Microvast (US:MVST) ZACKSยท2025-10-07 21:35Core Insights - The stock market is near all-time highs in early October, driven by projected earnings growth, anticipated interest rate cuts, and increased artificial intelligence deal-making [1][2] - Investors are encouraged to consider adding exposure to high-quality stocks priced under $10 as they enter the third-quarter earnings season [1][2] Group 1: Penny Stocks - The SEC defines penny stocks as securities trading for less than $5 a share, expanding the traditional threshold of one dollar [3] - Many investors avoid penny stocks due to their speculative nature and infrequent trading, which can lead to excessive volatility [4] Group 2: Stocks Under $10 - Stocks priced between $5 and $10 are generally considered less risky than penny stocks, although they still carry speculative characteristics [5] - A selective approach can yield winning stocks under $10, with a narrowed list of stocks that meet specific screening criteria [6] Group 3: Screening Parameters - Key parameters for screening stocks under $10 include an average broker rating of 3.5 or lower, at least two analysts covering the stock, and positive earnings estimate revisions over the past 12 weeks [7][8] - Microvast (MVST), a stock priced at $4.50, is highlighted as a strong buy with significant earnings growth potential [7][9] Group 4: Microvast (MVST) Overview - MVST is positioned to benefit from the growing demand for electricity due to AI data centers, with U.S. electricity demand projected to increase by 75% by 2050 [9][10] - The company has seen its stock price increase approximately 2,400% since November 2024, with a recent 56% rise in the past month [11] - MVST is projected to grow revenue by 22% this year, reaching $563.5 million, and is expected to turn from an adjusted loss of -$0.27 to a profit of +$0.19 per share by 2025 [16]