The current market conditions – the NASDAQ is down 28% year-to-date, and the S&P 500 is down 17% – offer bargain hunters a target-rich environment. Plenty of sound stocks have seen their prices decline, pulled down by the general market headwinds and the overall stock trend, to levels that have left them too cheap to ignore.
At this level, investors can find the benefits of cheap stocks, like those under $10, which offer both learning opportunities and huge upside potential. However, in evaluating stocks to buy, it is important to look at more than just the price.
Wall Street’s analysts are taking note, and are looking for the ‘Strong Buys’ among the market’s cheapest stocks. Some of their picks make interesting reading, and we’ve opened up the database at TipRanks to pull up the details on two of these stocks. These are equities priced under $10 per share, and Wall Street expects them to double or more in the year ahead. Here are details.
SkyWater Technology (SKYT)
We’ll start with a semiconductor chip company, the only fully US-owned pure-play silicon foundry in operation. SkyWater designs, develops, engineers, and manufactures semiconductor chips, and operated through the full process, from the computer models to the foundry floor. The company is based in Minnesota and uses a Technology as a Service (TaaS) model, offering customers a range of tech – including carbon nanotubes, power management, and photonics, as well as silicon chipsets – and the services to maintain it.
SkyWater went public in April of last year, in an IPO that bumped up investors’ hopes. The company sold about 8 million shares, and raised over $112 million in gross proceeds. Since then, however, SkyWater’s shares have dropped sharply, and are down 72% year-to-date.
In the past month, SkyWater has had some good news for investors. It announced a licensing agreement with Xperi in mid-May, gaining access to Xperi’s hybrid bonding technology to enhance its products capabilities. And, in early May, SkyWater reported total Q1 revenue of $48.1 million, beating expectations…
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