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How to Find Value in Single Digit Priced Stocks

Stocks priced at single digit prices are always attractive, but there is some deal of risk to accommodate. A few examples illustrate the point.<br>

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How to Find Value in Single Digit Priced Stocks

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  1. How to Find Value in Single Digit Priced Stocks Stocks priced at single digit prices are always attractive, but there is some deal of risk to accommodate. A few examples illustrate the point. TradeZero Ocean Place Cable Beach, Unit #1 Nassau, Bahamas

  2. Our eyes and ears are tuned for great deals. When it comes to stock trading as well, we look for stocks available for low prices. Commission free trading does satisfy the needs of those looking for value. With low priced stocks, all you need to do is ensure that they offer great growth opportunities. In fact, you do have many stocks with promise that trade for single digits. Still, you will need to be prepared for certain risks, if some of the stocks you select are not on the positive side of the Wall Street radar. You do have some great stocks that are trading for below $10. Among these are Ford ($F) and Groupon ($GRPN). Motley Fool analyst Rick Munnariz believes that if you snap these stocks now, you can enjoy their value rising back to double digit figures, where they were trading before. Why Is Ford Attractive? Ford, available for$9.39, has been having it hard these years. It has been that way for the entire auto ownership segment, but Ford has particularly been slow. It has a strong 6.4% dividend yield now though, which gives it a strong selling point. But the question is whether the dividend can be sustained unless the company improves its position. It was only in 2013 that Ford had a percentage gain of double digits. The first three quarters have all witnessed small deficits for Ford. What investors are now waiting for is a turnaround in its overseas business, which has again been sluggish. But the brand value of Ford is great. That, along with its great dividend yield are what make it attractive. The Possibility of a Bounce Back by Groupon in 2020 Groupon, available for $2.41, is now trading close to what its all-time lows were three years back. That shows it’s going through tough times now. It has been experiencing falling revenue for 15 quarters consecutively, and has also gone through a year-over-year drop of 16%, its greatest revenue decline ever. Groupon once only had to deal with unprofitable markets abroad. The company then pulled out of them. Recently though, it has been even struggling in its North American business. It is experiencing declining customers and revenue, to the point that Goldman Sachs downgraded the stock to a sell. www.tradezero.co +1.954.944.3885

  3. But then, when you look beneath the surface, the company is experiencing rising gross profit for each active customer. That shows that there is a turnaround that can happen, though it could take some time. Munnariz reckons that it is nearing its historic lows, so the market could think that with that bottom point reached, it could bounce back in 2020. Such deep analysis helps you understand if low-priced stocks are worth acquiring. With commission free online tradingservices, you can find greater value. www.tradezero.co +1.954.944.3885

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