3 "Strong Buy" Stocks Under $10: Alliance Resource, Orion Group, Rimini Street

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Wall street has grown even more bullish of late in anticipation of increased government spending under the Biden administration and a return to national economic health with an accelerated coronavirus vaccine rollout. While many stocks are riding very high price-wise, not all are. On close examination, there are several high-quality stocks that are still trading at affordable prices and could yield high returns.

While investing in low-priced stocks is typically riskier than investing in large-cap companies, the potential returns from some of these companies more than offset the investment risks. In fact, taking a position in stocks at affordable prices can benefit an investor significantly from the company’s long-term growth.

We think Alliance Resource Partners (ARLP), Rimini Street, Inc. (RMNI), and Orion Group Holdings, Inc. (ORN) are three such stocks. They have been trading at less than $10 despite witnessing a solid run over the past year. These companies have proven to have efficient business models and the required fundamental strength to continue driving the performance of their stocks.

Alliance Resource Partners (ARLP)

ALRP produces and markets coal to enterprise and industrial consumers in the U.S. The company has coal mines in Kentucky, Maryland, Indiana, Illinois, and West Virginia. ALRP’s stock has gained 91.3% over the past six months to close Friday's trading session at $6.12.

The company recently opened a new mining operation in Appalachia. It has also booked commitments for the supply of 9.9 million tons of coal until 2025. For the quarter ended Dec. 31, 2020, ALRP reported an increase in revenue of 3.1% sequentially. Its EBITDA rose 28.8% during the same period.

ARLP is expected to see a revenue growth of 26.9% for the quarter ended Mar. 31,2021 and 14.7% in 2021. Its EPS is estimated to grow 15.9% in 2021 and at a rate of 13.6% per annum over the next five years.

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