At Zacks, we suggest that investors pay close attention to our proven stock-picking system, which stresses the importance of earnings estimate revisions in finding winning stocks. But we also understand that lower-priced stocks often make attractive investments, and we will always cover stocks that are making newsworthy moves, big or small.
With that said, stocks that are currently trading under $10 per share can often be particularly enticing to many retail investors, as they present the chance to scoop up large positions akin to what intuitional investors and Wall Street big-wigs do with S&P 500 giants.
However, stocks trading under $10 are subject to substantial swings, which can often happen in one trading session. This means that these $10 or less stocks are some of the biggest movers on any given day.
Now, let’s take a look at three noteworthy companies trading for less than $10 per share that tumbled today:
JA Solar Holdings Co., Ltd. JASO
This Beijing-based solar energy company has grabbed a lot of attention lately, and its stock price had soared almost 70% this year up to today as renewable energy remains a hot-button issue. But on Tuesday, shares of JA Solar sank by over 14% to $6.85 per share, which is down nearly 20% from their 52-week high.
The manufacturer of high-performance solar cells saw its stock price fall after reporting that gross profits fell 10% year-over-year. The company also missed earnings estimates, and its cell shipments declined by 7.3%. JA Solar is currently a Zacks Rank #3 (Hold) (also read: JA Solar (JASO) Misses Q3 Earnings, Revenues Increase Y/Y).
Mesoblast Limited MESO
Mesoblast, which develops cell-based medicines, saw its stock price tank over 9% today, just one day after posting first-quarter 2018 financial results that failed to inspire investor confidence. Mesoblast Limited is currently a Zacks Rank #5 (Strong Sell) and sports an “F” for both Value and Growth in our Style Scores system.
The biomedicine company’s current P/S ratio is 191.78, which is insanely high even for comparable companies in this tough industry. What’s worse, based on our Zacks Consensus estimates, Mesoblast revenues are projected to fall in the upcoming two quarters. Shares of Mesoblast fell to near their 52-week low, as they rest around $4.90 per share.
21Vianet Group, Inc. VNET
Shares of 21Vianet Group, one of China’s leading carrier-neutral internet data center providers, plummeted almost 5.50% after the company announced today that it would report its third-quarter 2017 financial results on Tuesday, Dec. 5.
Based on our consensus estimates, 21Vianet Group is projected to post a $2.06 per share third-quarter loss. The company almost broke even in the year-ago period. It seems that investors might have started to sell their positions as they get nervous about a potentially massive year-over-year EPS decline. 21Vianet Group is currently a Zacks Rank #3 (Hold) and scored a “D” for both Value and Momentum in our Styles Scores system.
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