The stock market is roaring back as Wall Street continues to buy up beaten-down AI stocks and beyond. In almost the blink of an eye, the S&P 500 has charged to new all-time highs as Wall Street cheers the possibility of an Iran deal and strong earnings results.
The resurgent market might mean that investors want to dive back into stocks to make sure they are exposed to longer-term upside in the back half of 2026 and beyond.
One area of Wall Street that investors might want to start buying in August are best-in-class cheap stocks trading under $10 a share.
On top of their cheap stock prices, the stocks we learn to find earn strong Zacks Ranks, driven by improving earnings outlooks. Wall Street is also very high on these cheap stocks trading for under $10 a share.
Penny Stocks
One dollar or less used to be the common threshold for what we call “penny stocks.” Today, the SEC has expanded penny stocks to securities that trade for less than $5 a share. Many investors avoid these stocks because they are speculative in nature.
Meanwhile, penny stocks often trade infrequently and hold wide bid/ask spreads. These stocks also carry many other traits that, in many cases, cause excessive volatility. With that said, some penny stocks perform incredibly well, which helps them remain attractive.
How to Find the Best Cheap Stocks Under $10 to Buy Now
Moving on, let’s briefly discuss the next class of cheap stocks. Stocks that trade in the $5 to $10 range are generally less risky than their penny stock counterparts. Investors might be more likely to have heard of these companies or seen the tickers. They are, however, still inherently more speculative than many other higher-priced stocks.
Investors can obviously find winning stocks for under $10 if they are extremely selective. So today, we narrowed the list of thousands of these more speculative stocks down to a more manageable group of $10 and under stocks that might help boost your portfolio.
Screen Parameters
• Price less than or equal to $10
• Volume greater than or equal to 1,000,000
• Zacks Rank less than or equal to 2
(No Holds, Sells or Strong Sells.)
• Average Broker Rating less than or equal to 3.5
(Average Broker Rating of a Hold or Better.)
• # of Analysts in Rating greater than or equal to 2
(Minimum of at least two analysts covering the stock.)
• % Change F1 Earnings Estimate Revisions -- 12 Weeks greater than or equal to 0
(Preferably upward earnings estimate revisions, but definitely no downward revisions.)
Here is one stock out of the roughly 40 highly-ranked stocks trading under $10 a share that made it through the screen today…
Best Cheap Stocks to Buy Now and Hold: Home Healthcare Stock AVAH
Aveanna Healthcare Holdings Inc. AVAH provides investors long-term upside in a growth area of the healthcare space as the U.S. population grows older and wealthier.
AVAH is aleader in home care operating across home health & hospice care, medical solutions, and private duty nursing services. The home care leader serves roughly 80,000 patients across nearly 40 states, reaching “medically fragile children, adults, and the geriatric population.”
Image Source: Zacks Investment Research
The home health company completed its acquisition of Family First Holding in early June. The deal added a “scaled, multi-state provider of pediatric home care that primarily provides skilled Private Duty Nursing services” to Aveanna Healthcare's portfolio and boosted its presence in heavily populated Florida, Illinois, Pennsylvania, and Texas.
Aveanna is projected to grow its revenue by 9% in 2026 and another 7% next year. The home health firm is projected to grow its adjusted EPS by 22% this year and 12% in FY27. AVAH’s FY26 and FY27 earnings estimates have climbed around 10% in the past three months to help it earn its Zacks Rank #2 (Buy).
Image Source: Zacks Investment Research
AVAH, which is scheduled to report its Q2 results on Thursday, August 13, has crushed our bottom-line estimates by an average of 130% in the past four quarters. Most importantly, Aveanna’s recent positive EPS revisions extend an impressive streak of upward revisions over the last few years.
Aveanna stock has soared 460% in the past three years, yet it is still down around 25% from post-2021 IPO records. AVAH trades at a 30% discount to its Medical-Outpatient and Home Healthcare industry at 13.3X forward earnings.
Get the rest of the stocks on this list and start looking for the newest companies that fit these criteria. It's easy to do. And it could help you find your next big winner. Start screening for these companies today with a free trial to the Research Wizard. You can do it.
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Disclosure: Officers, directors and/or employees of Zacks Investment Research may own or have sold short securities and/or hold long and/or short positions in options that are mentioned in this material. An affiliated investment advisory firm may own or have sold short securities and/or hold long and/or short positions in options that are mentioned in this material.
Disclosure: Performance information for Zacks’ portfolios and strategies are available at: www.zacks.com/performance_disclosure
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