Plenty of investors have ruled out investing in stocks priced under $10. There is a common misconception that any stock priced below double digits is unworthy of a position and possibly even on the road to being delisted.
The truth is many of the stocks currently trading in the hundreds were once priced around $10 or less. Do your research, invest wisely, and the stocks you add to your portfolio around $10 or less just might blossom.
In fact, you can find software stocks priced around $10 or less that have legitimate merit. Let's take a quick look at two such stocks in Netsol Technologies (NTWK) and Immersion Corporation (IMMR).
Netsol Technologies (NTWK)
NTWK is a worldwide provider of IT services and enterprise software. NTWK's clients are in the financial industry. Based in Calabasas, CA, NTWK employs 1,100+ people. The company's stock has increased nearly 5% across the past six months and is up 65% in the past year. NTWK has a beta of 0.93, indicating that it is less volatile than the market.
NTWK has an overall grade of B, which translates into a Buy rating in our POWR Ratings system. The stock has a grade of A in the Value component and Bs in the Sentiment, Quality, and Momentum components. Click here to learn more about NTWK's grades in the Stability and Growth components.
Delve deeper into the components, and you will find NTWK's best component is its Value component. NTWK ranks better than 99% of the stocks traded on United States exchanges in this important POWR Rating component. The company's strongest trending POWR Rating component is its Sentiment component.
Of the 109 stocks in the Software - Application industry, NTWK is ranked in the top 20, slotting in at number 18. You can find other top stocks in this industry by clicking here. Analysts have established a price target of $8 for NTWK. If NTWK moves to this level, it will have popped by nearly 80%.
Click here to check out our Software Industry Report for 2021
Immersion Corporation (IMMR)
IMMR makes hardware and software that empower users to interact with video games and other computers with incredible immersion. IMMR's tech essentially helps gamers and others control computers with the sense of touch. IMMR's technology is at the forefront of several industries, from joysticks for gaming to mice, medical simulation products, and beyond.
IMMR is an overall grade of B and a Buy rating in our POWR Ratings system. The stock has a grade of A in the Quality component and Bs in the Sentiment, Value, and Growth components. You can find out how IMMR fares in the Momentum and Stability components by clicking here.
Out of the 131 stocks in the Software - Application industry, IMMR is ranked 14th. IMMR has a forward P/E ratio of 10.26, which is very low for the software industry. If the analysts are correct, IMMR will reach its average target price of $13.50 sooner rather than later. If IMMR moves to this price, it will have increased in value by more than 61%. The two analysts that cover IMMR, rate the stock a Strong Buy and Buy.
NTWK shares were trading at $4.27 per share on Friday morning, down $0.00 (0.00%). Year-to-date, NTWK has gained 12.37%, versus a 16.71% rise in the benchmark S&P 500 index during the same period.
About the Author: Patrick Ryan
Patrick Ryan has more than a dozen years of investing experience with a focus on information technology, consumer and entertainment sectors. In addition to working for StockNews, Patrick has also written for Wealth Authority and Fallon Wealth Management.
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