10 Great Cheap Stocks to Buy Now for Under $10 in 2018

Posted on Wednesday, September 26th, 2018 by MarketBeat Staff

As the P/E ratios of most S&P 500 companies look very expensive and the stock market continues to regularly hit new all-time highs, it's very difficult for investors to find cheap stocks to buy now.

This goes for both share price, since most stocks are trading higher on a per-share basis, and valuation relative to earnings. Right now, the typical S&P 500 company is trading at about 25 times forward-looking earnings. Histortically, S&P 500 companies have traded at about 15 times earnings in more normal markets.

While the S&P 500 as a whole is expensive, there are still a handful undervalued stocks that are trading at less than $10.00 per share. Value investing opportunities for value exist if you know where to look. Putting together a list of cheap stocks to buy now requires looking into some smaller, riskier, unloved or undiscovered parts of the market. These low-priced stocks might not look especially attractive today, but long-term investors stand to profit if they are willing to be patient and hold onto shares of these companies through multiple market cycles.

Some of these companies are great investing ideas because they're too small and too risky to attract the interest of most mutual funds and Wall Street money managers. Others have been beat up by the market after a period of slowing earnings and profits, but are now trying to turn around and bounce back.

In this list, you might find marijuana stocks, dividend-paying stocks, large-cap stocks, growth stocks, small-cap stocks and even some bitcoin stocks. While these low-priced stocks have a lot of differences, these 10 stock picks all share a common characteristic, a super-low share price of $10.00 or less.

#1 - Danaos (NYSE:DAC)

Stock Price: $1.55
P/E Ratio: 1.5
Consensus Rating: Hold
Ratings Breakdown: 0 Buy Ratings, 1 Hold Ratings, 0 Sell Ratings.
Consensus Price Target: $2.00 (29.0% Upside)

Danaos logoDanaos Corporation, together with its subsidiaries, owns and operates containerships in Australia, Asia, Europe, and the United States. The company offers seaborne transportation services, such as chartering its vessels to liner companies. As of February 28, 2018, it had a fleet of 55 containerships aggregating 327,616 twenty foot equivalent units. The company was formerly known as Danaos Holdings Limited and changed its name to Danaos Corporation in October 2005. Danaos Corporation was founded in 1972 and is based in Piraeus, Greece.

#2 - Education Realty Trust (NYSE:EDR)

Stock Price: $2.95
P/E Ratio: 1.6
Dividend Yield: 3.76 %
Consensus Rating: Hold
Ratings Breakdown: 5 Buy Ratings, 3 Hold Ratings, 1 Sell Ratings.
Consensus Price Target: $41.9286 (1,321.3% Upside)

Education Realty Trust logoA leader in the collegiate housing industry since 1964, EdR is one of the largest developers, owners and managers of high-quality collegiate housing communities. EdR is a self-administered and self-managed real estate investment trust (REIT) publicly traded on the New York Stock Exchange (NYSE: EDR). As a REIT, we create and own properties that will bring value to our portfolio and stockholders for a long time. Our projects are built to last and to be profitable for many years to come.

#3 - Lannett (NYSE:LCI)

Stock Price: $4.85
P/E Ratio: 1.6
Consensus Rating: Hold
Ratings Breakdown: 0 Buy Ratings, 6 Hold Ratings, 0 Sell Ratings.
Consensus Price Target: $24.8750 (412.9% Upside)

Lannett logoLannett Company, Inc. develops, manufactures, packages, markets, and distributes generic versions of brand pharmaceutical products in the United States. The company offers solid oral and extended release, topical, liquid, nasal, and oral solution finished dosage forms of drugs that address a range of therapeutic areas, as well as ophthalmic, patch, foam, buccal, sublingual, suspension, soft gel, and injectable dosages. It also provides its products for various medical indications comprising cholesterol, muscle spasm, pain management, irritable bowel, antipsychosis, gastrointestinal, cardiovascular, thyroid deficiency, central nervous system, urinary, migraine, bronchospasms, and gallstone. In addition, the company manufactures active pharmaceutical ingredients. It markets its products under the Lipitor, Lioresal, Bentyl, Prolixin, MiraLAX, Imdur, Levoxyl/Synthroid, Concerta, Toprol-XL, Prilosec, Ditropan, Protonix, Imitrex, Brethine, and Actigall brands to generic pharmaceutical and private label distributors, drug wholesalers, chain drug retailers, mail-order pharmacies, other pharmaceutical manufacturers, managed care and health maintenance organizations, hospital buying groups, and governmental entities. The company has supply and development agreements with Jerome Stevens Pharmaceuticals, Summit Bioscience LLC, HEC Pharm Group, Andor Pharmaceuticals LLC, Dexcel Pharma, and Aralez Pharmaceuticals. Lannett Company, Inc. was founded in 1942 and is based in Philadelphia, Pennsylvania.

#4 - STRATA Skin Sciences (NASDAQ:SSKN)

Stock Price: $3.50
P/E Ratio: 1.8
Consensus Rating: Buy
Ratings Breakdown: 2 Buy Ratings, 0 Hold Ratings, 0 Sell Ratings.
Consensus Price Target: $3.00 (-14.3% Upside)

STRATA Skin Sciences logoSTRATA Skin Sciences, Inc., a medical technology company, focuses on the therapeutic and aesthetic dermatology market. The company operates through three segments: Dermatology Recurring Procedures, Dermatology Procedures Equipment, and Dermatology Imaging. Its products include XTRAC laser and VTRAC excimer lamp systems used for the treatment of psoriasis, vitiligo, and other skin conditions; the STRATAPEN MicroSystems, a micropigmentation device; and Nordlys, a multi-technology aesthetic laser device for treating vascular and pigmented lesions. STRATA Skin Sciences, Inc. was founded in 1989 and is based in Horsham, Pennsylvania.

#5 - Just Energy Group (NYSE:JE)

Stock Price: $3.07
P/E Ratio: 2.6
Dividend Yield: 12.57 %
Consensus Rating: Hold
Ratings Breakdown: 3 Buy Ratings, 4 Hold Ratings, 0 Sell Ratings.
Consensus Price Target: $5.62 (83.1% Upside)

Just Energy Group logoJust Energy Group Inc., through its subsidiaries, provides electricity, natural gas, and renewable energy solutions in the United States, Canada, the United Kingdom, Ireland, Germany, and Japan. It operates through Consumer Energy and Commercial Energy segments. The company offers various home and business energy solutions, including long-term fixed-price, variable-price, and flat-bill solutions to residential and commercial customers. It also provides solar energy solutions; carbon emissions solutions, such as green energy and carbon offsets and renewable energy credits; and smart thermostats and smart irrigation controllers. In addition, the company offers filters, LED light bulbs, and residential water sprinkler controllers; and home security, automation, and voice controlled devices. As of June 1, 2018, it served 1.6 million residential and commercial customers. The company markets its products through retailing, door-to-door marketing, brokers, independent contractors, sales representatives, online marketing, and others. The company was founded in 1997 and is headquartered in Mississauga, Canada.

#6 - Enduro Royalty Trust (NYSE:NDRO)

Stock Price: $3.65
P/E Ratio: 2.7
Dividend Yield: 14.59 %
Consensus Rating: Hold
Ratings Breakdown: 0 Buy Ratings, 1 Hold Ratings, 0 Sell Ratings.
Consensus Price Target: $4.00 (9.6% Upside)

Enduro Royalty Trust logoEnduro Royalty Trust operates a statutory trust. It owns a net profits interest representing the right to receive an 80% of the net profits from the sale of oil and natural gas production from properties located in the states of Texas, Louisiana, and New Mexico held by Enduro Resource Partners LLC. The company was founded in 2011 and is based in Houston, Texas.

#7 - Quarterhill (NASDAQ:QTRH)

Stock Price: $1.41
P/E Ratio: 2.7
Dividend Yield: 2.63 %
Consensus Rating: Buy
Ratings Breakdown: 1 Buy Ratings, 0 Hold Ratings, 0 Sell Ratings.
Consensus Price Target: N/A

Quarterhill logoQuarterhill Inc. focuses on acquisition and management of technology companies that provides products and services worldwide. Its Technology segment licenses patent technologies to approximately 355 companies. Its patent portfolios include patents relating to 3D television, phased loop semiconductor, semiconductor manufacturing and packaging, medical stent, intelligent personal assistant, streaming video, semiconductor clocking, LED lighting, smart meter monitoring, non-volatile flash memory and other memory, building automation, enhanced image processing, computer gaming, and various other technologies; automotive headlight assemblies, microcontrollers applicable to safety-critical aerospace, and CMOS image sensors; and medical, industrial, and automotive applications. Its Mobility segment provides automated truck weigh stations; toll road systems and equipment; traffic management and safety systems; VectorSense, a tire sensor suite; Vehicle Information-In-Motion, a traffic intelligence system; integrated traffic control systems; permanent and portable slow speed weigh-in-motion systems; portable wheel load scales; traffic data collection products; vehicle and axle detection equipment; and automated vehicle identification, and other hardware and software products. It serves intelligent transportation systems industry through salespeople, distributors, agents, other contractors, and systems integrators, as well as directly. Its Factory segment creates and licenses enterprise asset management (EAM) software solutions to asset intensive industries through its salesforce, as well as Internet. It offers WorkAlign, a product suite, which consists of integrated products, such as scheduler, IIoT, mobile for EAM, maintenance budgeting, warranty tracker, and analytics; and consulting services. The company was formerly known as Wi-LAN Inc. and changed its name to Quarterhill Inc. in June 2017. Quarterhill Inc. was incorporated in 1992 and is headquartered in Ottawa, Canada.

#8 - Entravision Communication (NYSE:EVC)

Stock Price: $5.00
P/E Ratio: 2.9
Dividend Yield: 3.92 %
Consensus Rating: Buy
Ratings Breakdown: 2 Buy Ratings, 0 Hold Ratings, 0 Sell Ratings.
Consensus Price Target: $6.00 (20.0% Upside)

Entravision Communication logoEntravision Communications Corporation operates as a media company that reaches and engages Hispanics across media channels and advertising platforms primarily in the United States, Spain, Mexico, Argentina, and other Latin America countries. The company operates through three segments: Television Broadcasting, Radio Broadcasting, and Digital Media. Its portfolio encompasses integrated marketing and media solutions comprising television, radio, and digital properties, as well as data analytics services. The company also provides a suite of digital advertising solutions, including the Headway digital programmatic advertising platform, the Mobrain mobile advertising platform, and the Pulpo media advertising network, which allows advertisers to reach and engage with their target audiences by providing access to premium digital inventory at scale across a wide range of devices. As of March 14, 2018, the company owned and operated 55 primary television stations; and 49 primarily Spanish-language radio stations. Entravision Communications Corporation was founded in 1996 and is headquartered in Santa Monica, California.

#9 - Genworth Financial (NYSE:GNW)

Stock Price: $4.17
P/E Ratio: 3.0
Consensus Rating: Hold
Ratings Breakdown: 0 Buy Ratings, 3 Hold Ratings, 0 Sell Ratings.
Consensus Price Target: $4.50 (7.9% Upside)

Genworth Financial logoGenworth Financial, Inc. provides insurance and homeownership solutions in the United States and internationally. It operates through five segments: U.S. Mortgage Insurance, Canada Mortgage Insurance, Australia Mortgage Insurance, U.S. Life Insurance, and Runoff. The U.S. Mortgage Insurance segment offers mortgage insurance products primarily insuring prime-based, individually underwritten residential mortgage loans. The Canada Mortgage Insurance segment provides flow mortgage insurance; and bulk mortgage insurance products and services that aid in the sale of mortgages to the capital markets, as well as helps lenders manage capital and risk in Canada. The Australia Mortgage Insurance segment offers flow mortgage insurance and bulk mortgage insurance that aids in the sale of mortgages to the capital markets and helps lenders manage capital and risk. The U.S. Life Insurance segment offers long-term care insurance products and fixed annuity products in the United States. The Runoff segment covers non-strategic products, which primarily include variable annuity, variable life insurance, institutional, corporate-owned life insurance, and accident and health insurance products. This segment's institutional products include funding agreements, funding agreements backing notes, and guaranteed investment contracts. It distributes its products and services primarily through appointed independent producers and employer groups. Genworth Financial, Inc. was founded in 2003 and is headquartered in Richmond, Virginia.

#10 - Och-Ziff Capital Management Group (NYSE:OZM)

Stock Price: $1.60
P/E Ratio: 3.1
Dividend Yield: 4.85 %
Consensus Rating: Hold
Ratings Breakdown: 1 Buy Ratings, 2 Hold Ratings, 0 Sell Ratings.
Consensus Price Target: $4.00 (150.0% Upside)

Och-Ziff Capital Management Group logoOch-Ziff Capital Management Group LLC is a publicly owned hedge fund sponsor. The firm provides investment advisory services for its clients. It primarily caters to institutional investors which include pension funds, fund-of-funds, foundations and endowments, corporations and other institutions, private banks and family offices. The firm invests in equity and alternative markets across the world. It employs quantitative and qualitative analysis to make its investments. For its multi-strategy portfolios, the firm employs strategies like convertible and derivative arbitrage, corporate credit, long/short equity special situations, buyout investments, merger arbitrage, private investments, and structured credit. It also invests in real estate and traditional real estate assets including multifamily, office, hotel and retail, loans, portfolio acquisitions, loan pools, operating companies, structured debt products, public securities, and non-traditional real estate assets including gaming, distressed land and residential, cell towers, parking, golf, debt and senior housing. For private equity investments, it considers investments in a variety of special situations that seek to realize value through strategic sales or initial public offerings. The firm typically invests in the energy investments. It prefers to invest in United States. It also manages a buyout fund, Och-Ziff Energy Fund. Och-Ziff Capital Management Group LLC was founded in 1994 and is based New York City with additional offices in Houston, Texas, London, United Kingdom, Hong Kong, Tokyo, Japan, Bangalore, India, Singapore, and Beijing, China.





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