TipRanks
3 “Strong Buy” Stocks Under $10 That Are Poised to Break Out
Let’s talk a bit about growth and potential. The two are not always the same thing, but they both are vital for successful investing. The aim of all stock investments, after all, is to achieve growth – and that means finding stocks with the highest potential. It’s natural to gravitate toward the headline-grabbing, big-name giants; they’ve got huge market valuations, and have made their early investors very happy. But there’s an unfortunate truism in the markets, based on the iron rules of mathematics, that the larger a company gets, the less likely it is to show big returns. It’s far more likely for a $200 million company to double in value than for a $200 billion giant. And this brings us to the small-cap stocks. For investors seeking the best combination of high potential for growth and low cost of entry, the small caps may be just the ticket. We’ve used the TipRanks database to find several that fit a profile: a market cap under $400 million and a share price below $10. Even better, these small-cap tickers have Strong Buy consensus ratings from the analyst community, and boast strong upside potential. PowerFleet, Inc. (PWFL) The Internet of Things is transforming a host of industries, from factory floors to warehouses to trucking fleets. PowerFleet, the first small-cap stock we’re looking at, applies IoT and M2M tech to the security, control, tracking, and management of high-end assets, including tractor-trailers, containers, industrial trucks, and cargo, vehicle, and truck fleets. PowerFleet’s 1Q revenue was consistent with the previous quarter, and included an improvement in earnings. At the top line, the reported revenue of $29 million was only 1.3% off of Q4’s result. The 9-cent EPS loss reported was a 25% improvement from the 12-cent loss reported in the previous quarter. Year-over-year, EPS improved by 40%. Earlier this month, PowerFleet scored two major new contracts. On May 10, the company announced a 4-year contract with the Israel Police for implantation of a fleet management and driver solution system for more than 7,500 vehicles of 61 different types. The contract includes an option for a 4-year renewal. Two days later, PowerFleet announced a smaller deal with Alabama-based White Oak Transportation, to supply tracking services for the trucking company’s fleet of 850 vehicles, especially its cargo trailers. Covering PowerFleet for Canaccord, 5-star analyst Michael Walkley sees a clear path ahead for the company’s continued growth. “With 600K+ subscribers, PowerFleet has the scale and international footprint to compete for global tenders against leading fleet and asset tracking competitors. For fleet management, PowerFleet is one of the only true end-to-end solutions in the market spanning in-cab, refrigerated trailers, dry vans, and…