S&P unearthed nine issues under $10 that are good bets for bargain hunters: They're undervalued and they have momentumWe're celebrating the season of giving with visions of bargains dancing in shoppers' heads. Investors can also give their portfolios the gift of some low-priced stocks in the hope that what starts as a small token can blossom into larger returns down the road.
Of course, low-priced stocks—particularly ones that cost $10 or less—might be cheap for a good reason, so investors should look carefully before purchasing. Quite often, stocks fall below the $10 mark when a company faces some sort of financial turmoil or is forced to restructure to salvage the business. On the other hand, low-fliers could be companies that haven't been discovered or appreciated by the market.
That brings us to this week's screen. In the spirit of bargain hunting, we started by finding stocks priced at $3 to $10 per share. Each one has a market capitalization above $500 million, so they are liquid, or usually easy to trade.
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