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How to Find the Best Cheap Stocks Under $10 to Buy in May
COMPCompass(COMP) ZACKS·2025-04-29 20:30

Core Insights - The stock market has rebounded significantly from early-April lows, driven by optimism regarding potential trade war resolutions and strong first-quarter earnings results [1] Group 1: Market Trends - Investors are encouraged to maintain exposure to the stock market, particularly by considering cheap stocks priced at 10orless[2]Stockstradingunder10 or less [2] - Stocks trading under 10 are gaining attention from Wall Street, especially those with strong earnings outlooks and favorable Zacks Ranks [3] Group 2: Penny Stocks - The SEC has redefined penny stocks to include those trading under 5,whichareoftenviewedasspeculativeandcarryhighvolatility[4][5]Stockspricedbetween5, which are often viewed as speculative and carry high volatility [4][5] - Stocks priced between 5 and 10aregenerallyconsideredlessriskythanpennystocks,yettheystillpossessspeculativecharacteristics[6]Group3:InvestmentCriteriaAselectiveapproachisnecessarytoidentifywinningstocksunder10 are generally considered less risky than penny stocks, yet they still possess speculative characteristics [6] Group 3: Investment Criteria - A selective approach is necessary to identify winning stocks under 10, with specific screening parameters including broker ratings and earnings estimate revisions [7][9] Group 4: Company Spotlight - Compass, Inc. - Compass, Inc. is highlighted as a leading U.S. real estate technology company, experiencing significant growth with a 26% revenue increase in Q4 and a projected revenue of 8.15billionby2026[10][12]Thecompanyisexpectedtotransitionfromanadjustedlossof8.15 billion by 2026 [10][12] - The company is expected to transition from an adjusted loss of -0.31 per share to a profit of +$0.09 in 2025, with a remarkable projected growth of 194% in 2026 [12] - Compass has achieved a Zacks Rank of 2 (Buy) and has consistently exceeded EPS estimates in recent quarters, supported by positive free cash flow generation [14] - The stock trades at 0.5X forward 12-month sales, indicating significant value compared to its industry average of 4.8X [16] - Despite challenges such as high mortgage rates and a sluggish housing market, Compass is positioned to gain market share, as stated by CEO Robert Reffkin [13]