Market Overview - The S&P 500 ended March on a positive note despite a 6% decline in Q1, while the Nasdaq fell over 10% due to tariff uncertainty and profit-taking after a strong market recovery from 2022 lows [1] - Wall Street is currently struggling to find direction as it awaits updates on tariffs from Trump on April 2 [1] Earnings Outlook - The Nasdaq has dropped to neutral RSI levels, and the earnings growth outlook remains strong, with the Fed projected to cut interest rates twice in 2025 [2] Investment Opportunities - There is a focus on finding cheap stocks trading for $10 or less, with Wall Street analysts optimistic about their improving earnings outlooks [3] - Stocks priced under $10 are generally less risky than penny stocks, which are defined as stocks trading under $5 [4][6] Stock Screening Criteria - A screening process has been established for stocks under $10, including parameters such as an average broker rating of 3.5 or lower, a minimum trading volume of 1,000,000, and a Zacks Rank of 2 or better [8][9] - Rolls-Royce (RYCEY) is highlighted as a strong candidate, having increased over 650% in the past three years and currently trading at $10, which is 49% below its average Zacks price target of $14.60 [7][13] Rolls-Royce Performance - Rolls-Royce has seen a 55% increase in operating profit in 2024, with sales up by 16%, and is on track to quadruple profits by 2028 [10] - The company has reinstated its dividend and initiated a share buyback program, with projected revenue growth of 19% in 2025 and 8% in 2026, leading to adjusted earnings growth of 27% and 19%, respectively [11]

Market Overview - The stock market is experiencing a selloff as Wall Street shifts to a risk-off mode, influenced by the economic impact of the tariff battle [1] - The Nasdaq is approaching correction territory, primarily due to significant declines in Nvidia and other AI-related stocks, despite Nvidia's impressive long-term performance [1] Investor Sentiment - A contrarian buying signal, CNN's Fear & Greed Index, has dropped from a neutral level of around 50 in mid-February to an extreme fear level of 15, indicating a potential buying opportunity for long-term investors [2] - The Federal Reserve is projected to cut interest rates in 2025, with S&P 500 earnings per share (EPS) expected to grow by 13.2% in 2025 and 13.6% in 2026, compared to a projected growth of 7.4% in 2024 [2] Stock Selection Criteria - The article discusses strategies for identifying cheap stocks trading for $10 or less, suggesting that investors should consider buying during the current market weakness [3] - Stocks under $10 are categorized into penny stocks (under $5) and slightly less risky stocks (between $5 and $10), with the latter being more recognizable to investors [4][6] Stock Screening Parameters - A screening process is outlined for selecting stocks under $10, which includes criteria such as an average broker rating of 3.5 or lower, a minimum of two analysts covering the stock, and a Zacks Rank of 2 or better [7][8][9] BGC Group Analysis - BGC Group, Inc. is highlighted as a potential investment opportunity, with a projected revenue growth of 13% in 2023 and 12% in 2024, alongside a 21% increase in adjusted earnings for FY24 [10] - The company serves a diverse clientele and has reported trading volumes exceeding last year's first-quarter records [11] - BGC is expected to achieve an 8% revenue growth in 2025 and a 10% increase in sales in 2026, with adjusted earnings projected to grow by 17% in both years [12] - BGC stock has appreciated by 95% over the last five years, outperforming the Zacks Finance sector, and currently trades at a 50% discount to its sector with a dividend payout [12][13]