Zacks.com Highlights: Baytex Energy, Capstone Turbine, Endocyte, First BanCorp And FuelCell

 | May 03, 2018 09:23PM ET

For Immediate Release

Chicago, IL – May 4, 2018 - Stocks in this week’s article include: Baytex Energy (TO:BTE) , Capstone Turbine (NASDAQ:CPST) , Endocyte (NASDAQ:ECYT) , First BanCorp (NYSE:FBP) and FuelCell (NASDAQ:FCEL) .

Screen of the Week of Zacks Investment Research:

Explosive Stocks Under $10

This screen is a bit of a departure from my normal stock screens.

Usually I require my screens to have a minimum price of $10 per share.

But I do at times scan for stocks under $10. And that's one of the screens I'm running for myself right now.

Penny Stocks

One dollar is a common threshold when screening for stocks. A lot of investors actively avoid penny stocks due to the speculative nature, the often wide bid/ask spreads, and the excessive volatility that is all too common in stocks under $1.00.

But some, of course, work out spectacularly well. And that's probably what keeps people interested in them.

Seeing a stock make a 100% return or 200% return or more from a base of 50 cents, for example, seems easier than investing in a $50 stock or $100 stock and seeing that double or triple.

$5 Stocks

Five dollars is another common minimum when screening for stocks since many institutional investors won't even consider a stock if it's trading under $5. And since institutional investors are usually the ones that can move a stock; having stocks that are open to them is usually a bonus.

And quite frankly, lots of cheap stocks are cheap for a reason, i.e., that's all they're worth.

But being over $5 does put them into a different category of consideration. Maybe not the best category, but a step up from stocks less than a dollar.

Stocks Under $10

My minimum has typically been $10. With over 10,000 stocks out there, this minimum quickly lets me cull down several thousand stocks with a click of a button.

That doesn't mean there aren't any good stocks below that price point, because there are.

And I can recall several sub-$10 stocks in the past that worked out exceptionally well. Maybe it's because I use them sparingly. Or maybe it's because I'm ultra picky in selecting them.

Either way, there can be a place for cheaper stocks in your portfolio sometimes.

And that's what we're looking at today.

And that's what we're screening for today…

For the rest of this Screen of the Week article please visit Zacks.com at: Zacks Investment Research

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