Many investors don’t pay much attention to stocks trading in single digits. That could be because they believe there must be a reason why these stocks are trading at such cheap prices. But they’re mistaken. For example, at different points in the past 20 or so years, shares of Apple (AAPL), Amazon (AMZN), and Netflix (NFLX) were all trading under $10.
Currently, there are more than 2,700 stocks trading under $10 listed on the AMEX, NYSE, and NASDAQ exchanges. Though many that aren’t worth adding to your portfolio, there are some that offer investors the chance to scoop up shares of fundamentally sound companies at cheap prices.
That’s why today we're highlighting 2 exciting stocks from our Top 10 Under $10 screen, which is just 1 of the 10 screens in our POWR Screens 10 service (more on that below). We believe SIGA Technologies, Inc. (SIGA) and Information Services Group, Inc. (III) are both high-quality stocks to invest in now.
SIGA Technologies, Inc. (SIGA)
SIGA operates as a commercial-stage pharmaceutical company. The company focuses on the health security and infectious disease market in the United States. Its flagship product TPOXX is an oral formulation antiviral drug for treating human smallpox disease.
On January 25, SIGA announced that it has entered into a collaboration with Bioarchitech, a United Kingdom-based biotech company, for investigating TPOXX (tecovirimat) in combination with the latter’s proprietary vaccinia-based immunotherapy platform in preclinical studies. This immunotherapeutic approach could prove to be beneficial for the company.
On January 10, SIGA announced that its Marketing Authorisation Application (MAA) for oral tecovirimat had been approved by the European Medicines Agency (EMA). This is expected to maximize product access for a broad range of users.
For the fiscal fourth quarter ended December 31, SIGA’s total revenues increased 205.3% year-over-year to $115.40 million. Operating income rose 250.7% from the prior-year quarter to $94 million. Net income and income per share came in at $73.20 million and $0.98, up 264.2% and 276.9% from the same period the prior year.
The consensus EPS estimate of $0.67 for the fiscal year 2023 indicates a 3.1% year-over-year increase.
The stock has declined 0.9% intraday to close the last trading session at $6.88.
SIGA’s strong fundamentals are reflected in its POWR Ratings. The stock has an overall rating of A, which equates to a Strong Buy in our proprietary rating system. The POWR Ratings are calculated by considering 118 different factors, with each factor weighted to an optimal degree.
SIGA has a Quality grade of A and a Growth, Value, and Sentiment grade of B. In the 405-stock Biotech industry, it is ranked #3.
Click here to see the additional POWR Ratings for Momentum and Stability for SIGA.
Information Services Group, Inc. (III)
III is a technology research and advisory company operating in the Americas, Europe, and the Asia-Pacific. The company’s offerings include digital transformation services, sourcing advisory, market intelligence, technology research, and analysis services.
On March 29, III announced that it had acquired an automated contracting solution, Agreemint, from its founders. The acquisition aligns with the company’s strategy of acquiring SaaS-based platforms that complement its advisory business and provide substantial revenue growth.
On January 25, III announced the launch of ISG Executive Insights™, a market intelligence and data analytics platform that can address the challenges of managing increasingly complex supplier ecosystems. About this new platform, Todd Lavieri, Vice Chairman and President, ISG Americas and the Asia Pacific, said, “ISG Executive Insights turns the data we gather and analyze in the course of advising on more than $18 billion of annual contract value every year into actionable intelligence for global clients and all ecosystem participants across all sectors of the marketplace.”
III’s revenues increased 4.8% year-over-year to $69.57 million in the fiscal fourth quarter ended December 31. Operating income rose 104.1% from the same period the prior year to $7.15 million. Adjusted net income and adjusted EBITDA improved 4% and 11.4% from the prior-year quarter to $5.14 million and $10.21 million, respectively.
Street EPS estimate for fiscal 2023 of $0.49 indicates a 20.3% year-over-year rise. Likewise, Street revenue estimate of $315.53 million for the same year reflects an increase of 7.6% from the prior year. In addition, III has beaten consensus EPS estimates in each of the trailing four quarters, which is impressive.
Over the past year, III’s shares have gained 53.6% to close the last trading session at $6.68. It has gained 1.5% over the past five days.
This promising outlook is reflected in III’s POWR Ratings. The stock has an overall A rating, equating to Strong Buy in our proprietary rating system.
III has a B grade for Value, Sentiment, and Quality. It is ranked #3 in the 81-stock Technology - Services industry.
To see the additional POWR Ratings for Growth, Momentum, and Stability for III, click here.
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SIGA shares were trading at $6.77 per share on Monday afternoon, down $0.11 (-1.60%). Year-to-date, SIGA has declined -9.97%, versus a -7.50% rise in the benchmark S&P 500 index during the same period.
About the Author: Anushka Dutta
Anushka is an analyst whose interest in understanding the impact of broader economic changes on financial markets motivated her to pursue a career in investment research.
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