Hi there, Fools. I’m back to highlight three stocks under $10. While low-priced stocks carry plenty of risks, they can be a source of ideas when looking for
- small, obscure, and underfollowed companies;
- dirt-cheap bargains; or
- intriguing turnaround situations.
If you have big dreams of turning an average $27K TFSA into $1,000,000 in 20 years, you’ll need explosive returns to do it. Although low-priced stocks are on the volatile side, the upside return potential might be well worth the risk.
Let’s get to it.
Leading off our list is department store operator Hudson’s Bay (TSX:HBC), whose shares sport a price of $9.94 per share.
Slumping sales and declining margins continue to weigh heavily on the stock, but now might be an opportune time to pounce. Despite losing $462 million from continuing operations in Q2, digital sales jumped 19%. Moreover, the company’s Saks Fifth Avenue segment saw positive same-store sales growth of the ninth straight quarter.
“We continue to concentrate on controlling the ‘controllables’ — serving our customers and lowering expenses and inventory while making strategic investments for our future,” said CEO Helena Foulkes. While we’ve progressed in simplifying the business and strengthening operations, the second quarter demonstrates that we are still in the early stages of what HBC can become.”
HBC shares are down 5% over the past year.
With a cheapish price tag of $4 per share, alternative fuel technologist Westport Fuel Systems (TSX:WPRT)(NASDAQ:WPRT) is next on our list.
Westport shares continue to perform well in 2019 after a volatile 2018. In the most recent quarter, EPS of -$0.02 met expectations as revenue of $8.4 topped estimates by $9 million. Moreover, cash flow and profitability improved, suggesting that Westport’s competitive position remains solid.
“In the marketplace today, vehicles powered by LNG, CNG, RNG and LPG are delivering results,” said CEO David Johnson. “We are delighted that our cost-competitive and commercially available clean transportation products are being increasingly deployed to deliver emission reduction benefits to customers around the world.”
Westport shares are up a massive 120% so far in 2019.
Surviving the sandstorm
Rounding out our list is oil and gas explorer Athabasca Oil (TSX:ATH), which trades near its 52-week lows of $0.71 per share.
Weak energy prices, concerns over debt, and a highly volatile stock have spooked investors, but now might be a decent time to take a speculative jump. In the most recent quarter, EPS of $0.11 topped expectations by $0.08. Petroleum and natural gas productions clocked in at a combined 33,958 boe/day.
Although net debt still stands at roughly $240 million, liquidity remains healthy at about $425 million.
“The company has flexibility to direct sustainable free cash flow to debt reduction, share buy backs, or capital projects,” Athabasca reminded investors.
Athabasca shares sport a stomach-churning beta of two and are down 28% so far in 2019.
The bottom line
There you have it, Fools: three amazing stocks under $10 worth checking out.
As always, don’t see them as formal recommendations. Instead, view them as a starting point for more research. Low-priced stocks are particularly fickle beasts, so plenty of homework is still required.
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Fool contributor Brian Pacampara owns no position in any of the companies mentioned.