Investing in stocks under $10 is the best way to start your investment journey in the stock market. It’s considered a pragmatic way to enter the market and gain experience. Some attractive stocks under $10 can give you high returns.
There’s risk involved in any investment, and small prices stocks are a risky investment. However, if you accept the risks of buying out-of-favor assets, there are winners to be found if you are careful.
We have compiled the best stocks under $10 for 2021. You don’t need to break your bank account to buy these stocks.
Zix (ZIXI) is a security technology firm that offers email encryption services, email data loss prevention, and mobile applications. The online security services company gained popularity during the pandemic as many businesses shifted to online mode. Almost every business has adopted the hybrid working model. To Zix’s relevance, it’s an excellent opportunity for investors to look into ZIXI stock.
Moreover, the rising security threats for the online industry have been deteriorating. For this, businesses need a robust security network and services in every regard. Zix has a bigger opportunity than ever before to explore new solutions to increasing security problems.
ZIXI Stock enhancing its Services
Zix is enhancing its cloud email security services. Recently the company launched its Secure Large File add-on for Zix Email Encryption. This will allow users to eliminate the challenge of sending large files securely. That will support the delivery of any file type up to 100 GB per message. Moreover, there will be no need for storage quotas and new credentials for recipients.
Coming on the financial side of ZIXI stock, the company has grown quite well in the second quarter of 2021. Following the positive results from the prior quarter, Zix’s revenue increased 18%, driven by the strong adoption of secure cloud platform drives.
The two most important factors for Zix from the last quarter are increased cash and cash flow from operations. The total cash increased by 43% compared to the first quarter of 2021, and cash flow from operations increased by a whopping 212%.
BIT Mining Limited
BIT Mining (BTCM) has a pretty good stock, but it comes with a bit of risk as it is highly volatile. The 52-week price range is between $2.55 – $35, which says it all. That is because of the way the Bitcoin and cryptocurrency market moves. If you’re patient enough, BTCM is a good stock that can give you high returns.
Let’s just get away from the Bitcoin sentiments and talk about some financials. BIT revenues during the second quarter of 2021 took a sharp rise. The net revenues were ¥2,873.9 million, almost 445.1 million in U.S. dollars, increasing from ¥19.6 million in the first quarter of 2021. BIT’s mining pool business pushed the increase in revenue, which accounted for 95% of total net revenues.
As of June 30, 2021, the company had cash and cash equivalents of ¥65.4 million, which is almost $10.1 million. At the same time, the restricted cash was around $44.1 million.
BIT Mining future plans
BIT Mining plans to invest in a cryptocurrency mining data center in Ohio, jointly with Viking Data Centers. As per the agreement, BIT will invest around $12.14 million in the Ohio Mining Site, operated through a joint venture with Viking Data. The development of this new mining site is expected to be completed in February 2022.
Other than the company’s operations, BTCM stock will rise based on the movement of Bitcoin. BIT holds various cryptocurrencies, including 1,147 bitcoins, 1,083 Ethereum, 61.4 million Dogecoins, as of June 30, 2021.
Energy Transfer LP
The next stock in the list of stocks under $10 is ET. Energy Transfer (ET) is another good-looking company with a well-balanced stock. The company deals in the midstream oil and gas infrastructure business. ET stock has put up a remarkable show in 2021 so far, and it can further pump in the coming times.
Energy Transfer is also thriving on the global stage for its environmental services. ET’s Dual Drive Technologies recently received the Environmental Excellence Award from the GPA Midstream Association.
The Vice President, David Coker, said it’s great to get recognition for their work in reducing Scope 1 CO2 emissions. ET’s Dual Drive system reduced CO2 emissions by more than 630,000 tons in 2020 alone. That’s an outstanding achievement for the company moving forward.
Analysts believe that ET stock is trading at roughly a 50% discount to its fair value estimate. That makes Energy Transfer stock one of the best values in the energy sector. Moreover, the company has also reduced its debt by $5.2 billion this year. Another essential factor that adds to ET stock is its dividend. ET has a current dividend yield of 6.48%, which is above average.
Overall, ET stock looks solid. The total institutional ownership is almost 38.90%. At the same time, the top analyst firms have been bullish on the stock as well. BofA Securities have a buy rating with a price target of $14. Tudor Pickering recently upgraded their rating from hold to buy with a price target of $14. In addition, Wolfe Research has listed ET from peer performance to outperform with a price target of $13. With this, including other analysts, ET stock has an average price target of $13.82.
To support this, the moving averages have also been positive. SMA-50 is above SMA-200, which is an indicator to enter the trade.
DatChat (DATS) is a communication software company. DATS went public on August 13, 2021, with the offering price of $4.15 per unit.
DatChat is focused on the mobile messaging application and has a free messaging app called ‘DatChat Messenger.’ DATS offers a traditional messaging platform while providing users with complete privacy and control features for their sent messages.
DATS stock is relatively new in the market but based on the company’s offering, and we can see the stock move up. Since its IPO, the stock has already touched $18.50, which shows investors have their eyes on the stock.
DatChat is working in collaboration with Rutgers University Computer Science. Rutgers will provide access to engineering talent, collateral, and industry-leading research and information.
The good thing about DatChat is that it has taken quick initiatives towards recognizing the brand image. The company recently awarded a $1 million managed services contract to IZEA Worldwide. IZEA will market DatChat Messenger and execute a celebrity influencer online dating campaign.
DatChat is also investing in blockchain technology. On 29th and 30th September, the company held an online blockchain technology conference – its gold sponsorship of the Blockchain Expo North America.
DATS is quite enthused in driving Blockchain innovation and adoption. The focus is to create awareness for various use cases of blockchain, particularly data privacy and social media.
We believe DatChat encompasses a solid working ground and has a vast opportunity to explore the problems of messaging industry. That is privacy. In this regard, DATS stock can be exciting going forward.
Autoscope Technologies Corporation
The last stock from the list of stocks under $10 is AATC. Autoscope Technologies (AATC) has had a good year, with the stock soaring over 77%. The company operates in the traffic and highway segment, where it develops and markets video and radar processing products.
The increasing traffic on roads has paved the way for Autoscope to offer its services across the globe. AATC recently updated its second-quarter results of 2021. The overall performance improved due to increased royalties and product sales, and improved cost efficiencies in its Image Sensing Systems subsidiary.
The royalties increased by 12% to $2.5 million, and product sales increased 11% to $1.3 million. While the cash balance at the end of the second quarter was $8.4 million, a slight increase from the first quarter.
Stocks under $10 – Autoscope Current Operations
Autoscope is improving in every segment it’s currently operating. The company has experienced faster than anticipated adoption of its RTMS Echo product in the highway segment. That will help Autoscope in achieving organic growth objectives. The company’s core objective is to evolve the Echo product, which will improve transportation and help urban highway development.
If we analyze the AATC stock, it looks pretty solid as the current and quick ratios are high. That shows the company is good to continue with its growth. AATC is trading around its support level, making it one of the best stocks under $10 to buy in 2021.