Episode summary
3 Strong Buy Stocks Under $10
Zacks Market Edge
· · 26 min
Summary
The host screened for stocks under $10 using Zacks Rank number ones and selected three with positive earnings momentum: Chatham Lodging Trust, InnovAge, and BCB Bancorp. The common thread is that analysts have been raising estimates, even though the companies operate in very different corners of the market: lodging REITs, senior care, and small regional banking.
Chatham Lodging Trust is the cheapest of the three on traditional valuation and offers a dividend yield of 4.6%. The host argued that its hotel portfolio, recent acquisitions, and sharp upward revisions to 2026 earnings estimates make it look like a stabilizing value play after a weak hotel cycle.
InnovAge was presented as a turnaround and growth story tied to aging-in-place care for frail seniors. BCB Bancorp was the most controversial pick because of a recent loan write-down and miss, but the host said the hit looked partly one-time and noted the bank still yields 3.9% while analysts now expect a strong earnings rebound.
Key takeaways
- Chatham Lodging Trust is trading at $7.98 with a 4.6% dividend yield and a 6.6 P/E, which the host said makes it the cheapest pick.
- Analysts raised Chatham’s 2026 earnings estimate from 106 cents to $1.20 in just seven days, helping drive the Zacks number one rank.
- InnovAge has 8,000 participants across 20 centers in six states, and the host sees aging-in-place care as a growth opportunity.
- BCB Bancorp’s loan write-down hurt the stock, but the host said the bank still has a 3.9% dividend yield and improving net interest margin.
- All three stocks were chosen because analysts were raising earnings estimates, not because they were simply cheap shares.
Notable quotes
“Something good is going on at the company for the analyst to be raising all at the same time”
“they increase their quarterly dividend by 11% or 10 cents a share”
“And that's pretty dramatic increase there”
“this is an alternative to nursing facilities where they have a center and then the seniors go to that center for customized health care”
How the episode opens
Stocks, bonds, ETFs, straight out of downtown Chicago. This is Zach's Market Edge. Welcome to Zach's Market Edge, the podcast about investing in your life.
I'm your host, Tracy Reinick, and this week I'm going solo to talk about stocks under $10. Now, I just did an episode on buying some stocks that had pulled back off their high and that this could be a buying opportunity in some of those red-hot stocks. And I didn't realize that all three of them were trading around $1,000 a share until one of you mentioned it in the comments on the YouTube.
And so I thought, well, that's not right. Um, I wasn't really paying attention to how much they were, but it is very difficult to buy a stock that's already at $1,000 a share. So, this week, that's why I'm doing some stocks under $10, because we're going to go the other way and look at these ones that I know many of you like to buy.
Now, here at Sachs, we actually do run a newsletter that is, you know, top stocks under $10, and it's run by the illustrious Brian Bolan here at Sachs. And he has a very difficult job picking these stocks that are under 10 because they can be volatile. Many times they're often small caps.
There's not a lot of good information about them out there. Uh we do have some analyst coverage on them because they have the Zach's rank, but otherwise it's the wild west in the stocks under $10. And one of the stocks I'm bringing you this week is in Brian's portfolio, although I didn't plan it that way, but I chose stocks that are the top rank.
He looks for that, too. So, it's not surprising that we overlapped on one of the three stocks.
From the episode’s captions: roughly the first two minutes, lightly cleaned. Keep watching on YouTube →
Topics
- under 10 stocks
- strong buy
- earnings estimate revisions
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Watch “3 Strong Buy Stocks Under $10” on YouTube
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