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Here's How to Find Great Cheap Stocks Under $10 to Buy in June
INTRInter & Co(INTR) ZACKS·2024-06-04 19:56

Market Overview - The stock market has experienced a cooling off period as it closed May and began June, which is seen as a healthy recalibration following a bullish stretch and a significant surge from the October 2023 lows [1] - The recent pullback is expected to create more attractive buying opportunities for strong stocks, emphasizing the importance of staying exposed to the market and buying into weakness [1] Investment Opportunities - Investors looking to buy stocks in June are encouraged to consider cheap stocks trading for 10orless,whichhavestrongZacksRanksduetoimprovingearningsoutlooks[2]−Stockspricedunder10 or less, which have strong Zacks Ranks due to improving earnings outlooks [2] - Stocks priced under 10 can be categorized into penny stocks (under 5)andstockspricedbetween5) and stocks priced between 5 and 10,withthelattergenerallybeinglessriskybutstillspeculative[3][5]PennyStocks−Pennystocks,definedassecuritiestradingforlessthan10, with the latter generally being less risky but still speculative [3][5] Penny Stocks - Penny stocks, defined as securities trading for less than 5, are often avoided by investors due to their speculative nature and infrequent trading, which can lead to excessive volatility [3][4] - Despite the risks, some penny stocks can perform exceptionally well, maintaining their attractiveness [4] Stocks Under 10−Stockstradinginthe10 - Stocks trading in the 5 to 10rangearegenerallylessriskythanpennystocks,andinvestorsmaybemorefamiliarwiththesecompanies[5]−Aselectiveapproachcanyieldwinningstocksunder10 range are generally less risky than penny stocks, and investors may be more familiar with these companies [5] - A selective approach can yield winning stocks under 10, with specific screening parameters to identify potential investments [6] Inter & Co. Inc. - Inter & Co. Inc. is highlighted as a promising stock under 10,servingastheholdingcompanyforGrupoInterandofferingacomprehensivedigitalfinancialappknownastheSuperApp,whichservesover32millioncustomersacrosstheAmericas[9][10]−Thecompanyisprojectedtogrowitsrevenueby2110, serving as the holding company for Grupo Inter and offering a comprehensive digital financial app known as the Super App, which serves over 32 million customers across the Americas [9][10] - The company is projected to grow its revenue by 21% in 2024 and 17% in FY25, reaching 1.34 billion, with adjusted earnings expected to increase by 153% this year and 37% next year [11] - Inter & Co. shares have increased by 85% over the last year, outperforming its industry, but have recently pulled back below its 50-day moving average, indicating potential testing of its 200-day moving average [12]