Hospitality Trust Inc - AHT

Ashford Hospitality is a self-administered real estate investment trust (REIT) which invests in hospitality.  Specifically, AHT owns and finances hotels.  Ashford Hospitality is a Zacks Rank #2 (Buy).  It doles out a hefty 5.05% dividend.  The company has a PE of 7.64 and a PEG of 1.29.  In the Style Scores, AHT gets an “A” for value.  This isn’t too surprising given its PE and PEG. 

Ashford also has a price to sales ratio of 1.2, while the industry’s as a whole is 5.83.  The REIT has an earnings yield of 13.09%.  90 days ago, our earnings consensus estimated earnings of $0.26 per share for this quarter.  Since then, our estimate has been revised, and now calls for earnings of $0.27 per share.  AHT has beaten our consensus estimate in each of the last four quarters, and by an average of 26.37%.  Ashford Hospitality reports its earnings on 5/7/15.

First Bancorp - (FBP - Snapshot Report)

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